Income Tax Act, 1961
Sch. IV Part B Rule 6. DEDUCTION OF TAX ON CONTRIBUTIONS PAID TO AN EMPLOYEE.
Where any contributions made by an employer, including interest on contributions, if any, are paid to any employee during his lifetime, in circumstances other than those referred to in clause (3) of section 10, tax on the amounts so paid shall be deducted at the average rate of tax at which the employee was liable to tax during the preceding three years or during the period, if less than three years, when he was a member of the fund, and shall be paid by the trustees to the credit of the Central Government within the prescribed time and in such manner as the Board may direct.