Section 192:
Salary.
(1) Any person responsible for paying any income chargeable under the head
“Salaries” shall, at the time of payment, deduct income-tax1
*** on the amount payable at the average rate
of income-tax2
*** computed on the basis of the 3
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.
4
(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 therefrom 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.
5
(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).
(2A) Where the assessee, being a Government servant or an employee in a 6
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).
7
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.
8
(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.
9
(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.
10
(2D) The person responsible for making the payment referred to in sub-section (1) shall, for the
purposes of estimating income of the assessee or computing tax deductible under sub-section (1), obtain
from the assessee the evidence or proof or particulars of prescribed claims (including claim for set-off of
loss) under the provisions of the Act in such form and manner as may be prescribed.
(3) The person responsible for making the payment referred to in sub-section (1) 11
or sub-section
(1A)12
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.
(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, 13
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 prescribedrate of exchange.
14
* * * * *
Notes:
1. The words “and super tax” omitted by Act 10 of 1965, s. 44 (w.e.f. 1-4-1965).
2. The words “and average rate of super-tax respectively” omitted by s. 44, ibid (w.e.f. 1-4-1965).
3. Subs. by Act 19 of 1968, s. 13, for “rates of tax in force” (w.e.f. 1-4-1968).
4. Ins. by Act 20 of 2002, s. 71 (w.e.f. 1-6-2002).
5. Ins. by Act 11 of 1987, s. 45 (w.e.f. 1-6-1987).
6. Subs. by Act 13 of 1989, s. 21, for “public sector undertaking” (w.e.f. 1-6-1989).
7. Ins. by s. 21, ibid. (w.e.f. 1-6-1989).
8. Ins. by Act 14 of 2001, s. 68 (w.e.f. 1-6-2001).
9. Ins. by Act 20 of 2015, s. 41 (w.e.f. 1-6-2015).
10. Ins. by Act 20 of 2002, s. 71 (w.e.f. 1-6-2002).
11. Ins. by Act 11 of 1987, s. 45 (w.e.f. 1-6-1987).
12. Subs. by Act 10 of 1965, s. 44, for “Income-tax and super-tax” (w.e.f. 1-4-1965).
13. The Explanation omitted by s. 44, ibid (w.e.f. 1-4-1965).
14. Subs. by Act 21 of 1998, s. 47, for sub-section (2B) (w.e.f. 1-8-1998).