Salary
B.—Deduction at source
Salary.
192. 21(1) 22Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax 23[* * * ] amount payable at the average rate of income-tax 24[* * *] computed on the basis of the 25[rates in force] for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
(2) 1[* * *]
(3) The person responsible for making the payment referred to in sub-section (1) 2[* * *] may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.
(4) The trustees of a recognised provident fund, or any person authorised by the regulations of the fund to make payment of accumulated balances due to employees, shall, in cases where sub-rule (1) of rule 9 of Part A of the Fourth Schedule applies, at the time an accumulated balance due to an employee is paid, make therefrom the deduction provided in rule 10 of Part A of the Fourth Schedule.
3(5) Where any contribution made by an employer, including interest on such contributions, if any, in an approved superannuation fund is paid to the employee, 4[tax] on the amount so paid shall be deducted by the trustees of the fund to the extent provided in rule 6 of Part B of the Fourth Schedule.
5(6)For the purposes of deduction of tax on salary payable in foreign currency, the value in rupees of such salary shall be calculated at the prescribed rate of exchange.
6[* * * ]
21. See rules 32 and 34 and Form Nos. 21 and 23.
22. For order of the Board under section 119(2)(a) directing ITO not to deduct tax at source from that part of conveyance allowance treated as exempt under section 10(14), refer Taxmann's Direct Taxes Circulars, Vol. I, 1985 edn., p. 930.
23. "and super-tax" omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
24. "and average rate of super-tax respectively" omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
25. Substituted for "rates of tax in force" by the Finance Act, 1968, w.e.f. 1-4-1968.
1. Omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
2. "or sub-section (2)" omitted, by the Finance Act, 1965, w.e.f. 1-4-1965.
3. See rule 33 and Form No. 22.
4. Substituted for "income-tax and super-tax" by the Finance Act, 1965, w.e.f. 1-4-1965.
5. See rule 26.,115.
6. Explanation omitted by the Finance Act, 1965, w.e.f. 1-4-1965.