22 April 2008
my query is that: in Govt. organisation salary for tds purpose is to be taken 1st march to 28th feb. but during my articleship in one new establish govtorganisation salary is paid on last date of that month (same month, thus for tds purpose month should be taken 1st aprol to 31st march because on accrual basis.but employee refused to take the same ,in next year they have to deduct tds on 13 months salary , but they said it will increase their tax liability, becuase 13 months salary will be Rs. 260000(@30%)
22 April 2008
Sir in way you take it. TDS should be deducted on accural basis or booking of payment. According to me they are right. For example if salary is due on 31st March, they will deduct the same on that date. Hence leading to no problem. They can do that way.
CAclubindia
