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Direct tax - tds on salary 92b

Gautam Rajendran (Finance & Accounts) (69 Points)

07 March 2019

Dear Experts,

I have query on the TDS Deduction on salary.

TDS has to be deducted for Salary based on the month or based on the payment cleared date?

Kindly revert.

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6 Replies

Sanju.P (CA Practice ) (111 Points)
Replied 07 March 2019

Hi,

TDS on Salary has to be deducted at the time of Payment.

Sec 192.(1) Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.

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PUSHP KUMAR SAHU (CA FINAL ASPIRANT) (3115 Points)
Replied 07 March 2019

agreed with sanju

Gautam Rajendran (Finance & Accounts) (69 Points)
Replied 07 March 2019

Sanju,

Thanks for your comment, If March salary is credited in april 05, if we take time of payment it will goes to Q1 FY 19-20

Is that right?

What will we do the tax deduction on the March salary.?

Sanju.P (CA Practice ) (111 Points)
Replied 07 March 2019

Hi,

Due date for payment of TDS deducted on Salary for the Month of March-2019 is 7th of April 2019 (for Government Employees) and 30th of April 2019 (for non Government Employees).

Due date for filing of return for the quarter Jan 19 to March 19 is 31.05.2019.

As per my understanding, even though salary for the Month of March 2019 is paid in the Month of April 2019 and TDS deducted on payment basis in the Month of April 2019, the same has to be shown in Q4 TDS Return filing for the FY 2018-2019.

This is my view, You can wait for others opinion also.

Thanks.

Ayushi Arora (298 Points)
Replied 27 February 2021

As per my understanding, even though salary for the Month of March 2019 is paid in the Month of April 2019 and TDS deducted on payment basis in the Month of April 2019, the same has to be shown in the Q4 TDS Return filing for the FY 2018-2019.

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Ayush (Executive ) (6760 Points)
Replied 23 June 2023

Employers who make salary payments to their employees are responsible for deducting TDS under Section 192.
This provision applies to all types of employers, including government, private, and foreign companies.
Employers need to deduct TDS at the time of making salary payments to employees.
If your estimated salary falls below the basic exemption limit, then your tax payable will be zero. In such cases, TDS (Tax Deducted at Source) will not be deducted from your salary because there is no tax liability to be deducted.
If TDS is deducted in any other month of the year, it must be deposited within 7th of the following month. However, If TDS is deducted in the month of March, it must be deposited on or before 30th April.