Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Thursday, December 8, 2016

Declaration of Tax Saving Investment & other incomes - Section 192

Declaration of Tax Saving Investment & other incomes - Section 192
Section 192 casts the responsibility on the employer, of tax deduction at source (TDS), at the time of actual payment of salary to the employee. Where the obligation to deduct tax arises at the time of credit or payment, whichever is earlier, the responsibility to deduct tax from salaries arises only at the time of payment. The employer is required to deduct tax at source on the amount payable at the average rate of income tax.   
The responsibility of employer is to compute the tax liability of the employee on the basis of the rates in force and to deduct the tax at the average rate computed on the basis of the same. Thus, the employer is required to compute at the beginning of the financial year, the total salary income payable to an employee during the financial year. Further, the employer should also take into account any other income as reported by the employee. After considering the incomes exempt, deductions and relief, the tax liability of the employee should be determined on the basis of the rates in force for the financial year. Every month, 1/12 of this net tax liability as computed above is required to be deducted.
Declaration of other income (Other than salary income) for TDS Purpose

Sub-section (2B) of section 192 enables a taxpayer to furnish particulars of Investment declaration under section 80C to 80U and income under the head "Other Sources". The particulars may be furnished in a simple statement in format as follows: 


Contributed by Suhasini CA Finalist from SAndeep Ahuja & Co

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