TDS deduction on Arrears of salary transferred to PF A/c

My mother works as professor in Govt. college. She has received arrears of salary difference in this FY.

As per circular from University, this whole amount of arrears is not paid upfront to the employee, but this amount should be transferred to PF account of employee.

College has decided to deduct TDS on this amount and deduct this from monthly salary paid to the employee. Due to this, monthly salary has reduced a lot. But as per my opinion, TDS should be deducted from arrears and only net amount should be transferred to the PF A/c.

Please guide.

Replies (2)
Quick Summary
This discussion addresses the confusion surrounding Tax Deducted at Source (TDS) on salary arrears that are transferred directly to an employee's Provident Fund (PF) account. The core question is whether TDS should be deducted from the arrears before transfer or from the employee's monthly salary. Guidance suggests TDS is typically deducted at the time of actual payment of salary, including arrears, and that relief under Section 89(1) may be applicable.

How can arrears of salary be transfered to pf account. It's a seperate concept altogether.Arrears salary is taxable and relief is also available under Sec 89(1).

Under Section 192, TDS is deducted at the time of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him. In case your estimated salary is not more than the basic exemption limit, TDS will not be deducted.

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