Amount paid to seconded personnel not liable for deduction of tax at source

The trained man-power deployed abroad is drawn for the employees of its member companies. However, such deployed man-power continue to be the employees of its member companies but are seconded to the projects abroad by the respondent-assessee company. In the assessment year under consideration, the assessee had claimed an amount of Rs. 3.93 crores as expenditure being the overseas compensation paid to the employees of the oil companies seconded abroad under the head seconded personnel expenses. The assessing officer by his order dated 29th March 2000 disallowed the amount of Rs. 3.93 crores paid to seconded employees on account of its failure to deduct tax at source under Section 192 of the Income Tax Act, 1961 (the Act). Therefore, the payment was hit by Section 40(a)(iii) of the Act.

Seconded personal continue to be the employees on the roll of the member oil companies even during the period of secondment. These seconded employees continue to receive their salaries and emoluments from the member oil company of which they are employees. Therefore, not being employees of the respondent-assessee, the overseas allowances cannot be subject to deduction of tax at source.

Consequently, in view of the finding of fact arrived at that the seconded personnel are not the employees of the respondent-assessee, the amount paid as foreign allowances to the seconded personal is not liable for deduction of tax. In view thereof, the occasion to apply Section 40(a)(iii) of the Act does not arise.


Register / Track PAN Card Related Complain / Status

Income Tax Department has started a website namely Sparsh India to help Assessee to Register their complain related to PAN Card applied through NSDL or UTIISL and they can also check the status of their grievance online.

Nature of Complain may be any of the following:-

Nature of Complaint

  • Neither PAN Number nor PAN Card Received
  • PAN Card Not Received (PAN Number Received)
  • Returned Undelivered (RUD)
  • Name Mismatch
  • Photo Mismatch
  • Father Name Mismatch
  • Other

Assessee can file their complain online at the link given below :-

Assessee can check the status of PAN Grievance at the link given below :-


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Steps to download NSDL consolidated file from TRACES

Here are the steps to download NSDL consolidated file from TRACES website:
  1. Login to TRACES: Login to TRACES as a deductor by entering User Id and Password and click on “Go”.
  2. Landing page of TRACES website will be displayed.
  3. Request for NSDL Conso File: Under “Statements/Payments”, click on “Request for NSDL Conso File to place download request.
  4. Under “Request for NSDL Consolidated File”, select Financial Year, Quarter and Form Type for which NSDL Conso File is required and click on “Go”.
  5. Token Number Details:Enter authentication code if the validation is done earlier and you have the authentication code.If you do not have authentication code, enter Token Number of only Regular (Original) Statement corresponding to the Financial Year, Quarter and Form Type.
  6. Fill in the Token Number Details.
  7. You will be taken to the Authentication Code screen where you can find the authentication code.
  8. Then you will be taken to request number screen where you can find request number.
  9. Click on “Requested Downloads” under “Downloads” menu to download the NSDL Conso File.
  10. Enter Request Number(Search option 1 ) or Request Date (Search option 2) to search for the download request submitted for Form 16.
  11. Click on a row to select it.
  12. Click on the “HTTP Download”,”Download Manager”button to download file.