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CS Executive · Tax Laws and Practice · Income under the Head Salary

Under section 392(4) of the Income-tax Act, 2025, which of the following particulars, if furnished by the assessee, can the salary payer take into account to reduce the tax to be deducted?

The payer can reduce the deduction for a loss under the head Income from house property for the same tax year. Apart from tax already deducted or collected elsewhere, no other loss, such as a business loss, can reduce tax deductible on salary.

  1. ALoss under the head Income from house property for the same tax yearCorrect
  2. BLoss under the head Profits and gains of business for the same tax year
  3. CExpected capital loss of a later tax year
  4. DPersonal expenses of the employee

Explanation

Section 392(4)(b) states that tax deductible on salary shall not be reduced except on account of loss under the head Income from house property and tax deducted or collected under other provisions. Business loss is not allowed for this purpose.

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