Sanjay Agarwal (MANAGER) (165 Points)
01 May 2010We are a newly formed Pvt ltd Company, where Salary to Employees becomes payable from April 2010, i.e. the salary for April will be paid on 7-May-2010.
Query: When TDS is to be deposited ?? Till 7-May- or 7-June
Kindly explain with reference to any specific rule or section.
Thanks in advance.
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 02 May 2010
ya the law says tht...we should deduct TDS on payment or accrued whichever is earliar....as in your case a salary is accrued on 30th april so the due date of TDS deposit is 7th may...i hope your query is solved...
Sanjay Agarwal
(MANAGER)
(165 Points)
Replied 02 May 2010
Dear Expert Friends,
As far as I understand from the book that I have read, TDS on salaries is to be deducted at the actual time of payment of salaries.
And accordingly, the TDS is to be deposited wihtin 7 days of the next month.
In this case, on 7-June.
I request the Expert Friends to clarify.
Amir
(Learner)
(4016 Points)
Replied 02 May 2010
Dear friends,
TDS is to be deposited with in a week following the month of deduction.(Rule 30)
Incase of salary, TDS is to be deducted at the time of payment.(Sec 192)
So if salary for the month of April is paid in May then due date for deposit of TDS will be 7th June.
varun gupta
(Senior Accounts Officer)
(89 Points)
Replied 02 May 2010
Tds to be deposited on or before 7th may.
Tds on salary is deducted on amount payable. as per sec 192 so amount os salalry becomes due on 30th april, hence tds to be paid on 7th may, This is confirmed do not confuse others please.
nikhil
(CA)
(77 Points)
Replied 02 May 2010
AAmir is right tds on salary is to be deducted on payment basis and not on due basis.
Mannu
(Senior finance executive)
(52 Points)
Replied 02 May 2010
Every person who is responsible for paying any
income chargeable under the head "Salaries" shall deduct
income-tax on the estimated income of the assessee under the
head "Salaries" for the financial year 2007-2008. The incometax
is required to be calculated on the basis of the rates given
above and shall be deducted on average at the time of each
payment.
From the above section. It is claer that TDS is to be deudcted at the time of payment and not on accrual basis. One more thing is to be considered that is the total expected salary of the employee should exceed the maximum taxable limit...
3.SECTION 192 OF THE INCOME-TAX ACT,1961: BROAD
SCHEME OF TAX DEDUCTION AT SOURCE FROM "SALARIES".
Method of Tax Calculation:
CA Asad Khan
(Manager Finance & Accounts)
(36 Points)
Replied 30 September 2013
TDS on Salaries is deducted on payment basis only and never on accrual basis... This is what Income tax Act 1961 says ......normally wrong practice is being followed by the accountants by deducting it on accrual basis, which needs to b corrected...
shekhar
(Accounts Executive)
(23 Points)
Replied 03 November 2016
Thanks, a lot for answering with proper reference of IT 1961 Section 192B,
How to process TDS payments & file TDS returns 24Q for the same. as far as I understand, it is like below. (correct me if m wrong)
March salary paid on 10 April- TDS Due date will be 7 May- This will furnish in TDS return Q1
April salary paid on 10 may- TDS Due date will be 7 June- This will furnish in TDS return Q1
May salary paid on 10 June- TDS Due date will be 7 July- This will furnish in TDS return Q1
(CIN File-OLTAS Period for challan details Q1 will be 7-May to 7 July)
December salary paid on 10 Jan-TDS Due date will be 7 Feb- This will furnish in TDS return Q4
January salary paid on 10 Feb - TDS Due date will be 7 Mar- This will furnish in TDS return Q4
February salary paid on 10 march- TDS Due date will be 30 Apr-This will furnish in TDS return Q4
(CIN File-OLTAS Period for challan details Q4 will be 7-Feb to 30 Apr)
Please correct me If m wrong- Request don’t post wrong answers without checking proper source.
Contact me if you have proper answer(This is my humble request) – I will appreciate it.
7066702771
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