TDS
This query is : Resolved
25 April 2020
If employer gives commission to his employee so tds will be deducted u/s 194H ? What will be rate of tds in such a case ?
25 April 2020
Commission attract TDS@ 5%
25 April 2020
Commission paid to employees partakes character of salary and TDS is applicable only u/s 192 not under Section 194H so tds should be deducted on applicable rate
25 April 2020
Deduct per section 192.
28 April 2020
Commission paid to employee is part of salary only and TDS to be made u/s 192 only and u/s 194H. The employee cannot claim any expenditure out of commission received from his employer.
06 May 2020
In case of TDS on salary, there is no fixed rate of TDS, however, the Deductor / employer is required to deduct tax at source at the average rate of income tax.
‘The Average rate of Income Tax’ is computed based on the rates in force during the relevant Financial Year.
It is pertinent to note that the employer i.e., the Deductor has been bestowed the right to make appropriate adjustment for any type of shortfall / excess in the TDS already deducted in the subsequent TDS deduction.
The liability to deduct TDS arises at the time of actual payment of Salary. It is important to note that the liability arises at the time of payment of Salary and not at the time of accrual.
‘The Average rate of Income Tax’ is computed based on the rates in force during the relevant Financial Year.
It is pertinent to note that the employer i.e., the Deductor has been bestowed the right to make appropriate adjustment for any type of shortfall / excess in the TDS already deducted in the subsequent TDS deduction.
The liability to deduct TDS arises at the time of actual payment of Salary. It is important to note that the liability arises at the time of payment of Salary and not at the time of accrual.
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