18 March 2010
yes, tds on salary is to be made on payment basis. Tax deduction is warranted only at the time of actual payment of salary. If employer follows, mercantile system of accounting and provides salary on accrual basis, tax shall notbe deducted u/s.192. Irrespective of the method of accouting followed by employer tax deduction (tds) is to be made only on actual payment of salary
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