Urgent help needed for tds

Must make tds but no problems as the expense can be claimed as deduction even though tds not made

Tds trf to director ac. Provide on month on which it is payable. Pay tds with intt.

section 40(a)(ia) states only about intrest,rent,commission,royalty and professionl fees. So evan if you have not deducted tds on salary deduction can be taken. H/e penalty u/s 221 can be imposed.

First deduct tds with interest.

If Tds is not deducted then submit the self assesssment tax in the name of directors or you can also submit the TDS in the name of directors and amend the tds return. As per amendment made in the TDS , if Director has submit self assessment tax on Rs 720000. your company can claim the deduction of salary of directors . As per the amendment your company is not treated as assessee in default if  the receiver has submit the self assessment tax . Your company have to submit the interest up to the date of filing of return by directors

 

 Tds is not deducted then submit the self assesssment tax in the name of directors or you can also submit the TDS in the name of directors and amend the tds return. As per amendment made in the TDS , if Director has submit self assessment tax on Rs 720000. your company can claim the deduction of salary of directors . As per the amendment your company is not treated as assessee in default if  the receiver has submit the self assessment tax . Your company have to submit the interest up to the date of filing of return by directors

Actual entry should have been. Salary to Dir....dr. To director salary payable account To Tds To expense payable account. And on payment it will be Director salary payable account....dr To bank Tds a/c .....dr To bank. Now what you could do is debit the director salary payable account with the tds deducticble and adjust the amount with future salary payable ammount. So entry for tds will be Director salary payable account....dr To tds

Since the accounts are at the stage of finalising it would be better not to make the rectification entry. If such an entry is made now, it would amount to tax deducted but not paid, which is a serious issue than non-deduction. The expense can be claimed even without tax deduction. Also you must follow the procedure that Mr. Amit Popli has stated here to avoid the company from being treated as an assesse in default. But he has forgotten to add that the company will have to get a certificate from a Chartered Accountant in this regard.

thanx for the response friends. 

@ amit popli - thats a new info , thanx though

@ rohit shetty - i could not comprehend ur entries..why is ther a salary payable and expense payble in your first entry . i have opened the Expense payable for salary payable nly.

@ sujith - thanx.

 

There will be interest on late deduction as well as late payment here isnt it?

 

 

No, if you follow Mr. Popli's recommendations there will be only interest for late deduction @ 1% from the date on which tax was deductible to the date on which the payee furnishes his return.

Compute the TDS using slab rate u/s 192 and make the payable entry for the year end as,
 

"SALARY TO DIRECTORS         Dr

                    To    TDS ON SALARY PAYABLE"

The aforesaid amount of TDS payable also included in the salary to directors.
 

 

Originally posted by : Achu vijay
	Compute the TDS using slab rate u/s 192 and make the payable entry for the year end as,   "SALARY TO DIRECTORS         Dr                     To    TDS ON SALARY PAYABLE" The aforesaid amount of TDS payable also included in the salary to directors.     WOULDNT THIS ENTRY INCREASE OUR ORIGINAL SALARY AMOUNT( THE DR.) THEREFORE TDS WILL BE AGAIN DIFFERENT FROM WHAT IS SHOUD BE?