Applicability of tax liability on co.

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Tejaswini C. More (Querist)
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03 June 2011 When is the tax liability applicable on the co.for salary? Whether it is applicable when salary is booked or when pymt is made?
Pymt or accrual basis?

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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03 June 2011 Tax liability on Salary aise on actual payment entry made in the accouts whihever is earlier

megha

megha (Expert)
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03 June 2011 TDS Liability in the case of the Salary arises on the date when the payment is made not when the expenses is credited to books.
Sec 192 states that Any person responsible for paying any income chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax
on the amount payable at the average rate of income-tax computed on the basis of the rates in forcefor the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.

Tejaswini C. More

Tejaswini C. More (Querist)
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04 June 2011 For eg. if d salary of an employee in Feb. 2010 is say Rs.50000 & if d employee has left d job,then what is d tax liability on d company if d pymnt of d salary is made in April 2011??

Tejaswini C. More

Tejaswini C. More (Querist)
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04 June 2011 For eg. if d salary of an employee in Feb. 2010 is say Rs. 50000 & if d employee has left d job,then what is d tax liability on d company if d pymnt of d salary is made in April 2011??