Non Deduction of Income Tax off Cycle Payment dt 12.12.2022
OFFICE MEMORANDUM
Subject: Non Deduction of Income Tax off Cycle Payment
As per directions of worthy Accountant General Punjab, Quality Assurance Cell of this office has analyzed the data regarding payment made through off-cycle in all the accounting offices in Punjab. During scrutiny of this data, it was found that income tax has not been deducted in most of the cases involving big amounts while making off cycle payments.
2. Accountant General Punjab has his displeasure on this act of negligence and has directed to ensure deduction of income tax on payments through off-cycle under rules in the following format:
“Total annual income (regular payroll) + off-cycle payment – exempted amount = Remaining amount *prescribed tax rate-Total value of tax total annual tax deductible in regular payroll Taxable amount for Off-cycle payment”.
3. You are, therefore, directed to comply with the directions of the worthy Accountant General. No excuse will be accepted in this regard in future.
