I've a doubt regarding the TDS on salary (sec-192).
The doubt is when TDS should deduct whether at the time crediting the employee( i.e; at the time of passing the J.V entry) or at the time of making payment(i.e; at the time of making bank payment)?
As per Income Tax act Sec-192
192. Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax 53[***] on the amount payable at the average rate of income-tax54[***] computed on the basis of the 55[rates in force] for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
26 July 2013
Mr. Sam pat sir, first of all thaks for your reply. see the first 2 lines in sec-192, there is a sentence - "at the time of payment, deduct income tax".
26 July 2013
i will ask you 1 question incase for march salary accrues evry day but actually payment is made in april so when u will deduct tax in march or april?????
what in case if salary is not paid in cash but in kind then how wil u apply the above provison??
26 July 2013
Generally what all the companies are doing was deducting TDS at the time crediting to the account. But when i go through the provision, i found the line "at the time of payment, deduct income tax". so due to this line i confused. so once again please observe this and reply me sir....
CAclubindia
