Deposit of tax in Government account


As per Section 200 of the IT Act, the person responsible for deducting tax from payment made to an employee is also required to deposit the tax so deducted in Government account within the prescribed time and in the manner prescribed vide Rule 30.

Vide I.T. 6th Amendment Rules 2010 (notification dt. 31/5/2010 the 1100 Rule 30 has been amended and the following is now provided for deductions made w.e.f. 1.4.2010:

Time limit for deposit

1. Where deduction is made by or on behalf of the Government, without the production of challan, the payment has to be made on the day of tax deduction itself.

2. In other cases of deposition by the Government vide a challan, the payment has to be made within seven days (7 days) of the last day of the month in which the deduction is made or income-tax is due under section 192(1A).

3. In case of a deductor other than Government, the payment is to be made before 30th day of April where income or amount is credited or paid in the month of March.

4. In other cases of deduction by non-government deductors, payment has to be made within seven days from the end of month in which deduction is made or Income-tax is due under sub-section 1-A of Sec. 192.

5. However, vide Rule 30(B), the Assessing Officer can, in special cases with the prior approval of joint Commissioner of Income Tax, allow payment of TDS quarterly, i.e. by 7th of July for the quarter ending 30th of June, by 7th of October for the quarter ending 30th September, by 7th of January for the quarter ending 30th of December and by 30th of April for the quarter ending 31st of March.