Deduction of tax at source--Income-tax deductions from salaries during 1975-76 - Income Tax - 182/1975

Circular No. 182 Dated 28/10/1975 To All State Governments. Sir, Subject : Deduction of tax at source--Income-tax deductions from salaries during 1975-76. 1. Attention is invited to para. 2(iii) of this Ministry's Circular No.161 See [1975] 99 ITR (St.) 8. (F.No.275/12/75-ITJ) dated March 22, 1975, on the above subject, which lays down that for the purpose of computing the total income of an employee the amount credited to his ledger account in the Additional Wages Deposit Account or the Additional Dearness Allowance Deposit Account under the provisions of the Additional Emoluments (Compulsory Deposit) Act, 1974, shall not be included in his total income of the previous year in which it is so credited but so much of the amount as is repaid. Section 8(2) of the Additional Emoluments (Compulsory Deposit) Act, 1974, provides that for the purposes of computing, under the Income-tax Act, 1961, the total income of an employee, the amount repaid to him under this Act shall be deemed to be salary paid to him in arrears and the provisions of sub-section (1) of section 89 of the Income-tax Act, 1961, shall apply accordingly. 2. The amounts credited to the ledger account of an employee in the Additional Wages Deposit Account have become repayable after 7th July, 1975, i.e., after expiry of one year from the appointed day under section 9(1)(a) of the Additional Emoluments (Compulsory Deposit) Act, 1974. Therefore, on such repayments tax has to be deducted at source in accordance with the instructions contained in this Ministry's Circular No.161 See [1975] 99 ITR (St.) 8. (F.No.275/12/75-ITJ) dated March 22, 1975, as amended by Circular No.176 See [1975] 101 ITR (St.) 1 (F.No.275/12/75-ITJ) dated August 16, 1975. 3. The above position may again be brought to the notice of all disbursing officers and State undertakings under the control of the State Government. (Sd.) K.R. Raghavan, Director, Central Board of Direct Taxes.