Deduction of tax at source — Income–Tax deduction from salaries under section 192 of the income–tax act, 1961 - during the financial year 2007-2008
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....., assessment year 2008-09) at the following rates: Rates of income-tax A. Normal Rates of tax : 1. Where the total income does not exceed Rs. 1,10,000. Nil 2. Where the total income exceeds Rs. 1,10,000 but does not exceed Rs. 1,50,000. 10 per cent of the amount by which the total income exceeds Rs. 1,10,000 3. Where the total income exceeds Rs. 1,50,000 but does not exceed Rs. 2,50,000. Rs. 4,000 plus 20 per cent of the amount by which the total income exceeds Rs. 1,50,000. 4. Where the total income exceeds Rs. 2,50,000. Rs. 24,000 plus 30 per cent of the amount by which the total income exceeds Rs. 2,50,000. B. Rates of tax for a woman, resident in India and below sixty-five years of age at any time during the financial year : 1. Where the total income does not exceed Rs. 1,45,000. Nil 2. Where the total income exceeds Rs. 1,45,000 but does not exceed Rs. 1,50,000. 10 per cent of the amount by which the total income exceeds Rs. 1,45,000 3. Where the total income exceeds Rs. 1,50,000 but does not exceed Rs. 2,50,000. Rs. 500 plus 20 per cent of the amount by which the total income exceeds Rs. 1,50,000. 4. Where the total income exceeds Rs. 2,50,000. Rs.....
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....s. 1,10,000 or Rs. 1,45,000 or Rs. 1,95,000, as the case may be, depending upon the age and gender of the employee. (Some typical examples of computation of tax are given at Annexure-I). 3.2 Payment of Tax on Non-monetary Perquisites by Employer - An option has been given to the employer to pay the tax on non-monetary perquisites given to an employee. The employer may, at his option, make payment of the tax on such perquisites himself without making any TDS from the salary of the employee. The employer will have to pay such tax at the time when such tax was otherwise deductible, i.e., at the time of payment of income chargeable under the head Salaries to the employee. 3.3 Computation of Average Income-tax - For the purpose of making the payment of tax mentioned in para 3.2 above, tax is to be determined at the average of income-tax computed on the basis of rate in force for the financial year, on the income chargeable under the head Salaries, including the value of perquisites for which tax has been paid by the employer himself. ILLUSTRATION: Suppose that the income chargeable under the head Salary of a male employee below sixty-five years of age for the year inclusive of all p....
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.... of the Act. 3.6 Form 12C has been omitted by the IT (24th Amendment) Rules, 2003 w.e.f. 1-10-2003 - (i) Sub-section (2B) of section 192 enables a taxpayer to furnish particulars of income under any head other than Salaries and of any tax deducted at source thereon. Form No. 12C, which was earlier prescribed for furnishing such particulars (Annexure-II) , has since been omitted from the Income-tax Rules. However, the particulars may now be furnished in a simple statement, which is properly verified by the taxpayer in the same manner as was required to be done in Form No. 12C. (ii) Such income should not be a loss under any such head other than the loss under the head Income from house property for the same financial year. The person responsible for making payment (DDO) shall take such other income and tax, if any, deducted at source from such income, and the loss, if any, under the head Income from house property into account for the purpose of computing tax deductible under section 192 of the Income-tax Act. However, this sub-section shall not in any case have the effect of reducing the tax deductible (except where the loss under the head Income from house property has been take....
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....loan. (ii) The essential conditions for availing higher deduction of interest of Rs. 1,50,000 in respect of a self-occupied residential house are that the amount of capital must have been borrowed on or after 1-4-1999 and the acquisition or construction of residential house must have been completed within three years from the end of the financial year in which capital was borrowed. There is no stipulation regarding the date of commencement of construction. Consequently, the construction of the residential house could have commenced before 1-4-1999 but, as long as its construction/acquisition is completed within three years, from the end of the financial year in which capital was borrowed the higher deduction would be available in respect of the capital borrowed after 1-4-1999. It may also be noted that there is no stipulation regarding the construction/acquisition of the residential unit being entirely financed by capital borrowed on or after 1-4-1999. The loan taken prior to 1-4-1999 will carry deduction of interest up to Rs. 30,000 only. However, in any case the total amount of deduction of interest on borrowed capital will not exceed Rs. 1,50,000 in a year. 3.8 Adjustment for ....
