The Kerala State Electricity Board Limited (KSEB) on February 17, 2023, issued a notification regarding the accounting and recovery of Income Tax on the Earned Leave Surrender to be credited to the GPF Account.
The recovery of income tax should not be made while the Earned Leave Surrender bill (for 2022-23) is passed in HRIS since the entire amount is to be credited to the PF account of the employee. The Chief Engineer (IT&CR) should take the necessary steps to ensure that the recovery of TDS from the Earned Leave Surrender Bill for 2022-23 is disabled.
Income Tax Deduction on the Earned Leave Surrender can be done in two ways:
• The employee can directly remit the IT due on Earned Leave Surrender to the ARU on or before March 31, 2023, and the ARU should account for the Income Tax collected from the employee in 44.401 and remit it before the due date.
• The TDS liability due on the Earned Leave surrender for FY2022-23, should be recovered from the salary of the employee for the month of March 2023, in addition to the TDS due for FY 2023-24.
Disclaimer – Please view the notification for more details.
[Notification No. FA-ATC-DA2/2023/21]
