TDS Deducted erroneously

[Guest]

TDS on salary was deducted with the details provided by the staff for the month of December and the staff now claims that he has some other savings to be considered. On considering this additional savings, there was no tax liability for this person. TDS was yet to be remitted to the Government.

Please advice, if we can remit this amount to this staff along with the next month salary and not to remit this TDS to the Government.

[Ram Babu]

You can do that, since no TDS deposited to the government.

AI Summary

TDS on salary: if deduction not remitted and liability falls away, employer may refund via payroll adjustment. If salary TDS was deducted but not remitted and subsequent information shows no tax liability, the employer may reverse the deduction and pay the withheld amount to the employee in the next salary run; this administrative adjustment is contingent on the TDS not having been deposited with the government.