Can TDS Be Deducted from Voucher Payments Made by Cash or Cheque? Let's Discuss

My question is, can TDS be deducted from the voucher payment by cash/cheque.

From: Sanjay Tiwari
DGM HR & IR

Yes, but there is no TDS if the voucher is for reimbursement of expenses rather than a new service.

Dear Mr. Tiwariji,

What do you mean by voucher payment by cash/cheque? Is it payment made to employees, customers, or vendors? It is better to get all your queries on IT clarified by finance professionals rather than looking for clarification by HR professionals.

Dear Sanjay,

Payment by way of a voucher is irrelevant in respect of TDS regulations. TDS shall be deducted even on credit and provisions of expenses if the threshold limit and required criteria of appropriate expenses are met. As per the TDS norms, TDS will be deducted either on credit or payment, whichever is earlier. Therefore, payment by cash, cheque, or signing voucher is irrelevant.

Thanks and Regards,

V. Shakya
HR and Labour, Corporate Laws Advisor