Perquisites are not chargeable to tax if cost of education dose not exceed Rs.1000 per child per child under the proviso to Rule3(5) of the Income Tax Rules, 196

In the present matter it is seen that TDS has been deducted on “estimated income” of the employee, and the employer was not expected to step into the shoes of the AO and determine the actual income. Furthermore, under Section 191 of the Act the liability to pay the tax was that of the recipient, and that while forming this opinion the employer was undoubtedly expected to act honestly and fairly and, therefore, if it is found that the estimate made by the employer is incorrect, this fact alone, without anything more, would not inevitably lead to the inference

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