TDS
This query is : Resolved
20 April 2010
IF TDS is deducted on last day of F.Y. say 31.03.2009 , how it makes difference if the party is on paid on same date or next F.Y for the purpose of date of payment of tds amount to Government. that means parties account is credited on last day of FY & paid on same date and in next case party's account is credited but paid in next F.Y how it makes difference in payment of TDS to government , what would be due date
20 April 2010
Your query comes under different payment situations. As normal, if tax is deducted other than Government and the amount is credited to the account of the recipient as on the last date of the accounting year - time limit for deposit of tax within two months from the last date of athe accounting year.
If any other case - within one week from the last date of the month in which tax deduction is made.
When payer is the Government or when payment is made on behalf of the Government - time limit for deposit of tax is Same day.
If any other case - within one week from the last date of the month in which tax deduction is made.
When payer is the Government or when payment is made on behalf of the Government - time limit for deposit of tax is Same day.
20 April 2010
AGREE WITH EXPERT
20 April 2010
My question remained unanswered the deductor is non govt. if the amount is credited by him on last date paid too last day of the fy what would be due date of deposit, other case is amount is credited to party but not paid on last date & tax is deducted on the last date what would be due date for this type of deduction
20 April 2010
DUE DATE IF TDS DEDUCTED ON AMOUNT CREDITED ON LAST DAY OF FY IS 31ST MAY.
BUT IF THE AMOUNT IS PAID ON 31ST MARCH ITSELF DUE DATE WILL BE 7TH APRIL
BUT IF THE AMOUNT IS PAID ON 31ST MARCH ITSELF DUE DATE WILL BE 7TH APRIL
20 April 2010
Dear Your query is not very clear, However I will make an attempt to answer. According to my understanding the query is that if the amount is credited / paid on the last day of the FY then why the due date for deposit of TDs is different and from the TDS deducted and paid on the last day of other months of the FY. In this understanding I answer your query as following –
Dear Your query is not very clear, However I will make an attempt to answer. According to my understanding the query is that if the amount is credited / paid on the last day of the FY then why the due date for deposit of TDs is different and from the TDS deducted and paid on the last day of other months of the FY. In this understanding I answer your query as following –
On the close of a FY while closing the accounts which are prepared on accrual basis, there may be various provisions required to be made or may various bills be submitted by venders etc. at a later dates for services provided during the FY for which the entity may not be aware. While closing books auditors may also ask for certain new entries to be booked on which TDS is required to be deposited. If the last date of TDS deposit in such cases is kept the the 7th day from the end of the month, will be a great hardship to the business. So to provide relief from such hardship, the tax law has provided in the statute itself that if the amount is credited on the last day of the year on which the accounts are drawn, in such case TDS deposit date would be 2 month from the last day of close of the year.
Hope this clarifies the issue. In case of any further clarification, please let mw know at my PM.
Dear Your query is not very clear, However I will make an attempt to answer. According to my understanding the query is that if the amount is credited / paid on the last day of the FY then why the due date for deposit of TDs is different and from the TDS deducted and paid on the last day of other months of the FY. In this understanding I answer your query as following –
On the close of a FY while closing the accounts which are prepared on accrual basis, there may be various provisions required to be made or may various bills be submitted by venders etc. at a later dates for services provided during the FY for which the entity may not be aware. While closing books auditors may also ask for certain new entries to be booked on which TDS is required to be deposited. If the last date of TDS deposit in such cases is kept the the 7th day from the end of the month, will be a great hardship to the business. So to provide relief from such hardship, the tax law has provided in the statute itself that if the amount is credited on the last day of the year on which the accounts are drawn, in such case TDS deposit date would be 2 month from the last day of close of the year.
Hope this clarifies the issue. In case of any further clarification, please let mw know at my PM.
23 April 2010
You have rightly understood my query but still i am not satisfied with the answers by the experts . there are two aspects one is deduction date , which is very clear that the tds has to be deducted on the date of credit/ payment , even crediting Suspense account , it is the question when we have to pay the tds to the GOVT. Law is very clear that if the amount is deducted (see rule 30) in any month the last date for deposit of tds within one week, from the end of the month in which amount is so deducted only exception is last day of F.Y. i.e. if the account is credited of the payee by the payer on last day of fy. Credit means by any means , if the payment is made on same date or not is the condition. it is normal practice that that first account is credited by bill submitted by payee only then the payment is made to payee, otherwise it would amount as advance payment to party which again would attract the tds deduction. in my opinion it does not make any difference if the amount is paid or not on last date , what is important is deduction on last date & credit of party account on last date of F.Y. The due date in both cases if payment is made on last date or in next F.Y. the due date should be two months from the date of deduction. i.e the last last date of F.Y.
