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Tax Query

Parmod Agarwal (Assistant Manager) (394 Points)

27 February 2010

Dear All,

Our company has submitted the salary details of all those employees who's gross salary exceeds Rs. 150000/- to Income tax Department in quarterly TDS Return .

Whether it is correct or not?

Plz. clarify

Thanks

Parmod

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7 Replies

Amir (Learner) (4016 Points)
Replied 27 February 2010

Dear Pramod,

It is correct on thing is threshold limit is Rs. 1.60 lacs.........

Whats d issue exactly.....???

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Parmod Agarwal (Assistant Manager) (394 Points)
Replied 27 February 2010

Dear Amir,

In the Income Tax First Amedment Rule,2010 issued on 18.02.2010 stated: in the case of employee who's salary income does not exceeds Rs. 150000/- then employer can issue to employee form no 16AA. whether

it is ncessary to issue the relevant form to an employee or Form no 16AA can statement of Income cum

return of Income of the assessee.

Please clarify.

Thanks

Parmod

Amir (Learner) (4016 Points)
Replied 27 February 2010

Dear Pramod,

Oh u were asking from that angle,,,,,,,,,Then plz put it n simple terms bhai...

Yes it is necessary in respect of employees whose Gross Salary(before Sec 16) doesnot exceed Rs. 1.50 Lacs, the salary certificate to them shall be issued in Form no. 16AA

Relevant part of the notification is as below -

Certificate of tax deducted at source or tax paid under sub-section (1A) of section 192.

31. (1) The certificate of deduction of tax at source or, the certificate of payment of tax by the employer on behalf of the employee, under section 203 to be furnished by any person deducting tax in accordance with the provisions of

(a) section 192 shall be in Form No. 16:

Provided that in the case of an individual, resident in India, where his income from salaries before allowing deductions under section 16 of the Income-tax Act, 1961 does not exceed rupees one lakh fifty thousand, the certificate of deduction of tax at source shall be in Form No. 16AA;

(b) section 193, section 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194-I, section 194J, section 194K,section 194LA, section 195, section 196A, section 196B, section 196C and section 196D shall be in Form No. 16A..

(2) The certificate mentioned in sub-rule (1) shall be furnished within a period of one month from the end of the month during which the credit has been given or the sums have been paid or, as the case may be, a cheque or warrant for payment of any dividend has been issued to a shareholder:

Parmod Agarwal (Assistant Manager) (394 Points)
Replied 27 February 2010

Dear Amir ,

can it is necessary to our company to furnished the salary details of those employees who's salary income

before deduction u/s 16 does not exceeds Rs. 150000/- in our quarterly TDS return.

Please clarify.

Thanks

Parmod

Parmod Agarwal (Assistant Manager) (394 Points)
Replied 27 February 2010

Dear Amir ,

can it is necessary to our company to furnished the salary details of those employees who's salary income

before deduction u/s 16 does not exceeds Rs. 150000/- in our quarterly TDS return.

Please clarify.

Thanks

Parmod

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Amir (Learner) (4016 Points)
Replied 27 February 2010

Dear Pramod,

Earlier it was not required, but after amendment since there is a separate form(i;e Form No. 16AA) to be issued to them, I think their information would also be required to be furnished IN THE QUATERLY RETURNS...

Otherwise Lets wait till we get any clarification on this from the department.............

But even if co is furnishing still I dont understand where is d issue...............

Parmod Agarwal (Assistant Manager) (394 Points)
Replied 27 February 2010

Dear Amir,

Earlier we issued the form No 16AA of those employee who have salary income and no any other source income and this form is also called the return of income submitted by the employee. in this form employer

signed on the statement of income and in the return part assessee filled his particular and signed the form

and submitted to department.

Thanks

parmod