Should components of fom 12BA (perquisites and profit in lieu of salary) should be considered for the calculation TDS on salary for an employee
rutuja prabhune (104 Points)
29 August 2022Should components of fom 12BA (perquisites and profit in lieu of salary) should be considered for the calculation TDS on salary for an employee
sabyasachi mukherjee
(26290 Points)
Replied 29 August 2022
Adv. Ravish Bhatt, ADIT, CIOT
(Dual Qualified Lawyer/ Solicitor International Tax Affiliate CIOT)
(1110 Points)
Replied 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).
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