Requirement for obtaining evidence/ particulars by employer for TDS -Section 192

Currently, the person responsible for paying salary has to depend upon the evidence/ particulars furnished by the employee in respect of deductions, exemptions and set-off of loss claimed. There is neither any guidance regarding the nature of evidence/particulars to be obtained nor any uniformity in this regard.

With a view to rationalise the collection of information and documents by employers, a new subSection (2C) is proposed to be introduced in Section 192 to provide that the person responsible for paying salary to an employee will be required to obtain evidence or proof or particulars of prescribed claims including claim for set-off of loss under the provisions of the Act in the prescribed form and manner.

This amendment is effective from 1st June 2015.

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