I am confused with regard to last date on or before which TDS amount is to be remitted in order to escape from disallowance of the related expenditure by the Assessing Officer. One of my friend informed me that the TDS amount is be remitted on or before 31st March failing which the amount on which TDS made will not be allowed as deduction. In the case of salary payment, the payment is made on the 1st day of the succeeding month. Hence salary due for the month of April’08 paid on 1st April and tax deducted is remitted on 7th April. Kindly inform me whether such situation attracts disallowance enumerated in the Act.
(1) For Salaries, Sec 192 applies. Due date for TDS affected from Mar 09 salary (PAID on 1st Apr 09) is 7th May 09. This is because TDS is required to be remitted within 7 days from the end of month IN WHICH IT IS PAID but not TO WHICH SALARIES PERTAIN)
(2) For Contracts, Sec 194C applies-- (a) Due date for PAYMENTS made during 1st to 31st Mar 09 is 7th Apr 09
(b) Due date for amounts CREDITED to Contractors on 31st Mar 09 is 31st May 09
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