Comparison of section 392 "Salary and accumulated balance due to an employee." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....ax Act, 2025 (Section 392) as reproduced; differences between the two are identified below. Effective date or commencement is: Not stated in the document. Background & Scope Statutory hooks: provisions are located in the chapter dealing with deduction and collection at source (TDS/TCS) and interact with section 17 (taxability of perquisites), section 140 (definition/eligibility of start-ups as referenced), section 289(3) (time for payment by payee), Schedule XI (paragraphs referenced) and the Employees' Provident Funds Scheme, 1952. The provision governs-(a) employer obligations to deduct tax on salaries at average rates; (b) optional payment of tax by employers on non-monetary perquisites; (c) special rules for eligible start-ups and....

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....ragraphs apply, and the specific 10% deduction rule for EPF accumulated balances. Interpretation Legislative intent and interpretive principles indicated by the text: Not stated in the document. The text indicates a scheme to place primary responsibility on payers/trustees to withhold tax at source at average rates and to provide procedural avenues (prescribed forms/verification) for employees to influence withholding amounts. No explicit statement of intent beyond operative obligations is provided in the documents. Exceptions/Provisos Carve-outs and conditions expressly present in the text include: * Reduction of tax deductible from salary is permitted only on account of (i) loss under "Income from house property"; and (ii) tax alrea....

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....ligible start-up reference), section 289(3) (timing for payment by payee), and Schedule XI (conditions for provident/superannuation fund taxability and deductions). Specific rules or notifications prescribing forms, verification methods, the rate of exchange for foreign currency salary conversion, and prescribed forms/manner are referenced but not reproduced here. The texts do not reproduce the content of Schedule XI or section 17; interpretation will require reference to those provisions. Any further interaction with rules or circulars is Not stated in the document. Identified Differences Between the Section 392 of the Income-tax Act, 2025 and Clause 392 of the Income-tax Bill, 2025 * Reference to section 17 sub-clause for perquisites: ....

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....d manner as prescribed") and omits some temporal qualifiers. * Practical impact: The enacted text tightens/formalises the evidentiary and verification requirement for particulars provided by the assessee and expressly ties several particulars to the same tax year, potentially reducing ambiguity in year-to-year adjustments. Employers/payers may be required to follow prescribed verification formalities when accepting employee declarations. * Sub-section (4)(b) minor drafting difference: Both versions preserve that tax deductible from salaries shall not be reduced except for house property loss and tax deducted/collected under other provisions. The enacted text explicitly states "the tax deductible from income under the head 'Salaries&....