Extra it deducted by company

This query is : Resolved

Vishal Kumar Golchha (Querist)
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23 July 2013 My Company has ended up deducting about Rs 1 lakh additional income tax from me over what is correct. They did not take my loss from hoiusing property calculation.

Alternatively I have to pay Rs 2.10 Lakhs of Long Term Capital Gains Tax for the same FY.

Can the excess Income tax be deduced from the long term capital gains tax payable.

Thanks

VIshal

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 August 2013 Yes the excess tax deducted can be utilised to adjust tax on capital gain. Also understand the tax computation:

Income from Salary
Income from House Property
Incoem from Business of Profession
Capital Gains
Income from Other Sources

Gross Total Income
Less: Deduction under Chapter VIA (80C, etc)
Total Income

Tax on total income
Less: Tds/Advance Tax
Tax Payable/Refund

So you see TDS is reduced from the final tax liability.