(1) A person responsible for payment of any employment under the head “Income from employment” to a payee shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average or the rates applicable to the ¹[estimated] total income of the payee under that head.

(2) ²[***]

(3) Where any Government official has performed as Drawing and Disbursing Officer (DDO) or prepared or signed a bill for himself or for any other official subordinate to him to draw salary from the Government or any authority, he shall, at the time of making or signing such bill, deduct tax at the average rate of tax applicable to the estimated total income of such officials if such annual salary chargeable to tax exceeds the taxable limit for that income year.

(4) During any deduction under sub-sections (1) and (3), the surplus or deficit shall be increased or decreased by an amount equal to the adjustment with any previous surplus or deficit.

(5) Where tax has already been paid at source under this section, including advance tax payable under this Act, and the tax applicable to the probable total income of an employee appears to be close to the amount of tax so payable, the Deputy Commissioner of Taxes shall, on the basis of the application and evidence furnished by the employee, may issue a certificate for the remainder of income year to the effect that no tax will be deducted from the said employee or tax will be deducted at a lower rate.