Tds 192(1a)
This query is : Resolved
30 December 2011
Dear Experts,
would you kindly explain me 192(1A) in layman language.
thanks & regards
Shreya Pandit
would you kindly explain me 192(1A) in layman language.
thanks & regards
Shreya Pandit
31 December 2011
This is an option given to employers and applies when non-monetary perks are given to employees like food coupons. With effect from 01.06.2002,employer has given a option to deposit the tax on non monetary perquisites on behalf of employee without deducting the same from the employee {section 192(1A) &192(1b). Ok?
siva208@yahoo.com
siva208@yahoo.com
31 December 2011
so how is it beneficial to the employee??
can he claim credit for the TDS deducted on such non perqs??
can he claim credit for the TDS deducted on such non perqs??
31 December 2011
Your attention is invited to the provisions contained in Section 199(2) which reads as under:
199(2)" Any sum referred to in sub-section (1A) of section 192 and paid to the Central Government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made."
So the sum paid by ur employer shall be given credit by ITO while making ur assessment.
Though I tried my level best to give a lay man's answer, I might have failed since the question appears to be not of a layman's.....
siva208@yahoo.com
199(2)" Any sum referred to in sub-section (1A) of section 192 and paid to the Central Government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made."
So the sum paid by ur employer shall be given credit by ITO while making ur assessment.
Though I tried my level best to give a lay man's answer, I might have failed since the question appears to be not of a layman's.....
siva208@yahoo.com
31 December 2011
I request you to go thro section 192(1B) also where the law provides for calculation of TDS.
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31 December 2011
How the employee is benefited ?
.
Let us have an example. The non-monetary perquisite to employee amounted to Rs 1.00 lac. Tax on the prescribed basis is computed and let the Tax amount is Rs. 20000
(Tax only on Perquisite).
.
Had the tax of Rs 20000/ is deducted from the salary of employee...naturally it would come out of the taxed income of him.
.
If you refer Section 10(10CC), you will come to know that, the tax amount of Rs 20000/- is exempt for the employee.
In the absence of this provision, the tax amount on non monetary perquisites would also have been grossed up and the employee has to pay tax on Total Income +20000.
.
Let us have an example. The non-monetary perquisite to employee amounted to Rs 1.00 lac. Tax on the prescribed basis is computed and let the Tax amount is Rs. 20000
(Tax only on Perquisite).
.
Had the tax of Rs 20000/ is deducted from the salary of employee...naturally it would come out of the taxed income of him.
.
If you refer Section 10(10CC), you will come to know that, the tax amount of Rs 20000/- is exempt for the employee.
In the absence of this provision, the tax amount on non monetary perquisites would also have been grossed up and the employee has to pay tax on Total Income +20000.
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