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....f section 200, any person deducting any sum in accordance with the provisions of section 192 or paying tax on non-monetary perquisites on behalf of the employee under section 192(1A), shall pay the sum so deducted or tax so calculated on the said non-monetary perquisites, as the case may be, to the credit of the Central Government in prescribed manner (vide Rule 30 of the Income-tax Rules, 1962). In the case of deductions made by, or, on behalf of the Government, the payment has to be made on the day of the tax-deduction itself. In other cases, the payment has to be made within one week from the last day of month in which deduction is made. 4.5 Penalty for Failure to Deposit Tax Deducted : If a person fails to deduct the whole or any part of the tax at source, or, after deducting, fails to pay the whole or any part of the tax to the credit of the Central Government within the prescribed time, he shall be liable to action in accordance with the provisions of section 201. Sub-section (1A) of section 201 lays down that such person shall be liable to pay simple interest at twelve per cent per annum on the amount of such tax from the date on which such tax was deductible to the date on....
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....ase, Form No. 16 with Form No. 12BA or Form No. 16 by itself will have to be furnished within a period of one month from the end of relevant financial year. An employer, who has paid the tax on perquisites on behalf of the employee as per the provisions discussed in paras 3.2 and 3.3, shall furnish to the employee concerned a certificate to the effect that tax has been paid to the Central Government and specify the amount so paid, the rate at which tax has been paid and certain other particulars in the amended Form No. 16. The obligation cast on the employer under section 192(2C) for furnishing a statement showing the value of perquisites provided to the employee is a serious responsibility of the employer, which is expected to be discharged in accordance with law and rules of valuation framed there-under. Any false information, fabricated documentation or suppression of requisite information will entail consequences therefor provided under the law. The certificates in Form No. 12BA and Form No. 16 are to be issued on tax-deductor s own stationery within one month from the close of the financial year, i.e., by April 30 of every year. If he fails to issue these certificates to the....
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....e provisions of section 203A, he will be liable to pay, by way of penalty, under section 272BB, a sum of ten thousand rupees. Similarly, as per section 139A(5B), it is obligatory for persons deducting tax at source to quote PAN of the persons from whose income-tax has been deducted in the statement furnished under section 192(2C), certificates furnished under section 203 and all returns prepared and delivered as per the provisions of section 200(3) of the Income-tax Act, 1961. 4.9 All tax deductors/collectors are required to file the TDS returns in Form No. 24Q (for tax deducted from salaries). As the requirement of filing TDS/TCS certificates has been done away with, the lack of PAN of deductees is creating difficulties in giving credit for the tax deducted. It has, therefore, been decided that TDS returns for salaries, i.e., Form No. 24Q with less than 90 per cent of PAN data will not be accepted for the quarter ending on 30-9-2007 and thereafter. Tax deductors and tax collectors are, therefore, advised to quote correct PAN details of all deductees in the TDS returns, failing which the TDS returns will not be accepted and all penal consequences under the Income-tax Act will foll....
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....imilarly, all employees (including non-resident employees) from whose income, tax is to be deducted may be advised to obtain PAN, if not already obtained, and to quote the same correctly, as otherwise the credit for the tax deducted cannot be given. A penalty under section 272B of Rs. 10,000 has been prescribed for wilfully intimating a false PAN. For and from the quarter ending 30-9-2007, filing of TDS returns in electronic form is also mandatory for deductors required to get their accounts audited under section 44AB of the Income-tax Act in the immediately preceding financial year or where the number of deductees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty. TDS returns in paper form will no longer be accepted from such tax deductors. 4.11 A return filed on the prescribed computer readable media shall be deemed to be a return for the purposes of section 200(3) and the Rules made thereunder, and shall be admissible in any proceeding thereunder, without further proof of production of the original, as evidence of any contents of the original. 4.12 Challans for Deposit of TDS : While making the payment ....
