For the purpose of Section 192 TDS is deductible at the time of payment.
TDS on Salary
Page no : 2
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 18 September 2009
Can TDS on salary for the whole year be deducted in the month of February & March only? While the assessee be liable to any interest or penalty if he does so?
Amit Mukim
(Article)
(40 Points)
Replied 18 September 2009
Dear Aditya,
you will be liable to pay interest u/s 201(1) @ 1% p.m or part & you have to pay penalty u/s 221 as the assessing oficer may direct but it should not exceed amount of TDS.
Amit Mukim
(Article)
(40 Points)
Replied 18 September 2009
Dear Aditya,
TDS should be deducted at the time of Credit or payment, whichever is earlier
CA. SUDHARSAN K G
(Chartered Accountant)
(472 Points)
Replied 19 September 2009
Hey For all TDS is generally to be deducted at the time of Payment or Credit whichever is earlier.
CA Tushar Lakhanpal
(CA)
(416 Points)
Replied 19 September 2009
As per may knowledge it is deducted when actually paid...
i am not going through any section bt applying basic knowledge...
one of my client is a teacher in semi govt. school
getting 2.5lacs in arrears
so TDS will be deducted whenever he recives such amouunt
NOT ON ACCRUAL BASIS
and TDS should be deducted whenever the Person's cash salary is more than 1,00,000 as per section 192 (pls check the new amendments ; bt m sure that amount is still 1,00,000)
pls rectify me if m wrong
Pammi Srivastav
(Assistant Finance Officer )
(84 Points)
Replied 19 September 2009
As per provisions of section 192(1) the employer shall deduct tax at source at the time of payment of salary.
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9060 Points)
Replied 19 September 2009
at the time of payment
CA. Varun Soni
(Chartered Accountant)
(201 Points)
Replied 19 September 2009
3.1 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:
Amit Bhatia
(PROFESSION)
(25 Points)
Replied 27 November 2009
| Originally posted by :shilpi jain | ||
| " | yes, as per sec 192, TDS on salary should be deducted at the time of payment. | " |
Vijay (TDS outsourcing blore)
(Self)
(54 Points)
Replied 27 November 2009
TDS on salary becomes applicable at the time of PAYMENT, irrespective of accounting date...
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