Query - TDS on Salary

TDS on Salary is compulsory to all the employers. Even, an individual or HUF assesee, which is not liable tor tax audit u/s 44AB should deduct TDS on Salary. However, TDS under other provisions like Interest, Professional Fee, Commission and Rent etc., is not applcable, if the such individual or HUF is not liable for tax audit in the immediately preceding financial year.

Hi Shankar

if the employee is falling under tax ambit ( his income is taxable) then it is the responsibilty of the employer to deduct tax and deposit the same issuing proper certificate year end.

Regards,

Sumeer Chopra

if employee is liable to pay tax than its madatory to dedut tax.

Yes its mandatory to deduct tax if his TI is exceeding the maximun exemption limit.

tds must be deducted if salary with other income exceed exemption limit by each employer whether books r audited u/s 44AB or not however if tds is not deducted on salary then salary shall not be disallowed under sec 40(a) but u have to pay penalty & int for violation of sec 201

Agree !!

SALARY IS THE ONLY EXCEPTION FOR COMPULSORY DEDUCTION OF TAX.

IF U READ ESC 192, IT IS CLEARLY MENTIONED THAT IT IS NOT COMPULSORY TO DEDUCT THE TDS EVEN IF SALARY IS ABOVE THE BASIC EXEMPTION LIMIT!

sOURCE :- BOOK OF CA T N MANOHARAN

Mr.Deep. 

According to section 192 of income tax act you have to deduct TDS on salary as per provision. Did they give it has that it is wish of employers or employee to follow the section.

It is mandatory.

But there is no disallowance in case TDS on salary is deducted. This does not mean that it is optional. 

According to the provisons of section 192 tds is mandatory to be deducted from salary if the employee's total income acros the maximum relief limit.

Hi,

What is the treatment of FBT applicable components like car lease payment, petrol reimbursement, car maintenance etc post removing of the FBT on reimbursements from the employers. Please send some screenshot/ calculations writeup.

Thanks & Regards,

Subramanya.

 IN PROVISION OF TDS 

SEC 192 

Salary.

57192. 58(1) Any person responsible for paying any income chargeable under the head Salaries shall, at the time

of payment, deduct income-tax 59[***] on the amount payable at the average rate of income-tax 60[***]

computed on the basis of the 61[rates in force] for the financial year in which the payment is made, on the

estimated income of the assessee under this head for that financial year.

62[(1A) Without prejudice to the provisions contained in sub-section (1), the person responsible for paying any

income in the nature of a perquisite which is not provided for by way of monetary payment, referred to in clause

(2) of section 17, may pay, at his option, tax on the whole or part of such income without making any deduction

therefrom at the time when such tax was otherwise deductible under the provisions of sub-section (1).

(1B) For the purpose of paying tax under sub-section (1A), tax shall be determined at the average of income-tax

computed on the basis of the rates in force for the financial year, on the income chargeable under the head

Salaries including the income referred to in sub-section (1A), and the tax so payable shall be construed as if it

were, a tax deductible at source, from the income under the head Salaries as per the provisions of sub-section

(1), and shall be subject to the provisions of this Chapter.]

63[(2) Where, during the financial year, an assessee is employed simultaneously under more than one employer,

or where he has held successively employment under more than one employer, he may furnish to the person

responsible for making the payment referred to in sub-section (1) (being one of the said employers as the

assessee may, having regard to the circumstances of his case, choose), such details of the income under the head

Salaries due or received by him from the other employer or employers, the tax deducted at source therefrom and

such other particulars, in such form and verified in such manner as may be prescribed64, and thereupon the

person responsible for making the payment referred to above shall take into account the details so furnished for

the purposes of making the deduction under sub-section (1).]