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....isfy themselves regarding the genuineness of the certificates produced before them : Circular No. 747, dated 27-12-1996. 4.16 There is a specific procedure laid down for refund of payments made by the deductor in excess of taxes deducted at source, vide Circular No. 285, dated 21-10-1980. 4.17 In respect of non-residents, the salary paid for services rendered in India shall be regarded as income earned in India. It has been specifically provided in the Act that any salary payable for rest period or leave period which is both preceded or succeeded by service in India and forms part of the service contract of employment will also be regarded as income earned in India. 5. Estimation of income under the head Salaries 5.1 Income chargeable under the head Salaries : (1) The following income shall be chargeable to income-tax under the head Salaries : (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him. (c) any arrears of salary paid or allowed to him in the previous....
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....ses : (i) By a company to an employee who is a director of such company; (ii) By a company to an employee who has a substantial interest in the company; (iii) By an employer (including a company) to an employee, who is not covered by (i) or (ii) above and whose income under the head Salaries (whether due from or paid or allowed by one or more employers), exclusive of the value of all benefits and amenities not provided by way of monetary payment, exceeds Rs. 50,000. The valuation of such benefits and amenities have been prescribed in Explanation 1 to 4 below 17(2)(ii) of the Income-tax Act, 1961. It is further provided that profits in lieu of salary shall include amounts received in lump sum or otherwise, prior to employment or after cessation of employment for the purposes of taxation. The rules for valuation of perquisite are as under : I. Accommodation - For purpose of valuation of the perquisite of unfurnished accommodation, all employees are divided into two categories: (i) Central Government and State Government employees; and (ii) Others. For employees of the Central and State Governments, the value of perquisite shall be equal to the licence fee charged for such ac....
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....n such a case shall be 24 per cent of the annual salary or the actual charges paid or payable to such hotel, whichever is lower, for the period during which such accommodation is provided as reduced by any rent actually paid or payable by the employee. However, where in cases the employee is provided such accommodation for a period not exceeding in aggregate fifteen days on transfer from one place to another, no perquisite value for such accommodation provided in a hotel shall be charged. It may be clarified that while services provided as an integral part of the accommodation, need not be valued separately as perquisite, any other services over and above that for which the employer makes payment or reimburses the employee shall be valued as a perquisite as per the residual clause. In other words, composite tariff for accommodation will be valued as per these Rules and any other charges for other facilities provided by the hotel will be separately valued under the residual clause. Also, if on account of an employees transfer from one place to another, the employee is provided with accommodation at the new place of posting while retaining the accommodation at the other place, the va....
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....he excess of interest payable at prescribed interest rate over interest, if any, actually paid by the employee or any member of his household. The prescribed interest rate would now be the rate charged per annum by the State Bank of India as on the 1st day of the relevant financial year in respect of loans of same type and for the same purpose advanced by it to the general public. Perquisite value would be calculated on the basis of the maximum outstanding monthly balance method. For valuing perquisites under this rule, any other method of calculation and adjustment otherwise adopted by the employer shall not be relevant. However, small loans up to Rs. 20,000 in the aggregate are exempt. Loans for medical treatment specified in rule 3A are also exempt, provided the amount of loan for medical reimbursement is not reimbursed under any medical insurance scheme. Where any medical insurance reimbursement is received, the perquisite value at the prescribed rate shall be charged from the date of reimbursement on the amount reimbursed, but not repaid against the outstanding loan taken specifically for this purpose. VI. Use of assets - It is common practice for an asset owned by the emplo....
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....in India is exempt under clause (5) of section 10 subject, however, to the conditions prescribed in rule 2B of the Income-tax Rules, 1962. For the purpose of this clause, family in relation to an individual means : (i) The spouse and children of the individual; and (ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual. It may also be noted that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel. (2) Death-cum-retirement gratuity or any other gratuity which is exempt to the extent specified from inclusion in computing the total income under clause (10) of section 10. (3) Any payment in commutation of pension received under the Civil Pension (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the civil services of the Union, or holders of civil posts/posts connected with defence, under the Union, or civil posts under a State, or to the members of the all India services/Defence Services, or, to the employees of a local authority or a corporation established by a Central, State or ....
