Furnishing of Evidence of Claims by Employee for Deduction of
Tax under Section 192 [Rule 26c]:-
Employees usually orally submit
declaration at the beginning of the year.
However as per new rules every
employer has to collect following evidence with respect to deduction claimed by
employee in form No. 12BB for the purpose of estimating or computing the tax
deduction at source.
Sr. No.
|
Nature of Claims
|
Evidence to be Collected
|
1.
|
House Rent Allowance.
(HRA)
|
Name, Address and
PAN of the landlord where the aggregate rent paid during the previous year
exceeds Rs. 1,00,000/-.
|
2.
|
Leave Travel
Concession or Assistance.
|
Evidence of
expenditure.
|
3.
|
Deduction of
interest under the head “Income From House Property”.
|
Name, Address and
PAN of the lender.
|
4.
|
Deduction under
Chapter VI-A.
(Insurance/PPF/NSC/Tuition
Fee/ULIPS/Mutual Funds/etc.)
|
Evidence of
Investment or Expenditure
|
FORM NO. 12BB (RULE 26):-
Statement Showing
Particulars of Claims by an Employee for Deduction of Tax under Section 192:
- Name and address of the
employee :Shivprasad
Subudhi
- Permanent account number of
the employee :ABCPS2512N
- Financial year :2018-19
Sr. No.
|
Nature Of Claims
|
Amount (Rs)
|
Evidence
|
1.
|
House rent
allowance:
(i) Rent paid to
the landlord.
(ii) Name of
the landlord.
(iii)Address of
the landlord.
(iv) PAN of
the landlord.
Note: PAN should
be furnished if the aggregate rent paid during the previous year exceeds Rs.
1,00,000/-.
|
||
2.
|
Leave Travel
Concession or Assistance.
|
||
3.
|
Deduction of
interest on borrowing:
(i) Interest
payable/paid to lender.
(ii) Name of the
lender.
(iii)Address of
the lender.
(iv) PAN of
the lender.
(a) Financial
institutions
(if available)
(b) Employer (if
available)
(c) Others.
|
||
4.
|
Deductions under
chapter VI-A
(A) section 80C,
80CCC AND 80CCD
(i) Section
80C
(a)
(b)
(c)
(ii) Section
80CCC
(iii) Section
80CCD
(B) Other sections
under chapter VI-A.
(i) Section
80E
(ii) Section
80G
(iii) Section
80TTA
(iv)
(v)
|
VERIFICATION:
I __Shivprasad
Subudhi__ son/daughter of ____________ do hereby certify that the information
given above is complete and correct.
|
|
Place
____________
|
|
Date ____________
|
(Signature of the
Employer)
|
Designation ____________
|
Full Name: ____________
|
Other Important Point to be Kept in Mind before Deducting TDS on
Salary
- No deduction under section
192 where salary not liable to tax in India.
- Where assessment of employee
is completed, it puts an end to the liability of employer to deduct tax.
- No tax to be deducted at
source on salary received from other employer unless the employee has
submitted details.
- No employer or employee
relationship in case of a consulting agreement.
- Remuneration paid to MP not taxable under the head “salaries”.
- Salary of a judge of the
Supreme Court or high court is taxable under the head “salary”.
- Information to be asked for
if there is any other income of employee from other heads like interest or
income from house property
- Tips paid to employees by an
outsider are not salary.
- Free Airline tickets
provided to employee by other airlines is not a perquisite.
- Commission paid to
non-executive directors could not be categorized as salary.
- Uniform allowance is not
additional salary attracting and so TDS won’t be applicable to it
- Employer to preserve
evidence for allowing exemption of LTC.
- Failure to verify actual
proof/evidence of having incurred leave travel allowance travel, the
assessee could not be treated s assessee in default.
- No TDS on conveyance
allowance, etc if exempt under section 10(14).
- No TDS if employer makes a
fair estimate of the exempt allowance.
- Employer not to enquire into
the source of investments by the employee.
- Honorarium to part time
teacher held as salary, if the employee is under the control of the
employer.
- Section 192 is applicable
only when there is a relationship of employer and employee between the
payer and payee.
- Conveyance/additional
conveyance allowance paid to development officer is taxable as perquisite.
- Rent paid to wife is
eligible to exemption under section 10(13A).
- Fixed monthly medical
expense and leave travel concession shall not be taxable perquisite, if
exemption is eventually allowed only against submission of proof of actual
expenses incurred.
- Normal dress worn by
employees in office cannot be called uniform.
- Transport facility given to
employees from their residence to office and vice versa is not a
perquisite.
- Supporting evidence for
utilization of leave travel concession/conveyance allowance not necessary.
- No TDS on salary paid to
Indian crews if the ship is docked in Indian ports for a very short time.
- Provisions of section 40(a)
(iii) are not attracted if the tax is deducted on payment basis in the
subsequent year, although it was claimed as a deduction on due basis.
- Commission will become
taxable when it is due.
- Private arrangements for
making tax-free payment cannot discharge obligation to deduct tax at
source.
- Mere declaration furnished
by the employee is not sufficient for granting deduction/rebate.
- Consultant doctors are
employees if there exists a relationship of employer and employee between
the doctor and the hospitals.
- Employee not liable to pay
tax if tax has been deducted by the employer, even though TDS certificate
is not issued by the employer.
- Salary received abroad for
services rendered in India is taxable in India.
- When non-resident employer
is deducting tax, the resident employer to whom the services of the
employee have been made available, not required deducting tax.
- Employer not responsible for
TDS in case of misuse of meal coupons by some employees.
- Refund of salary not to be treated as income.
