TDS - salary

Dear Jaya,

TDS on salary is to be deducted at the time of making payment.

The same has to be deposited within 7 days from the end of the month in which it is deducted..i:e 7th  April in ur case

I think u r rite about Challan 281 ......

TDS Certificate will be issued in Form 16

hi..Is there TDS deduction on advance salary paid for the month and under which section ?

Dear Sonia,

Section 192 reads as under:

192. ⁵⁸(1) Any person responsible for paying any income chargeable under the head Salaries shall, at the time of payment, deduct income-tax ⁵⁹[***] on the amount payable at the average rate of income-tax ⁶⁰[***] computed on the basis of the ⁶¹[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.

Now income under head salary is taxable on receipt basis or accrual basis whichever is earlier. Hence advance salary is also taxable on receipt basis even though it has not accrued. Since TDS is payable at the time of payment of salary, TDS must be deducted from Advance salary also.

Regards,

Chintan

Mr.Chintan may be correct only if the salary is paid in advance. But if the payment is in the nature of an advance to be recovered against future salary, then no TDS on such advances.

Thanks

Sahana

Dear Mr.Amir brother........

Is the due date 7th April?????

I studied somewhere that due date for march is 31.05......... please clarify me...........

Dear Balaji,

Due date fordeposit of TDS on  expenses CREDITED on 31st March is 31st May.....This is not avilable in case of PAYMENTS...

Whereas in case of salary TDS is deducted on PAYMENTS & has to be deposited within 7 days from the end of the month in which it is deducted, therefore it has to be 7th April ony.

Yes......Thank you Dear Amir bhai...........

thanks Chintan & Sahana for clearing my doubt.

can whole TDS be deducted from the salary of March-10, paid in April-10. which is the last date to deposit TDS to bank in such case. will the employee get the benefit of TDS for FY-09-10, AY-10-11.

please mail me too on response2mrugesh @ yahoo.com