Jitendra Jhanwar (Officer) (129 Points)
08 January 2010Hi,
What is the provision for booked tds provision on Salary? Is tds deducted at the time of booked the salary in book of account or at the time of payment of salary?
In my company Salary for December month booked in last day of december month but paid to employees in between 3 - 5 January, then in which month we booked provision for TDS on salary? and in which month we should made payment of TDS on salary
Tks in advance
Amir
(Learner)
(4016 Points)
Replied 08 January 2010
Dear Jitender,
Unlike other cases, TDS on salary is deducted AT THE TIME OF PAYMENT OF SALARY
it CANNOT BE DEDUCTED AT THE TIME OF BOOKING OF SALARY
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 08 January 2010
As rightly mentioned by Mr. Amir, TDS on salary is deducted at the time of payment of salary. So if you are paying salary of december in january then TDS on salary A/c should be credited in january between 3-5 january in ur case.
Atul Kumar
(working employee)
(153 Points)
Replied 19 January 2010
You All are right Dear but keep it mind the situation of employer if he paying the salary for the month of march to his employee he have to shown tds liabilty in his book in that particular financial year other wise it levy of interest. therefore employer follow this rule (accural basis) through out the year and he is right dedcuting tds in dec from the salary of dec whether paying in Jan of any other month.
CAclubindia
