If there is any issue -TDS on advance salary not deducted on the advance salary payment date ?
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Tds on advance salary
Replies (10)
it has to be deducted and paid to the credit of govt
Hi,
TDS needs to be deducted on Advance salary payment. TDS has to be paid before due date. Tax has to be paid in the year in which payment is made.
Hi,
TDS has to be deducted on the date of payment or credit whichever is earlier and to be paid to the govt within the due date,Otherwise it will attract interest levy. Here you have to see whether it has deducted on the payment date.
Thanks Ajith and Vipin,
But still my doubt is unsolved .
In given cases company deduct TDS on due date of salay ie after 1 month of the advance payment of salary ,
IF there is any issue on TDS is deducted on due date ? if any what are consequamce ?
Liability to deduct tax at source shall arise at the time of actual payment of salary and not at the time of accrual.
Non deduction, late deduction and Late deposit of Tax deducted at sources(TDS) may lead you to face following consequences.
A: Interest on late deduction /deposit of Tax at source.
B :Dis-allowance of Exp , on which tax has not been deducted /deposited u/s 40(a)(ia)
C: Penalty and prosecution.(271C and 276B)
A: Interest on late deduction /deposit of Tax at source.
B :Dis-allowance of Exp , on which tax has not been deducted /deposited u/s 40(a)(ia)
C: Penalty and prosecution.(271C and 276B)
I think advance salary paid to employees is treated advance so no need of tds
It depends on company..how it is showing advance payment in books..
..
If it is shown under employee loan..then no need to deduct TDS at time of payment itself..
.
but if co. is showing same as salary advance then TDS has to be deducted at time of payment only...
.
Although employee has no liability in any of both cases
..
If it is shown under employee loan..then no need to deduct TDS at time of payment itself..
.
but if co. is showing same as salary advance then TDS has to be deducted at time of payment only...
.
Although employee has no liability in any of both cases
interst will be chargeable @ the rate of 1.25 & 1.5% for late deduction and late deposit of tax.further you may be levy with penalty of rs 200 per day for non-filing of TDS Return,if any.
@ efiler, sir advance salary is different and taking advance from the company is different, here discussion was on salary advance not on employee loans that they take from company,
loans will not be taxed, however loans at less interest rate than outside banks will be taxed as implied interest.
for the context of advance salary, tds has to be deducted
loans will not be taxed, however loans at less interest rate than outside banks will be taxed as implied interest.
for the context of advance salary, tds has to be deducted
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