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....e of public sector company, a scheme of voluntary separation, is exempted from income-tax to the extent that such amount does not exceed five lakh rupees: (a) A public sector company; (b) Any other company; (c) An Authority established under a Central, State or Provincial Act; (d) Local Authority; (e) A Cooperative Society;\ (f) A university established or incorporated or under a Central, State or Provincial Act, or, an Institution declared to be a University under section 3 of the University Grants Commission Act, 1956; (g) Any Indian Institute of Technology within the meaning of Clause (g) of section 3 of the Institute of Technology Act, 1961; (h) Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in this behalf. The exemption of amount received under VRS has been extended to employees of the Central Government and State Government and employees of notified institutions having importance throughout India or any State or States. It may also be noted that where this exemption has been allowed to any employee for any assessment year, it shall not be allowed to him for any other assessment year. (7) Any sum r....
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....is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee. Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs. 3,000 per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent. (10) Clause (14) of section 10 provides for exemption of the following allowances: (i) Any special allowance or benefit granted to an employee to meet the expenses incurred in the performance of his duties as prescribed under Rule 2BB subject to the extent to whi....
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....2001, which are enclosed as per Annexure VIA & VIB. (13) Under section 17 of the Act, exemption from tax will also be available in respect of: (a) the value of any medical treatment provided to an employee or any member of his family, in any hospital maintained by the employer; (b) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or of any member of his family: (i) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees; (ii) in respect of the prescribed diseases or ailments as provided in Rule 3A(2) of Income-tax Rules 1962, in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines as provided in Rule 3(A)(1) of Income-tax Rule, 1962 : (c) premium paid by the employer in respect of medical insurance taken for his employees (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority) or reimbursement of insurance premium to the employees who take medical insurance for themselves or for their, family members (und....
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.... gross total income: A. As per section 80C, an employee will be entitled to deductions for the whole of amounts paid or deposited in the current financial year in the following schemes, subject to a limit of Rs. 1,00,000: (1) Payment of insurance premium to effect or to keep in force an insurance on the life of the individual, the spouse or any child of the individual. (2) Any payment made to effect or to keep in force a contract for a deferred annuity, not being an annuity plan as is referred to in item (7) herein below on the life of the individual, the spouse or any child of the individual, provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; (3) Any sum deducted from the salary payable by, or, on behalf of the Government to any individual, being a sum deducted in accordance with the conditions of his service for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum deducted does not exceed 1/5th of the salary; (4) Any contribution made : (a) by an individual to any Provident Fund to which th....
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....n formulated in accordance with any scheme as the Central Government, may, by notification in the Official Gazette, specify in this behalf; [The Central Government has since notified the Equity Linked Saving Scheme, 2005 for this purpose vide Notification S.O. No. 1563(E) dated 3-11-2005] The investments made after 1-4-2006 in plans formulated in accordance with Equity Linked Saving Scheme, 1992 or Equity Linked Saving Scheme, 1998 shall also qualify for deduction under section 80C. (9) Any contribution made by an individual to any pension fund sat up by any Mutual Fund referred to in clause (23D) of section 10, or, by the Administrator or the specified company referred to in Unit Trust of India (Transfer of Undertaking & Repeal) Act, 2002, as the Central Government may, by notification in the Official Gazette, specify in this behalf; [The Central Government has since notified UTI-Retirement Benefit Pension Fund vide Notification S.O. No. 1564(E) dated 3-11-05.] (10) Any subscription made to any such deposit scheme of, or, any contribution made to any such pension fund set up by, the National Housing Bank, as the Central Government may, by notification in the Official Gazett....
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....petent authority, or after the occupation of the house by the assessee or after it has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Income-tax Act will also not be included in payments towards the cost of purchase or construction of a house property. Where the house property in respect of which deduction has been allowed under these provisions is transferred by the tax-payer at any time before the expiry of five years from the end of the financial year in which possession of such property is obtained by him or he receives back, by way of refund or otherwise, any sum specified in section 80C(2)(xviii), no deduction under these provisions shall be allowed in respect of such sums paid in such previous year in which the transfer is made and the aggregate amount of deductions of income so allowed in the earlier years shall be added to the total income of the assessee of such previous year and shall be liable to tax accordingly. (13) Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational institution situated in India, for the pur....
