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Tds on director salary

04 March 2016

MY QUETION IS THE WE HAVE HOLD THE DIRECTOR SALARY FOR A MONTH AND TDS WAS NOT DEDUCTED NOR DEPOSITED. IS THERE THIS IS DELAY IN TDS CASE AND INTEREST IS APPLICABLE IF YES SO WHAT PERIOD INTEREST HAS TO BE DEPOSITED .

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7 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 04 March 2016

In case of section 192 (TDS on salary), due date for payment of TDS is 7 days from the date of payment. So, if you have paid the tax to the govt within 7 days of payment of salary, then no interest is applicable. Or if the salary is still not paid, you can pay tax within 7 days of making payment of such salary.

arvind sharma (31 Points)
Replied 04 March 2016

THANKS FOR REPLY,

IS THRE INTEREST IS APPLICABLE OF DELAY IN SALARY IF TDS IS THE CASE OF SALARY NOT PAID LAST MONTH AND TDS IS ALOS NOT DEPOSITED AND PAID SALARY PREVIOUS MONTH KNOW.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 04 March 2016

If payment of salary is made in feb (assuming that 7 days is over in feb itself as I do not know the date of payment of salary), then interest is payable for feb and mar.

Jay Parekh ( ) (33 Points)
Replied 05 March 2016

TDS under sec 192 is required only when payment is made. So when payment to director is made TDS is to b deducted. If no payment is made then no deduction is required.

Ajit Hegde (CA - Final) (1367 Points)
Replied 05 March 2016

Agree with Mr. Jay. Tds on salary - the liability arises only on actual payment. Holding period of the salary is not relevant for tds u/s 192.

arvind sharma (31 Points)
Replied 05 March 2016

thanks to all , one more question if director salary for jan month and we are paying in march so interest is applicable or not if yes then how .

vipin patole (Self Employed) (72 Points)
Replied 05 March 2016

Mr. Sharma

TDS is required to be deducted only on payment of salary if you have paid salary in the month of march and paid tds before 30th of April then you are not required to pay any interest.