Tds on salary

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Purna Chandra Patra (Querist)
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27 April 2014 Dear Sir,

Can any body help me to clarify ?

We are deducting tds on monthly salary on approximate basis. But total salary we have to deduct in the month of Feb or Mar 14 salary after due calculation. But my question is ---- why do we deduct tds from feb & mar sal even if we have not disbursed the same till date. OR is it bound to deduct once the amount is credited.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 April 2014 as such tds is deducted on payment basis. so if you have not paid feb and march salary, you are not required to deducted tds on the same. However, you need to ensure that for the payments made upto january, taxes have been duly deducted or else it would reflect as short deduction in the TDS return.

So it would be advisable to deposit the remaining tds amount with the govt against March itself and pay net salary next year. This would also mean that this part of salary would form part of Form 16 of the previous year only.

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