My company has accepted deposits from related person.. Please guide me whether i have to deduct TDS on same on monthly basis , Quarterly basis or yearly basis. The amount of total interest during the year exceeds RS. 10,000/-
Regards
VG
vishal (Job) (91 Points)
31 August 2013My company has accepted deposits from related person.. Please guide me whether i have to deduct TDS on same on monthly basis , Quarterly basis or yearly basis. The amount of total interest during the year exceeds RS. 10,000/-
Regards
VG
Mihir
(Wealth Manager)
(5293 Points)
Replied 31 August 2013
TDS shall be deducted whenever interest is paid or when it becomes payable.
vishal
(Job)
(91 Points)
Replied 31 August 2013
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 31 August 2013
Dear Vishal Sir,
If you are crediting the said amount (in excess of Rs. 10000) to the Interest payable account or suspense account or under any head (which shows that you are reluctant to pay that amount to that other person, though you haven't paid any amount) you need to deduct TDS on the same... and normal TDS provisions would be applicable.. i.e. on every payment/on every crediting of such amount to the aforesaid accounts in your books etc... you need to deduct TDS... and deposit it to the Govt.
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
NAVEESH DHAR
(ADVOCATE- TAXATION ADVISOR)
(427 Points)
Replied 31 August 2013
TDS is to deducted & deposited on qtly basis.
Sandeep
(ASST.MANAGER ACCOUNTS)
(1751 Points)
Replied 02 September 2013
Vishal
TDS will be deduct when int.paid or credited whichever is earlier. in ur case if co. paid int. annualy TDS will be deducted annually if it is monthly TDS will be monthly.
rgds
sandeep
CA Deepika Jain
(Working on Assignment Basis)
(34 Points)
Replied 02 September 2013
Dear Vishal,
As per the Provisions of Income Tax Act-1961, TDS on all payments except salary has to be deducted on:
Date of payment or
Date of crediting the party in books of A/c of payer for such payment
Whichever is EARLIER
In case of Deposits, Interest might be paid on maturity,i.e., after 3 years but if depositer is debited on any date earlier than the date of payment for such interest then TDS has to be deducted immediately on credited amount.
Regards
Deepika Jain
deepikajain684 @ yahoo.com
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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