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Tds on salary

gauri (article) (24 Points)

28 March 2012

Salary for April 2011

booked on 7/5/2011

paid on 10/5/2011

Q1 ) TDS TO BE DEDUCTED ON 10/5/2011 OR 30/4/2011

Q2) TDS TO BE DEPOSITED BEFORE 7/6/2011 OR 7/5/2011

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5 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 28 March 2012

As per section 192 of the I-T TDS on salary is requried to be made at teh time of payment. hence TDS is to be made on 10/5/2011 i.e. at the time of payment.

As per rule 30(2)(b) of the I-T Rules, TDS needs to be deposited on or before 7th June i.e. before 7 days from the end of the month in whihc the TDS is made.

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Rishabh Ahuja (.) (491 Points)
Replied 29 March 2012

payment date becomes the base for deposit as well as deduction of TDS

Pooj@ *$#& (CA Final Student) (108 Points)
Replied 30 March 2012

Agree with Mr. Giridhar

Maruthi (Tds Returns Preparer) (207 Points)
Replied 05 April 2012

Actually the main feature of the TDS payment is to pay the tds is

1."7th day of the next month from the last day of the month in which the deduction is made"

2. And the tds due date is calculated in the basis of the "PAID or CREDITED whichever is EARLIER"

Regards

Balendra Parmar (Finance Manager) (199 Points)
Replied 05 April 2012

Such income-tax has to be calculated at the average rate of income-tax computed on the basis of the rates in force for the relevant financial year in which the payment is made, on the estimated total income of the assessee. Therefore, the liability to deduct tax at source in the case of salaries arises only at the time of payment.