TaxTMI 
TaxTMI 
Section 192 - TDS on Salaries
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....t 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 head "Salaries" as per the provisions of u/s 192(1), and shall be subject to the provisions of this Chapter. [ Section 192(1B) ] Deferring TDS in respect of Income pertaining to employee stock option plan (ESOP) of start-up - [ Section 192(1C) ] * As per section 192(1C) of the Act, a person, being an eligible start-up referred to in section 80-IAC, responsible for paying any income to the assessee being perquisite of the nature specified in section 17(2)(vi) in any previous year relevant to Assessment year 2021-22 and thereafter, shall deduct or pay, as the case may be, tax on such income within 14 days- * a) after the expiry of 48 months from end of the relevant assessment year; or * b) from the date of sale of such specified security or sweat equity share by the assessee; or * c) from the date of the assessee ceasing to be the employee of the person,....
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....10(10CC) of the Act, the tax paid on such non-monetary perquisites by the employer is exempt from tax in the hands of the employee. However, the employer will have to pay the tax at the time when such tax was otherwise deductible i.e. at the time of payment of income chargeable under the head "salaries" to the employee. Computation of Average Income Tax For the purpose of making the payment of tax on the payment of any income in the nature of non-monetary perquisites, tax payable is to be determined by calculating the average rate of tax on the income chargeable under the head "salaries", including the value of perquisites for which tax has been paid by the employer himself. Illustration: The income chargeable under the head "salaries" of an employee below sixty years of age during the Financial Year 2021-22, is Rs. 6,00,000/- (inclusive of all perquisites), out of which, Rs. 50,000/- is on account of non-monetary perquisites and the employer opts to pay the tax on such perquisites. Income Chargeable under the head ―"Salaries" inclusive of all perquisites Rs. 6,00,000/- Tax as per normal rates on Total Salary (including Cess) Rs. 33,800/- Average Rate of Tax [(3....
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....onsible for making the payment referred to in section 192(1), the particulars of-- * (a) such other income; * (b) any tax deducted or collected under any other provision of Part B or Part BB of this Chapter, as the case may be; and * (c) the loss, if any, under the head "Income from house property", in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall take into account the particulars referred to in clauses (a), (b) and (c) for the purposes of making the deduction under section 192(1): * It is also provided that except in any case have the effect of reducing the tax deductible from income under the head "Salaries", except where the loss under the head "Income from house property" and the tax deducted in accordance with other provisions of Part B and tax collected in accordance with the provisions of Part BB, of this Chapter, has been taken into account. A tax payer having salary income in addition to other income chargeable to tax for that financial year, may send to the employer, the following particulars of (a) such other income and particulars of any tax deducted under any other provision (b) Loss,....
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....Form No. 12BAA, for the purpose of computing the tax deduction at source under section 192(1). Furnishing of statement of particulars of perquisites or profit in lieu of salary by employer to employee - [ Section 192(2C) read with Circular no. 20/2015 date 02.12.2015 ] * A person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu 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. Requirement to obtain evidence/proof/particulars of claims from the employee by the employer [ Section 192(2D) read with Rule 26C ] * 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....