Deduction of TDS

TDS 382 views 3 replies

Anubhaw Garg

Chartered Accountant in Practice

101 Points Joined May 2015

Hi everyone
If a employee is drawing salary of Rs. 75000 per month and his monthly TDs is not deducted instead of that employee makes payment of tds in the month of March for whole amount.
Is it correct or monthly tds needs to be deducted?

Replies (3)

Ruchi

1410 Points Joined March 2015

Monthly tds should have been deducted. But if not deducted then the entire amount should be deducted in march. Interest also applicable on the same.

Vivek Agarwal

Free Lancer

6 Points Joined September 2015

Hi all,

I have a similar doubt. This is regarding interest U/S 194A.

Should TDS be deducted, deposited and filed when we are PAYING the interest or should it be deducted, deposited and filed every quarter despite whenever the payment is made?

For example: I took a loan of Rs.1 lakh from Mr. X @ an interest rate of 12% P.A. Instead of paying interest every month, I am paying Mr. X the total interest at the end of the Financial Year in Q4. So-

Should I deduct the TDS whenever I pay interest to Mr. X and file TDS for that respective quarter only?

Vikas Gupta

Tax Executive

530 Points Joined July 2012

TDS is always deductible on the basis of DUE or PAYMENT, whichever is earlier (except in case of TDS on salary where TDS is deductible on payment basis). Thus in case of TDS u/s 194A, TDS liability arises at the time when bill/payment becomes due every time.

And If, in your case (Vivek Ji), TDS has been deposited at 4th quarter and bills/payment becomes due in every quarter irrespective of the fact of actual payment, you should deposit TDS along with applicable interest.