If salaries for the month of January 2014 has been provided in the books by way of passing Journal Entry on 31st January 2014 i.e. Debiting all expenses & crediting all liabilities including net salary payable to employees. Now, payment of these salaries provision have been made in the first week of February 2014, then when the TDS payble become due? Either it is 7th February 2014 or 7th March 2014? I believe that, only for section 192, TDS payable is on the basis of payment made and not credited.
Your feedback on this is required on urgent basis.
10 February 2014
I think your this question has been replied.
Anyhow, once you pass the entry in your books and credit TDS for the month of January on 31st January the TDS is due by 7th February and not 7th March. If TDS has not been deposited then it will attract interest u/s 201 and along with interest it can be paid any time but till it is paid you have to add on the interest for the number of months delayed.
Still I believe that for TDS deducted on salaries, the TDS has to be made within 7 days of the next month from the date on which payment has been made. So, if the salaries for the month of January 2014 have been paid on 4th February 2014, the TDS deducted on salaries has to be paid on 7th March 2014.
Please share your views. In the IT Act, u/s 192, very first paragraph reads as under:
Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the [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.
Please share your views. In the IT Act, u/s 192, very first paragraph reads as under:
Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the [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.
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