This workshop aims to provide salaried employees with a comprehensive understanding of their tax options for the financial year 2023-24, specifically focusing on the implications of the alternative tax regime introduced by the Finance Act, of 2023. Participants will explore whether to choose the regular tax regime or the alternative tax regime while also gaining insights into TDS on salary, remuneration planning, and related taxation aspects.

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TDS and Remuneration Planning Workshop

Target Audience

This workshop is designed for managers and senior executives from:

• Finance
• Accounts
• HRD Departments
• Individuals involved in Tax Deduction at Source (TDS) and financial management decision-making.

Workshop Overview

This program will delve into the nuances of the alternative tax regime for individuals under Section 115BAC, covering its implications for TDS under Section 192, as well as effective remuneration planning strategies to minimize tax liability for employees.

Key Topics:

1. Alternative Tax Regime for Individuals

• Overview of the Alternative Tax Regime:
  • Availability during TDS deductions under Section 192.
  • Income tax rates and exemption limits applicable under the alternative regime.
• Incentives:
  • Blocked incentives under the alternative tax regime.
  • Non-blocked incentives that can still be utilized.
• Exercising the Option:
  • Procedures for opting into the alternative tax regime.
  • Understanding the break-even point for making this decision.

1. TDS on Salary Under Section 192

• Employer Obligations:
  • Responsibilities of employers under Section 192 regarding TDS deductions.
  • Estimation of employees’ salaries and application of new perquisite valuation rules for rent-free or concessionary accommodation.
• Inclusion of Other Income:
  • How to factor in additional incomes of employees for TDS deductions.
  • Treatment of losses declared by employees.
• Form Preparation:
  • Use of Form No. 12BB and Form No. 12BA.
  • Preparation of Form No. 16 in various scenarios (e.g., when an employee joins or leaves mid-year).
  • Inclusion of details regarding other income and tax deductions from external sources in Form No. 16.
• Employer Responsibilities:
  • Calculation of relief under Section 89 and providing deductions under Sections 80C to 80U.
  • Importance of documentation provided by employees for accurate TDS computation.

1. TDS and Taxation of Retirement Benefits

• Coverage of Retirement Benefits:
  • TDS implications on gratuity, leave encashment, provident fund, pension, and voluntary retirement.

1. TDS on Non-Salary Payments

• Overview of TDS Sections:
  • Understanding TDS under Sections 192A, 194, 194C, 194-I, 194-IA, 194-IB, 194J, 194K, 194M, 194N, 194-O, and 195.
• Consequences of TDS Defaults:
  • Discussion of penalties and repercussions for non-compliance.

1. Remuneration Planning

• Strategies for Minimizing Tax Liability:
  • Planning remuneration structures to minimize tax burdens on employees.
  • Restructuring existing remuneration plans with a view to current and future tax liabilities.
• Tax Implications of Perquisites:
  • Tax treatment of various perquisites provided to employees (e.g., rent-free accommodations, company cars, domestic help, and other benefits).
  • Identifying tax-free perquisites.
• Tax Planning Devices:
  • Legal strategies to convert taxable perquisites into tax-free or concessional-rate benefits.
• Documentation Requirements:
  • Essential documentation for including perquisites in TDS calculations.