Salaried employees can request additional TDS to avoid penalties

Salaried employees who missed the March 15 advance tax deadline still have a chance to avoid penalties. They can ask their employers to deduct extra tax from their salaries before March 31. This is especially important for those who have additional income that was not reported earlier. Employees usually do not need to worry about advance tax if their employers are deducting the correct amount of tax. However, if someone receives unexpected income during the year, it can lead to a tax shortfall. If this shortfall is not addressed, employees might have to pay interest penalties under Sections 234C and 234B. To prevent these penalties, employees should inform their employers about any additional income. They can request the employer to deduct more tax from their March salary. According to experts, there is no strict legal deadline for making such a request, but there may be internal deadlines set by employers. However, employers often have set cut-off dates for accepting additional income declarations, typically in March. If payroll has already been processed or if the additional tax request is too high relative to the salary, the employer may reject the request. Despite these challenges, employees can still prevent interest penalties if they act quickly and their employers are willing to make adjustments. It is crucial for employees to communicate with their employers and understand any internal deadlines for tax declarations.