Income Tax Act

Official PDF pages 466–470

SOURCE PDF PAGE 466
( v )   any tax deducted or collected at source under this Chapter for the same
tax year;
( b ) the tax deductible from income under the head “Salaries” shall not be reduced
in any case, except on account of—
( i )   loss under the head “Income from house property”; and
( ii )   the tax deducted and collected as per other provisions of this Chapter.
(5) The person responsible for paying any income chargeable under the head
“Salaries” to the assessee—
( a )   shall furnish a statement in such form and manner, as may be prescribed,
with correct and complete particulars of perquisites or profits   in lieu   of
salary paid, along with their value, to the assessee;
( b )   shall, for the purposes of estimating income of the assessee or comput -
ing 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 this Act in such form and manner,
as may be prescribed; and
( c )   may, increase or reduce the amount to be deducted under this section for
adjusting any excess or deficiency arising out of any previous deduction
or failure to deduct during the tax year.
(6)( a ) The trustees of a recognised provident fund, or any person authorised by
the regulations of the fund to make payment of the accumulated balances due to
employees shall, in cases where paragraph 9 of Part A of Schedule XI applies, at
the time an accumulated balance due to an employee is paid, make therefrom the
deduction provided in paragraph 10 of Part A of Schedule XI;
( b ) where any contribution made by an employer, including interest on such con -
tributions, 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 paragraph 7 of Part B of Schedule XI.
(7)( a ) Irrespective of anything contained in this Act, the trustees of the Employees’
Provident Funds Scheme, 1952, made under section 5 of the Employees’ Provident
Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); or
( b ) any person authorised under such scheme to make payment of accumulated
balance due to employees,
shall at the time of payment of accumulated balance due to the employee partic -
ipating in a recognised provident fund, deduct income-tax thereon at the rate of
10%, where the aggregate amount of such payment is   `   50000 or more, and such
accumulated balance is includible in his total income owing to the provisions of
paragraph 8 of Part A of Schedule XI not being applicable.

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(8) For the purposes of deduction of tax on salary payable in foreign currency, the
value in rupees of such salary shall be calculated at such rate of exchange as may
be prescribed.
Tax to be deducted at source.
393.   (1) Where any income or sum of the nature specified in column B of the
Table below, is credited or paid or distributed by the person specified in
column C during the tax year, to a resident, the person responsible for paying such
income or sum shall deduct income-tax,—
( a )   on the entire amount of such income or sum, where the amount or
aggregate of amounts exceeds the threshold limit specified in column
D, or on sum as per Note 1 for serial number 8( ii ), as the case may be;
( b )   at the rate specified in column D;
( c )   at the time of credit of such income or sum to the account of the payee
or at the time of its payment in cash or by way of a cheque or a draft or
by any other mode, whichever is earlier; and
( d )   subject to the provisions of sub-sections (4), (5), (6), (8) and (9).
TABLE
FOR PAYMENTS TO RESIDENT
Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
1. Commission or brokerage
( i )   Any   income   by   way
of   remuneration   or
reward,   whether   by
way of commission or
otherwise, for soliciting
or procuring insurance
business   (including
business relating to the
continuance, renewal
or revival of insurance
policies).
Any person.   Rate:   Rates in force.
___________
Threshold limit:
`   20,000.
( ii )   Any income by way of
commission [not being
insurance commission
referred   to   in   serial
number 1( i )] or broker -
age.
Specified person.   Rate:   2%
________
Threshold limit:
`   20,000.

