https://www.taxtmi.com/caselaws?id=215273 The court upheld that tips paid to employees are subject to TDS under Section 192 of the Income Tax Act, based on established precedents. The appellant was considered a defaulter for failing to deduct tax, as clarified in Commissioner of Income Tax (TDS) v. M/s American Express Bank Ltd. The court emphasized the need to compute the exact default amount and interest payable under Section 201(1A). Despite acting in good faith, the assessee could still be deemed a defaulter for short deduction of tax. The court directed the assessing officer to calculate interest payable from the date tax was deductible to the payment date, allowing the appeals without raising substantial legal questions. en-us Wed, 25 Jul 2012 00:00:00 +0530 Sat, 28 Jul 2012 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215273 The court upheld that tips paid to employees are subject to TDS under Section 192 of the Income Tax Act, based on established precedents. The appellant was considered a defaulter for failing to deduct tax, as clarified in Commissioner of Income Tax (TDS) v. M/s American Express Bank Ltd. The court emphasized the need to compute the exact default amount and interest payable under Section 201(1A). Despite acting in good faith, the assessee could still be deemed a defaulter for short deduction of tax. The court directed the assessing officer to calculate interest payable from the date tax was deductible to the payment date, allowing the appeals without raising substantial legal questions. Case-Laws Income Tax Wed, 25 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215273