Whether these conditions are satisfied will have to be clarified by the office of the Chief Minister.

Insofar as the receipt is concerned, the same should be in the name of the employee even though the contribution of the employee may have been made through the employer.

This will be the situation unless there is a clarification from the CBDT that the employer could obtain a consolidated receipt and, in turn, issue certificates to the various employees to the extent of contribution made by each of them. Circulars of this nature have been issued in the past when contributions were made at the time of various natural calamities.

Can an employee give particulars of his other income to his employer? If he does so what is the responsibility of the employer?

A taxpayer may furnish particulars of income under any head other than "salaries" and of any tax deducted at source thereon in the prescribed Form No.12C.

After an amendment made to the income-tax rules this year, the particulars may be furnished in a simple statement, which is properly verified by the taxpayer in the same manner as in Form No.12C.

Such income should not be a loss under any such head other than the loss under the head "Income from house property" for the same financial year.

The person responsible for making payment of salary shall take such other income and tax, if any, deducted at source from such income, and the loss, if any, under the head "Income from house property" into account for the purpose of computing tax deductible under Section 192 of the Income-Tax Act.

This, however, shall not in any case have the effect of reducing the tax deductible, except where the loss under the head "Income from house property" has been taken into account, from income under the head "salaries" below the amount that would be so deductible if the other income and tax deducted thereon had not been taken into account.

In other words, the person responsible for paying salary can take into account only the loss from house property for working out the amount of total tax to be deducted. While taking into the account the loss from house property, the person responsible for paying salary shall ensure that the assessee files the declaration referred to above and encloses therewith a computation of such loss from house property.

What are the deductions under Chapter VI-A that can be taken into account by an employer in computing the tax to be deducted at source?

The deductions are presented in the Table.

How is the tax deducted on salary to be remitted into the government account and within what time is the same to be remitted?

While making the payment of tax deducted at source to the credit of the Central Government, it may be ensured that the correct amount of income-tax is recorded in the relevant challans. It may also be ensured that the right type of challans is used.

The relevant challans for making payment of tax deducted at source from salaries is No. 9 with "blue colour band". Where the amount of tax deducted at source is credited to the Central Government through book adjustment, care should be taken to ensure that the correct amount of income-tax is reflected therein.

Any person deducting any sum by way of salaries paying tax on non-monetary perquisites on behalf of the employee, shall pay the sum so deducted or tax so calculated on the said non-monetary perquisites, as the case may be, to the credit of the Central Government in accordance with Rule 30 of the Income-Tax Rules, 1962.

In the case of deductions made by, or on behalf of the Government, the payment has to be made on the day of the tax deduction itself. In other cases, the payment has to be normally made within a week of the deduction.

If an employee has worked under more than one employer, how is the tax to be deducted and who is to deduct tax at source?

The deduction of tax at source is to be by such employer as the employee may choose from the aggregate salary of the employee who has been in receipt of salary from more than one employer.

The employee is required to furnish details of the salary from the other employer to the employer of his choice in writing. Such chosen employer is required to deduct tax at source on the salary of the other employer as well. If the other employer has also deducted tax at source the chosen employer may take cognisance of the same.

There is no mandate that the employee must give the particulars as stated above. It is only optional to the employee. If the employee does give particulars to the employer of his choice, it is mandatory for such employer to take the particulars given into account in determining the tax to be deducted.

(Mail your queries to taxtalk@thehindu.co.in or by post to Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002.)

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