My friend informed me about TDS and section 192 of the income tax act. You should also take a look at it and how it works. The money collected there as means of revenue is known as tax deducted at source (TDS). All the companies collect TDS on salaries from your taxable income. TDS on your salary also indicates that the government recovers the amount of taxes at the sources like from the companies. The individual who initiates the transaction withdraw tax at the source, whereas the one who gets the payment owes tax. It reduces tax loopholes because the tax is collected when the payment is made. Let’s understand sec 192 of income tax act.
What is Section 192 of income tax act?
TDS on salary earnings are covered by Section 192 of the Income Tax Act of 1961. TDS is deducted from your salary by your employer. The organisation is responsible for deducting the correct TDS for the relevant financial year depending on the taxable personal income and tax amount. After the conclusion of the financial year, the employer gives Form 16, which indicates the TDS collected.
Under section 192, who is responsible for deducting TDS?
Employers are required to deduct the necessary TDS under Section 192 of the Income Tax Act, 1961. Individuals, local governments, Hindu Undivided Families (HUFs), Association of Persons (AOPs), corporate entities, co-operative organisations, charities, government and commercial companies, and every other legal body are all employers. According to the provisions of this act, the existence of an employer-employee connection is required. When computing and collecting the required TDS, however, the status of the employer and the number of staff are irrelevant.
When is it appropriate to deduct TDS under Section 192?
Employers are required to deduct TDS and transfer it into a government account. Employers should collect TDS when the wage is given as required by the Income Tax Act of 1961. If your company pays you in advance or if you obtain past-due payments, TDS is charged. Furthermore, even if the employee does not supply their Permanent Account Number (PAN) details and their wage income above the basic deduction limits, the employer is required to deduct TDS from their compensation.
TDS is not payable for the following conditions:
1) If you are earning less than Rs.2.50 lakhs yearly and are under the age of 60.
2) If you are earning less than Rs.3 lakhs yearly and are senior adults aged 60 to 80 years.
3) If you are earning less than Rs.5 lakhs yearly and are over 80-year age like super senior citizens.
This is all you need to know about sec 192 of income tax act.
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What is Section 192 of income tax act?
sahil
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2022-03-28T20:13:40+00:00 2022-04-04T08:54:54+00:00Comment
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