Tds on salary

[Hanumanthaiah D.T]

Dear All, Can anybody confirm me TDS on Salary is deductibale on payment basis or Payable basis? Please, also confim me whether provision made for salary & bonus is subject to TDS or not U/s 192 and U/s 15

[Guest]

TDS on salary is applicable on payment or credited to the books of account whichever is earlier. Bonus is also forming part of salary to be included into the gross salary before tds.

[SUNILKUMAR GUPTA]

TDS ON SALARY IS TO BE DEDUCTED ONLY AT THE TIME OF PAYMENT. PLEASE READ THE SEC.192(1) VERY CAREFULLY.THE WORDS ARE " SHALL AT THE TIME OF PAYMENT DEDUCT INCOME TAX."

[Ravi Chopra]

I do agree with the view of Mr. Sunil gupta that provisions of 192(1) contains the term "payment". But, from practice point of view, i agree with the views expressed by Mr. Rama Krishna

AI Summary

Clarification on TDS Deduction: Payment vs. Payable Basis for Salary and Bonus Under Sections 192 and 15. A query was raised regarding whether Tax Deducted at Source (TDS) on salary is deductible on a payment or payable basis and if provisions for salary and bonus are subject to TDS under Sections 192 and 15. One respondent stated that TDS on salary applies when payment is made or credited, including bonuses in the gross salary. Another emphasized that TDS should be deducted only at the time of payment, as per Section 192(1). A third respondent agreed with the latter interpretation but acknowledged the practical application of the former view.