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Sanjay V. Prabhu
04-02-2010, 04:22 PM
I will be very thankful if any one help please.
In case of employees of Goa Government (Goa Govt. follows and implements central pay commission reports) 6cpc arrears are not paid in cash but put in PF with a lock in period of 3 years. As per accounts office Income tax on salary paid in cash is to be paid from salary and additional income tax due to arrears is to be paid from arrears. Any one please advise whether any rule prevents me from deduction of entire income tax payable from arrears. Whether employer can restrict me from doing so. If not and I can deduct my entire or part of income tax from arrears please quote rule.

tvenkatam
04-02-2010, 10:36 PM
I will be very thankful if any one help please.
In case of employees of Goa Government (Goa Govt. follows and implements central pay commission reports) 6cpc arrears are not paid in cash but put in PF with a lock in period of 3 years. As per accounts office Income tax on salary paid in cash is to be paid from salary and additional income tax due to arrears is to be paid from arrears. Any one please advise whether any rule prevents me from deduction of entire income tax payable from arrears. Whether employer can restrict me from doing so. If not and I can deduct my entire or part of income tax from arrears please quote rule.

Dear Friend,

The DDO responsible for deduction of Income Tax/TDS in any Government organization may assess the income tax liability of the salaried employee in his organization, deduct the tax at source in accordance with the instructions of IT Department (link follows) and ensure that the entire amount of Tax assessed on the income of the employee is deducted.

http://www.incometaxindia.gov.in/Archive/TDS_on_Salaries.pdf

According to these instructions, the responsibility to deduct tax arises at the time of payment. Even in the cases of payments of advance salary or arrears of salary, it is for the DDO to compute the amount of tax deductible and ensure the deduction. The obligation for tax deduction at source commences once the estimated annual income of the employee exceeds the maximum amount chargeable to tax (i.e. 1.60 lakhs for a male individual). Remittance of arrears of pay into GPF account of the employee will be deemed to be ‘payment’ made to the employee and the TDS as may be computed by the DDO will be deductible from the arrears before remittance into the GPF account. The employee will have little say on the action initiated in this regard by the DDO or the authority responsible for deduction of tax.