Gross Salary received by Mr. Pankaj, aged 42 years during the F.Y. 2024-25 from M/s PPN Limited is 37,50,000. House property loss declared by him…

M/s PPN Limited, being an employer has to deduct tax at source under section 192 from the salary of Mr. Pankaj at the time of payment by applying the average rate of income-tax computed at the rates provided in section 115BAC(1A), where an employee does not exercise an option to shift out of this tax regime. While computing the tax, the employer PPN Ltd. has to consider any other income chargeable to tax and any tax deducted at source and tax collected at source of Mr. Pankaj. Computation of tax liability of Mr. Pankaj under default tax regime Particulars ₹ Gross Salary 37,50,000 Less: Standard deduction under section 16(ia) 75,000 36,75,000 Interest in respect of self-occupied property [Not allowed under default tax regime] Nil 36,75,000 Interest on FDR 60,000 Total Income 37,35,000 Tax on 37,35,000 at slab rate [30% of 22,35,000 +1,40,000] 8,10,500 Add: HEC@4% 32,420 Tax liability 8,42,920 Less: TDS under section 194A @10% on interest on FDR of 60,000 6,000 TCS under section 206C(1F) @1% on motor car of 32lakhs 32,000 Tax liability 8,04,920 M/s PPN Limited has to deduct tax of 8,04,920.