Please Help: Applicability of TDS on reimbursement of annual member ship fees of the ICAI from the employer

Posted Date : 25-Dec-2018 , 08:21:50 pm | Posted By Rahul

Can any one tell me whether reimbursement of annual membership fees of the ICAI from the employer is taxable in the hands of emplyee and wether employer can deduct HER on the same??
Please also give any circular regarding the same of the income tax act with proper section.

Category : Income Tax | Answers : 1 | Comments : 1 | Hits : 335

Answers

Answer By: AKANKSHA

TDS u/s 192 provides that TDS to be deducted on any amount paid or payable by the employer to the employee.
However no separate circular are issued in regards of TDS on expenses reimbursed by the employer that are not related to employer business.
Thus TDS shall be deducted on payment of annual membership fees paid to employee to avoid future interest and penalty.