Tax Query

TDS on Salary is to be deducted as follows:

1) Any person responsible for paying any income chargeable under the head Salaries shall, at the time of payment, deduct income-tax ⁵⁹[***] on the amount payable at the average rate of income-tax ⁶⁰[***] computed on the basis of the ⁶¹[rates in force] for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.

and as per section 200 TDS on salary is to be deposited..

(a)   within two months from the end of the month in which the amount is credited by the payer to the account of the payee if the crediting is on the date up to which the accounts of the payer are made; and

               (b)   in any other case, within one week from the end of the month in which the—

          (i)   deduction is made; or

         (ii)   income-tax is due under sub-section (1A) of section 192.

So

if the TDS is deducted on 31st (on payment) then it can be deposited within 2 months

otherwise TDS is to be deposited within 7 days of payment.... 

Dear Krishnan Sir,

With due regard I would like to say the time limit for deposit of TDS on salary for the month of march is 7 days succeding the month in which payment is made..& the provisions of 2 months cannot be used for salary..

Reason -

TDS on salary is deducted at the time of "PAYMENT" -(unlike in othercase where TDS is deducted on credit or oaid whichever is earlier)

Now Caluse(a) of Sec 200 comes into picture only in case of "CREDIT"..

Therefore it cannot be applied to salary.........

Dear Rahul,

Now, Return of FY 2006-07 cannot be filed  voluntarily, therefore I don't think u will get the refund in this case.

Mr.Rahul..

Return of F.Y.06-07 i.e. A.Y.07-08 should have been filed before the end of 31.03.2009....

Belated Return should be filed before one year from the end of relevant A.Y.....

So you cannot file the return now and get the refund unless you know some people in the IT dept....

thnx all for the prompt reply

If not claiming refund for F.Y.06-07, can i return file for F.Y.06-07, and claim  refund for F.Y.07-08 and F.Y.08-09

Mr.Rahul

F.Y.06-07 return cannot be filed...F.Y 07-08 i.e.A.Y.08-09.. should be filed before the end of 31.03.2010... A.Y.09-10 can be filed....