ambika (Audit) (115 Points)
25 August 2011Can any one clarify my doubt?
In my company we have stopped 2 months salary for one of employee due to some reasons, now he resigned also. So the salary payable for 2 months is related to 10-11 period. Usually the TDS deducted in last month salary.
Now my doubt is,
If we made payment in 11-12 period the TDS will deducted only on the payment date. Whetere i can make payment the TDS to the government in that period but the TDS related to 10-11 period. And the employee can claim that TDS?
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1831 Points)
Replied 25 August 2011
You have to deduct tde on payment as per your working, but at the time of payment to government, payment will made including interest @ 1.5% p.m. and he can get claim for that period after filing of etds return under NSDL with his proper pan no.
Note: Please write correct A.Y. year in TDS challan
K.Sivakumar
(Chartered Accountant)
(60 Points)
Replied 26 August 2011
Hi Ambika,
As you have highlighted, the salary is pertains to 2010-11. Technically, the TDS should have been deducted on those months itself and not at the time of payment. So under sec 92B, there is a delay in deduction of TDS in 2010-11. As for as the payment to the government is concerned, you can do so now for the last year with necessary interest and making sure that the A Y is mentioned properly while making the payment and re-file the relevant quarterly return. The employee should be issued with the form 16 covering this TDS amount as well, so that the employee can file his/her return as well.
Thanks
Sivakumar.K
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
