Tds on salary

Dear Members,

i would like to know follwoing details of TDS on salary.

1) when employer is liable to deduct TDS on salary of employee?

2) when employer is liable to pay TDS on salary deducted?

3) TDS on salary payment is based on deductions or payment? (i.e. one week from the end of the month in which salary paid)

4) if provision is made for salary on last day of the month when the TDS should be paid?

5) if provision is made for salary of 31.03 when liabiltiy of TDS payment of emplyoer is arise?

Pls guide.

Regards,

Hardik

 

 

Replies (3)

TDS on employee's salary is deducted and paid by the employer before 7th of every succeeding month i.e. for april it should be paid before 7th of may. Total tax liability of the employee is calculated at the beginning of the job and the total tax liability is evenly distributed in 12months.However TDS could be revised if the salary is revised at any time during the year.TDs is paid on credit or payment basis whichever is earlier.

1. Salary.

16192. (1) Any person responsible for paying any income chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax 18[***] on the amount payable at the average rate of income-tax 19[***] computed on the basis of the 20[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.

Rule 30(2) of the IT Rules specifies the due dates for pymt of TDS as follows:

All sums deducted in accordance with the provisions of Chapter XVII-B by deductors other than an office of the Government shall be paid to the credit of the Central Government—

          (a)  on or before 30th day of April where the income or amount is credited or paid in the month of March; and

          (b)  in any other case, on or before seven days from the end of the month in which—

       (i)  the deduction is made; or

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

Originally posted by : Radha Lohia

TDS on employee's salary is deducted and paid by the employer before 7th of every succeeding month i.e. for april it should be paid before 7th of may. Total tax liability of the employee is calculated at the beginning of the job and the total tax liability is evenly distributed in 12months.However TDS could be revised if the salary is revised at any time during the year.TDs is paid on credit or payment basis whichever is earlier.

        

Employer is liable to deduct and pay tds on the salary of employee if the annual salary is more than the basic exemption limit.

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