Search Results For: 192


QUERY: Where Non-Residents are deputed to work in India and taxes are borne by employer, if any refund becomes due to the employee after he has already left India and has no bank account in India by the time the assessment orders are passed, whom the refund can be issued?
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The refund can be issued to the employer as the tax has been borne by it.

QUERY: If the employer has made excess deduction of tax at source in case of bulk return of an employee what is the remedy available to the employer and under which section?
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If employer has deducted excess tax on bulk return, then, the employees have to obtain the refund authorizing employer to collect or indicate the bank account number,

QUERY: By mistake deduction of tax at source has been made at wrong rate / lower rate / due to omission in the calculation of surcharge / education cess. While filing return of income, the employee pays the differential amount as self assessment tax. Subsequently on TDS assessment, demand is raised on the employer for the same differential amount. Employer proposes to recover the said amount from the employee. Is the employer justified in doing so or is there any remedy available to the employer?
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– Basic duty to pay the tax is of the employee, however, as a vicarious liability, the employer has to deduct the tax. So, if the employee has paid the difference; no tax could be recovered from the employer.

QUERY: Is there any provision whereby employer can give refund of excess tax deducted to the employee within the year/after year end?
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– No. An employer has right to adjust during the financial year u/s. 192(3)

QUERY: X is in employment of of A Ltd. drawing salary of Rs. 4,20,540/-. During the year, he contributes Rs. 30,000/- to PPF. He has disclosed the following additional information to the employer:-

Rs.

Professional income from Consultancy (Net) 50,000

TDS u/s. 194J on consulting income 20,000

Losses under the head House Property (1,40,000)

Loss under the head Short Term
Capital Gain (5,000)

Donation covered u/s. 80G 50,000

What will be the withholding tax liability and how will it be calculated by the employer?
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– As per S. 192(2B), where an employee having any income chargeable under the head “Salaries” has in addition, any income chargeable under any other head of income for the financial year, he may send to his employer, a statement of particulars of such other income and the tax, if any, deducted thereon and also the loss, if any, under the head “Income from house property”

QUERY: If a person has two employers simultaneously, on whom does the liability to deduct tax at source arise?
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As per choice of employee to whom he may furnish the details of other employment, details of TDS and other details as per sec. 192(2)

QUERY: What is the employers responsibility and liability in respect of employee joining employment in the middle of the financial year. The employee is unwilling to give details of salary and withholding tax from previous employment. Should the new employer consider the following while deducting the tax at source?

• Basic exemption limit

• Investments made during the previous year but prior to joining the employment.
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To obtain, if employee furnishes, details of income under the head “salaries” due or received by him from the other employer or employers, the TDS and such other information as the employee may furnish in Form No. 12B.

QUERY: The Municipal Council is discharging their various functions as provided under the relevant Act and Rules framed thereunder. One of the functions of the Municipal Council is to keep the town neat, clean and maintain sanitation either by employing their own employees or labourers or by allotting the said work to external agencies / outsiders by following due procedure of the law, for which agreements have been entered into.

Moreover the Municipal Council effect purchases of required materials and goods etc. from various vendors for the purpose of their own use.

The query is as to under what provisions of Law, payments made by the Municipal Council to the above persons are covered for the purpose of making TDS along with their Rates of TDS?
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From the query, it is clear that work of cleaning town and maintaining sanitation by Municipal Council through its employees would be covered by section 192 of the Act and, tax would be deducted if the salary / wages paid are above the basic exemption limit at rate applicable.

QUERY: Ajay was seconded to US for 11 months by his company to work in its parent company while being on Indian company payroll. As per US do-mestic tax laws, Ajay was advised to offer his US sourced income which is nothing but his 11 months salary received in India while being in US. However since the salary was being paid in India, the TDS u/s. 192 was accordingly deducted while remitting the salary to Ajay in his Indian bank account. Now Ajay (since qualifying as a Non-resident) wants to know instead of claiming the exclusion as per Article 16(1) as prescribed in Indo-US DTAA in his return of income, can the same be claimed in his Form 16 itself?
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As Ajay was seconded to USA for 11 months by his company to work in its parent company, while being on India company’s payroll, he does not become a non-resident as per section 6(1)(c) of the Income-tax Act, 1961.

QUERY: Is the notice pay compensation taxable in the hands of employer? If yes, it would amount to double taxation i.e. once when salary was paid by the employer who had deducted the tax at source under section 192 of the Act, and again when he receives a notice pay compensation from employee?
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Generally, a notice pay compensation is deducted by the employer before releasing any amount of gratuity or any other sum, the employer deduct the tax at source under section 192 of the Act. Hence, there is no double taxation.