12 April 2012
Dear Friends, If we paid salary for 10 months to someone in the current financial year & balance salary of 2 months paid in next financial year, wat will be TDS impact, whether we have to deduct TDS for whole year in the same year or we will have to deduct TDS of two months in the next financial year. Thanks in advance.
12 April 2012
Incom from salaries taxable based on the accrual or receipt which is earlier. I.e Salary would be taxable in the year which it accrued or receipt which is earlier. so in your case even though salary for two months paid in the next year the two months salary accrued in the current year so you have to deduct TDS for the whole year i.e. for 12 months salary. OM SAI SRI SAI JAI JAI SAI
CAclubindia
