Clause 392: Tax Deduction Duties for Employers and Trustees on Salaries and Balances, Including Start-Up Provisions

Clause 392 of the Income Tax Bill, 2025, outlines the responsibilities of individuals and entities in deducting income tax at the source from salaries and certain accumulated balances due to employees. It mandates that tax be deducted at the average rate applicable for the tax year when the payment is made. The clause also allows for optional tax payment on non-monetary perquisites and specifies provisions for eligible start-ups. Employers must consider various factors, such as additional income or losses, when calculating deductions. Trustees of provident and superannuation funds are required to deduct tax on certain payments to employees, with specific rates and conditions outlined.