TDS on Salaries - Income Tax Department

PREFACE
The provisions of the Income Tax Act relating to Tax
Deduction at source from Salaries are of immense importance in
the context of present scenario when <strong>TDS</strong> collections account for
almost 39% of total collection of Direct Taxes.
This publication should not be construed as an
exhaustive statement of the Law. In case of doubt,
reference should always be made to the relevant
provisions of the Income Tax Act, 1961, Income Tax
Rules, 1962 Wealth Tax Act, 1957 and Wealth Tax
Rules, 1957, and, wherever necessary, to Notifications
issued from time to time.
The Income Tax Act provides for penalties for defaults in
respect of deduction of tax at source and deposit thereof into
Central Government account. The law is even more strict in case
the <strong>TDS</strong> has been deducted but not deposited into Government
account in the prescribed manner. In such a case, besides penalties,
the Law provides even for prosecution. Therefore, the Tax
Deductors need to be well conversant with the provisions relating
to Tax Deduction at Source. This booklet under the TPI Series is
an attempt to put forth the various provisions relating to Tax
Deduction at Source from Salaries in a lucid but precise manner.
Shri Madhukar K. Bhagat, Addl. DIT (Investigation) (Spl. Cell),
New Delhi has very painstakingly updated the booklet as per the
provisions of the Law as amended upto Finance Act, 2011. I am
sure that this updated edition will be widely accepted by the users.
Any suggestions for further improvement of the booklet would
be welcome.
New Delhi
Dated : 8-02-2012
(Amitabh Kumar)
Director of Income Tax (PR, PP & OL)