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

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

TDS on salary: deduction may depend on payment timing or earlier credit, with bonus included in salary for withholding.
TDS on salary is contested as payable either at the time of payment or when salary is credited to the employee's books; one view favors a strict payment-time deduction, while another treats the earlier of payment or credit as triggering deduction. Bonus forms part of gross salary for TDS, and the applicability of TDS to provisions or accruals for salary and bonus is questioned.