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Arrears of salary

Harsh (Article Assistant) (92 Points)

26 April 2014

Dear All,

I need to know about deduction of TDS on arrears on salary, please assist me on the same . For clarification the situaton is explained below:

Suppose salary of Mr.X is 10,00,000 upto November but there was an increament in his salary say Rs. 1,00,000 from Novemeber, but the same was notified to me in April, and I was asked to provide arrears to the Mr. X for 5 months( nov-march) in the month of April.

So plz help me that how to deduct TDS on his salary i.e should I tax him for his arrears in one month only or the same should be deducted over the period of 12 months.

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4 Replies

Sahil Arora (Accountant) (40 Points)
Replied 26 April 2014

Sir,

As per your query, as far as i know, You have to deduct TDS at the time of making payment of Arrears i.e. in April.

Hope it helps.

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Harsh (Article Assistant) (92 Points)
Replied 26 April 2014

Firstly thanx.

You mean to say deduct whole TDS in April?

Sahil Arora (Accountant) (40 Points)
Replied 26 April 2014

Sir,

You can deduct TDS i.e.whole TDS in the month of April or Deduct 10% at the time of making payment(Depends on his salary slab) and rest of the TDS in the next months(In case of persons falls in 20% slab).

Thank You.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 26 April 2014

Dear Harsh

first clear one thing i assume that april 13 to october 13 and increment from nov to march 2014 i.e. F Y 2013-14 and increment received in april 2014 (pertaining to period nov 2013 to march 2013)

you have to deduct TDS in the month of April 2014 only considering that this is a salary for F. Y. 2014-15

and employee is open to claim benefit u/s 89 (1) for rebate of tax on arrear of salary.

Hope now every thing is clear