Declaration to be taken from employee for FY 2018-19

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:

1. Name and address of the employee         :Shivprasad Subudhi
2. Permanent account number of the employee :ABCPS2512N
3. 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

1. No deduction under section 192 where salary not liable to tax in India.
2. Where assessment of employee is completed, it puts an end to the liability of employer to deduct tax.
3. No tax to be deducted at source on salary received from other employer unless the employee has submitted details.
4. No employer or employee relationship in case of a consulting agreement.
5. Remuneration paid to MP not taxable under the head “salaries”.
6. Salary of a judge of the Supreme Court or high court is taxable under the head “salary”.
7. Information to be asked for if there is any other income of employee from other heads like interest or income from house property
8. Tips paid to employees by an outsider are not salary.
9. Free Airline tickets provided to employee by other airlines is not a perquisite.
10. Commission paid to non-executive directors could not be categorized as salary.
11. Uniform allowance is not additional salary attracting and so TDS won’t be applicable to it
12. Employer to preserve evidence for allowing exemption of LTC.
13. Failure to verify actual proof/evidence of having incurred leave travel allowance travel, the assessee could not be treated s assessee in default.
14. No TDS on conveyance allowance, etc if exempt under section 10(14).
15. No TDS if employer makes a fair estimate of the exempt allowance.
16. Employer not to enquire into the source of investments by the employee.
17. Honorarium to part time teacher held as salary, if the employee is under the control of the employer.
18. Section 192 is applicable only when there is a relationship of employer and employee between the payer and payee.
19. Conveyance/additional conveyance allowance paid to development officer is taxable as perquisite.
20. Rent paid to wife is eligible to exemption under section 10(13A).
21. 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.
22. Normal dress worn by employees in office cannot be called uniform.
23. Transport facility given to employees from their residence to office and vice versa is not a perquisite.
24. Supporting evidence for utilization of leave travel concession/conveyance allowance not necessary.
25. No TDS on salary paid to Indian crews if the ship is docked in Indian ports for a very short time.
26. 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.
27. Commission will become taxable when it is due.
28. Private arrangements for making tax-free payment cannot discharge obligation to deduct tax at source.
29. Mere declaration furnished by the employee is not sufficient for granting deduction/rebate.
30. Consultant doctors are employees if there exists a relationship of employer and employee between the doctor and the hospitals.
31. Employee not liable to pay tax if tax has been deducted by the employer, even though TDS certificate is not issued by the employer.
32. Salary received abroad for services rendered in India is taxable in India.
33. 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.
34. Employer not responsible for TDS in case of misuse of meal coupons by some employees.
35. Refund of salary not to be treated as income.