Interesting Case Study

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2010 My query revolves only around FY 2009-10.

I want answers relating to treatment of following in FY 2009-10 & FY 2010-11 in all 3 cases for both employee and employer.

1 TDS certificate
2 Salary treatment for both employer & employee
3 TDS return
4 Form 16
5 Interest on TDS
6 Allowability of Salary as expense in Tax Audit.

CASE I
If Salary from Nov 2009 to March 2010 is paid on 7 may and TDS is deposited on 7 May

CASE II
TDS is deposited on 31 May relating to Salary from Nov 2009 to March 2010 but Salary is not paid

CASE III
As per my knowledge TDS on Salary is deductible on payment basis, now considering the above case, salary is paid on 30 Nov 2010 & TDS is deposited on 7 Dec, 2010.

CA krishna Kamthe

CA krishna Kamthe (Expert)
Follow

04 May 2010 case i
salary TDS is to deduct on payment basis so when you make payment at that time only you need to deduct tds and deposited to govt within next month before 7
1 Tds certificate can issue till may end.
2 salary is allowed if booked on 31 march as outstanding expencess
3 In tds return on payment basis you can show tds deduction
4 form 16 ie TDS certificate
5 interest on tds not required
6 salary expenses allowed as deduction in tax audit.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now