Tax Mohalla - Tax by KK

Question Whether tips distributed to employees charged under the head salary and consequently whether tax is required to be deducted under section 192? Answer ITC Ltd v. CIT , the Delhi High Court (HC) held that the tips or service charges distributed to employees are to be treated as part of salary and tax is required to be withheld under section 192 of the Income-tax Act from the same.

When tax deductor makes mistakes When deductee makes mistakes When bank makes mistakes • Quarterly TDS statements not filed. • Omission to include details of challan in TDS statement • Wrong quoting of CIN in the TDS statement. • Entering wrong amount in challan details • Quoting of wrong TAN in the challan. • Omission to include details of a deductee in the challan • Non quoting or wrong quoting of PAN of the deductee. • Error in the TDS amount claimed in the return. • Amount paid / credited shown in the TDS certificate erroneously claimed as TDS credit in the return • Quoting of incorrect TAN of the deductor in the return • Entering wrong TAN while uploading challan data • Entering wrong minor head code while uploading challan data