Section 392(1)

Any person responsible for paying^[S-402(27)] any income chargeable under the head “Salaries”

shall deduct income-tax on the amount payable and this deduction shall be made

at the time of such payment

at the average rate of income-tax computed on the basis of the rates in force for the tax year in which the payment is made,

on the estimated income of the assessee under this head for such year.

Employer = The person responsible for paying any income chargeable under the head “Salaries”

Section 392(2)

Without prejudice to the provisions of s/s (1),

the person responsible for paying any income of the nature of a non-monetary perquisite chargeable to tax u/s 17(1),

may pay, at his option, tax

on the whole or part of such income without making any deduction therefrom,

at the time when such tax was deductible u/ss (1);

at the average rate as per s/s (1), on the income chargeable under the head “Salaries” including the income referred to in the said clause, and shall be construed as if it were a tax deductible at source from the income under the head “Salaries”, and be subject to the provisions of this Chapter.

Section 392(3)

Any person, being an eligible start-up referred to in section 140,

responsible for paying any income of the nature specified in section 17(1)(d) in any tax year,

shall deduct or pay, as the case may be, tax on such income,

at rates in force for the tax year in which the specified security or sweat equity share is allotted or transferred, within the time as specified for the payee in section 289(3).

Section 392(4)(a) read with Rule 204(1)

The person responsible for making payment u/ss (1),

shall take into account the following particulars furnished by the assessee, at his option, in form 122 and verified in such manner as may be prescribed,

for deduction of tax and such particulars shall have an effect of increasing or decreasing the tax to be deducted:—

(i) any income under the head “Salaries” due or received by the assessee, from any other employer or employers during the tax year;

(ii) any relief allowable u/s 157, 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 for such relief;

(iii) any loss under the head “Income from house property” for the same tax year;

(iv) any income chargeable under any other head of income, not being a loss under any such head other than the loss specified in s/c (iii) for the same tax year;

(v) any tax deducted or collected at source under this Chapter for the same tax year;

Rule 204(3)

“Salary” for the purposes of this rule shall have the same meaning as given in rule 15.

Section 392(4)(b)

[TDS on salaries] the tax deductible from income under the head “Salaries”

shall not be reduced in any case, except on account of–

(i) loss under the head “Income from house property”; and

(ii) the tax deducted and collected as per other provisions of this Chapter.

Section 392(5)(a) read with Rule 204(2)

[Employer] The person responsible for paying any income chargeable under the head "Salaries"

shall furnish to [Employee] the person to whom such payment is made,

a statement giving correct and complete particulars of perquisites or profits in lieu of salary and the value thereof in—

(a) the relevant columns provided in Form No. 130, if the amount of salary paid or payable to the employee for the tax year is not more than ₹ 150000; or

(b) Form No. 123, if the amount of salary paid or payable to the employee for the tax year is more than ₹ 150000.

Section 392(5)(b) read with Rule 205(1)

[Employer] The person responsible for paying any income chargeable under the head "Salaries"

shall obtain from the assessee (i.e Employee)

the evidence or proof or particulars of prescribed claims u/sr (2) (including claim for set off of loss) under the provisions of this Act in Form No. 124

for the purposes of estimating income of the assessee or computing tax deductible u/ss (1),

Rule 205(2)

In respect of the claim specified in column B of the following Table,

the assessee shall furnish the evidence or the particulars specified in column C thereof

SN

Nature of claims

Evidence or particulars

A

B

C

1

House rent allowance.

Name, address and PAN of the landlord or landlords, where the aggregate rent paid during the tax year exceeds ₹ 1,00,000 and relationship with the landlord, if any.

2

Leave travel concession or assistance.

Evidence of expenditure.

3

Deduction of interest under the head "Income from house property".

Name, address and PAN of the lender.

4

Deduction under Chapter VIII.

Evidence of investment or expenditure

Section 392(5)(c)

[Employer] The person responsible for paying any income chargeable under the head "Salaries"

may, increase or reduce the amount to be deducted under this section

for adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the tax year.

Section 392(6)(a)

The trustees of a recognised provident fund, or any person authorised by the regulations of the fund to make payment of the accumulated balances due to employees

shall, in cases where paragraph 9 of Part A of Schedule XI applies, at the time an accumulated balance due to an employee is paid, make therefrom the deduction provided in paragraph 10 of Part A of Schedule XI;

Section 392(6)(b)

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 paragraph 7 of Part B of Schedule XI.

Section 392(7)

(a) Irrespective of anything contained in this Act, the trustees of the Employees’ Provident Funds Scheme, 1952, made under section 5 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; or

(b) any person authorised under such scheme to make payment of accumulated balance due to employees,

shall deduct income-tax

at the time of payment of accumulated balance due to the employee participating in a recognised provident fund

at the rate of 10%,

where the aggregate amount of such payment is ₹ 50000 or more,

and such accumulated balance is includible in his total income owing to the provisions of paragraph 8 of Part A of Schedule XI not being applicable.

Section 392(8)

For deduction of tax on salary payable in foreign currency,

the value in rupees of such salary shall be calculated at such rate of exchange as may be prescribed^[R-206].