The Central Board of Direct Taxes (CBDT) in a circular related to TDS deduction from salaries has said that any person responsible for paying salary must deduct income tax while paying the amount.
The circular said that the tax should be deducted at the average rate calculated, based on the rates in force for the current financial year, on the estimated salary income of the recipient for that year. (Read more: Bank of India hikes FD rates, new rates applicable from today 13 December)
The circular was issued last week by CBDT. (Read more: Will govt remove image of Mahatma Gandhi from Indian Currency notes? )