(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”.
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the…
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the…
Global issues are problems of economic, environmental, social, and political concerns that affect the entire…
Sustainable development or 'Sustainability for development' refers to the development that is done without damaging…
The Reserve Bank of India today, in its circular informed that during the onsite examination…
Priority Sector lending (PSL) means bank lending to those sectors that the Government of India…