CA Satish K. Kadam

CA Satish K. KadamNSDL has issued new file validation utility (FVU) version 4.6 for filling and correction of TDS quarterly return from FY 2010-11 and onwards. It has some additional controls put in which check various calculations and tried to get maximum information with less error. However due to more control authority has not kept in mind few concepts of TDS on salary. It is very difficult to prepare TDS on salary form 24Q return. 

In this new version it is checked that TDS amount must be less than income paid credited. Theory of taxation says tax is always less than income. But in case of TDS provisions as applicable under section 192 of the income tax act is little differ.

On the one hand it is allowed to adjust loss from house property and income from other sources while computing taxable income under the head salary. Further Credit for TDS deducted is also reduced from TDS amount calculated on salary income.

In the quarterly return for Quarter 4 there is no column provided for TDS deducted on income from other sources house property. If we put TDS amount in the column “TDS from previous employer” then utility will check amount in the column income from salary from previous employer. Naturally we put value as zero so error will show as TDS is more than income from previous employer.

Further in case of transfer employee sometime taxable income of current employer may be less than tax to be deducted considering previous employer salary and TDS deducted by previous employer. This is happed in case previous employer may not consider investments and compute tax and to get proper computation present employer give deduction on account of all investments. Here some time taxable income of present employer might be negative or less than actual tax to be deducted. Up to earlier version we use to put salary as Rs. 1 (as negative salary was not permitted) but now it is not possible.

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  1. CA Satish Kadam says:

    Dear Sir,
    Present employer will take previous employer gross salary and give fresh deduction \ exemption \ Chapter VI-A deduction and work out tax liability considering rebate u\s. 87A. Form total tax liability he will give credit for TDS deducted by previous employer and balance TDS will be deducted.

  2. VIRAL SHAH says:

    Dear Sir,

    In case an employee having salary from different employers and tds deducted by respective employers. At the last employer he is getting his form no. 16. my question is how to biffercate the slab rate of tax and effect of section 87A while filling the annexure – II ?

    Like previous employer has considered the salary for the period he has worked and tds also. In the said calculation he has already considered effect of 87A now how a present employer should give effect when his salary is below 5 lac ? Software Utility automatically consider effect of 87a when his salary is below prescribed limits.

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