Section 93: Employer to withhold tax from emoluments

93. Employer to withhold tax from emoluments (1) Every employer shall, at the time the emoluments are received by, or made available to, an employee, withhold income tax from the emoluments of that employee. (1A) The remuneration earned by a director of a company shall, notwithstanding subsection (1), be deemed to have been received by the director in the income year in which such remuneration is charged in the income statement referred to in section 217 (1) (b) of the Companies Act, of the company. I5 – 51 [Issue 7] Income Tax Act (2) — (3) Every employer shall give to his employee a Statement of Emoluments and Tax Deduction in such manner as may be prescribed. (4) Every employer shall submit to the Director-General a Return of Employees giving such information and particulars, within such time and in such manner, as may be prescribed. (4A) (a) Where an employer does not submit the Return of Employees under subsection (4) within the prescribed time, he shall be liable to pay to the Director-General a penalty of 5,000 rupees per month or part of the month, until the time the Return of Employees is submitted to the Director-General, provided that the total penalty payable shall not exceed 20,000 rupees. (b) Where a penalty is payable under paragraph (a), the DirectorGeneral shall make, by registered post, a claim to the employer specifying the amount of penalty payable and the reasons for making such a claim. (c) Where a claim is made under paragraph (b), the employer shall pay the amount of penalty within 28 days of the date of the claim. (d) — (5) Any employer who fails to comply with subsection (4) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 50,000 rupees. [S. 93 amended by s. 18 (za) of Act 15 of 2006 w.e.f. 1 July 2006 in respect of the income year commencing on 1 July 2006 and in respect of every subsequent income year; s. 17 (l) of Act 17 of 2007 w.e.f. 22 August 2007; s. 8 (u) of Act 37 of 2011 w.e.f. 1 January 2012 in respect of the income year commencing on 1 January 2012 and in respect of every subsequent income year; 15 December 2011; s. 24 (m) of Act 9 of 2015 w.e.f. 1 July 2015.]