Deduction of tax at source on salaries: payer obligation to withhold at average rate and trustees to withhold on accumulations.
Section 392 places primary TDS obligation on payers of salary to deduct tax at the time of payment at the average rate on estimated annual income; employers may opt to pay tax on non monetary perquisites. Trustees of recognised provident and superannuation funds must deduct tax where Schedule XI applies, with a specified 10% withholding rule for certain employees' provident fund accumulations. The enacted text tightens prescribed form and verification requirements, alters a cross reference to section 17, and expressly permits eligible start ups to "deduct or pay, as the case may be."