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TDS of March provision

DIPAK AGARWAL (Service) (554 Points)

05 May 2011

can some body clarify my query regarding showing the entry of march,11 related tds provision in Etds return of 4th quarter for the FY 2010-11

i.e. earlier we used to show the provisional entries in dedutee annexure as Book entry marked by "Y" whose due date of tds payment is 31st of May

Now a days it is 30th of April for the FY 2010-11

Whether the same is also maked as book entry by "Y" in the tds return or this is not applicable from 4th qtr of fy 2010-11

pl. let me know with the IT dept. circular if any.

Dipak Agarwal

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2 Replies

Sandeep Keswani (Tax Consultant) (1064 Points)
Replied 05 May 2011

Dear Dipak,

I am not very clear about your querry. R u asking about the provision for TDS amount or the amount paid / credited to deductees. Anyway let us discuss both.

While filing ETDS return, the option for "Whether paid through Book Entry" arises at two places - (1) for the amount paid to deductee on which TDS is made. Select "Y" option here only if payment is by passing JV. If actual payment is made, select "N" option. (2) for the amount of TDS deposited with the government. Normally payment to government is not possible through Book Entry. U have to deposit the TDS amount to the government via bank. Book Entry is only possible in case of Government Establishments. So for this option normally "N" should be selected.

As regards the amount of TDS deducted on 31-03-2011, the same will have to be provided irrespective of the fact that it is to be paid on 30-04-2011 (which was earlier 31-05-2011) So this provision should be made in books on 31-03-2011 as Unpaid TDS.

As regards payment made to deductees, if it is paid through Book Entry, a provision is automatically made. There is no Circular or Notification of the Department on this. This is normal accounting principle.

Hope your querry is resolved.....