B.—Deduction at source

Salary

192. (1) Any person responsible for paying any income chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax and super-tax on the amount payable at the average rate of income-tax and average rate of super-tax respectively computed on the basis of the rates of tax 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) Any person responsible for paying any income chargeable under the head “Salaries” to a non-resident, not being a citizen of India in receipt of salary from the Government for rendering service outside India, shall, at the time of payment, deduct tax at the rates in force on the estimated income of the assessee under this head for the financial year.

(3) The person responsible for making the payment referred to in sub-section (1) or sub-section (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.

(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, income-tax and super-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.

Explanation.—In sub-section (2), and in sections 193, 194, 195 and 197, the expression “rates in force” means the rate or rates specified for the purpose of deduction by the Finance Act of the year in which such deduction is required to be made.

 

 

[As amended by Finance Act, 1964]