Tds on Director Salary Income

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This query is : Resolved

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A manufacturing company is seeking clarification on TDS deductions for directors. They deduct TDS on monthly salaries and an additional 10% TDS on interest paid for unsecured loans. The issue arises because the total TDS liability (salary income + loan interest) exceeds the directors' monthly salary, particularly in March. The advice given is that the 10% TDS on interest is sufficient, and any remaining TDS on salary can be deducted from the March salary. If the total TDS still exceeds the March salary, the balance TDS should be remitted as an advance and recovered from the April salary.

Sanchit

Sanchit (Querist)

12 April 2023 Dear Sir,
We are a manufacturing Company, in which there are 5 directors each director is getting a salary of Rs 50000 p.m. against which company is deducting Rs 1950/- pm as tds, now in the month of March 2023 director has given interest on their unsecured loan given to company against which 10% tds is charged by the company, now what tds should company deduct from March 2023 Salary, as Income tax on Salary income plus intt on unsecured loans income is higher than their monthly salary. kindly clarify this issue.
Thanks & Regards