TDS remittence due date

This query is : Resolved

CA Bikash Kumar Mishra (Querist)
Follow

10 March 2011 If we are paying salary for the month of march on 1st april then what will be the due date for tax remittence . As per income tax act the tds remittence to government account should be done within one week of the following month in which tds has been deducted.So if we are paying the Salary on 1st april whether our due date of remittence will be 7th may because for salary TDS liability arises on payment basis .Please clarify the matter with the referance of section and rules of income tax act.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

10 March 2011 Section 192 of the Income tax Act,1961 says tax is to be deducted at the time of payment. so in the query raised deduction date is 1st April. Rule 30 (1)(b)(i)(2) of the Income tax Rules,1962 says, TDS remittance should be made within one week from the last day of the month in which the deduction is made meaning thereby the cut off date in the referred case is 7th of May.

Rajan Kapoor

Rajan Kapoor (Expert)
Follow

10 March 2011 You have to book salary expenses on accrual basis in the month of March and TDS should be deducted on the date of credit or payment whichever is earlier.
So TDS should be deducted in March and payable on 7th of April.

CA Bikash Kumar Mishra

CA Bikash Kumar Mishra (Querist)
Follow

10 March 2011 Please reply if you have any other views i got two views both are different.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok