Section 190 - Deduction at source and advance payment, Section 191 - Direct payment - Income Tax - Ready Reckoner - Income Tax

Section 190 - Deduction at source and advance payment Although regular assessment in respect of any income is to be made in a later assessment year, but tax on such income is payable in the previous year itself by deduction or collection of tax at source or by advance payment of tax. Further the tax paid by the employer u/s 192(1A) on the non-monetary perquisites provided to the employee, shall also be one of the mode of collection of tax under chapter XVII (i.e. Section 190 to Section 234H) of the income tax act, 1961. The taxes deducted/collected or paid as advance tax in the previous year itself are known as pre-paid taxes. Such pre-paid taxes are deductible from the total tax, due from the assessee. Section 191 - Direct Payment Tax payable by assessee directly in the case of income- (a) in respect of which provision is not made under chapter XVII (i.e. Section 190 to Section 234H) for deducting income tax at the time of payment and (b) in any case where income tax has not been deducted in accordance with the provisions of chapter XVII (i.e. Section 190 to Section 234H) then income tax shall be payable by the assessee directly in the form of advance tax or otherwise. [ Section 191(1) ] Tax payable by the employee in case of specified security or sweat equity shares in certain cases. For the purposes of paying income-tax directly by the assessee u/s 191(1), if the income of the assessee in any assessment year, beginning on or after the 1st day of April, 2021, includes income of the nature specified in section 17(2)(vi) and such specified security or sweat equity shares referred to in the said clause are allotted or transferred directly or indirectly by the current employer, being an eligible start-up referred to in section 80-IAC , the income-tax on such income shall be payable by the assessee within 14 days- (i) after the expiry of forty-eight months from the end of the relevant assessment year; or (ii) from the date of the sale of such specified security or sweat equity share by the assessee; or (iii) from the date of the assessee ceasing to be the employee of the employer who allotted or transferred him such specified security or sweat equity share, whichever is the earliest. [ Section 191(2) ] Note - If any person, including the principal officer of the company - (a) who is required to deduct any sum in accordance with the provisions of this act or (b) referred u/s 192(1A) , being an employer, does not deduct, or after so deducting fails to pay, or does not pay, the whole or any part of the tax, as required by or under this Act, and where the assessee has also failed to pay such tax directly, then, such person shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default within the meaning of section 201(1) , in respect of such tax.