Neeraj Taneja (Faculty- Finance Audit ) (227 Points)
07 May 2010Urgent
Please clarify whether the TDS on
1) March 2010 salary which was given in the month of April/May 2010 comes under the Financial Year 2009-10.
2) If the Salary is not given since January, can the organisation deduct TDS for the FY 2009-10 if paid now (May)
3) In some month the salary is paid through Bank and in some month Cash. How it should be treated.
Neeraj
Most respected sir,
How is TDS to be done ?
Income from salaries is to be computed on estimated basis at the beginning of each financial year.
Net income tax payable on the basis of estimated salary income should also be calculated.
Such estimation of salary income and net tax liability may require revision periodically, depending upon change in income or investment made by the employee in the form of deposit/subscripttion/payment.
The net tax liability is to be estimated after considering specific allowable deductions and rebates.
Every month 1/12th of the net tax liability is required to be deducted.
Stress :
TDS u/s.192 has to be done at the time of payment of salary.
No deduction at source is contemplated u/s.192 in case where a payment towards salary has accrued but not made.
CIT V. Tej Quebecor Printing ltd
TDS on March 2010 salary which was given in the month of April/May 2010 comes under the Financial Year 2009-10.
If the Salary is not given since January, can the organisation deduct TDS for the FY 2009-10 if paid now (May) - yes
Regards
K.Ilayaraja.
CAclubindia
