When should TDS be deducted?

At the date invoice was issued, or at the time of payment, or at the due date of making payment for the invoice?

Hi @phoenix

TDS is to be deducted when a payment is due or when an actual payment is made whichever is earlier.

Hope this helps!

In case of securities where provision is made by a corporate for “accrued interest but not due”, is TDS required to be deducted by the corporate? The securities are freely transferrable and may change ownership at the time of actual payment when due.

Hey @Bharti_Vasvani can you please help here?

Hi, any answer here?

Hello @Anuj_Agarwal,

TDS will be deducted by the company when the interest is actually paid on the securities, so at that time whoever is the owner of such security shall receive the interest and can claim credit of interest.

Hope this helps!

Hello @Bharti_Vasvani ,

Is there any provision in Income tax Act or any previous precedents stating this? If yes, can ypu please share that as well.


Hey @Anuj_Agarwal,

You can check out this article for more clarity:

Hope this helps!