The new perquisites valuation rules have been notified vide notification no 94 dated 18th Dec -2009. The valuation rules are applicable with a retrospective date of 1.4.2009.
What should the employer do in case of those employees who have left the organisation and whose final settlement has been made in Nov-09.
Also what should the employee do.. in case of
a. he is joining a new organisation
b. in case if he is not working for the rest of the FY.
Dear Hariharan,
Employer
1) If possible Employer should calculate the amount of TDS after considering the new rules & collect the amount of Tax from Ex Employees & Deposit it on their behalf..(As a good compliance & to be on safer side..)
2) Remember that payment of Salary to a resident In India is not covered by Sec 40 i:e to say expense will be allowed as deduction even when TDS has not been deducted/deposited.
Employee
Employee will continue to be liable to pay ax on perks on which TDS was not deducted..Hence he has to pay tax on self assessment or to inform the details to his next emplyer so that tax can be deducted by his present employer
R P S K & Associates
Nashik
CA Inter
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T R SOOD & CO
New Delhi
CA Inter
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CAclubindia
