TDS on Arrears Salary for PVt Ltd

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Mahesh 1977

Mahesh 1977 (Querist)
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23 August 2010 If any Pvt. ltd company paid arrear salary to employee – (e.g Arrear paid from April -10 to July -10) what is process for tds deduction on arrear amount. Deduct tax on arrears from April to July & paid or deduct the tds next 8 month. In income, tax under which section guide me.

GSTP Hari Dhayalan Konar

GSTP Hari Dhayalan Konar (Expert)
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23 August 2010 between the financial year april to march whatever you receive will be taken for taxable income. you may calculate the tax liability after claim all the section.

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Guest

Guest (Expert)

23 August 2010 TDS on salary means tax on taxable salary after deduction etc divided by months.

now as you receive arrear salary, it means your tax on taxable salary is changed now so now you have to calculate tax on your revised total salary for the year including salary already paid to you. calculation will be as follows

-- Total taxable salary for April to march including arrear salary
-- Tax on above salary
-- Less Tax already deducted
-- resulting figure to be divided by the months of service to be rendered(i.e. 9 month in above case).

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