Jaya (Others) (36 Points)
01 March 2010Hi,
I have to deduct tax on salary amounting to Rs.12000/- for the month of March. My queries are
1. what is the last date? 7 days from payment of salary or March 15
2. can i use challan 281 to make payment into bank
3. in which form should i issue tds certificate?
Please respond. Thankyou in advance.
Jaya
Amir
(Learner)
(4016 Points)
Replied 01 March 2010
Dear Jaya,
TDS on salary is to be deducted at the time of making payment.
The same has to be deposited within 7 days from the end of the month in which it is deducted..i:e 7th April in ur case
I think u r rite about Challan 281 ......
TDS Certificate will be issued in Form 16
Sonia
(Finance Manager)
(28 Points)
Replied 01 March 2010
hi..Is there TDS deduction on advance salary paid for the month and under which section ?
Chintan Shah
(-)
(534 Points)
Replied 01 March 2010
Dear Sonia,
Section 192 reads as under:
192. 58(1) Any person responsible for paying any income chargeable under the head Salaries shall, at the time of payment, deduct income-tax 59[***] on the amount payable at the average rate of income-tax 60[***] computed on the basis of the 61[rates in force] for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
Now income under head salary is taxable on receipt basis or accrual basis whichever is earlier. Hence advance salary is also taxable on receipt basis even though it has not accrued. Since TDS is payable at the time of payment of salary, TDS must be deducted from Advance salary also.
Regards,
Chintan
Sahana
(Service)
(81 Points)
Replied 01 March 2010
Mr.Chintan may be correct only if the salary is paid in advance. But if the payment is in the nature of an advance to be recovered against future salary, then no TDS on such advances.
Thanks
Sahana
C.Balaji
(Learner)
(1867 Points)
Replied 01 March 2010
Dear Mr.Amir brother........
Is the due date 7th April?????
I studied somewhere that due date for march is 31.05......... please clarify me...........
Amir
(Learner)
(4016 Points)
Replied 01 March 2010
Dear Balaji,
Due date fordeposit of TDS on expenses CREDITED on 31st March is 31st May.....This is not avilable in case of PAYMENTS...
Whereas in case of salary TDS is deducted on PAYMENTS & has to be deposited within 7 days from the end of the month in which it is deducted, therefore it has to be 7th April ony.
Sonia
(Finance Manager)
(28 Points)
Replied 01 March 2010
thanks Chintan & Sahana for clearing my doubt.
Mrugesh
(A)
(21 Points)
Replied 19 March 2010
can whole TDS be deducted from the salary of March-10, paid in April-10. which is the last date to deposit TDS to bank in such case. will the employee get the benefit of TDS for FY-09-10, AY-10-11.
please mail me too on response2mrugesh @ yahoo.com
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