Wednesday 25 February 2015

Monthly Tax Deduction

The new Income Tax (Deduction from Remuneration) Rules 1994 now requires Monthly Tax Deduction (MTD) calculation to include all types of employment income under section 13(1) of the Income Tax Act. 1967, which includes salary, director’s fee, allowances, overtime, fee, commissionbonus, benefits-in-kind (BIK), Value Of Living Allowances (VOLA), unapproved pension or provident fund, compensation for loss of employment but excludes reimbursements by the employer and exempt income under the law.
MTD remittance is now extended to 15th day of the following month.

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