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TMI Blog2021 (1) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... only from salary , the presumption would be that the employer under Section 192(1) has deducted the tax at source from the employee's salary. In case if an objection is raised by any party, the objector is required to prove by producing evidence such as LPC to suggest that the employer failed to deduct the TDS from the salary of the employee. There can be cases where the victim is not a salaried person i.e. his income is from sources other than salary, and the annual income falls within taxable range, in such cases, if any objection as to deduction of tax is made by a party then the claimant is required to prove that the victim has already paid income tax and no further tax has to be deducted from the income. In the present case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Vimal Kanwar Ors. vs. Kishore Dan Ors.- 2013 R.A.R. 118 (SC) contended that the learned Tribunal has erred in not deducting the income tax on the compensation payable to the claimants. She submitted that in spite of deduction of income tax from source as the deceased was salaried person, the law mandates further deduction of income tax on the total amount of compensation also. Learned counsel appearing for the respondents-claimants, supporting the findings reported by the learned Tribunal, submitted that law does not stipulate deduction of income tax twice; once at the stage of payment of salary i.e. deduction at source in terms of Section 192(1) of the Income Tax Act, 1961 and again on the amount of compensation. He, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commonly known as tax deducted at source ( TDS for short). When the employer fails in default to deduct the TDS from employee salary, as it is his duty to deduct the TDS, then the penalty for non-deduction of TDS is prescribed under Section 201(1A) of the Income-tax Act, 1961. Therefore, in case the income of the victim is only from salary , the presumption would be that the employer under Section 192(1) of the Income-tax Act, 1961 has deducted the tax at source from the employee's salary. In case if an objection is raised by any party, the objector is required to prove by producing evidence such as LPC to suggest that the employer failed to deduct the TDS from the salary of the employee. However, there can be cases where the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x on income more than 40,000/- and upto ₹ 60,000/- was 15% and not 20% as held by the High Court. The aforesaid fact has not been disputed by the respondents. 23. In view of the finding as recorded above and the provisions of the Income-tax Act, 1961, as discussed, we hold that the High Court was wrong in deducting 20% from the salary of the deceased towards income-tax, for calculating the compensation. As per law, the presumption will be that employer-State Government at the time of payment of salary deducted income-tax on the estimated income of the deceased employee from the salary and in absence of any evidence, we hold that the salary as shown in the Last Pay Certificate at ₹ 8,920/- should be accepted which if rounded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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