Salary and accumulated balance due to an employee (Deduction and collection at source) - Section 392 (New) / Section 192 (Old)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... • The average rate is computed on the basis of: • rates in force for the tax year; and • the employee's estimated salary income for that year. Section 392(2): Employer Paying Tax on Non-Monetary Perquisites The employer may, at its option, pay tax on non-monetary perquisites instead of deducting tax from the employee. • Applicable only to non-monetary perquisites taxable under section 17(1). • Tax is calculated at the average rate applicable to the employee's salary. • Such tax is deemed to be tax deducted at source under this Chapter. Examples: • Rent-free accommodation • Motor car provided for person....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....claims; and • set-off of losses. (c) may increase or reduce TDS during the tax year to adjust any excess or short deduction made earlier. Section 392(6): TDS on Recognised Provident Fund and Approved Superannuation Fund read with Schedule XI 392(6)(a) The trustees of a recognised provident fund shall deduct tax while paying accumulated balance where paragraph 9 of Part A of Schedule XI applies.   392(6)(b) Where employer's contribution (including interest) from an approved superannuation fund becomes taxable on payment, trustees shall deduct tax in accordance with Part B of Schedule XI. Section 392(7): TDS on Taxable EPF Withdrawal The trustees of the Employees' Provident Fund Scheme, 1....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y perquisites. Consolidated under section 392(2) without any substantive change. ESOPs of Eligible Start-ups Section 192(1C) provides deferred TDS for eligible start-ups referred to in section 80-IAC. Reference updated to section 140. Time limit is now governed by section 289(3) instead of being reproduced in the section. Employee Declarations Separate provisions under sections 192(2), 192(2A) and 192(2B) for salary from another employer, relief under section 89, house property loss, other income and TDS/TCS. All employee declarations have been consolidated under section 392(4). Relief under section 89 is replaced by section 157 due to renumbering. Employer's Obligations Separate pro....