1. Relevant Sections of the Income-tax Act, 1961
Section 192(1):
"Any person responsible for paying any income chargeable under the head 'Salaries' shall, at the time of payment, deduct income-tax on the estimated income of the assessee under the head 'Salaries' for that financial year."
Section 192(2):
"Where, during the financial year, an assessee is employed simultaneously by more than one employer, or where he has changed employment during the financial year, he may furnish to the employer of his choice, details of the salary due or received by him from the other employer or employers, and of the tax deducted at source therefrom, and thereupon that employer shall take into account the said details for the purpose of computing tax deductible under sub-section (1)."
Section 192(2A): (Specific to Govt. Employees)
"Where a person is employed under the Central Government or a State Government and is transferred from one office to another office, the drawing and disbursing officer of the new office shall take into account the details of the income under the head 'Salaries' due or received by him in the former office and of the tax deducted at source therefrom, for the purpose of computing the tax deductible under sub-section (1)."
Section 203(1):
"Every person deducting tax in accordance with the foregoing provisions of this Chapter shall furnish to the person to whose account such credit is given or to whom such payment is made or the cheque or warrant is issued, a certificate to the effect that tax has been deducted and specifying the amount so deducted, the rate at which the tax has been deducted and such other particulars as may be prescribed."
2. Relevant Rules of the Income-tax Rules, 1962
Rule 26A (Furnishing of particulars of income under section 192(2)):
"The particulars of income under the head 'Salaries' and of tax deducted at source from the income, due or received by the assessee from any employer or employers, shall be furnished by the assessee to the person responsible for deducting tax under section 192(2) in Form No. 12B."
Rule 31 (Certificate of Tax Deducted at Source):
(1) "Every person responsible for deduction of tax under Chapter XVII-B shall furnish to the payee, a certificate of tax deducted at source in Form No. 16, in respect of tax deducted at source on salary income."
(2) "Form No. 16 shall be issued annually by 15th June of the financial year immediately following the financial year in which income was paid and tax deducted."
3. Relevant CBDT Notification
CBDT Notification No. 36/2019 dated 12.04.2019 (F. No. 370142/4/2019-TPL):
"...In exercise of the powers conferred by section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes hereby notifies the format of Form No. 16, which shall be as per the Annexure attached to this notification. The Form shall include: Part A (generated from TRACES) and Part B (to be prepared by the employer), containing details of salary, perquisites, allowances, deductions, and tax computation."
4. Application in Case of Transfer Between DDOs
• In case of transfer in Central/State Government service:
o Employment is continuous even though the DDO changes.
o Under Section 192(2A), the new (last) DDO is legally bound to take into account salary & TDS details from the former DDO (furnished in Form 12B as per Rule 26A).
o The last DDO must then:
▪ Consider cumulative salary & TDS,
▪ Deduct balance TDS (if required), and
▪ Issue a single consolidated Part B of Form 16 for the entire financial year.
• Part A of Form 16 will still be separately generated by each DDO through TRACES (since TANs differ).
Final Position:
- Private job change: Consolidation optional (depends on employee furnishing Form 12B under Section 192(2)).
- Government transfer: Consolidation mandatory (Sec 192(2A) + Rule 26A). The last DDO must
issue consolidated Part B.
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