Date of Payment/Credit in Income Tax-TDS/TCS

Thursday, March 18, 2010 | comments

Friends
                     To know date of payment/credit  is important while making work of income tax regarding tds/tcs.  There are some questions regarding date of payment.
1)   Tds deposit date is different from Date of Payment or not.
2)   Meaning of  Date of  Payment or Date of Credit.
3)   TDS/TCS  is liable on the basis of Date of Payment or Date of Credit.
4)   What is base for making Quarter for submitting etds/etcs return.

Answers:-
1)    Yes, Tds/Tcs deposit date is quite different from Date of Payment or date of Credit.

2)    Detailed meaning of  date of  payment or credit  is given  below:-
        a)    Date in which Bill Amount booked in Cash Book is called Date of Credit.
        b)    Date in which Bill Paid or Advance given is called Date of Payment.
                                Example :- a)  A paid advance to B on account of advance on 15-April-2010 and receive bill on 05-July-2010 and enter in Cash Book on 10-July-2010.
                              It means Date of Payment will be  15-April-2010 and Date of Credit will be 10-July-2010.

3)     Date for deduction of tds/tcs can not be fixed.  Date of  deduction of tds/tcs will be which ever is lowest in Date of Payment or Date of Credit.  In above example  TDS/TCS will be deducted on  15-April-2010.

4)     Lower between date of Payment or date of Credit is the base in making Quarter for submitting etds/etcs return.  There is no use  of Date of  TDS Deposit date.

New TDS/TCS rates after Budget 2010 (Click Here)
Know procedure of submitting etds/etcs quarterly return (Click Here)
Consolidated  free  income tax calculator w.e.f. 01.04.2005 (Click Here)
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