AA-52-Recording of Gift to Employee

Originally posted by : RAJA P M
	Is that clothe means uniform...???

No. for casual use. 

Originally posted by : My Videos
	Originally posted by : RAJA P M Is that clothe means uniform...??? No. for casual use.

Response awaited from Raja PM Sir. 

Dr. Gift expense

Cr. Bank

As per section 194R of Income Tax Act, 1961, the TDS should be deducted at 10%. Businesses or professions are responsible for deducting TDS @ 10% if the total value of the gifts or perquisites given is more than INR 20,000 during a financial year for every recipient

But how can they duduct tds on uniforms? 

Dr. Uniform purchase 20k (including GST)

Cr. Tds 2k

Cr payables 18k

Section 194R does not apply to employees who receive benefits from their employers. Section 192 will apply to them.

Originally posted by : My Videos
	Originally posted by : My Videos Originally posted by : RAJA P M Is that clothe means uniform...??? No. for casual use.  Response awaited from Raja PM Sir.

What are the values of the clothes/perfume/others...???

Is that given as gift or any others...???

Under Section 192, TDS is deducted at the time of actual payment of salary and not during the accrual of salary. It means tax will be deducted when your employer pays salary whether in advance or on time or in arrears (late payment).

Originally posted by : Yasaswi Gomes new
	Dr. Gift expense Cr. Bank As per section 194R of Income Tax Act, 1961, the TDS should be deducted at 10%. Businesses or professions are responsible for deducting TDS @ 10% if the total value of the gifts or perquisites given is more than INR 20,000 during a financial year for every recipient

Dear Yassawi Gomes,

Thanks for your informative reply. 

Originally posted by : Yasaswi Gomes new
	Dr. Gift expense Cr. Bank As per section 194R of Income Tax Act, 1961, the TDS should be deducted at 10%. Businesses or professions are responsible for deducting TDS @ 10% if the total value of the gifts or perquisites given is more than INR 20,000 during a financial year for every recipient

Dear Yassawi Gomes,

Thanks for your informative reply. 

Originally posted by : CMA Sagar Das
	Section 194R does not apply to employees who receive benefits from their employers. Section 192 will apply to them.

Dear Sagar Das,

Thanks for your reply. 

Originally posted by : RAJA P M
	Originally posted by : My Videos Originally posted by : My Videos Originally posted by : RAJA P M Is that clothe means uniform...??? No. for casual use.  Response awaited from Raja PM Sir.  What are the values of the clothes/perfume/others...??? Is that given as gift or any others...???

Dear Raja PM Sir,

Value of clothes are 3K and it's given as gift to our employee. 

Originally posted by : RAJA P M
	Originally posted by : My Videos Originally posted by : My Videos Originally posted by : RAJA P M Is that clothe means uniform...??? No. for casual use.  Response awaited from Raja PM Sir.  What are the values of the clothes/perfume/others...??? Is that given as gift or any others...???

Dear Raja PM Sir,

Value of clothes are 3K and it's given as gift to our employee. 

Originally posted by : Yasaswi Gomes new
	Under Section 192, TDS is deducted at the time of actual payment of salary and not during the accrual of salary. It means tax will be deducted when your employer pays salary whether in advance or on time or in arrears (late payment).

Dear Yassawi Gomes,

Thanks for your reply.