If the cheque is dated March and paid by the client in May. When to deduct TDs: March or May? bill date is June months.
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Quick Summary
This discussion clarifies when to deduct Tax Deducted at Source (TDS). Generally, TDS should be deducted on the bill date or payment date, whichever comes first. If a cheque is issued in March but payment is received in May, TDS should ideally be deducted in March. However, if missed, it should be deducted upon payment. The validity of the cheque is also a factor, as it typically expires after three months. TDS is also deductible when the payment is booked in the company's accounts.
But Cheque was issued in March will be valid for 3 Months only Up to May , I think he may not be able deduct in June , so consider this point while deducting TDS .