Tds on salaries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2013 Please guide me to my query.

Deducting and depositing TDS for the whole year in the last quarter in case of salary.

Is this procedure followed is correct or not.
If not please tell me then what should be done.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 June 2013 On salary TDS is to be deducted monthly and to be deposited on 7th of the month... next to the month in which salary is being paid.
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Start monthly deductions and file quarterly e-tds returns.
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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 Thanks for the reply.
But Sir, what if the person has deposited full years TDS of salary in the month of Feb & March. Any interest or penalty will attract, if yes then how much.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Here's a quick breakdown of your query about TDS on salary deducted and deposited late in the year:

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### 1. **Is deducting and depositing TDS on salaries only in the last quarter correct?**

* **No, it is not correct.**
* As per **Section 192**, TDS on salary must be deducted **at the time of payment every month**.
* The deducted TDS must be deposited with the government **by the 7th of the next month**.
* Quarterly TDS returns must be filed timely, reflecting the deducted and deposited TDS.

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### 2. **What happens if TDS is deducted and deposited late (in Feb & March for the whole year)?**

* You will be liable to pay **interest for late deduction and late deposit** under **Section 201(1A)**.

* **Interest calculation:**

* **1% per month** or part of the month from the due date of deduction till actual deduction.
* **1.5% per month** or part of the month from actual deduction till the date of deposit.

* For example, if you deducted all TDS in March for salary paid from April previous year onwards, interest would be charged for the delay from each month’s salary payment date till March (for late deduction) plus interest from deduction till deposit date.

* There may also be a **penalty** for delay or failure to deduct and deposit TDS on time.

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### 3. **What should be done now?**

* Deposit the outstanding TDS **immediately along with interest**.
* File all quarterly TDS returns correctly.
* Issue Form 16 to employees reflecting correct TDS deduction.
* Consider voluntary disclosure to reduce penalties.

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If you want, I can help calculate the approximate interest for your case if you provide the months and amounts involved. Would you like me to help with that?

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