The CBDT has issued a 127 page detailed Circular No. 04/2022 dated 15th March 2022 regarding income tax deduction from salaries during the Financial Year 2021-22 under section 192 of the Income Tax Act, 1961.
The said Circular contains the rates of deduction of Income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2021-22 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred are of Income-tax Act, 1961 and Income-tax Rules, 1962 respectively unless otherwise specified. The relevant Acts, Rules, Forms and Notifications are available at www.incometaxindia.gov.in. the website of the Income Tax Department
As per section 192 (1) of the Act, any person responsible for paying any income chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under the head of Salary income for that financial year.
The section also provides that a person responsible for paying any income chargeable under the head “Salaries” shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof.
The Circular covers the definition or “salary”, ” perquisite” and ” profit in lieu ef salary” and also specifies the rate of income tax as per Finance Act, 2021. Further it deliberates on broad scheme of TDS on salaries under section 192 of the Income Tax Act, 1961 and for understanding of tax deductors, illustrations have also been given.
READ / DOWNLOAD CIRCULAR:
https://www.incometaxindia.gov.in/news/circular-04-2022.pdf
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