23 April 2010
not resolved
27 July 2025
This is a classic TDS deposit timing question — I’ll break it down clearly:
---
### Scenario:
* You **deduct TDS on 31st March (last day of the financial year)**.
* The payment to the party may be on the same day (31st March) or later (in the next FY).
* You want to know **what is the due date for depositing the TDS to the government** in both cases.
---
### What does the law say?
**Section 200(3) of the Income Tax Act and Rule 30 of the Income Tax Rules provide the timelines:**
* When TDS is deducted in a **particular month (except March)**, the due date for deposit is **7th of the next month**.
Example: TDS deducted on any day in January → deposit by 7th February.
* When TDS is deducted on **31st March** (last day of the financial year), the due date for deposit is **31st May** (i.e., within two months from the end of the financial year).
---
### Explanation of the two cases:
| Case | Deduction date | Payment date | TDS deposit due date |
| ------------------------------------ | -------------- | ------------ | ------------------------------- |
| 1. Deduct TDS & pay on 31st March | 31 March | 31 March | 31 May (two months from FY end) |
| 2. Deduct TDS on 31 March, pay later | 31 March | Next FY date | 31 May |
**Note:** The crucial date for determining the due date of deposit is the **date of deduction of TDS** (which is generally the date on which the amount is credited to the payee’s account or payment is made, whichever is earlier).
If deduction happens on 31st March, the due date is always **31st May**, regardless of when payment is made.
---
### Why this special treatment?
Because at year-end, many expenses are accrued but payment may happen later. The law provides this extended due date to reduce hardship in depositing TDS for such year-end accrued amounts.
---
### Summary:
* If TDS is deducted **on any day except 31 March**, deposit by 7th of next month.
* If TDS is deducted **on 31 March**, deposit by 31 May.
* Payment date does **not** change the due date for deposit of TDS once deduction date is fixed.
---
If you want, I can help draft an official explanation or suggest how to record this in your accounting system for compliance. Would you like that?
---
### Scenario:
* You **deduct TDS on 31st March (last day of the financial year)**.
* The payment to the party may be on the same day (31st March) or later (in the next FY).
* You want to know **what is the due date for depositing the TDS to the government** in both cases.
---
### What does the law say?
**Section 200(3) of the Income Tax Act and Rule 30 of the Income Tax Rules provide the timelines:**
* When TDS is deducted in a **particular month (except March)**, the due date for deposit is **7th of the next month**.
Example: TDS deducted on any day in January → deposit by 7th February.
* When TDS is deducted on **31st March** (last day of the financial year), the due date for deposit is **31st May** (i.e., within two months from the end of the financial year).
---
### Explanation of the two cases:
| Case | Deduction date | Payment date | TDS deposit due date |
| ------------------------------------ | -------------- | ------------ | ------------------------------- |
| 1. Deduct TDS & pay on 31st March | 31 March | 31 March | 31 May (two months from FY end) |
| 2. Deduct TDS on 31 March, pay later | 31 March | Next FY date | 31 May |
**Note:** The crucial date for determining the due date of deposit is the **date of deduction of TDS** (which is generally the date on which the amount is credited to the payee’s account or payment is made, whichever is earlier).
If deduction happens on 31st March, the due date is always **31st May**, regardless of when payment is made.
---
### Why this special treatment?
Because at year-end, many expenses are accrued but payment may happen later. The law provides this extended due date to reduce hardship in depositing TDS for such year-end accrued amounts.
---
### Summary:
* If TDS is deducted **on any day except 31 March**, deposit by 7th of next month.
* If TDS is deducted **on 31 March**, deposit by 31 May.
* Payment date does **not** change the due date for deposit of TDS once deduction date is fixed.
---
If you want, I can help draft an official explanation or suggest how to record this in your accounting system for compliance. Would you like that?
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