TDS on Salary
This query is : Resolved
09 November 2010
u/s 192 tax on salary is deducted at the time of payment. In our case we are facing problems as detailed hereinblow while filing e returns and interest u/s 201.
Salary for the month of June is paid on 01/07/10 & 07/07/10 TDS is paid within 7 days of deduction. However in e return date of deduction Salary for June 10 needs to be shown as 30-06-10. Naturally date of payment of tax deducted on salary paid on 07/07/10 attracts interest u/s 201 inspite of paying tax within due date. Can any one explain if we are committing any mistake in preparing ereturn? (Also software that we use doesn't accept date of payment of salary as 07/07/10 for Q/e Jun 10 return)
Salary for the month of June is paid on 01/07/10 & 07/07/10 TDS is paid within 7 days of deduction. However in e return date of deduction Salary for June 10 needs to be shown as 30-06-10. Naturally date of payment of tax deducted on salary paid on 07/07/10 attracts interest u/s 201 inspite of paying tax within due date. Can any one explain if we are committing any mistake in preparing ereturn? (Also software that we use doesn't accept date of payment of salary as 07/07/10 for Q/e Jun 10 return)
09 November 2010
Then file details for June in quarter ended September to avoid interest u/s 201 despite compliance.
09 November 2010
Basis of charge (Sec.15)
Salary is chargeable either on
• Due basis ; or
• Receipt basis
(Whichever is earlier)
1. If salary is due at the end of the month - in this case, salary from April to March is taxable
2. If salary is due on 1st day of the next month - In the case, salary from march to feb. is taxable.
Note – in case of Government employee, the salary become due on the 1st day of the next month whereas in case of none – Government employee (including bank employees.), the salary become due on the last day of the same month.
In your case, salary is not due on the last day of the month, so you should mention the date of payment or credited as 1st or 7th and not the last date of the month.
Further, in case of salary, tds needs to be deposited within a week from the last day of the month in which tax is deducted.
Basis of charge (Sec.15)
Salary is chargeable either on
• Due basis ; or
• Receipt basis
(Whichever is earlier)
1. If salary is due at the end of the month - in this case, salary from April to March is taxable
2. If salary is due on 1st day of the next month - In the case, salary from march to feb. is taxable.
Note – in case of Government employee, the salary become due on the 1st day of the next month whereas in case of none – Government employee (including bank employees.), the salary become due on the last day of the same month.
In your case, salary is not due on the last day of the month, so you should mention the date of payment or credited as 1st or 7th and not the last date of the month.
Further, in case of salary, tds needs to be deposited within a week from the last day of the month in which tax is deducted.
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