TDS form 16

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This discussion clarifies the process for employers submitting Form 16 for Tax Deducted at Source (TDS). It confirms that there are no extensions for the monthly TDS deposit deadlines, with the first deposit for April 2020 salary due by May 7th, 2020. Form 16 is issued annually to employees alongside the last quarterly TDS return, typically in May of the following year. The guidance also explains that TDS is only deductible if an employee's net taxable salary exceeds £5 lakh per annum, considering potential tax benefits.

Pragna Marfatia

Pragna Marfatia (Querist)

05 April 2020 Is there any extention in date for submitting Form 16 by the employer for TDS dedction?
I have to cut TDS for first time for FY 2020 2021.
I understand, for employees, whom I am paying more than Ra. 5 lacs per annum, I have to deduct TDS.
Please guide.

VIJAY KUMAR

VIJAY KUMAR (Expert)

06 April 2020 Dear Pragna,
For FY 2020-21 you will deduct TDS when you will pay the Salary,say for April 2020, last date of deposit will be 07.05.2020, and so on every month you will do this. You have to file Quarterly TDS returns in form 24Q (April, May and June 2020 and so on ) but issue of form 16 to Employees shall be with last Quarter TDS return i.e, next year May 2021on the annual basis. Please go to TDS website www.tdscpc.gov.in and you will get all details.

Pragna Marfatia

Pragna Marfatia (Querist)

06 April 2020 Vijay ji,
Thanks for your guidance.
So there is no extension for 07.05.2020 deadline for April Salary? How to deposit TDS, I have to deposit online?

VIJAY KUMAR

VIJAY KUMAR (Expert)

06 April 2020 Yes online on www.incometaxindiaefiling.gov.on, TDS CHALLAN NO 281, Section 92B, AY 2021-22, You have to segregate TDS and Cess (4% of TDS amount) and that is it. However if you are not expert first take the opinion of your CA or some other expert.

Pragna Marfatia

Pragna Marfatia (Querist)

06 April 2020 Thanks Vijay ji. Just one more query. Upto Rs. 5 lacs, TDS is nil. Above Rs. 5 lacs, I have to deduct TDS and submit to govt., correct?

VIJAY KUMAR

VIJAY KUMAR (Expert)

06 April 2020 Yes, You are right if net taxable salary of an employee is up to 5 lac, tax benefit u/s 87A can be availed up to Rs 12500 and consequently tax liability of that employee will be zero, and you need not to deduct any tax thereon.

Pragna Marfatia

Pragna Marfatia (Querist)

06 April 2020 Thanks a lot for your guidance, Vijay ji.

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