Hi All,
I have a query regarding Salary for the month of March paid in Apr (i.e salary of one FY paid in next FY)
Querries are as follows. (Friends It would be helpful if i get an opinion for each query individully)
1) Can provision of salary be made in books of accounts for Mar without actually making the payment
2) Is TDS required to be deducted in current FY even if payment is going to be made in Apr. When should be TDs made
3) If no TDS is required to be made for Mar, what salary should one mention in TDS return 26Q (i.e whether we should mention the march salary as NIL, or should we mention salary accrued in books)
4) What salary should be disclosed in Form 16 issued to employees. Whether it would contain salary for 12 months or 11 months.
5) What will be the employees obligation where he is paid only 11 months salary. Should he disclose 12 month salary and pay tax on it or should he disclose only 11 month salary and show the TDS deducted.
Kindly revert with your expert opinions.
Regards,
Anand S
CAclubindia
