TDS

Section 192 says salary will be computed as due basis or receipt basis…

Even if salary is paid on the last day of March, final settlements for employees who leave an organization in March may be processed only in April or later. In such cases too, the words that describe Section 192 give rise to confusion.

What is the confusion about?

The way Section 192 is worded puts it in conflict with Section 15 of the Income Tax Act which states that taxability on salary arises whenever salary is due/accrued or paid, whichever is earlier. In case of fixed heads of pay such as Basic pay, salary accrues on March 31, and taxability arises on March 31 according to Section 15. While the tax may be deducted in April or later, whenever the salary is paid, the amount of tax calculated should be as per the tax rates that prevailed in March.

My question even though the payment would be received on 31st March , the same shall be credited to my account only in April 2011 & hence whether I would be liable to pay income tax again in 2011-2012.

WHAT U DO MEAN BY AGAIN????

TAX IS NOT PAYABLE TWICE IN A SINGLE INCOME....

Simply speaking

A big "NO".

You will not be taxed again.

Regards,

Rahul
 

Pls tell the TDS on Hire Charges of Genset ,bill including Rent Charges + VAT.

 TDS should be deduct u/s 194I @ 10 % excluding service tax.

you won be liable to pay tax again. What he said is correct. salary is taxable on due basis or payment basis. So now if you pay tax on your income which is due and not yet received, you need not pay tax in the next year.

Tax on Which amount  whether including VAT or not ?

Originally posted by : ajay.
	Tax on Which amount  whether including VAT or not ?

If you are claiming In put VAT credit then you may deduct TDS on Net amount i.e. without including VAT. If you are not claiming input VAT credit then you have to deduct on gross amount i.e. inclusive of VAT.