Tds on director salary

TDS 1263 views 6 replies

We are private limited compnay based in Mumbai. Company pays annual salary of Rs. 7 lacs and 4 lacs to two directors respectively. So, how should be tds deducted on salary? Can i deduct entire TDS due in the month of March 2016? Should I deduct TDS on monthly basis from salary? for last 2 years we are deducting TDS on monthly basis. But i does not want to file return quartrly. Can pay entire TDS due in Month of March and file return for 4th quarter only.

Replies (6)
Annually you can show in 4 quarter, but that will not be correct as you have to show in tds return that you are paying whole salary in 4th quarter. Officer may say that why you have shown in 4th quarter instead of other quarters, in scrutiny all things can be considered. I suggest you to follow monthly basis.

TDS on salary is required to be computed considering annual income and such TDS has to be deducted in equal instalments in 12 months. Hence it is better to deduct TDS monthly

Tds should be deducted on payment basis . it is not necessary to deduct in 12 installments
If you r paying salary monthly then you have to deduct the TDS on monthly basis. And require to file quarterly TDS return. Salary TDS is to be deducted at average rate of tax on due or receipt basis.
Yes Yes deduction should be monthly basis. U can calculate % of tds deduction which should be on gross salary. That... % of deduction will be made for each month. Any doubt let me know.
Sushant sir...I didn't got the point tds on salary is to be deducted as average rate of tax on due or receipt basis....can u provide any reference for this...or explain it in a detailed manner . As per my knowledge there is no compultion to deduct tds monthly for employees....Tds has to be deducted only on payment basis.... If I receive 2 months salary at once the employer deducts the tds only at the point of payment not monthly Correct me if my interpretation is wrong in this regard


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