3.2. DEDUCTION OF TAX FROM THE ‘SALARY’ [ SECTION-192]
The summarized provisions of Sec. 192 are given below :
Who is the taxpayer |
Employer |
Who is the recipient |
Employee |
Payment covered |
Taxable salary of the employee |
At what time tax has to be deducted at source |
At the time of payment |
Maximum amount which can be paid without Tax Deduction |
The amount of exemption limit ( i.e. Rs.1,80,000 / Rs.2,25,000/Rs.1,50,000 for the assessment year 2009-10.) |
Rate of tax deducted at source |
Normal Rates applicable to an individual |
Is it possible to get the payment without tax deduction or with lower tax deduction |
The employee can make an application in Form No.-13 to the Assessing Officer to get a certificate of lower tax deduction or no tax deduction. |
Note: - Rs. 1,80,000 is for Resident Women below 65 years
- Rs. 2,25,000 is for Senior Citizen 65 years or more.
How to deduct Tax When a Person is employed by more than one Employer :
Where, during the financial year, an assessee is employed simultaneously under more than one employer, In such case, Tax will be deducted on the aggregate Salary by one of the employers ( being the employer as the employee may choose, having regard to the circumstances of his case, by submitting the information in Form No.12B.
Relief U/s 89 :
If the employee furnishes information in Form No- 10E to the employer, relief under section 89 should be given to the concerned employee while deducting Tax at Source u/s 192. However, this facility is available only if the employer is Government or Public Sector undertaking or company , co-operative society, local authority, University, Institutions or association or Body.
Can the Employer Deduct Tax in Respect of Other Incomes of Employee :
The Provisions are given below :-
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The employer may or may not declare his other incomes to the employer.
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If the employee wants to declare his othe incomes to the employer, then such information should be given on a plain paper to the employer.
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The employee may declare details of his other incomes ( including loss under the head “Income from House Property” but not any other loss ) and tax deducted thereon by others. If such information is not submitted by the employee to the employer, then employer cannot take into consideration other incomes of the employee.
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