Is employer not responsible to calculate tds correctly?

TDS 549 views 5 replies

ksr

specialist

26 Points Joined August 2011

Hi,

I work in a private company and earn taxable income. For income tax calculation for next FY, i submitted my declaration which includes the income from self occupied & partially let out house property, and home loan interest .

But my employer is not considering my income from self occupied & partially let out house property, and home loan interest.

If he considers all these components my tax liability comes down and my TDS deductions will be reduced.

He says that only some of the declarations would be considered and other income, home loan interest deductions to be taken up with my tax consultant for getting the refunds.

As the TDS is being deducted now & for getting the returns i have to wait till Sept 2012, i am talking to my employer higher ups.

It would be helpful to me to know, is employer not responsible to calculate TDS correctly?, if employee gives the declaration.

If there is any section that mandates the employer to calculate TDS based on employee declration, please inform me the same.

Thanks,

ksr

Replies (5)

Mihir

Wealth Manager

5293 Points Joined December 2008

Are you receiving a salary or a fixed fees? In case of salary, the employer can deduct less TDS as per the declaration given by the employee.

In case of fees, which comes u/s 194J, the deduction of TDS is fixed at 10% and reducion in rates will be done only after the employer received a letter from the AO of the employee.

ksr

specialist

26 Points Joined August 2011

Hi Mihir,

Thanks for your reply. I am receiving salary only.

I know employer can deduct the TDS based on my declaration.. My previous employer used to calculate all other income from house property and calculate the TDS accordignly..

My my current employer is refusing to consider my other income from house property. This is resulting to extra TDS deducted from my salary and i have to wait till Sept 2012 to get the return..

Pls can you share any govt rule that madates the emploers to calculate tds based on employee declaration.

Thanks in advance for the help.

Regds,

ksr

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

if you are eligible to get form 16 then you can ask for considering your claims, but if the form 16A is to be issued by your employer, then he will not consider your any claim.

for issuing form 16 there must be employer - employee relations, while the form 16A will be employed on contract basis.

Mihir

Wealth Manager

5293 Points Joined December 2008

The employee needs to satisfy the employer with declaration and supporting documents proving the payments made by the employee, thereby making him/her eligible for lower TDS deduction on "salary". The employer should be satisfied with the documents submitted by the employee.

ksr

specialist

26 Points Joined August 2011

Hi, Thanks for the replies.

Yes, i get form-16 from my employer and what ever the other income/deductions i have are genuine.

My employer has confirmed that i am eligible for lower TDS deduction. but he could not reduce the deduction due to his software tool doesn't have the provision to consider such scenarios. He says next FY onwards they will amend the tool & this year, i have bear the pain.

Since i want to take it up my higher ups, it would help me if there is any govt. rule (or section number) that mandates employer to consider all declarations.

Thanks for understanding & replying it.

Regds,

ksr