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Tds deductions & payments.

Maya (Student) (663 Points)

03 March 2018

Dear frds/ experts,

In case a company is liable to deduct TDS on Director's remuneration u/s 192, where during Apr to Sep'15, no payment was made to him as salary, hence TDS not deducted & not paid. where as from Oct'15 -Mar'16, TDs deducted & paid in their respective months. At the end of Mar'16, Director was paid his earlier Apr-Sep'15 salary & Tds deduction made & paid that in Apr'2016.

Now in this scenario, does it attracts interest on TDS for late payment???

Plz suggest your answers with sections .....

Earliest reply would be greatly appreciated ...

Thanks in advance,
Maya.

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10 Replies

Rishi Mehta (Ur friend ) (1533 Points)
Replied 04 March 2018

No interest provisions is attracted since liability to pay TDS in case of due salary arises when salary is actually paid.

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Aashish Sachdeva (839 Points)
Replied 04 March 2018

As per my opinion if you have to made in march and deducted in march and deposited in april. then you allowed expenditures but as per my opinion not allowed to you. So, your expenditure is disallowed.

Not too much worry about penalty and interest.

This is my personal opinion, if anybody have different views then views are welcome. Thank You. Disclaimer: It is professional Advice.

Aashish Sachdeva (839 Points)
Replied 04 March 2018

In above my comment(disclaimer) it is not Professional advice. Not is missing inadvertently. Sorry For that........

raja sekar (1435 Points)
Replied 04 March 2018

TDS u/s 192 is deducted on payment basis. So the remunaration is paid in Mar2016 and TDS also done in Mar 2016 and paid in April 2016. The scenario is correct. And there is no fine if you have paid the TDS on or before due date ie on 15th April 2016.

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Maya (Student) (663 Points)
Replied 05 March 2018

Thank you so much for all of you.

Maya (Student) (663 Points)
Replied 05 March 2018

But due date for the month of Mar'2016 is 30th Apr'16.... whether is it correct or not?

raja sekar (1435 Points)
Replied 05 March 2018

For government deducted the last date is 30th April for others it is 15th

raja sekar (1435 Points)
Replied 05 March 2018

typo error: For government deductors

Maya (Student) (663 Points)
Replied 05 March 2018

Actually for this case, IT department has raised a demand mentioning 'shortfall of TDs remittance in F Y.2017-18', by comparing it's previous year I e.; 2016-17's payment (where it includes Tds deduction & payment for apr-sep'2015)

Actually for the reason as I explained earlier as well as for claiming some extra deductions, payment remittance has been changed from year to year...but the salary remains same. Now what should I have to do?

Apart from that they have given a table showing calculations for 'For' the year & 'During' the year comparing both 2016-17 & 2017-18 years. where 'during' the year depicts actual remittance we made during the year. But for 'For' the yr, I could not find how they calculated.

So plz help to what shall I have to do next in this regard.

Thanks in advance .