09 January 2012
Company pays Salary for a particular month on the 7th of the next month. For eg. Salary for the month of April 30, 2011 is paid on May 7, 2011 and so on… The company deducts TDS on Salary at the time of payment i.e. it deducts TDS on Salary for the month of April 2011 on 7th May, 2011. Now, since TDS is deducted in the month of May, this TDS is paid on June 7th, 2011 which is correctly done, since as per law TDS is deductible at the time of payment in case of Salaries. Now the question is with regards to filing of TDS Return For the Quarter 1 TDS Return Details of Salary for the month of April and May 2011 will have to be submitted. June months details would go in the Return for Quarter 2 since TDS on June’s Salary is deducted in the month of July which falls in Quarter 2. Also because this TDS would only be paid on August 7 and the Date of filing the TDS Return for Quarter 1 being 15 July. Is the above procedure correct?? If the above procedure is correct, then March 2012 details would go in the TDS Return of Quarter 1 of the F. Y. 2012-13 and hence the employees would receive their Tax Credit in Form 26AS for the month of March 2012 in the F. Y. 2012-13 instead of the F. Y. 2011-12…. Kindly Reply as to the correct procedure to be followed.
10 January 2012
Although Section 192 requires that TDS shall be deducted at the time of payment, for practical purposes, TDS on salary is deducted at the time of booking the salary.
Salary is usually booked on the last day of the month. On that date the TDS is deducted and deposited by the 7th of next month.
Accordingly, salary for April, May & June will be declared in Q1 return and so on.
So, salary for all the 12 months shall be disclosed in the current year itself and the employees will get credit for the TDS in the current year itself.
11 January 2012
You have not answered my question....we are follwing the procedure as written in my query and it is also very much eligible as per the Act.
CAclubindia