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....ract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the Fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessees account, if any) as does not exceed the amount of one lakh rupees in the previous year. Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section, a rebate/deduction with reference to such amount shall not be allowed under section 88 up to assessment year 2005-06 and under section 80C from assessment year 2006-07 onwards. C. As per the provisions of section 80CCD, where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004, has in the previous year paid or deposited any amount in his account under a pension scheme as notified vide Notification No. F.N. 5-7-2003- ECB&PR dated 22-12-2003, he shall be allowed a deduction in the computation of his total income, of th....
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....e assessee is an individual, any sum paid to effect or to keep in force an insurance on the health of the assessee or on the health of the wife or husband, dependent parents or dependent children of the assessee. (ii) where the assessee is a Hindu Undivided Family, any sum paid to effect or to keep in force an insurance on the health of any member of the family. However, the deduction can be allowed for a sum not exceeding Rs. 20,000 per annum where the assessee or his wife or husband, or dependent parents or any member of the family (in case the assessee is a Hindu Undivided Family) is a senior citizen which means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year. E. Under section 80DD, where an assessee, who is a resident in India, has, during the previous year, (a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or (b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any ether insurer or the Administrator or the specified company subject to the co....
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....) in the case of a Hindu Undivided Family, a member of the Hindu Undivided Family,dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year; (c) disability shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) and includes autism, cerebral palsy and multiple disability referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); (d) Life Insurance Corporation shall have the same meaning as in clause (iii) of sub-section (8) of section 88; (e) medical authority means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or such other medical authority as may, by notification, be specified by the Centr....
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....ion established for charitable purposes and notified by the Central Government under clause (2C) of section 10, or, an institution referred to in clause (a) of sub-section (2) of section 80G. (b) financial institution means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf; (c) higher education means full-time studies for any graduate or post-graduate course in engineering medicine, management, or, for post-graduate course in applied sciences or pure sciences, including mathematics and statistics; (d) initial assessment year means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan. G. No deduction should be allowed by the D.D.O. from the salary income in respect of any donations made for charitable purposes. The tax relief en such donations as admissible under section 3CG of the Act, will have to be claimed by the tax payer in the return of income. However, D.D.O. on due v....
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....own : (i) any residential accommodation himself or by his spouse or minor child or where such assessee is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or (ii) at any other place, any residential accommodation being accommodation in the occupation of the assessee, the value of which is to be determined under clause (a) of sub section (2) or, as the case may be, clause (a) of sub-section (4) of section 23 : The Drawing and Disbursing Authorities should satisfy themselves that all the conditions mentioned above are satisfied before such deduction is allowed by them to the assessee. They should also satisfy themselves in this regard by insisting on production of evidence of actual payment of rent. I. Under section 80U, in computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a sum of fifty thousand rupees. However, where such individual is a person with severe disability, a higher deduction of seven....
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....s given in para 2 of this Circular keeping in view the age and gender of the employee. 6.3 The amount of tax payable so arrived at shall be increased by surcharge (if applicable) and additional surcharge (Education Cess) at the prescribed rate to arrive at the total tax payable. 6.4 The amount of tax as arrived at para 6.3 should be deducted every month in equal installments. Any excess or deficit arising out of any previous deduction can be adjusted by increasing or decreasing the amount of subsequent deductions during the same financial year. 7. Miscellaneous 7.1 These instructions are not exhaustive and are issued only with a view to helping the employers to understand the various provisions relating to deduction of tax from salaries. Wherever there is any doubt, reference may be made to the provisions of the Income-tax Act, 1961, the Income-tax Rules, 1962 and the Finance Act 2006. 7.2 In case any assistance is required, the Assessing Officer/the local Public Relation Officer of the Income-tax Department may be contacted. 7.3 These instructions may be brought to the notice of all Disbursing Officers and Undertakings including those under the control of the Central/State G....
