Final tax liability to be deducted from salary of march

Saurav Ray (Executive (Accounts)) (32 Points)

09 April 2014  

Dear Experts,

It has come to notice in an organisation that while computing final income tax liabilty of employees, if it is found that TDS deposited on account of an employee till February is figuring out more than gross tax payable, then such difference amount is refunded to him, and the refund amount is adjusted / net-off against March TDS Liability.

The accountant is sticking on the point that the same is being carried out as per provisions of the I.T Act.

Is there any such provisions in the Act? If yes, how to show the adjusted refund in Form 24Q? Please explain in detail.

Thanks in advance.