TDS on salary and rent to a director

This query is : Resolved

seema singla (Querist)
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15 September 2009 A Pvt. Ltd Co. pays rent and salary to a director in a lumpsum amount at the end of the year.Also, it pays the TDS on both at the time of making the payment. Is it OK with the co. or it should be paid monthly?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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15 September 2009 TDS on rent is attracted on payment or on making provision for the expenditure, whichever is earlier. If the company does not make provision for rent on a monthly or any other basis, prior to making the lumpsum payment, it is OK.

So far TDS on salary is concerned, it is payble on making the payment. Provisions in the books is not relevant. As TDS is deducted at the time of making the lumpsum salary payment, it is OK.