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Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
2. Rent
( i )   Any income by way of
rent.
Person other than
specified person.
Rate:   2%
________
Threshold limit :   `   50,000
for a month or part of a
month.
( ii )   Any income by way of
rent.
Specified person.   Rate:   ( a ) 2%, for the use
of any machinery or plant
or equipment; and
( b ) 10%, for the use of
any land, or building (in -
cluding factory building),
or land appurtenant to a
building (including facto -
ry building), or furniture,
or fittings.
__________
Threshold limit   [for ( a )
and ( b )]:   `   50,000 for a
month or part of a month.
Note 1. —In serial number 2( i ), the tax shall be deducted on such income at the time of—
( a )   credit of rent to the account of the payee; or
( b )   payment thereof in cash or by way of a cheque or a draft or any other mode,
whichever is earlier, for the last month of the tax year or the last month of tenancy.
3. Payment on transfer of certain immovable property other than agricul-
tural land
( i )   Any consideration for
transfer of any immova -
ble property (other than
agricultural land).
P e r s o n   [ o t h e r
than the person
who are required
to deduct tax un -
der serial number
3( iii )].
Rate:   1% of—
( a )   consideration   for
transfer of the im -
movable property; or
( b )   stamp duty value of
such property,
whichever is higher.
_________
Threshold limit:   Fifty lakh
rupees and as per Note 3.

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Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
( ii )   Any consideration, not
being consideration in
kind, under the agree -
ment   referred   to   in
section 67(14).
Any person.   Rate:   10%
__________
Threshold limit:   Nil.
( iii )   Any sum, being in the
nature of—
( a )   c o m p e n s a t i o n
or the enhanced
compensation; or
( b )   consideration or
the enhanced con -
sideration,
on account of compulsory
acquisition, under any law for
the time being in force, of any
immovable property (other
than agricultural land).
Any person.   Rate:   10%
__________
Threshold limit:
`   5,00,000.
Note 1. —Consideration for transfer of any immovable property under serial number 3( i )
shall be the aggregate of the amounts paid or payable by all the transferees to the trans -
feror or all the transferors for transfer of such immovable property for the purposes of the
threshold limit mentioned in column D.
Note 2. —In case of consideration on which provisions of both serial numbers 3( i ) and 3( ii )
are applicable, tax shall be deducted under 3( ii ) only.
Note 3. —For the purposes of   81 [ serial number 3( i ) ] , the income-tax shall be deducted where
consideration for transfer of any immovable property or the stamp duty value of such
property, is equal to or greater than fifty lakh rupees.
4. Income from capital market
( i )   Any income in respect
of—
( a )   units of a Mutual
Fund   specified
under   Schedule
VII (Table: Sl. No.
20 or 21); or
Any person.   Rate:   10%
_________
Threshold limit:   `   10,000.
( b )   units   from   the
Administrator of
the specified un -
dertaking; or
( c )   units   from   the
specified compa -
ny.
81.   Substituted for “serial number 3( iii )” by the Finance Act, 2026, w.e.f.   1-4-2026 .

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Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
( ii )   Any distributed income
referred to in section
223, being of the nature
referred to in Schedule
V   (Table:   Sl.   Nos.   3
and 4), payable to a
unitholder of a Busi -
ness Trust.
A n y   B u s i n e s s
Trust.
Rate:   10%
____________
Threshold limit:   Nil .
( iii )   Any   income,   other
than   that   proportion
of income which is ex -
empt under Schedule
V (Table: Sl. No. 2), in
respect of units of an in -
vestment fund specified
in section 224, payable
to its unitholder.
Any   Investment
fund specified in
section 224.
Rate:   10%
_________
Threshold limit:   Nil .
( iv )   Any income, in respect
of   an   investment   in
a securitisation trust
specified in section 221
to an investor.
Any securitisation
trust specified in
section 221.
Rate:   10%
________
Threshold limit:   Nil .
5. Interest income
( i )   Any income by way of
Interest on securities.
Any person.   Rate:   Rates in force.
_________
Threshold limit:   `   10,000.
( ii )   Any   income   by   way
of interest other than
interest on securities.
( a )   A   banking
c o m p a n y ;
or
( b )   a co-opera -
tive society
carrying on
the business
of banking;
or
( c )   a post office
for a deposit
made under
Rate:   Rates in force.
_______
Threshold limit:
( a )   `   1,00,000 in the case
of a senior citizen;
( b )   `   50,000 in case of
person   other   than
senior citizen.