Section 192: New TDS Compliance for Employers and Form 12BB Relevance
Introduction:
As the financial year comes to an end, employers play a crucial role in ensuring Tax Deducted at Source (TDS) compliance under Section 192 of the Income Tax Act, 1961. A key aspect of this compliance involves collecting and verifying Form 12BB from employees. This article simplifies the necessary steps employers must take to meet these obligations, avoiding potential penalties and legal issues.
- Obtain Form 12BB:
- Employers need to collect Form 12BB from eligible employees along with supporting documents.
- This form helps verify the deductions and exemptions claimed by employees for accurate TDS deduction.
- Early Collection:
- It’s preferable for employers to obtain Form 12BB from employees at the beginning of the financial year.
- This allows ample time for verification and compliance throughout the year.
- Fill Annexure-II of 24Q:
- Employers must fill Annexure-II of Form 24Q, which includes details of salary breakup, deductions, income from other sources, and tax liability.
- This information is crucial for accurate TDS reporting for Quarter-4 of the financial year.
- Issue Form-16:
- After completing Annexure-II of Form 24Q, employers should issue Form-16 to employees.
- Form-16 can be downloaded from the TRACES portal, ensuring accuracy and compliance.
Conclusion:
Ensuring TDS compliance under Section 192 is vital for employers to fulfill their legal obligations. By following these simplified steps and obtaining Form 12BB from employees, employers can effectively manage TDS deductions and avoid potential penalties. It’s essential to stay proactive and ensure accurate reporting to maintain compliance throughout the financial year.
