Section 191 of Income Tax Act "Direct payment"
191. 30[(1)] In the case of income in respect of which
provision is not made under this Chapter for deducting
income-tax at the time of payment, and in any case where
income-tax has not been deducted in accordance with the
provisions of this Chapter, income-tax shall be payable by
the assessee direct.
31[(2) For the purposes of paying income-tax directly by the
assessee under sub-section (1), if the income of the
assessee in any assessment year, beginning on or after the
1st day of April, 2021, includes income of the nature
specified in clause (vi) of sub-section (2) of section 17
and such specified security or sweat equity shares referred
to in the said clause are allotted or transferred directly
or indirectly by the current employer, being an eligible
start-up referred to in section 80-IAC, the income-tax on
such income shall be payable by the assessee within fourteen
days-
(i) after the expiry of forty-eight months from the end of
the relevant assessment year; or
(ii) from the date of the sale of such specified security or
sweat equity share by the assessee; or
(iii) from the date of the assessee ceasing to be the
employee of the employer who allotted or transferred him
such specified security or sweat equity share,
whichever is the earliest.]
Explanation.-For the removal of doubts, it is hereby
declared that if any person including the principal officer
of a company,-
(a) who is required to deduct any sum in accordance with the
provisions of this Act; or
(b) referred to in sub-section (1A) of section 192, being an
employer,
does not deduct, or after so deducting fails to pay, or does
not pay, the whole or any part of the tax, as required by or
under this Act, and where the assessee has also failed to
pay such tax directly, then, such person shall, without
prejudice to any other consequences which he may incur, be
deemed to be an assessee in default within the meaning of
sub-section (1) of section 201, in respect of such tax.
192. (1) 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 this
head for that financial year.
(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.
32[(1C) For the purposes of deducting or paying tax under
sub-section (1) or sub-section (1A), as the case may be, a
person, being an eligible start-up referred to in section
80-IAC, responsible for paying any income to the assessee
being perquisite of the nature specified in clause (vi) of
sub-section (2) of section 17 in any previous year relevant
to the assessment year, beginning on or after the 1st day of
April, 2021, shall deduct or pay, as the case may be, tax on
such income within fourteen days-
(i) after the expiry of forty-eight months from the end of
the relevant assessment year; or
(ii) from the date of the sale of such specified security or
sweat equity share by the assessee; or
(iii) from the date of the assessee ceasing to be the
employee of the person,
whichever is the earliest, on the basis of rates in force
for the financial year in which the said specified security
or sweat equity share is allotted or transferred.]
(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 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).
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.
(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;
(b) the loss, if any, under the head "Income from house
property",
in such form and verified in such manner as may be
prescribed, and thereupon the person responsible as
aforesaid shall take-
(i) such other income and tax, if any, deducted thereon; and
(ii) the loss, if any, under the head "Income from house
property",
also into account for the purposes of making the deduction
under sub- section (1) :
Provided that this sub-section shall not in any case have
the effect of reducing the tax deductible except where the
loss under the head "Income from house property" has been
taken into account, from income under the head "Salaries"
below the amount that would be so deductible if the other
income and the tax deducted thereon had not been taken into
account.
(2C) 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 in such form
and manner as may be prescribed.
(2D) The person responsible for making the payment referred
to in sub-section (1) shall, for the purposes of estimating
income of the assessee or computing tax deductible under
sub-section (1), obtain from the assessee the evidence or
proof or particulars of prescribed claims (including claim
for set-off of loss) under the provisions of the Act in such
form and manner as may be prescribed.
(3) The person responsible for making the payment referred
to in sub-section (1) or sub-section (1A) or sub-section (2)
or sub-section (2A) or sub-section (2B) may, at the time of
making any deduction, increase or reduce the amount to be
deducted under this section for the purpose of adjusting any
excess or deficiency arising out of any previous deduction
or failure to deduct during the financial year.
(4) The trustees of a recognised provident fund, or any
person authorised by the regulations of the fund to make
payment of accumulated balances due to employees, shall, in
cases where sub-rule (1) of rule 9 of Part A of the Fourth
Schedule applies, at the time an accumulated balance due to
an employee is paid, make therefrom the deduction provided
in rule 10 of Part A of the Fourth Schedule.
(5) Where any contribution made by an employer, including
interest on such contributions, if any, in an approved
superannuation fund is paid to the employee, tax on the
amount so paid shall be deducted by the trustees of the fund
to the extent provided in rule 6 of Part B of the Fourth
Schedule.
(6) For the purposes of deduction of tax on salary payable
in foreign currency, the value in rupees of such salary
shall be calculated at the prescribed rate of exchange.
What is Direct payment? What is Salary? Section 191 and 192 of Income Tax Act 1961
What are Dividends? Section 194 of Income Tax Act 1961
What is Rent? Section 194 I of Income Tax Act 1961
What is Interest other than Interest on securities? Section 194A of Income Tax Act 1961
What is Payments to contractors? Section 194C of Income Tax Act 1961