Time for deposit TDS

Others 804 views 2 replies

Brajesh

manufacturing

73 Points Posted on 11 February 2009

Dear All

We are following calendar year as accounting year ( Jan to Dec ) for the purpose of statutory books of accounts and simultaneously we prepare tax balance sheet for the period Apr to March .

Query is related to the time of deposit tax .

We had credited the party account on the last date of the accounting year i.e 31.12.2008 . The due date for depositing the tax will be 7.1.2009 or on or before 28.2.2009 .

we do not avail the two month benefit for the period April to March .

Kindly provide solution !!

Replies (2)

Abhinav Agarwal

M.Com C.A SAP Consultant

814 Points Posted on 12 February 2009

Dear Brajesh,

As per Income Tax Act if you have deducted Tax at source, you need to deposit the same WITHIN 7 DAYS FROM LAST DAY OF MONTH IN WHICH TAX IS DEDUCTED irrespective of accounting year you are following. The 2 month benifit if for TDS Return for Q4 not for depositing tax.

Brajesh

manufacturing

73 Points Posted on 12 February 2009

Dear Abhinav , thanks for reply . But kindly refer rule 30 . As per Rule 30 (1) (b)(1) of the Income tax which deals with the time and mode of payment to government account of tax deducted at source or tax paid under sub section (1A) of section 192 , it is clearly mention that “where the sum referred in section 194C ………… is credited by a person to the account of the payee as on the date up to which the accounts of such person are made , within two months of the expiration of the month in which that date falls; Regards Brajesh