TMI BlogSection 192 - TDS on SalariesX X X X Extracts X X X X X X X X Extracts X X X X ..... [ Section 192(1) ] An employer shall have the option to pay tax on behalf of an employee, without making any deduction from his income, on the income in the nature of perquisites, which are not provided by way of monetary payment. However the employer shall also continue to have the option to deduct the tax on whole or part of such income. [ Section 192(1A) ] For the purpose of paying tax by the employer u/s 192(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 u/s 192(1A), and the tax so payable shall be construed as if it were, a tax deductible at source, from the income under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the employer so chosen shall take into account these details while making deduction of tax at source. [ Section 192(2) ] For the purposes of deduction of tax out of salaries payable in a foreign currency, the value of salaries in terms of rupees should be calculated at the prescribed rate of exchange as specified in Rule 26 of the Income tax Rules, 1962. [ Section 192(6) ] Relief under section 89 In respect of salary payment to employees of government or to employees of companies, co operative societies, local authorities, universities, institutions, associates or bodies, deduction of tax at source should be made after allowing relief u/s 89(1) , where eligible. The concerned employee should furnish information in Form No. 10E to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieu of salary provided to him and the value thereof in form No. 12BA and manner as may be prescribed. The statement shall be in the prescribed form and manner. This requirement is applicable only where the salary paid/payable to an employee exceeds ₹1,50,000/-. for the employee, the particulars of perquisites/profit in lieu of salary shall be given in form 16 itself. [ Section 192(2C) read with Circular no. 20/2015 date 02.12.2015 ] Requirement to obtain evidence/proof/particulars of claims from the employee by the employer The person responsible for making the payment referred to in section 192(1) shall, for the purposes of estimating income of the assessee or computing tax deductible under section 192(1), obtain from the assessee th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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