Clarification regarding filing of returns in respect of tax deducted at source(TDS) from salary of employees of company working at its headquarters or in Multi location branches.
Clarification 1 of TDS From Salary of Employees of Multi Branches Locations
1. Under section 204(1) of the Income-tax Act, 1961, where salary is paid by a company, the person responsible for deducting tax at source under section 192 is the company itself, including the principal officer thereof. The principal officer is defined under section 2(35) of the Act.
2. In some cases, tax in respect of all the employees of the company is being deducted at source at the Head Office and the return under section 206 is filed at the place where the HO is situated. In some other cases, the companies are discharging this responsibility partly through their branch offices requiring the company to file the return with them even where this is being filed with the Assessing Officer where branch or Head Office is situated.
3. It is clarified that where the Head Office or the branch office is already filing the return under section 206, no other Assessing Officer shall require the assessee to file such return with him. Where, however, the return is not being filed, the Assessing Officer having jurisdiction in terms of Rule 36A of Income-tax Rules may proceed so as to enforce compliance to the provisions relating to deduction of tax at source from ‘Salary’.
Circular: No. 719, dated 22-8-1995.
Clarification 2 of TDS from Salary of Employee of Multi Locations Branches
1. Board’s Circular No. 719 [F. No. 275/206/95-IT(B)], dated 22-8-1995 states that where the head office or the branch office is already filing the returns under section 206, no other Assessing Officer shall require the assessee to file such return with him. Where, however, the return is not being filed, the Assessing Officer having jurisdiction in terms of rule 36A of Income-tax Rules may proceed so as to enforce compliance to the provisions relating to deduction of tax at source from “Salary”.
2. It has been decided to extend this procedure to all other TDS returns filed under rule 37, as required under section 206 of the Income-tax Act, 1961.
Circular : No. 744, dated 6-5-1996.
Related posts:
- How to Deal TDS Provisions When Salary Receive from More than One Employer ?
- Procedure for Tax Deduction (TDS) on Salary
- Some Ways to Reduce TDS on Salary
- Clarification Regarding Processing of ITR-1 and ITR-2 Returns – Credit for TDS for A.Y. 2009-10
- Save Maximum Tax on Salary by Simple Salary Framework
Sponsored Links
{ 2 comments… read them below or add one }
The information is very needful and will clarify the situation.
I am a Govt Employee. In month April 09 to Oct 09 my income tax was deducted where I was posted. After transfer my other office has deducted tax from Nov 09 to Mar 10. I want to know that which office should file my yearly return and issue me Form No. 16, first office, second office or both offices.
{ 1 trackback }