1. Under section 204(1) of the Income-tax Act, 1961, where salary is paid by a company, the person responsible for deducting tax at source under section 192 is the company itself, including the principal officer thereof. The principal officer is defined under section 2(35) of the Act.Online GST Certification Course by TaxGuru & MSME- Click here to Join
2. In some cases, tax in respect of all the employees of the company is being deducted at source at the Head Office and the return under section 206 is filed at the place where the HO is situated. In some other cases, the companies are discharging this responsibility partly through their branch offices requiring the company to file the return with them even where this is being filed with the Assessing Officer where branch or Head Office is situated.
3. It is clarified that where the Head Office or the branch office is already filing the return under section 206, no other Assessing Officer shall require the assessee to file such return with him. Where, however, the return is not being filed, the Assessing Officer having jurisdiction in terms of Rule 36A of Income-tax Rules may proceed so as to enforce compliance to the provisions relating to deduction of tax at source from ‘Salary’.
Circular: No. 719, dated 22-8-1995.