Date of deposit of tds
This query is : Resolved
25 January 2014
Dear professionals,
i want to know if a person passed entry for salary for the month of dec. on 31th dec. as salary payable and also passed TDS payable for dec. on same date.
but actually he paid salary on 8th of jan.
plz tell me when he is required to deposit the TDS.
what is the due date ?
considering sec.192 (TDS deduction on actual payment basis)
i want to know if a person passed entry for salary for the month of dec. on 31th dec. as salary payable and also passed TDS payable for dec. on same date.
but actually he paid salary on 8th of jan.
plz tell me when he is required to deposit the TDS.
what is the due date ?
considering sec.192 (TDS deduction on actual payment basis)
25 January 2014
He should must to deduct the TDS either at the time of actual payment or make provisions whichever is earlier. So as per this rule you have to deduct the tds at the time of making provision in your case. and deposit same to be in 7th day of upcoming month for apr to feb. for march it is 30th April.
Message likes :
1 times
25 January 2014
But as per section 192,
in case of salry only liab. to deduct TDS arise only at the time of actual payment.
in case of salry only liab. to deduct TDS arise only at the time of actual payment.
27 January 2014
But sir as per section 192
in case of salary
liab to deduct TDS arise only at the time of actual payment of salary
please suggest me
in case of salary
liab to deduct TDS arise only at the time of actual payment of salary
please suggest me
20 July 2024
In the scenario described, where salary for the month of December was accounted for on 31st December as "salary payable" and TDS payable was also accounted for on the same date, but the actual payment of salary occurred on 8th January, here’s how the TDS deposit should be handled:
1. **TDS Deduction Basis - Section 192**: Section 192 of the Income Tax Act pertains to TDS on salary payments. It mandates that TDS should be deducted at the time of actual payment of salary to the employee, not at the time of accrual or provision.
2. **Due Date for TDS Deposit**: Since TDS on salary should be deducted at the time of payment (actual disbursement to the employee), the due date for depositing this TDS with the government is based on when the salary is actually paid.
3. **Practical Application**:
- **Actual Payment Date**: The salary for December was paid on 8th January.
- **TDS Deposit Due Date**: The TDS deducted on this salary should be deposited with the government by the 7th of February (for the month of January), considering the usual timeline of TDS deposit which is within 7 days from the end of the month in which TDS is deducted (except for March, where it's 30th April).
4. **Impact on Accounting Entries**:
- The entry made on 31st December for "TDS payable" should ideally be reversed because TDS should not have been accounted for until the salary was actually paid and TDS was deducted at that time.
5. **Correct Procedure**:
- Reverse the TDS payable entry made on 31st December when the salary was accounted as payable.
- Make a fresh TDS deduction entry on 8th January when the salary was actually paid.
- Deposit the TDS deducted (as per the rates applicable) by the due date, which is typically the 7th of the following month (in this case, 7th February).
In summary, TDS on salary should be deducted at the time of actual payment of salary, not at the time of provision or accrual. Therefore, the TDS should be deposited with the government based on the actual payment date (8th January in this case) and within the due dates specified by the Income Tax Act.
1. **TDS Deduction Basis - Section 192**: Section 192 of the Income Tax Act pertains to TDS on salary payments. It mandates that TDS should be deducted at the time of actual payment of salary to the employee, not at the time of accrual or provision.
2. **Due Date for TDS Deposit**: Since TDS on salary should be deducted at the time of payment (actual disbursement to the employee), the due date for depositing this TDS with the government is based on when the salary is actually paid.
3. **Practical Application**:
- **Actual Payment Date**: The salary for December was paid on 8th January.
- **TDS Deposit Due Date**: The TDS deducted on this salary should be deposited with the government by the 7th of February (for the month of January), considering the usual timeline of TDS deposit which is within 7 days from the end of the month in which TDS is deducted (except for March, where it's 30th April).
4. **Impact on Accounting Entries**:
- The entry made on 31st December for "TDS payable" should ideally be reversed because TDS should not have been accounted for until the salary was actually paid and TDS was deducted at that time.
5. **Correct Procedure**:
- Reverse the TDS payable entry made on 31st December when the salary was accounted as payable.
- Make a fresh TDS deduction entry on 8th January when the salary was actually paid.
- Deposit the TDS deducted (as per the rates applicable) by the due date, which is typically the 7th of the following month (in this case, 7th February).
In summary, TDS on salary should be deducted at the time of actual payment of salary, not at the time of provision or accrual. Therefore, the TDS should be deposited with the government based on the actual payment date (8th January in this case) and within the due dates specified by the Income Tax Act.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- GST ON TRAVELLING BILLS
- Indian IT Portal issue in computing tax as per UK-India DTAA
- F & O PROFIT REPORTING FOR AY 2026-27
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
