tds

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amar preet singh (Querist)
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01 May 2010 i am filling form 16 for the year 2009-10 the employee salary exceeded 160000/- in the month april 2009 when i asked my employee about the deduction under 80- c he said i will paylife insurance premium in the the month of march -2010 but he could not do so in this case i had to deducted the tax from the the april -2009 now what i have to do should i deduct tax. his salary is for the year is 170000/- it mean his salary is rs. 10000/- excedded taxable slab now his tax is 1000/- @ 10 % but when i deduct tax now should i have given any interest on it becaouse which tax haave dedected in april -2009 i am deducting it in the month of march -2010. for calarification if i would have dedduct tax in april -2009 then no any interest levy so please teel me what should i do ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 May 2010 YOU MAKE TDS ENTRY IN MARCH.
PAY THE TDS WITH INTEREST @1% P.A.
IF YOU PAY IN MAY INTEREST @ 3%.

1030+(3% OF 1030)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 May 2010 My view, not necessary to pay interest in this case, if you are deducted the TDS in the month of April-2009 but not paid up tp March-2010 such case interest is applicable.but you are deducting the tds in the month of march-2010 only so no required to pay interest. employer has to consider the employees declaration form and based on that need to calculate tax and deduct tds. so you done your duty corretly. thisw because of employees mistake and justifiable reason also

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