TDS on Salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2011 Dear Experts,

I had query regarding TDS & Int. on TDS on salary as follows:

A Partner/Director in a firm/company is drawing the salary of Rs 4lacs in the year depending upon his business given to the firm/company. He draws 2lacs in Nov10, 1lac in Dec & 1lac in Feb.

Now how should Company/Firm deduct the TDS on his salary during the year & what is the rate of interest which will be charged on the late deduction & late deposit of TDS on salary.

Please reply ASAP & thanks in advance.

ca cs shriyans jain

ca cs shriyans jain (Expert)
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21 April 2011 1%p.m or part of the month u/s 234B.

O.D.SHARMA

O.D.SHARMA (Expert)
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21 April 2011 Hi,
you deduct TDS under salary head & give deduction/Exemptions with taking considerations.dealy will be @1% intrest

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CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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21 April 2011 No TDS is required to be deducted in case of salary to partner by a firm and this income is regarded as "Profit from Business and Profession" in the hands of the recipient.

O.D.SHARMA

O.D.SHARMA (Expert)
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21 April 2011 Mr Daruka,Think of Director salary in question & Penality.

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2011 Thanks to all for your quick reply.

But I want to know that what is the interest which will be charged from the firm /co for the late deposit/deduction of TDS on salary and not from the point of view of the Director/Partner.

Please reply.

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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21 April 2011 My answer was relating to partner only. TDS has to be deducted from Director's remuneration.

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2011 Again opened for discussion since I am not getting the satisfactory answer.

I am confused on the Rate of Interest which the company has to pay for defaulting in the depositing the TDS ( let us say it deposits the TDS in Dec10 wholly).

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CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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22 April 2011 Interest up to 30.06.2010

* For late deduction of Tax deduction at source-(rate 1 % per month or part thereof)
* For late deposit of TDS after deduction (rate 1 % per month or part thereof)

Interest from 01.07.2010

* For late deduction of Tax deduction at source-(period date from tax deductible to date of actual deduction )(rate 1 % per month or part thereof)
* For late deposit of TDS after deduction (period :date from tax deducted and date of actual deposit)(rate 1.5 % per month or part thereof)

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