Friends,
Every person who is responsible for paying any income chargeable under the head "Salaries" shall deduct income-tax on the estimated income of the assessee under the head "Salaries" for the financial year 2012-13. The income-tax is required to be calculated on the basis of the rates given above subject to provisions of section 206AA of the Act and shall be deducted at the time of each payment. No tax will, however, be required to be deducted at source in any case unless the estimated salary income including the value of perquisites, for the financial year exceeds Rs. 2,00,000/- or Rs.2,50,000/- or Rs. 5,00,000/-, as the case may be, depending upon the age of the employee. (Some typical examples of computation of tax are given at Annexure-I).
Payment of Tax on Non-monetary Perquisites by
Employer:
An option has been given to the employer to pay the
tax on non-monetary perquisites given to an employee. The employer may, at his
option, make payment of the tax on such perquisites himself without making any
TDS from the salary of the employee. The employer will have to pay such tax at
the time when such tax was otherwise deductible i.e. at the time of
payment of income chargeable under the head "salaries" to the
employee.
Computation of Average Income Tax:
For the purpose of making the payment of tax
mentioned in para 3.2 above, tax is to be determined at the average of
income-tax computed on the basis of rate in force for the financial year, on
the income chargeable under the head "salaries", including the value
of perquisites for which tax has been paid by the employer himself.
ILLUSTRATION:
Suppose that the income chargeable under the head
"salaries" of an employee below sixty years of age for the year
inclusive of all perquisites is Rs. 4,50,000/-, out of which, Rs. 50,000/- is
on account of non-monetary perquisites and the employer opts to pay the tax on
such perquisites as per the provisions discussed in para 3.2 above.
STEPS:
Income
Chargeable under the head "Salaries" inclusive of all perquisites
|
Rs.
4,50,000/-
|
Tax on
Total Salaries(including Cess)
|
Rs.
25,750/-
|
Average
Rate of Tax [(25,750/4,50,000) × 100]
|
5.72%
|
Tax
payable on Rs.50,000/= (5.72% of 50,000)
|
Rs.
2,861/-
|
Amount
required to be deposited each month
|
Rs. 240
(Rs. 238.4) (=2061/12)
|
The tax so paid by the employer shall be deemed to
be TDS made from the salary of the employee.
Salary From More Than One Employer:
Section 192(2) deals with situations where an
individual is working under more than one employer or has changed from one
employer to another. It provides for deduction of tax at source by such
employer (as the taxpayer may choose) from the aggregate salary of the employee
who is or has been in receipt of salary from more than one employer. The
employee is now required to furnish to the present/chosen employer details of
the income under the head "Salaries" due or received from the
former/other employer and also tax deducted at source therefrom, in writing and
duly verified by him and by the former/other employer. The present/ chosen
employer will be required to deduct tax at source on the aggregate amount of
salary (including salary received from the former or other employer).
