TDS deducted on last day of f.y

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2010 can some body give me the clarification regarding following query

for example

i have entered some commission bills in 31.03.10 , i deducted the tds and made the payment of commission same day after deduction of tds.

I know that date of tds depositing will be 07.04.10

I want to convience my seniors that tds depositing date will be 07.04.10 but they are not agreeing on the same, they said that date will be 31.05.10.

can somebody tell me section or noticifacation under which it has been written?
it is neccessary they want supporting

I will be grateful to him for answer

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

15 April 2010 you are right.once the payment made on the 31.3.2010.tds has to be paid on 7.4.2010.you can check the tds deposit date schdule it self can be find

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

15 April 2010 AGREE. 31ST MAY IS APPLICABLE WHEN THE AMOUNT IS ONLY CREDITED. BUT IF THE PAYMENT IS MADE ON 31ST ITSELF YOU HAVE TO PAY TDS BY 7TH APRIL.

Upgrade to CAclubindia Pro. Subscribe Now!

Kamlesh Chokhani

Kamlesh Chokhani (Expert)
Follow

16 April 2010
Agreed

releveant rules is Rule 30 Income Tax rules

It talks about two months time when amount is credited on last day. for other time limit is seven days.

abstract od Rule ( 30 i)

in the case of deduction by or on behalf of persons other than those mentioned in clause (a),—

(i) in respect of sums deducted in accordance with the provisions of section 193, section 194A, section 194C, section 194D, section 194E, section 194G, section 194H, section 194-I, section 194J, section 195, section 196A, section 196B, section 196C and section 196D—

(1) where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H or the income by way of rent referred to in section 194-I or the income by way of fees for professional or technical services referred to in section 194J or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls

Kamlesh chokhani

VIKAS AGGARWAL

VIKAS AGGARWAL (Expert)
Follow

16 April 2010 please see the language of rule 30 , as per the language of rule 30 is as under,

"credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls"

It means 31st May is appicable only in case of credit of account not for actual payment. In case you make the actaul payment on 31st march you are lible to deposite same by 7th of the next month.

Hope this will clear your doubt.