Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Tds on salary Form 12BA

430 views

Save Share

rutuja prabhune

117 Points Posted on 29 August 2022

Should components of fom 12BA (perquisites and profit in lieu of salary) should be considered for the calculation TDS on salary for an employee

Replies (2)

Quick Summary

This discussion clarifies whether perquisites and profit in lieu of salary, as detailed in Form 12BA, should be included when calculating TDS on an employee's salary. Generally, these taxable components must be considered for TDS deduction. However, employers have an option under Section 192(1A) to pay tax on perquisites directly, which then becomes a taxable perquisite for the employee unless exempted under Section 10(10CC).

sabyasachi mukherjee

Profession

19978 Points Posted on 29 August 2022

Some perquisites are taxable depending on the nature of employees. profit in lieu of salary is also taxable.

Adv. Ravish Bhatt, ADIT, CIOT

Dual Qualified Lawyer/ Solicitor Intern

934 Points Posted on 29 August 2022

1. In terms of rule 3, rule 26A and s.192(1), yes perquisites will be required to be considered for deduction of TDS.

2. However, s.192(1A) provides an option to the employer to deposit tax on perquisites without deducting the amount (qua perquisites) from salary. Such tax paid itself will be a perquisite as such in the hands of employee and should be added to employees salary. However, s.10(10CC) exempts such tax paid from total income of an employee and it is not taxable in the hands of employee if employer exercises option u/s.192(1A).