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....ction 80C: GPF 25,000 LIP 10,000 Total 35,000 35,000 Total Income Rs. 2,35,000 Income-tax thereon/payable Rs. 21,000 Add: Surcharge Nil Education Cess @ 2% 420 Secondary and Higher Education Cess @1% 210 Total Income-tax payable Rs. 21,630 For assessment year 2008-2009 Example 3 Calculation of Income-tax in the case of a male employee where medical treatment expenditure was borne by the employer. Particulars: 1. Gross Salary Rs. 3,00,000 2. Medical Reimbursement by employer on the treatment of self and dependent family member Rs. 30,000 3. Contribution of GPF Rs. 20,000 4. LIC premium Rs. 20,000 5. Repayment of House Building Advance Rs. 25,000 6. Tuition fees for two children Rs. 30,000 7. Investment in infrastructure Bond Rs. 20,000 Computation of Tax Gross Salary Rs. 3,00,000 Add: Perquisite in respect of reimbursement of Medical Expenses in excess of Rs. 15,000 in view of section 17(2)(v) Rs. 15,000 Taxable Income Rs.3,15,000 Less: Deduction under section 80C: GPF 20,000 LIC 20,000 Repayment of HBA 25,000 Tuition Fees 30,000 Investment in infrastructural Bonds 20,000 Total 1,15,000 Restricted to Rs. 1,00,000 Rs .....
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....um : Rs. 5,000 7. Subscription to NSC (VIII) Issue : Rs. 20,000 10. Contribution to recognized P.F. : Rs. 36,000 Computation of total income and tax paid thereon 1. Salary : Rs. 5,00,000 2. Bonus : Rs. 76,000 Total Salary for Valuation of Rs. 5,76,000 Perquisite i.e. Rs. 48,000 per month Valuation of perquisites (a) Perq. for flat: Lower of (15% of salary for ten months=Rs.72,000) and (actual rent paid=1,00,000) : (b) Perq. for hotel Lower of (24% of salary of 2 mths=23,040) and (actual payment=50,000) : Rs. 72,000 (c) Perq. for furniture @ 10% of cost : Rs. 23,040 Rs. 10,000 Less: Rent recovered from employee : Rs. 1,05,040 Rs. 10,000 (d) Add perq. for free gas, elec. water : Rs. 95,040 Total perquisites : Rs. 24,000 Gross Total Income : Rs. 1,19,040 (5,76,000+1,19,040) Rs. 6,95,040 Less: Deduction under section 80C: Provident Fund : Subscription to NSC VIII 36,000 Issue : LIC : 20,000 Infrastructure Bond : 5,000 Total : 30,000 91,000 Rs. 91,000 Total Income Rs. 6,04,040 Tax Payable Rs. 1,30,212 Add : Surcharge Nil Education Cess @ 2% 2,604 Secondary and Higher Education Cess @ 1% 1,302 Total Income Ta....
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....: Rs. 4,00,000 2. Income from house property Annual value Nil Interest payable on loan U/s 24 1,50,000 (Maximum allowable) : (-)Rs. 1,50,000 Gross total income : Rs. 2,50,000 Less: Deduction U/s 60G 50% of Rs. 5,000 Rs. 2,500 Less Deduction U/s 80C: GPF : 30,000 NSC : 10,000 Housing Loan repaid : 50,000 Total : Rs. 90,000 Total Deductions under Chapter VI-A Rs. 92,500 Total Income Rs. 1,57,500 Tax Payable Rs. 5,500 Add: Surcharge Nil Education Cess @2% 110 Secondary and Higher Education Cess @1% 55 Total Income-tax payable Rs. 5,665 Rounded off to Rs. 5,670 For Assessment Year 2008-2009 Example - 8 Income Tax calculation in the case of a male employee who claims loss under the head Income from self-occupied house property, and has taken house building loan before 1-4-1999. Particulars 1. Gross Salary 4,00,000 2. Housing Loan repaid (Principal) 30,000 2. Interest payable on housing loan (Loan taken before 1-4-1999) 1,00,000 4. Donation paid to National Childrens Fund 6,000 5. N.S.C. purchased 10,000 6. G.P.F. 20,000 Computation of Taxable Income and tax thereon 1. Salary Income Rs. 4,00,000 2. Income from ....
