(According to the new rules employer need not deduct tax at source if salary income including the value of perquisites is not taxable after giving effect to the exemptions, deductions, and relief as applicable).
Section 192 of the Income Tax Act, of 1961 deals with tax deducted at source (TDS) on salary. According to this section, TDS is deducted at the time of actual payment of salary to an employee and not during the accrual of salary. Tax will also be deducted if an employer pays salary in advance or payment of arrears of salary and perquisites.
Sentence 3 of Para 3.1 in circular No.4 of 2020 dated 16th January 2020 states that “No tax, however, will be required to be deducted at source in a case unless the estimated salary income including the value of perquisites, for the Financial Year, exceeds Rs.250000- or Rs.300000- or Rs.500000-, as the case may be, depending upon the age of the employee”.
On Thursday (05.03.2020), the Income-tax department made some modifications to its circular No.4 of 2020 dated 16th January 2020. In the corrigendum to circular No.4 of 2020 dated 16th January 2020, the above lines of sentence 3 of Para 3.1 modified as under.
“No tax, however, will be required to be deducted at source in a case unless the estimated salary income including the value of perquisites is taxable after giving effect to the exemptions, deductions, and relief as applicable”.
A computerized accounting system is a software application that automates financial records and reporting processes…
As the name says ‘computerised accounting’ is the use of computers, software, and hardware to…
The Supreme Court today overruled a 2008 decision by the National Consumer Disputes Redressal Commission…
The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis…
The term "accounting treatment" represents the prescribed manner or method in which an accountant records…
The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the…