TDS on Retention provision payable to Employee

This query is : Resolved

Santosh Anandrao Patil (Querist)
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08 March 2023 Dear Sir,
In our organization in appointment Letter we agree to pay Rs. 300000/- to a employee after completion of 3 years.

We made provision for Retention payable for first two year but we have not yet paid as 3 years yet not complete

Please confirm whether we have to deduct the TDS on this amount in first 2 years. and if we paid the TDS for first 2 years and employee leave the organisation before completion of 3 years. what will be accounting treatment.

thanks in advance

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 March 2023 how much amount is paid during one financial year?
What does your appointment letter say about the service .. Is it wages or salary or any contractual payment?