CA Satish K. Kadam
NSDL 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.