As an individual, my organization deducts TDS on my salary income and deposits it to the govt every quarter.
Unfortunately in March 2020, let us say I couldn't submit the documents for IT deduction and additional TDS was deducted without considering my IT deductions, and salary slip was issued, and salary payment made for March 2020 with the extra TDS dedcution. However my organization has time till April 30th 2020 to file the returns.
If I submit the documents (for FY 2019-20 ) in April 2020, can the TDS adjustment be made in April 2020 salary? Basically, can the tax deducted for previous financial year be adjusted in April 2020 salary, and the returns filed on April 30, 2020 be modified to include the adjustment. This benefits me because only the adjusted TDS is paid to the govt by the organization, and I dont need to claim it by filing. Can someone pls help with a legal standpoint in view of the below circular
The ciruclar by IT department says that (2017-18) says that
Adjustment for Excess or Shortfall of Deduction: The provisions of Section 192(3) allow the deductor to make adjustments for any excess or shortfall in the deduction of tax already made during the financial year, in subsequent deductions for that employee within that financial year itself
Here the term "within that financial year itself" - will it also include adjustment made in the payroll of April of next financial year, but pertaining to the previous FY. Basically in my situation explained above, after deducting TDS for a FY in March payroll, can it be adjusted in the subsequent April payroll (next FY), and the returns filed by April 30th for the previous FY revised. Is this legally right.
(Not asking whether organizations do it or not, as most organizations may not. Just asking how to interpret the clause. Would be really helpful)
CAclubindia
