Income Tax Act, 1961
Section 5: Sub-section (2) omitted by s. 43, ibid. (w.e.f. 11965).
5. Sub-section (2) omitted by s. 43, ibid. (w.e.f. 11965).
6. The Explanation substituted by Act 18 of 2008, s. 41 (w.e.f. 12003). Earlier inserted by 32 of 2003, s. 71 (w.e.f. 1
2003).
633
B.—Deduction at source
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;
omitted by s. 43, ibid. (w.e.f. 11965).
6. The Explanation substituted by Act 18 of 2008, s. 41 (w.e.f. 12003). Earlier inserted by 32 of 2003, s. 71 (w.e.f. 1
2003).
633
B.—Deduction at source
192. Salary.—
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[
Without prejudice to the provisions contained in sub-section
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
For the purpose of paying tax under sub-section
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
(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
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
of section 89, he may furnish to the person responsible for making the payment referred to
in sub-section
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
the particulars of—
such other income and of any tax deducted thereon under any other provision of this Chapter;