TaxTMI 
TaxTMI 
TaxTMI 
If the employee leaves the company on 25th of March ( 2019 - 2020) and the F&F settlement is done in the next FY (2020 - 2021)....however the provision is made in FY 2019 - 2020 but the company is deducting tax at the time of releasing the employee F&F in the next FY ( 2020 - 2021)....the section says tax to be deducted at the time of payment , may be the tax rate can change as compared to previous FY....is the company position correct from section 192 prespective
TDS under section 192
Rahul Bagaria
TDS under Section 192: tax must be deducted at the time salary payment is made, even if paid next fiscal year. Under Section 192, the obligation to deduct tax on salary arises at the time the salary is paid; therefore, if an employee's final settlement is paid in the next fiscal year, the employer may deduct tax at that payment date, even though a provision was recorded in the earlier year, and the applicable tax rate at payment may differ from the prior fiscal year. (AI Summary)
