TDS

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Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 Hi,

Need your interpretation for new TDS rule 2010:

Meaning of "is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls". It means that now TDS to be deposited within two months after the expiration of the month in which account of payee is credited??

where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H or the income by way of rent referred to in section 194-I or the income by way of fees for professional or technical services referred to in section 194J or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls;

Shyam Lal Naik

Shyam Lal Naik (Expert)
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27 March 2010 date upto which accounts of such person are made

Here person means the deductor.

date upto which accounts are made means last date of the financial year.

Amt credited to the account of the payee means provison on accural basis. It does not cover actual payment.

meaning thereby - If any amount is credited(not paid) to the account of the payee, on the last date of the financial year(normally 31st March), TDS shall be deposited within the next two months(normally 31st day of May)