Treatment of tax paid by employer u/s 192(1a)
This query is : Resolved
21 June 2018
It is seen from the Form-16 that some amount of tax has been paid by the employer on behalf of the emplyoee U/S 192(1A).
Now, I don't know from which amount it has been paid, may be from the perquisite of Rs.40,000/- (this is the only perquisite the employee had received during 17-18 in the name of "Gift, Vouchers etc." as appeared in the Form-16).
> What will be the treatment of the income related to this tax amount paid U/s 192(1A)?
> Whether the amount upon which this amount has been paid by the employer is covered U/s 10(10CC) and exempt in the hands of the employee?
> How to know whether it is Monetary perquisite or Non-monetary perquisite?
You are requested to elaborate the treatment to be given at the time of filing of return.
Now, I don't know from which amount it has been paid, may be from the perquisite of Rs.40,000/- (this is the only perquisite the employee had received during 17-18 in the name of "Gift, Vouchers etc." as appeared in the Form-16).
> What will be the treatment of the income related to this tax amount paid U/s 192(1A)?
> Whether the amount upon which this amount has been paid by the employer is covered U/s 10(10CC) and exempt in the hands of the employee?
> How to know whether it is Monetary perquisite or Non-monetary perquisite?
You are requested to elaborate the treatment to be given at the time of filing of return.
CA R SEETHARAMAN
(Expert)
21 June 2018
Yes, this amount has been paid by the employer is covered U/s 10(10CC) and exempt in the hands of the employee.
As far as Section 10(10CC) of the I-T Act is concerned, payments made to a third party on behalf of the employee are a non-monetary benefit in kind [as per the ruling in Mafatlal Gangabhai & Co (219 ITR 643 Supreme Court)].
As far as Section 10(10CC) of the I-T Act is concerned, payments made to a third party on behalf of the employee are a non-monetary benefit in kind [as per the ruling in Mafatlal Gangabhai & Co (219 ITR 643 Supreme Court)].
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21 June 2018
Thank you so much Sir.
That means at the time of filling up the ITR, this Rs.40,000/- I should not include in the salary but disclose in the Exempt Income column by mentioning the particular section and claim the tax paid by employer in the TDS section. Right?
That means at the time of filling up the ITR, this Rs.40,000/- I should not include in the salary but disclose in the Exempt Income column by mentioning the particular section and claim the tax paid by employer in the TDS section. Right?
CA R SEETHARAMAN
(Expert)
21 June 2018
Tax paid by the employer can't be claimed under TDS section. On behalf of you tax is paid by employer.
22 June 2018
But Sir, in the Form-16, generated from TRACES, it is seen that credit for this tax amount paid by the employer also given under the PAN of the employee.
CA R SEETHARAMAN
(Expert)
22 June 2018
In such a case you have to show non monetary perks under salary income as per form 16.
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