TDS on salary section 192 of income tax act
(1) Any person responsible for
paying any income chargeable under the head "Salaries" shall, at the
time of payment, deduct income-tax on
the amount payable at the average rate of income-tax computed on the basis of the [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.
[(1A) Without prejudice to the
provisions contained in sub-section (1), the person responsible for paying any
income in the nature of a perquisite which is not provided for by way of
monetary payment, referred to in clause (2) of section 17, may pay, at his option, tax on the whole or part of such
income without making any deduction there from at the time when such tax was
otherwise deductible under the provisions of sub-section (1).
(1B) For the purpose of paying tax
under sub-section (1A), tax shall be determined at the average of income-tax
computed on the basis of the rates in force for the financial year, on the
income chargeable under the head "Salaries" including the income
referred to in sub-section (1A), and the tax so payable shall be construed as
if it were, a tax deductible at source, from the income under the head
"Salaries" as per the provisions of sub-section (1), and shall be
subject to the provisions of this Chapter.]
[(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 there from 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).]
[(2A) Where the assessee, being a
Government servant or an employee in a [company,
co-operative society, local authority, university, institution, association or
body] 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).]
[Explanation.—For the purposes of this sub-section,
"University" means a University established or incorporated by or
under a Central, State or Provincial Act, and includes an institution declared
under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to
be a University for the purposes of that Act.]
[(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 other than the loss under the head "Income from
house property") 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—
(a) Such other income and of any tax deducted thereon
under any other provision of this Chapter;
(b) The loss, if any, under the head "Income from
house property",
In such form and verified in such
manner as may be prescribed, and thereupon the person responsible as aforesaid
shall take—
(i) Such other income and tax, if any, deducted
thereon; and
(ii) The loss, if any, under the head "Income from
house property",
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 except where the loss under the head
"Income from house property" has been taken into account, from 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.]
[(2C) a person responsible for
paying any income chargeable under the head "Salaries" shall furnish
to the person to whom such payment is made a statement giving correct and
complete particulars of perquisites or profits in lieu of salary provided to
him and the value thereof in such form and manner as may be prescribed]
(3) The person responsible for
making the payment referred to in sub-section (1) [or sub-section (1A)] [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 recognized
provident fund, or any person authorized 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 there from the deduction
provided in rule 10 of Part A of the Fourth Schedule.
(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, [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.
(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.
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