TDS from Salary

[Unregistered]

Can a company pay an X amount to it's employee in April '11 and deduct tax at source for this X amount FY 2010-11 and simultaneously include this amount in the pay slip of Mar '10? Isn't this a violation of the income tax regulations?

[jayashree s kumar]

Can a company pay an X amount to it's employee in April '11 and deduct tax at source for this X amount FY 2010-11 and simultaneously include this amount in the pay slip of Mar '10? Isn't this a violation of the income tax regulations?

Since the amount X is paid only in April 2011, the employee will show it as income for FY 2011-2012 and TDS can be deducted for FY2011-2012 only.

TDS and tax calculation are done on payment/income paid/received during a FY in which it has been paid/received.

[priya899]

Hi friends,

Nice post....
I hope we are share more usefull information here…….

thnaks,
Priya

[Sudheendra]

Not really. I guess you need to have a good understanding about the taxation. You can refer to form 16 FAQ