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

Under the Income-tax Act, 2025 (applicable from the June 2027 session), who is required to deduct income-tax at source on income chargeable under the head "Salaries" at the time of payment?

The person responsible for paying the salary must deduct income-tax at the time of payment. The Income-tax Act, 2025 places this duty on the payer, usually the employer, and not on the employee, who is only the assessee bearing the tax.

  1. AThe employee receiving the salary
  2. BThe person responsible for paying the salaryCorrect
  3. CThe trustees of an oral trust
  4. DThe Income Tax Department

Explanation

Section 392(1) places the duty to deduct tax on the person responsible for paying income chargeable under the head Salaries, at the time of payment. The employee is the taxpayer, not the deductor. The Department only receives the tax.

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