Hi All,
Can a company over-deduct TDS on an employee. For e.g. as per the prevalent tax structure by TDS for the month of March comes to around 14,750/- however the company is persistent on cutting TDS at the rate of 16,000/-. The explanation given is it is good to cut extra, you can always get it back by filing your returns. Can you validate this explanation, please.
Regards,
Neil
Employee Challenges Excessive TDS Deduction by Employer; Clarification Highlights Need for Accurate Tax Declarations An employee questioned if a company can over-deduct TDS, citing an example where the TDS for March should be 14,750/- but the company insists on deducting 16,000/-. The company justifies this by suggesting that any excess can be reclaimed through tax returns. A respondent clarified that this practice is incorrect since employers know the tax slab from the start of the year, and unnecessary overpayment should be avoided. They emphasized the employee's responsibility to provide accurate tax declarations and proofs to prevent excessive deductions. Another participant expressed gratitude for the clarification provided. (AI Summary)
TaxTMI 
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TaxTMI 
