Salary
B.—Deduction at source
Salary.
192. 7(1) 8Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax 9[***] on the amount payable at the average of income-tax 10[***] computed on the basis of the 11[rate 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.
12[(2) Where, during the financial year, an assessee is employed simultaneously under more than one employer, or where he has held successively employment under more than one employer, he may furnish to the person responsible for making the payment referred to in sub-section (1) (being one of the said employers as the assessee may, having regard to the circumstances of his case, choose), such details of the income under the head "Salaries" due or received by him from the other employer or employers, the tax deducted at source therefrom and such other particulars, in such form and verified in such manner as may be prescribed, and thereupon the person responsible for making the payment referred to above shall take into account the details so furnished for the purposes of making the deduction under sub-section (1).]
13[(2A) Where the assessee, being a Government servant or an employee in a public sector undertaking, is entitled to the relief under sub-section (1) of section 89, he may furnish to the person responsible for making the payment referred to in sub-section (1), such particulars, in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall compute the relief on the basis of such particulars and take it into account in making the deduction under sub- section (1).]
13a[(2B) Where an assessee who receives any income chargeable under the head "Salaries" has, in addition, any income chargeable under any other head of income (not being a loss under any such head) for the same financial year, he may send to the person responsible for making the payment referred to in sub-section (1) the particulars of such other income and of any tax deducted thereon under any other provision of this Chapter, in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall take such other income and the tax, if any, deducted thereon also into account for the purposes of making the deduction under sub-section (1):
Provided that this sub-section shall not in any case have the effect of reducing the tax deductible from the income under the head "Salaries" below the amount that would be so deductible if the other income and the tax deducted thereon had not been taken into account.]
(3) The person responsible for making the payment referred to in sub-section (1) 14[or sub-section (2) or sub-section (2A) or sub-section (2B)] 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.
15(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, 16[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.
17(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.
18[***]
7. See rules 32 and 34 and Form Nos. 21 and 23.
8. For order of the Board under section 119(2) (a) directing the ITO not to deduct tax at source from that part of conveyance allowance treated as exempt undet section 10(14), refer Taxmann's Direct Taxes Circulars, Vol. 1, 1985 edn., p. 930.
9. "and super-tax" omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
10. "and avetage rate of supet-tax respectively" omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
11. Substituted for "tates of tax in force" by the Finance Act, 1968, w.e.f. 1-4-1968.
12. Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. Original sub-section was omitted by the Finance Act. 1965, w.e f. 1-4-1965. See rule 26A and Form No. 12B.
13. Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. See rule 21AA and Form No. 10E.
13a. Inserted, by the Finance Act, 1987. See rule 26B and Form No. 12C.
14. Inserted, by the Finance Act, 1987 Earlier "or sub-section (2)" omitted by the Finance Act, 1965, w.e.f. 1-4-1965
15. See rule 33 and Form No. 22.
16. Substituted for "income-tax and super-tax" by the Finance Act, 1965, w.e.f. 1-4-1965.
17.See rule 26.
18. Explanation omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[AS AMENDED BY THE FINANCE ACT, 1988]