Most of the employees feel very uncomfortable to pay income tax for the Arrear (Pay arrear of DA arrear) which has been credited to GPF account. Though they are not receiving any monetary benefit for the time being, they should have to include this amount too with the total income and have remit TDS for the amount. This judgment may be a relief in similar situations.
This is an important Judgment from Hon’ble High court of Kerala in respect of Income tax to be deducted from the arrear amount that to be merged with the PF account of the employees.
There was a direction to deposit the amount in GPF accounts after deducting the Income Tax at source, in terms of Section 192 of the Income Tax Act, so as to relieve from the burden of finding money for payment of income tax from other source.
Whenever the bills are prepared in respect of the arrear payment, the DDO of the institution should also see that, the income tax payable in respect of such amounts is shown separately and that, arrangements are made for remittance of the same in the Treasury, so as to meet the requirement of payment of income tax. Appropriate steps shall be pursued by the Treasury officer as well, so as to give effect to the verdict as above and the balance amount alone shall be credited in the GPF account.
This is an important Judgment from Hon’ble High court of Kerala in respect of Income tax to be deducted from the arrear amount that to be merged with the PF account of the employees.
There was a direction to deposit the amount in GPF accounts after deducting the Income Tax at source, in terms of Section 192 of the Income Tax Act, so as to relieve from the burden of finding money for payment of income tax from other source.
Whenever the bills are prepared in respect of the arrear payment, the DDO of the institution should also see that, the income tax payable in respect of such amounts is shown separately and that, arrangements are made for remittance of the same in the Treasury, so as to meet the requirement of payment of income tax. Appropriate steps shall be pursued by the Treasury officer as well, so as to give effect to the verdict as above and the balance amount alone shall be credited in the GPF account.
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