Tds on salary
This query is : Open
01 March 2012
In F.y 2011-12 one of employee retire on 29th Feb 2012. We have paid salary to him up to Jan 2012. And the salary for Feb 2012 + Leave encahment + gratuity will be paid in next F.y 2012-13 may be in May 2012 or June 12. While considering his tax liability whether we consider his income whole amount payable to him for F.Y 2011-12 though salary for Feb-2012 + Leave encahment + gratuiry not paid and accordingly tax calculateed on whole amount. Or consider income up to Jan 2012 & accordingly tax calculated and Feb-2012 salary & leave encashment + gratuity in next F.y i.e 2012-13 as on paid basis & tax calculated accordingly.
Pls guide
Pls guide
01 March 2012
The TDS needs to be deducted in the FY 2011-2012 itself. The rationale behind being that on retirment, the salary for february and other allowances becomes due to him. TDS has to be deducted at time of booking or payment which ever is earlier
01 March 2012
though for section 192 tds is deductible on payment basis, practically every one deduct it on due basis.
01 March 2012
But we will booked the expenses at the time of payment.In that case what is the solution. Pls guide. Because we have financial problem so we release the payment may be after 2 or 4 months.
01 March 2012
You need to make the provision into the books of account. Due to financial problems of the company if the payment is delayed, no problem.
The Tax need to be deducted on actual payment or accrual, whichever is earlier.
Again differing of current year expenses to next year (for any reason) is not a prudence practice and will not save you from deduction of TDS before March 12.
With regards,
CA Prasad Modak
The Tax need to be deducted on actual payment or accrual, whichever is earlier.
Again differing of current year expenses to next year (for any reason) is not a prudence practice and will not save you from deduction of TDS before March 12.
With regards,
CA Prasad Modak
01 March 2012
Shamkat, its best you book the provision in current year itself as u are aware the expnses has to be booked.Increase or Decrease in the provision can be adjusted in the next financial year itself.
02 March 2012
We have to follow practice to make any entry in books at the time of payment. In that case pls explain if we will mak epayment in next f.y then we will make the TDS payment in next F.y. Is the practice is right or wrong. pls guide
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
