Employment

 

  1. Who

    Employment is indeed a contract between two parties:the employer and the employee.Both parties are bound to pay tax

     

    An employee may be defined as a person in the service of another person or company under any contract of hire, express or implied.

     

    An employer has the power or right to control and direct the employee in the material details of how the work is to be performed.

     

    For further details on income tax,please refer Guide on Income Tax & Employees taking up Employment for the first time

     

  2. Due Dates

    Return / Submission Date : 30 September

    Payment Date : 30 September*

     

    * Next working day if 30 September is a Sunday or Public Holiday

     

    15 October for taxpayers filing their returns electronically and effecting payment, if any, using internet banking, ATM or mobile payment.

     

  3. Obligation to file a return

    A return of income should be submitted to the Director General-MRA by every individual who:

    1. derives:

        1. Net income exceeding Rs 300, 000 per year
        2. Gross income derived from business, exceeding Rs 2 million per year
        3. Emoluments in respect of which tax has been withheld
        4. Income which has been subject to tax deduction at source

       

    2. acquires:
      1. an immoveable property, including the cost of construction of any building or structure which exceeds Rs 5 million in a year
      2. Motor vehicles costing more than Rs 2 million in respect of which registration duty paid is more than Rs 75,000
      3. a pleasure craft costing at least Rs 1 million including the cost of its engine.

         

    3. pays the required contribution declared under section 17C of the National Pensions Act to the Director-General; or

       

    4. has a chargeable income

     

  4. Penalty & Interest
    1. Late / Non submission of return

      Every person who is required to submit a return and who fails to do so, shall be liable to pay a penalty of Rs 2,000 per month until the time the return is submitted, up to a maximum of Rs 20,000. However, where the person is a small enterprise having an annual turnover not exceeding 10 million rupees, the maximum penalty is Rs 5,000.

       

    2. Late payment of Tax

      5% of the balance of taxable / due

       

    3. Interest on late payment of tax

      5% of the balance of tax payable from each month or part of the month during which the tax remains unpaid after 30 September.