Tds on provision for bonus
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 July 2015
Dear Sir/Mam,
I just wanted to ask, whether TDS should be deducted on provision for bonus in the year in which provision is made to get deduction in the assessment year in which provision for bonus is created if TDS is paid on or before filing IT return.
eg. Provision for Bonus of Rs. 1 lakh made in FY 14-15. No Tds deducted in FY 14-15. However client is promising that they will deduct and pay Tds on bonus before Sep 15.
My question is, are they require to make provision for Tds in FY 14-15 to allow bonus provision in FY 14-15 itself in IT return??
I just wanted to ask, whether TDS should be deducted on provision for bonus in the year in which provision is made to get deduction in the assessment year in which provision for bonus is created if TDS is paid on or before filing IT return.
eg. Provision for Bonus of Rs. 1 lakh made in FY 14-15. No Tds deducted in FY 14-15. However client is promising that they will deduct and pay Tds on bonus before Sep 15.
My question is, are they require to make provision for Tds in FY 14-15 to allow bonus provision in FY 14-15 itself in IT return??
CA R SEETHARAMAN
(Expert)
13 July 2015
For salary TDS applicable only at the time of payment not on accrual basis.
13 July 2015
agreed with seetharams view
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