Suhas (aged 43 years) is working with TP Ltd. He is entitled to a salary of 85,000 per month w.e.f. 1.4.2024. He has a house property which is…

Section 192 provides that tax is required to be deducted on the payment made as salaries. Tax is to be deducted on the estimated income at the rates specified under section 115BAC(1A) or at the average of income tax computed on the basis of the rates in force for the financial year in which payment is made in case the employee submitted a declaration of opt out of the default regime under section 115BAC. The employee may declare details of his other incomes (including loss under the head “Income from house property" but not any other loss) to his employer. In this case, since Mr. Suhas has submitted a declaration of opt out of section 115BAC and also notified his employer TP Ltd. of loss from self-occupied house property, the employer has to take the same into consideration for deduction of tax at source. Therefore, TP Ltd. is required to deduct tax at source on the salary of 85,000 per month paid to Mr. Suhas, in the following manner: Particulars Amount (₹) Income under the head salaries (₹ 85,000 x 12) 10,20,000 Less: Standard deduction under section 16(ia) 50,000 9,70,000 Income under the head "house property" (1,95,000) Gross total income 7,75,000 Less: Deduction under Chapter VI-A Nil Total Income 7,75,000 Tax on 7,75,000 67,500 Add: Health and Education cess@4% 2,700 Tax to be deducted at source 70,200