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Report No. 12

B-Deduction at source.

201. Salary.-

(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 a rate representing; the average rate of income-tax and average rate of super-tax, respectively, 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.

[Section 18(2), main para.]

(2) Any person responsible for paying any income chargeable under the head "Salaries" to a non-resident shall, at the time of payment, deduct tax on the estimated income of the assessee under the head for the financial year in accordance with the provisions of section 124 [section 17(1)].

[Section 18(2B), main para.]

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

[Section 18(2), proviso]

(4) The trustees of a recognised provident fund, or any person authorised by the regulations of the find to make payment of accumulated balances due to employees, shall in cases where section 297(1) [58G (3)] applies, at the time an accumulated balance due to an employee is paid, make therefrom the deduction provided for in section 298 [58H].

(5) Where any amount standing to the credit of an employee in an approved superannuation fund is paid to the employee, income-tax on the amount so paid shall be deducted by the trustees of the fund to the extent provided in section 313 [58S (2)].

(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.

[Section 18(2A), latter part]



Income-Tax Act, 1922 Back




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