The Central Board of Direct Taxes (CBDT) has released a circular concerning Tax Deduction at Source (TDS) and income tax deduction on salaries for the year 2021-22.
The circular provided today comprises the rates of the deduction of the income tax via payment of the income chargeable beneath the head salaries in the FY 2021-22 and elaborates specifically related provisions of the act and the income tax rules, 1962. The sections and the rules referred to the income tax act 1961 and income tax rules 1962 correspondingly unless any other decision has been given.
Last year, a Circular No, 20/2020 on 03.12.2020 was given in which the rates of deduction of income-tax from the payment of income beneath the head Salaries under Section 1)2 of the Income-tax Act, 1961 (hereinafter ‘the Act’), during the financial year 2020-21. were intimated.
Under section 192(1) of the act, any individual liable for paying any income chargeable beneath the head salaries will during the payment time. Deduct income tax on the amount payable at the average rate of the income tax calculated on the grounds of the rates towards the fiscal year where the payment is made, on the estimated income of taxpayer beneath the head of the salary income for that fiscal year.
The section indeed used to furnish that the individual is liable for furnishing any income chargeable beneath the head salaries will file the individual to whom this payment is made a statement providing the correct and complete particulars of perquisites or profits in place of salary given to him and the value of it.
