05 March 2011
Under Section 192, the employer or disbursing officer is required to deduct income-tax while making the payment of salary during financial year in cash/cheque to the employees, at the rate of the income-tax applicable to the individuals for payment of advance tax for that Assessment Year.
Tax should be deducted every month on the estimated income under the head’Salaries’ for the financial year by dividing the estimated tax by 12 and rounding off to the nearest rupee.
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