23 September 2010
Your salary of March will be taxed in the previous year in which it is received and you will get credit of tds in the same previous year.
In case of TDS other than TDS on salary, TDS is deducted on date of payment or credit whichever is earlier.
23 September 2010
ANY ONE ELSE CAN RESOLVE MY QUERIES.
SIMPLE QUESTIONS
WHAT IS DATE OF CREDIT FOR TDS LAWS
WHETHER OF DATE OF BOOKING OR DATE OF BILLING BY THE PARTY
AND IN CASE OF SALARY PAYMENTS, MARCH SALARY PAID IN APRIL WHETHER TDS TO BE DEDUCTED ON 31ST MARCH AND PAYABLE ON OR BEFORE 31ST MAY OR TDS TO BE DEDUCTED ON THE DATE OF PAYMENT AND PAID WITHIN 7 DAYS FROM THE END OF MONTH.
Date of payment or credit, whichever is earlier, will be taken as relevant date for TDS.
So its the question of booking of bill or payment, will be THE date for TDS.
How to justify, a booking after the date of bill or receipt date of bill ?
The answer : you may recd a bill & you follow a policy of booking it only when it is approved by the authorized person. So a booking date after the bill date can be justified.
Further...while booking any expenses / provision, a principal or relevancy works. That means any expenses or provision pertaining to a particular financial year should not be prolonged to the next financial year.
So as long as the booking date varies within the financial year , it can be justified.
23 September 2010
Now.. on to your 2nd question. TDS on salary.
Here also the same principle follows & accordingly, since the salary is pertaining to March, so it has to be booked in March only & the TDS has to be paid by the 7th of next month.
23 September 2010
TDS on salary to be deducted at the time of payment of salary only and not at the time of credit as per section 192.
Section 192 is the only exception to the rule of payment or credit whichever is less. So TDS deductible at the time of payment only.
However in view to issue TDS certificate and to show TDS deductible on salary paid during the year and so that income matches will TDS claim and hence is deducted at the time of credit for the month of March and paid to the central government.
25 September 2010
[Time and mode of payment to Government account of tax deducted at source or tax paid under sub-section (1A) of section 192.
30. (1) All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government shall be paid to the credit of the Central Government—
(a) on the same day where the tax is paid without production of an income-tax challan; and
(b) on or before seven days from the end of the month in which the deduction is made or income-tax is due under sub-section (1A) of section 192, where tax is paid accompanied by an income-tax challan.
(2) All sums deducted in accordance with the provisions of Chapter XVII-B by deductors other than an office of the Government shall be paid to the credit of the Central Government—
(a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and
(b) in any other case, on or before seven days from the end of the month in which—
(i) the deduction is made; or
(ii) income-tax is due under sub-section (1A) of section 192.
CAN ANY EXPERT TRY TO ANALYIS THIS RULE WHICH IS APPLICABLE FOR CURRENT FINANCIAL YEAR 2010-11 AND ASST YEAR 2011-12 IN THE LIGHTS OF MY ABOVE QUERIES
27 September 2010
All the dates are as earlier. Only due date of payment of TDS for the month of March(1st to 31st) is 30th april. Due date of return of 4th quarter is 15th may (earlier it was 15th june)
CAclubindia
