Tds return

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Sanjana (Querist)
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09 January 2012 Company pays Salary for a particular month on the 7th of the next month. For eg. Salary for the month of April 30, 2011 is paid on May 7, 2011 and so on…
The company deducts TDS on Salary at the time of payment i.e. it deducts TDS on Salary for the month of April 2011 on 7th May, 2011. Now, since TDS is deducted in the month of May, this TDS is paid on June 7th, 2011 which is correctly done, since as per law TDS is deductible at the time of payment in case of Salaries.
Now the question is with regards to filing of TDS Return
For the Quarter 1 TDS Return
Details of Salary for the month of April and May 2011 will have to be submitted. June months details would go in the Return for Quarter 2 since TDS on June’s Salary is deducted in the month of July which falls in Quarter 2. Also because this TDS would only be paid on August 7 and the Date of filing the TDS Return for Quarter 1 being 15 July.
Is the above procedure correct??
If the above procedure is correct, then March 2012 details would go in the TDS Return of Quarter 1 of the F. Y. 2012-13 and hence the employees would receive their Tax Credit in Form 26AS for the month of March 2012 in the F. Y. 2012-13 instead of the F. Y. 2011-12….
Kindly Reply as to the correct procedure to be followed.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 January 2012 Although Section 192 requires that TDS shall be deducted at the time of payment, for practical purposes, TDS on salary is deducted at the time of booking the salary.

Salary is usually booked on the last day of the month. On that date the TDS is deducted and deposited by the 7th of next month.

Accordingly, salary for April, May & June will be declared in Q1 return and so on.

So, salary for all the 12 months shall be disclosed in the current year itself and the employees will get credit for the TDS in the current year itself.

Sanjana

Sanjana (Querist)
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11 January 2012 You have not answered my question....we are follwing the procedure as written in my query and it is also very much eligible as per the Act.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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28 July 2025 Great question! Here's the correct approach for TDS on salary payments and filing returns:

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### Key points:

* **TDS on salary is to be deducted at the time of payment** (not on the due date or salary month).
* The **month of deduction** is considered the month in which salary is actually paid and TDS deducted.
* **TDS deposit** should be made by the 7th of the next month following the month of deduction.
* The **TDS return filing is based on the month of deduction of TDS**, not the month for which salary relates.

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### Applying to your example:

* Salary for April 2011 is paid on 7th May 2011.
* TDS deducted on May 7th, 2011.
* TDS deposited by June 7th, 2011.
* Therefore, **April salary TDS should be reported in the TDS return for Q1 (April-June) of FY 2011-12**, specifically linked to the month of May 2011 (month of deduction).

Similarly,

* Salary for May 2011 paid in June → TDS deducted in June → Reported in Q1 return.
* Salary for June 2011 paid in July → TDS deducted in July → Reported in Q2 return.

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### About March salary for FY 2011-12:

* If March 2012 salary is paid in April 2012, then TDS is deducted in April 2012 and deposited in May 2012.
* This TDS will be reported in Q1 return of FY 2012-13 (April-June 2012).
* This is correct as per law because TDS is based on the *month of deduction* (April 2012), even though the salary relates to March 2012.

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### Important:

* This can cause mismatch in employee’s Form 16 and Form 26AS if salary for March is shown in the next financial year.
* Employers should communicate this clearly to employees to avoid confusion.

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**Summary:**

| Salary Month | Salary Paid & TDS Deducted | TDS Deposit Due | TDS Return Filing Quarter |
| ------------ | -------------------------- | --------------- | ------------------------- |
| April 2011 | May 2011 | June 7, 2011 | Q1 FY 2011-12 (Apr-Jun) |
| May 2011 | June 2011 | July 7, 2011 | Q1 FY 2011-12 (Apr-Jun) |
| June 2011 | July 2011 | Aug 7, 2011 | Q2 FY 2011-12 (Jul-Sep) |
| March 2012 | April 2012 | May 7, 2012 | Q1 FY 2012-13 (Apr-Jun) |

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If you want, I can help draft a note explaining this to your employees or HR team. Would that be useful?

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