Deduction of TDS - New perquisite valuation rules

[RAMACHANDRAN H]

Dear members, Is tds to be deducted from salary paid to employee for tution fees paid for MBA course to educational insitution ( Amt Rs3lacs ) in view of new perquisite valuation rules. Members views are solicited Thanks & regards H.Ramachandran

[Rama Krishana]

Your query is not clear, who is making payment, to whom the payment is being made etc. But, anyhow, once the relationship of employee employer is existing between the payer and payee, TDS required to be deducted u/s 192 under the head salaries after considering the issue of valuation of perquisite.

AI Summary

TDS on perquisites: employer must consider perquisite valuation when deducting tax from employee salary payments. Payment of education fees by an employer to an educational institution for an employee's MBA should be treated as a perquisite included in salary; where an employer-employee relationship exists, TDS under section 192 is required to be deducted after applying the perquisite valuation rules.