TIBS Blog

[...] at the end of the month while others issue meal vouchers at the beginning of the month. We have come across a company which issues meal vouchers in [...]

[...] We find a number of organizations that issue food coupons/meal vouchers to employees each month not adhering to perquisite valuation rules issued by the Income Tax [...]

[...] , Other Allowance, and Special Allowance, such heads of pay are ignored for the purpose of PF calculation. The definition of salary for the purpose of PF calculation has been a subject of great [...]

[...] 80G, donation to funds and charitable institutions, which have obtained approval from the Income Tax Department, can be considered for calculation of deduction. You can read the text of Section 80G by [...]

[...] slabs. The question is what slab rate should 20% be compared with. Unfortunately, the Income Tax Department has not specified the method of TDS deduction under Section 206AA. It would be useful if [...]

[...] research. The university/college/institution should be in the list notified by the Income Tax department. (b) any sum paid by the assessee in the previous year to an association or institution, [...]

[...] The Income Tax Department has announced modifications to the format of Form 16 in its notification dated May 31, [...]

[...] in an organization. However, we submit that there is no formal instruction from the PF department on when an exited employee should feature in Form 10. What if the final settlement is delayed? [...]

[...] organizations argue that basic wages are nothing more than the head of pay called Basic, the PF department argues that basic wages is not just the Basic head of pay and should include other heads of [...]

[...] 206AA. Since chapter XVII-B includes payments under Section 192 (salary payments) of the Income Tax Act, payroll managers should assume that Section 206AA covers salary payments. Things to do for [...]

[...] donations made by employees for calculating deduction under Section 80G of the Income Tax Act. Let us take a look at the conditions that payroll managers should consider while [...]

[...] Can salaried employees claim deduction under Section 80GGA of the Income Tax Act? Section 80GGA covers the following contributions: (a) any sum paid by the assessee in the [...]

[...] PF on at least the minimum wages. 5. Assess the impact on income tax calculation. As per the Income Tax Act, if an employer contributes over and above 12% of Basic head of pay and DA, the employer PF [...]

[...] , 1952 , called the PF Act, the statute which governs Provident Fund (PF) contribution, the PF contribution should be calculated as 12%** of the basic wages plus DA plus cash value of food concession [...]

[...] 10 pertaining to June 2010 filed in July 2010. The counter-argument is since the employee has PF contribution in June 2010 and the same is remitted before July 15, 2010, the employee cannot feature in [...]

[...] vouchers to the extent of Rs. 3,000 per month and not calculating any tax on the same. Some payroll managers argue that Rs. 50 per meal translates into Rs. 100 per day (assuming two meals per day) and [...]

[...] get themselves a PAN in order to avoid the possibility of seeking refund. The question for payroll managers is whether Section 206AA is applicable to TDS on salary payments. We hear from some tax [...]

[...] deduction under Section 80G of the Income Tax Act. Let us take a look at the conditions that payroll managers should consider while calculating deduction under Section 80G. 1. Consider only specified [...]

[...] last date of service for an employee is June 30, 2010 and the final settlement, which contains PF deduction, is done on June 30, 2010. In which Form 10 should this employee feature? Some organizations [...]

[...] of Rs.6500/- per month. In case an employee earns more than Rs 6500, they can opt for a higher PF deduction (greater than 12% of Rs 6500) at the joint request of the employee and the employer. Almost [...]

[...] to Section 206AA 1. Check the validity of PAN of your employees A payroll manager should deduct TDS on salary as per Section 206AA for employees: who have not submitted PAN who have submitted [...]

[...] Section 206AA is quite straightforward; if the prevailing TDS rate is less than 20% then deduct TDS at 20% else deduct TDS at the prevailing rate. With regard to TDS on salary, there is [...]

[...] the count is presented, should match in order to avoid any ambiguity on the exact number of PF subscribers in an organization. However, we submit that there is no formal instruction from the PF [...]