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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 : 31 March

    Payment Date : 31 March

     

  3. Obligation to file a Return:

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

    1. has a Chargeable Income

    2. has been allotted a Tax Account Number;

    3. at any time during the Income year ended 30 June 2008 was owner of:

      1. any residential property on which the National Residential Property Tax is payable;

      2. More than one residence

      3. One or more immoveable property acquired for an aggregate price exceeding Rs2 million

      4. or on which he has incurred expenditure for the construction of a building or any other structure

      5. of an aggregate amount exceeding Rs2 million

      6. A car with an engine capacity exceeding 2000cc

      7. A pleasure craft as defined in the Tourism Act 2004

     

  4. Penalty & Interest
    1. Late/Non submission of Return:

      Rs 2000 monthly up to a maximum of Rs20,000

       

    2. Late payment of Tax:

      5% of the Balance of taxable/due

       

    3. Interest on late payment of tax:

      1% of the balance of tax payable from each month or part of the month during which the tax remains unpaid after 31 March.