Delay in tds deduction

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???

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

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

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

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.