TDS QUERIES

TDS 988 views 3 replies

swohra

none

537 Points Joined September 2007

Queries:

Q1. Mr.A has paid Rent of Rs. 12000/- per month without deducting tax because the liability for tds arises when payment exceeds above 120000/-. Now in the month of February how can Rent be paid after deducting tax i.e 19800/- ( @ 15%)?

Q2. Mr. A is paying interest of Rs. 2000/- per month. In the third month he deduct tds on 2000/- as interest exceeded rs.5000/-. My question is what amount should be fill up in form No.26Q in the column no.419 i.e. amount paid or credited? 2000/- or 6000/-. If I fill 6000/- than which date should be fill in the column no. 418.i.e. date of payment/credit because in the books of A/c there is no entry for Rs. 6000/-.

Q3.Mr.A has paid interest to Mr. B Rs. 10000/- without deducting tax. But in the month of March he pays the tax out of own pocket by crediting the Mr.B. Please tell me the entries to be fill in the form No. 26Q in the annexure for deductee wise tds detail.

Replies (3)

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

Reply to ur query

1. If the amount of rent is likely to exceed Rs. 120,000/- then TDS is to be deducted and not when the amount has crossed Rs. 120,000/-. So deduct TDS from the first month itself.

2. Same as above for the first part except Rs. 5,000/- is the limit. If all tax deducted on one date then show payment/credit the respective dates and show there is a delay in payment of TDS or show one entry in 26Q showing one amount and the date on which TDS deducted and the dealy in deduction will be reported in tax audit.

3. Even if TDS has been borne by the deductor the entry in the column remains the same.

Nisha

Admin

51 Points Joined August 2008

Queries

If an employee joins the organisation from September how should the company deduct the TDS . I means is the salary /7 or is it with * 12

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

Generally TDS is deducted on the amount of salary paid to the employee during the year by the company.

If the employee has two or more than 2 employee then declaration in form no. 12B is to be taken from the employee and tax has to be deducted taking into account the salary paid by the previous employer(s) and TDS deducted by them on the same.