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Last Date to Deposit TDS on Salaries

Lalit (accounts) (195 Points)

22 May 2009

What is the last date to deposit TDS on salaries. I think it would be deposited within one week from the last day of the month in which tax is deducted but I have found a contrary view in a website of a CA firm, it says that "TDS on Salaries is to be paid within 7 days from the date of payment.".

What would be last date to deposit TDS on salaries.

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12 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 22 May 2009

TDS from salary has to be deposited within 7 days for the date of deduction. TDS from other than salary has to be deposited within 7 days from the end of the month.

Originally posted by :Lalit

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Mannurkar (Accountant) (159 Points)
Replied 22 May 2009

As per the latest provisions TDS is to be deposited within 7 days from the last day of month in which tax is deducted irrespective of nature of payment through Form No.17

Lalit (accounts) (195 Points)
Replied 22 May 2009

Originally posted by :Deepak Tapse
"	TDS from salary has to be deposited within 7 days for the date of deduction. TDS from other than salary has to be deposited within 7 days from the end of the month.	"

Under which provision, u can say so. Because according to CIRCULAR NO. 2/2009, DATED 21/5/2009, Para 12(ii) says,

Rule 30 and Rule 37 CA of the Income-tax Rules, 1962 have been substituted to provide, inter alia, for the following: -

(a) All sums of tax deducted at source under Chapter XVII-B and of tax collected at source under Chapter XVII-BB shall, in general, be paid to the credit of the Central Government within one week from the end of the month in which the deduction, or collection, is made. Similarly, the same time limit for payment will also apply for income-tax due under sub-section (1A) of section 192.

(b) It is mandatory for all deductors (including Central Government and State Governments) to pay the amount by electronically remitting it into the RBI, SBI or any authorized bank.

(c) It is mandatory for all deductors (including Central Government and State Governments) to make the payment by electronically furnishing an income-tax challan in Form No. 17.

Mannurkar (Accountant) (159 Points)
Replied 22 May 2009

Latest provisions says

(a) All sums of tax deducted

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 22 May 2009

Yes you are right, but i informed as per current provision which has to be followed till 30th june 09.

Originally posted by :Lalit

Originally posted by :Deepak Tapse

"

TDS from salary has to be deposited within 7 days for the date of deduction. TDS from other than salary has to be deposited within 7 days from the end of the month.

"

Under which provision, u can say so. Because according to CIRCULAR NO. 2/2009, DATED 21/5/2009, Para 12(ii) says,

Rule 30 and Rule 37 CA of the Income-tax Rules, 1962 have been substituted to provide, inter alia, for the following: -

(a) All sums of tax deducted at source under Chapter XVII-B and of tax collected at source under Chapter XVII-BB shall, in general, be paid to the credit of the Central Government within one week from the end of the month in which the deduction, or collection, is made. Similarly, the same time limit for payment will also apply for income-tax due under sub-section (1A) of section 192.
(b) It is mandatory for all deductors (including Central Government and State Governments) to pay the amount by electronically remitting it into the RBI, SBI or any authorized bank.
(c) It is mandatory for all deductors (including Central Government and State Governments) to make the payment by electronically furnishing an income-tax challan in Form No. 17.

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Lalit (accounts) (195 Points)
Replied 22 May 2009

Originally posted by :Deepak Tapse
"	Yes you are right, but i informed as per current provision which has to be followed till 30th june 09.	"

But which provision is applicable now?

Any Section or Circular or Notification saying so is not found to me. Please help me

D K Tejwani (CA) (493 Points)
Replied 22 May 2009

There is no confusion at all

According to Section 192 , tax is to be deducted at the time of payment
.Rule 30 provides for time of deposit as within one week from
the end of month in which the deduction is made. There is no difference as to the date of deposit for TDS on salaries or other payments. There is difference only as to the time of deduction. TDS on salaries is to be deducted at the time of payment where on other payments it is generally at the time of credit or payment whichever is earlier

Hope this clarifies everything.

Mannurkar (Accountant) (159 Points)
Replied 22 May 2009

Read para 13 of circular No.2/2009 which is as follows:

13. The above new system will be effective for all tax deducted at source or tax collected at source on or after the 1^st April, 2009. However, any TDS or TCS effected on or after the 1^st April, 2009 but not later than 31^st May, 2009 shall continue to be paid to the credit of the Central Government by using the old challan form. The TDS or TCS effected on or after the 1^st June, 2009 shall be required to be paid electronically by electronically furnishing income tax challan in Form No. 17.

K R Ramesh (Service) (201 Points)
Replied 22 May 2009

Hi Mannurkar

Deposit of tax deducted on salary is within one week from the last day of month in which deduction is made. If you have Direct Taxes Ready Recokoner of AY 2009-10 of Dr. VK Singhani, please see Page # A - 315 para # 174.

Else you may also attached link

https://finmin.nic.in/the_ministry/dept_revenue/cbdt/tds2008.pdf

see page # 9 para 4.4 of the above link file

This is not some thing new which you were referring above, it was there in previous years also.

Thx,