Salary - TDS for the year (IT Computation)

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Gireesh Hegde (Querist)
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11 March 2009 Hi,

This is Gireesh Hegde.I have a query regarding IT Computation of Employees.Due to Recession effect one of our client not paid their employees salary for the last three months and the company agree with employees for paying their salary for these months (Dec, Jan, Feb and Mar) sometimes in the month of April May 2009.Now my question is while calculating Income tax (TDS) can I treat this as employees income for this year and deduct the TDS for this year? Or employees are personally liable to pay these taxes?

Please revert back with your answers and help me to solve this issue.

Thanks.

Gireesh Hegde
E – Mail : gireeshheg@gmail.com

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 March 2009 Section 192 says tax is to be deducted monthly at the time of payment. Pl think on this line.

Gireesh Hegde

Gireesh Hegde (Querist)
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11 March 2009 Meanwhile if we are paying December annd January month salary in the month of May 2009, we need to deduct TDS & remitt the TDS in the month of May 2009?

Gireesh Hegde

Gireesh Hegde (Querist)
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11 March 2009 Meanwhile if we are paying December annd January month salary in the month of May 2009, we need to deduct TDS & remitt the TDS in the month of May 2009?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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11 March 2009 it should be deducted when its due or paid. as its decided it is to be paid in april so it gets due in that month. and so right now its not required to deduct TDS.

Gireesh Hegde

Gireesh Hegde (Querist)
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12 March 2009 Thanks for your reply.

If we paid the January to March 2009 salary in the month of April/ May/June 2009 in the view of employees income tax computation sheet it’s the income for the FY 2008-09 or income for the FY 2009-10?

Please confirm.

Thanks.
Gireesh Hegde
E-Mail :- gireeshheg@gmail.com

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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22 July 2025 Great question! Here's how the tax treatment works for salary payments delayed across financial years:

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### **Taxability of Salary Paid Late (Across FYs)**

* **Salary is taxable in the year in which it is *received* by the employee**, not when it is *due* or *earned*.
* This means if salary for **Dec 2008 to March 2009** is actually **paid in April or May 2009**, then the income will be considered **for FY 2009-10** (Assessment Year 2010-11), when the employee actually receives it.

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### **Implications for TDS Deduction**

* As per **Section 192** of the Income Tax Act, **TDS on salary must be deducted at the time of payment or credit, whichever is earlier.**
* Since the salary was actually paid in April/May 2009, the **employer should deduct TDS in FY 2009-10** on that salary payment.
* The salary amount should be included in the employee's **income for FY 2009-10**, not FY 2008-09.

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### **Summary:**

| Situation | Salary Year | TDS Deduction Year |
| ------------------------------------------------------- | ----------- | ------------------------------- |
| Salary for Dec 2008 - March 2009 paid in April/May 2009 | FY 2009-10 | FY 2009-10 (at time of payment) |

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### **Additional Notes:**

* Employees will declare this salary income in their tax return for FY 2009-10.
* Employers should ensure TDS is deducted when payment is made.
* If TDS was not deducted on these payments, employees are liable to pay tax themselves during filing.

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If you want, I can help draft a communication for your client explaining this or help you with TDS computations for these payments!

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