Delay in tds deduction

TDS 5318 views 5 replies

Deesha

HR Manager

25 Points Joined March 2012

Hi,

We are deducting the TDS on the basis of yearly Salary. We started deducting from the month of July.

So my question is can anyone tell me which is the appropriate method to calculate monthly TDS to be deducted.
Should I consider the past months too for which I have not deducted the TDS? i.e April to June? Should July's TDS include amount for those months?
Or the total amount should be divided by the remaining months only.

Please help!

Deesha

Attached File : 785087 1228200 sample.xlsx downloaded: 133 times

Replies (5)

Ankit

CA CS

3064 Points Joined June 2009

Dear Deesha,

You have to estimate the gross annual salary and deduct proportionate TDS on the same on a monthly basis.

Yes..you have to deduct the tds pertaining to the past months in the month of july (when you started the deduction)

No, adjusting the deficit TDS amount over the remaining months is not right…and has to be considered in July itself.

And by the way, in the Excel sheet you have taken 100000 X 1.3%..what is this percentage???

Ankit

CA CS

3064 Points Joined June 2009

You are welcome…if there is a doubt…please ask

Deesha

HR Manager

25 Points Joined March 2012

Hi Ankit,

Thank you so much for clarifying my doubts. And yes in the excel sheet thats my mistake of 1.3% it had to be 10.3%.

Deesha

Ankit

CA CS

3064 Points Joined June 2009

Yes…even I though so…

But if you don’t deduct it in july…you will be in default..

So that is not advisable….take the full amount for april – june in july itself..

If you have any further questions…please feel free to ask

Mihir

Wealth Manager

5293 Points Joined December 2008

Agree with Mr. Ankit.

Calculate the TDS deduction on yearly basis starting from April to March. Obtain the declaration of investments from employees in case they wish to deduct lesser TDS because of lower tax liability.