Tds on salary case where 192 and 192(1a) both applicable

This query is : Resolved

Shivani (Querist)
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31 October 2016 Dear Experts

Please refer to the following link:

https://www.caclubindia.com/experts/explanation-of-sec-192-1a-and-1-b-of-income-tax-act-1916539.asp

My question is that TDS deducted by employer as per computations under section 192(1) is Rs. 1030 per month.

Tax on non-monetary perquisites paid by employer on behalf of employee as per computations under section 192(1A) is Rs. 309 per month

Now question is since 192(1A) is optional. If employer has exercised the option under section 192(1A) to pay tax on non-monetary perqusites on behalf of employee won't it affect the monthly deduction of Rs. 1030 per month.

In my view if employer pays tax under Section 192(1A) the amount of TDS to be deposted by him should be as under:

TDS under section 192(1) Rs. 1030 - 309 = 721 per month

Tax paid by empployer under section 192(1A) 309 per month

Total TDS deposited by employer = 721 +309 = 1030 per month.

If employer deposits 1030 + 309 = 1339 per month he will end up paying more tax to govt then what was actually payable on salary income of employee, which i feel is wrong.

Please share your views.

regards

shivani