DEDUCTION OF TAX AT SOURCE
SECTION 192 – SALARY
943. Employee claiming that salary is not chargeable to tax and no income-tax should be deducted at source – Employer to require employee to obtain certificate under section 197(1)
Under the provisions of section 192, any person responsible for paying any income chargeable under the head “Salaries” is required at the time of payment to deduct income-tax from the amount payable. In any case where an employee claims that his salary is not chargeable to income-tax and, therefore, no income-tax should be deducted at source from the salary receivable by him, the employer should require the employee to obtain from the concerned Income-tax Officer a certificate under section 197(1) authorising no deduction or deduction at such lower rates as may be prescribed in the said certificate. In the absence of such a certificate from the employee, the employer should deduct income-tax on the salary payable at the normal rates.
Circular: No. 147 [F. No. 275/80/74-ITJ], dated 28-10-1974.
