Declaration of Tax Saving Investment & other incomes - Section
192
Section 192 casts the responsibility
on the employer, of tax deduction at source (TDS), at the time of actual
payment of salary to the employee. Where the obligation to deduct tax arises at
the time of credit or payment, whichever is earlier, the responsibility to
deduct tax from salaries arises only at the time of payment. The employer is required
to deduct tax at source on the amount payable at the average rate of income tax.
The responsibility of employer is to
compute the tax liability of the employee on the basis of the rates in force
and to deduct the tax at the average rate computed on the basis of the same.
Thus, the employer is required to compute at the beginning of the financial
year, the total salary income payable to an employee during the financial year.
Further, the employer should also take into account any other income as reported
by the employee. After considering the incomes exempt, deductions and relief,
the tax liability of the employee should be determined on the basis of the
rates in force for the financial year. Every month, 1/12 of this net tax
liability as computed above is required to be deducted.
Declaration of other income (Other than salary income) for
TDS Purpose
Sub-section (2B) of section 192
enables a taxpayer to furnish particulars of Investment declaration under
section 80C to 80U and income under the head "Other Sources". The
particulars may be furnished in a simple statement in format as follows:
Contributed by Suhasini CA Finalist from SAndeep Ahuja & Co
