TDS U/s 192

This query is : Resolved

Girish (Querist)
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13 February 2010 One of the Director of the Company is drawing remuneration 18.00 pa. The Director also has other source of income by way of investment, profit sharing etc. In such case his income tax while computing the income for the financial year, tax computation shows Tax Refundeable. Hence the Director of company insist the employer not to deduct Tax on his remuneration. In this case what formalities company has to follow and how to file the ETDS return on such payment.

Regards

Girish

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 February 2010 My view,You need to calculate total income and tax liabilty of the director and the tax deducted by your company and other can be considered

Girish

Girish (Querist)
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15 February 2010 But how to file the E tds return what amount of paymetn should be shown,

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CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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15 February 2010 Dear Girish

As per section 192 and the circular issued by the CBDT in this regard, you can consider other incomes as reported by employee. In that case the tax will only go up, not go down.

Further, as regards to setting off of losses from Income under the Head Salaries, only loss under the head house propery can be adjusted while computing TDS.

Hope this clarifies the matter. You can also refer the recent circular issued by CBDT for computation of TDS on salaries for FY 2009-10.

Regards