TDS on salary

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Ekta Sharma (Querist)
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02 September 2009 When the TDS on salary becomes deductible? whether it is deductible at the time of making it payable or at the time of payment?Will there be consequences of failure applicable if the tax is not deducted on the unpaid salary to a director?

chetan soni

chetan soni (Expert)
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02 September 2009 Yes it is failure on the part of employer to deduct the applicable tds. U/s 192 it is duty of employer to deduct & pay the tds to the govt. The tds become due at the time of payable or actual paid whichever is earlier.

Failure to do so will attract following:

01. The same salary expenses will not be allowed as expenses in computation of taxable income & needs to pay higher income tax.
02. Interest needs to be paid on the delayed days
03. Penalty equal to amount of tax deductiable u/s 271C.