nilesh (PROPRIETOR) (208 Points)
05 April 2013The Tds Return for tsd on salary is submitted on Quarterly basis. Whether tds to be deducted on quarterly basis or on monthly basis ?
If a person crosses the taxable limit in between the quarter, tds should be deducted immidiately in the same month? or at the end of the quarter ?
Sachin Rajput
(account exe)
(593 Points)
Replied 05 April 2013
Tds on salary should be deduct on monthly basis .
RAVITOSH KUMAR
(Executive)
(324 Points)
Replied 05 April 2013
For the first question, answer is no, TDS on salary is required to be deducted while making payment of salary to employees be it during the month or in between the month or quarter. And the same is to be deposited upto 7th of the following month except for the month of march by 30th April of the next year.
For the second question, there is no such provision deducting TDS only on crossing certain limit during the year, instead, the employer has to estimate the salary payable during the year to every employee and if it crosses the basic exemption limit then he should deduct tax on an average rate applicable to particular employee from the very beginning of the financial year on making payment.
Mihir
(Wealth Manager)
(5293 Points)
Replied 05 April 2013
TDS to be deducted on the basis of average tax liability of the employee. If the total tax liability on the basis of salary paid or payable as the case may be is Rs. 20,000 pa, then average TDS would be Rs. 20,000 / 12 months = Rs. 1,667. The employer can reduce this amount as and when the employee furnish declaration regarding his/her investments.
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6881 Points)
Replied 05 April 2013
Here an option is awailable to Employer Either they can remit TDS on Monthly basis or they can remit on lump-sum amt on yearly basis, totally depends opon discretion of the deducton
TDS provisions require that at least TDS will be deposit at end the fiinancial year, no interest will be lieved on late deposit of TDS, if its paid on/before 30th April 2013
Furhter more if TDS on salary not deposited within 30th April Interest will be paid from April'13
sunil singh
(AUDITOR)
(32 Points)
Replied 05 April 2013
heloo freinds yes employer can deduct tds at the year end and on monthly basis as per declaration given by the employee but pracaticaly most of the employer deduct tds at the year end after all deduction of chapter via as per given delaration by the employee and the same will be deposited within the april.
Naresh Khemka
(Article Associate at a CA firm)
(98 Points)
Replied 07 April 2013
Agreed...
The employer must estimate the salary payable to every employee and compute his total Income tax liablity...
If there is any tax payable by the employee then such tax payable should be divided by total number of months(i.e 12 months) and deduct such amount form Gross salary payable to the employee every month...
P. Bhaiswar
(PRIVATE)
(54 Points)
Replied 03 August 2015
DEAR SIR,
IS THERE ANY NOTIFICATION OR GR FROM INCOME TAX DEPARTMENT SO THAT I CAN SHOW MY ASSESSES AND CAN DEDUCT TDS FROM THEIR SALARY MONTHLY.
SIR PLEASE PROVIDE ME AND SEND ME TO MY MAIL ID bhaiswarpravin @ gmail.com
thanks
CA. Rahul sharma
(CA)
(21 Points)
Replied 28 April 2016
yes employer can deduct tds at the year end and on monthly basis as per declaration given by the employee but pracaticaly most of the employer deduct tds at the year end after all deduction of chapter via as per given delaration by the employee and the same will be deposited within the april.
Read more at: /forum/monthly-deduction-of-tds-245395.asp
chandra sekar
(Manager-Accounts)
(387 Points)
Replied 04 May 2016
But, what , i understood, from some of my friends, that, due to late deduction of TDS on salary and paying in a stretch by 30 th April for the prev fin year, put them in trouble , as they received notice from IT dept, to pay interest under Sec 234.
harshit darji
(accountant)
(446 Points)
Replied 18 May 2018
dear all solve it there is one employee in our company whose salary is 40000 rs per month and he has been working with us from oct/2017 to march/2017 so how to deduct salary on this? and even i dont know what the employee had done befoe oct 2017
Read more at: https://www.caclubindia.com/experts/tds-on-salary-2656239.asp
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