TDS

This query is : Resolved

Devendra (Querist)
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03 July 2010 If for eg. the salary of Feb 09 and March 09 is paid in April 09, then will the employer give Form 16 showing salary of only 10 months or of whole year?

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Devendra

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 July 2010 No. Salary income will be taxed Payment or accural which ever is earlier. so 12 months salary need to consider as accural basis

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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03 July 2010 Mr ramesh truely said that salary incoe is the exception which is taxable either accrual or actual payemtn basis

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 July 2010 No Dear Prakash. act is cleary telling accural or payment which ever is earlier in salary also, If you receive advance salary during the year which is related to nex year you need to pay this year only also accual base the salary need to be taxed so Accural or Payment which ever is earlier

Akhil Agrawal

Akhil Agrawal (Expert)
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05 July 2010 When Employer is Paying Salary in April of March & Feb that means he has booked the salary in Accounts in the PY itself. so he would have deducted TDS on accrual basis on salary. Hence he has to issue for the 12 months.