TDS

TDS on salary (Sec 192)

 How is TDS to be done ?

Income from salaries is to be computed on estimated basis at the beginning of each financial year.

Net income tax payable on the basis of estimated salary income should also be calculated.

Such estimation of  salary income and net tax liability may require revision periodically, depending upon change in income or investment made by the employee in the form of deposit/subscripttttion/payment.

The net tax liability is to be estimated after considering specific allowable deductions and rebates.

Every month 1/12^th of the net tax liability is required to be deducted.

Stress :

TDS u/s.192 has to be done at the time of payment of salary.

No deduction at source is contemplated u/s.192 in case where a payment towards salary has accrued but not made.

CIT V. Tej Quebecor Printing ltd

Who is responsible to deduct tax

Employer is required to deduct tax at source

When tax shall be deducted

At the time of payment of such income

Rate of TDS

Tax shall be deducted as per slap rate prescribed for women, senior citizens and other individuals.

Others

1. Maximum exempted limit

Tax shall not be deducted if taxable salary is less than the exempted limit (Refer slab rate)

Salary from more than one source

Where an employee is in employment of more than one employer, tax can be deducted at source by one of such employers which the said employee so chooses provided the said employee furnishes required details in form no.12B

Treatment of other income has

Assessee (employer) has any income chargeable under any other head of income for the same financial year

He may furnish to employer the particulars in form No.12

(i.e) such other income (only income and not loss) TDS on such other income House property loss, if any

Documents: employer has to obtain details from employee for deductions U/S 80C LIc paid, mediclaim etc.,

Duty of person responsible for deducting tax at source

Deposit of TDS within time – limit

Tax deducted shall be deposited to the credit of the central government within following time limit

Where to deposit

Any ranch of RBI, SBI

Any branch of selected public sector banks in palces where income tax offices are situated

Which challan to be issued

TDS is required to be deposited in challan No.ITNS 281

Issue of certificate to employee

# Where salary before allowing deduction U/S 16 does not exceed maximum exempted limit

## In any other case of salary.

Quarterly statement to It department by employer

Form

The statement must be prepared in form No.24Q & can file the same either in physical or in electronic form

Authority to whom statement is to be sent

The quarterly statement is to be delivered or caused to be delivered to the director general of income tax (systems) or the person authorized by him (i.e NSDL)

Due date for sending the statement

Annual return: form No.24.

Regards

K.Ilayaraja.

Nice.......Thank u for detail answer.

TDS U/S 194A, 194C, 194H, 194I & 194 J

(Other than salaries)

TDS Register to be maintained

Rate of TDS – Refer rate chart.

When tax shall be deducted

At the time of payment or crediting the party, whichever is earlier.

Deposit of TDS with time limit

Within 7 days from the end of the moth

For march – 31^st may

Issue of certificate of payee

Certificate in from No.16A to the payee

Issued with in a period of 1 month from the end of the month in which credit is given

Or

1 month from the end of the F.Y

For credit entries on last day of the F.Y – with in a week after the expiry of 2 months from the month in which income is so credited (7^th june)

Quarterly statement filing

Form No.26Q

Annual return filing

Form No.26

Rate chart