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TDS on Salary

Mahesh (AM-Accounts) (30 Points)

27 March 2009

Hi Everyone

I have certain issues kindly help me out?

TDS on salary is deducted at the time of Payment of salary tat means salary can be booked monthly on due basis but no TDS liability arise?

Suppose at the end of the year 2 or 3 months salary has not been paid and hence TDS has not been deducted then how Form 16 could be issued? How much salary will be reflected therein salary due or paid?

If salary paid will be shown then the income of the employees in that case will be less as they have to show their income on due basis.?

If salary due will be shown then there will be less amount of TDS?

Further how we will file Quarterly TDS return?

Early reply will be highly appreciable.

Thanks

Mahesh Setia (CA)

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7 Replies

Mahesh (AM-Accounts) (30 Points)
Replied 27 March 2009

Originally posted by :Mahesh
"	Hi Everyone I have certain issues kindly help me out? TDS on salary is deducted at the time of Payment of salary tat means salary can be booked monthly on due basis but no TDS liability arise? Suppose at the end of the year 2 or 3 months salary has not been paid and hence TDS has not been deducted then how Form 16 could be issued? How much salary will be reflected therein salary due or paid? If salary paid will be shown then the income of the employees in that case will be less as they have to show their income on due basis.? If salary due will be shown then there will be less amount of TDS? Further how we will file Quarterly TDS return? Early reply will be highly appreciable. Thanks Mahesh Setia (CA)	"

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 27 March 2009

Hi Mahesh

1.As per the Form 16 concern it include the amount paid to employees as Salary I mean to say if employee worked only for 10 months then 10 months salary & TDS on same will be shown in Form-16.

2. In form 16 employers have to provide all details i.e. the period for which the employees are working.

3. While filling quarterly return TDS is calculated on payment basis. So if in the particular month employee’s salary is not paid then for that month TDS will not be deducted.

Mahesh (AM-Accounts) (30 Points)
Replied 27 March 2009

Originally posted by :Suhas A. Nagpure
"	Hi Mahesh 1.As per the Form 16 concern it include the amount paid to employees as Salary I mean to say if employee worked only for 10 months then 10 months salary & TDS on same will be shown in Form-16. 2. In form 16 employers have to provide all details i.e. the period for which the employees are working. 3. While filling quarterly return TDS is calculated on payment basis. So if in the particular month employee’s salary is not paid then for that month TDS will not be deducted.	"

Thanks for the reply but still i have not get the proper reply

what if an employee worked for 12 months but did not get the salary then what is to be done?

Suppose salary for the m/o Dec'08 has not been paid then for the quarter 3rd TDS return could be filed or not? If it could be filed then whether salary for the m/o Dec'08 will be shown?

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 27 March 2009

TDS is deducted on Payment basis

So when employee will be paid at that time only TDS is deducted and same is deposited with Govt.

E.g. - If company is having 5 employees and 2 of them is not paid (Salary) for the month of Dec. Then TDS will be deducted only on the salary paid of the rest 3. In case of the 2 employees who has not receive salary the TDS will deduct as and only when the will be paid.

In case of TDS Return for 3rd Quarter - Return will be filled having details of TDS deducted of the 3 employees.

Mahesh (AM-Accounts) (30 Points)
Replied 27 March 2009

Suppose an employee has salary of Rs. 50,000/- p.m. He has been paid salary upto Nov'08(i.e. Rs.400000/-). Salary for the m/o dec'08 to mar'09 has not been paid, therefore no TDS has been deducted thereon.

How much salary will be booked by the company?

What information will be given in Q3 TDS return and Q4 TDS return?

How much salary will be shown in Form 16?

How much income the employee will be showing in his return?

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 27 March 2009

1. Company will book whole salary - Dec to Mar salary will be booked to Salary Payable a/c.

2.In Q3 and Q4 Return - There is no need to provide any details of that employee in Q3 & Q4 Return.

3. In Form -16 - Rs. 400000/- will be shown as salary.

4. He can show only Rs.400000/- as income from salary

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 27 March 2009

Please give practical examples as this type of situation does not happen. No one will continue in such company where he does not get salary for 4 months.