TDS on Salary

YOU SHOULD DEDUCT TDS FROM SALARY ON paymnt (ACCRUAL) BASIS

Dear Ajeet

In the case of "Salaries" the liability to deduct tax arises only at the time of payment.

 TDS should be deducted at the time of Payment. 

yes, as per sec 192, TDS on salary should be deducted at the time of payment.

yes, as per sec 192, TDS on salary should be deducted at the time of payment.

If I pay 3 months salary together to my employee on say 10th of september and deposit TDS so deducted by 5th of Oct, would I be committing a mistake since the salary had accrued in earlier months and I was carrying it as payable in my accounts..???

Hi Rajiv, You will not be committing any mistake.

hello rajiv

According to Sec192 TDS on salary shall be deducted only at time of payment of salary.  Therefore you will not be committing any mistake.

On accrual or payment whichever earlier. So if you paid March Salary in April it is still taxable in March. The other way round, if you paid 12 months salary before March and also gave an advance in March that is adjusted against April Salary, then the advance paid in March will also be taxed in March. That is the meaning of on due basis or payment, whichever earlier.

Hi Rajeev,

TDS should be deducted at the time of Credit or payment, whichever is earlier & in ur case TDS should be deducted when you have credited employee for Salary.

Credit also includes making provision for the expense, so you should deduct TDS at the time of booking expense, so u have made late deduction of TDS

on actual payment....

Credit or payment whichever is earlier