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CA Final · Direct Tax Laws & International Taxation · Deduction, Collection and Recovery of Tax

Kiran Industries Ltd deducted tax on salary payments under section 392 (other than section 392(7)) during a quarter. Separately, it deducted tax under section 392(7) on a payment to a resident deductee who is not covered by the non-resident non-company exception. Under Rule 219(1), which forms must it use respectively for these two statements?

Salary-related deduction under section 392 other than 392(7) is reported in Form No. 138, and section 392(7) deduction for a deductee outside the non-resident non-company or not-ordinarily-resident category is reported in Form No. 140, as per the Rule 219(1) table.

  1. AForm No. 138 for the first; Form No. 140 for the secondCorrect
  2. BForm No. 138 for the first; Form No. 144 for the second
  3. CForm No. 140 for the first; Form No. 138 for the second
  4. DForm No. 143 for the first; Form No. 140 for the second

Explanation

The Rule 219(1) table assigns Form 138 to section 392 other than 392(7). Section 392(7) in respect of a deductee other than the Sl. No. 2 deductee goes to Form 140. Form 144 applies only to a non-resident, not being a company or foreign company, or a resident but not ordinarily resident. Form 143 is for section 394(1).

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