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............................................, do hereby declare that what is stated above is true to the best of my knowledge and belief. Verified today, the ............................day of........................................ . Place ............................ Date ............................ ............................................................ Signature of the employee Annexure III Form No. 12BA [See rule 26A(2)(b)] Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof (1) Name and address of employer : (2) TAN (3) TDS Assessment Range of the employer : (4) Name, designation and PAN of employee : (5) Is the employee a director or a person with : substantial interest in the company (where the employer is a company) (6) Income under the head Salaries of the employee : (other than from perquisites) (7) Financial year : (8) Valuation of Perquisites S. No. Nature of perquisites (see rule 3) Value of perquisite as per rules Amount, if any recovered from the employee Amount of taxable perquisite chargeable to tax Col (3) - Col (4) (Rs.) (Rs.) (Rs.) (1) (2....
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....f any other income from which tax has been deducted at source by any person other than the employer Name and address of the Employer Name and designation of the Employee .................................................................................................................... ................................................... .................................................................................................................... ................................................... .................................................................................................................... ................................................... .................................................................................................................... ................................................... .................................................................................................................... ................................................... PAN/GIR NO. TAN PAN/GIR NO. TDS Circle where annual return/statement under Period Assessment section 206 is to be filed year .......... FROM TO DETAILS OF SALARY....
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.... ___ (b) Tax paid by the employer on behalf of the employee u/s 192(1A) on perquisites u/s 17(2) 872 ___ 19. Tax payable/refundable (17-18) 891 ___ Details of tax deducted and deposited into Central Government account Amount Date of payment Name of bank and branch where tax deposited I, ......................., son of Shri ..................... working in the capacity of ............. (designation) do hereby certify that a sum of rupees ............. (in words) has been deducted at source and paid to the credit of the Central Government. I further certify that the information given above is true and correct based on the books of account, documents and other available records. Place............... ......................................................................... Date................ Signature of the person responsible for deduction of tax Full Name ................................................. Designation ............................................... To be filled in by the assessee 1. Name of the assessee 2. Address Pin Telephone 3. Date of birth - - 4. Sex M/F 5. Assessment year - 6. Ward/Circle/Special Range : 7. Return : Original....
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....designated by the Board for the purpose of administration of this scheme; (6) e-TDS Intermediary means a person, being a company, authorised by the Board to act as e-TDS Intermediary under this scheme; (7) e-TDS Return means a return to be filed under section 206 of the Act duly supported by a declaration in Form No. 27A as prescribed under the Rules; (8) Rules means the Income-tax Rules, 1962; (9) all other words and expressions used herein but not defined and defined in the Act shall have the meanings respectively assigned to them in the Act. Preparation of e-TDS Return 3. (1) The e-deductor shall use the relevant Forms prescribed under the Rules for preparing e-TDS Returns. (2) The e-deductor shall prepare his e-TDS Return according to the data structure to be provided by the e-filing Administrator. (3) While preparing e-TDS Return, the e-deductor shall quote his permanent account number and tax deduction account number as also the permanent account number of all persons in respect of whom tax has been deducted by him except in respect of cases to which the first proviso to sub-section (5A) or the second proviso to sub-section (5B) of section 139A of the Act applies.....
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....nowledgement of the e-TDS Return. (5) Where the details of deposit of tax deducted at source in bank, the permanent account number, tax deduction account number or any other relevant details are not given in the e-TDS Return, the e-filing Administrator shall forward a deficiency memo to the e-deductor with a request to remove the deficiencies within seven days of receipt of the same. (6) In case the deficiency indicated in the deficiency memo is removed within seven days, the data on e-TDS Return shall be transmitted by the e-TDS Intermediary to the e-filing Administrator and the provisional receipt shall be deemed to be acknowledgement of the e-TDS Return. The date of issue of provisional receipt shall be deemed to be the date of filing of the e-TDS Return. (7) In case no deficiency memo is issued by the e-filing Administrator within thirty days of issue of the provisional receipt, the provisional receipt issued shall be deemed to be the acknowledgement of the e-TDS Return and the date of issue of provisional receipt shall be deemed to be the date of filing of e-TDS Return. (8) Where the deficiencies indicated in the deficiency memo are not removed by the e-deductor within sev....
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....nising advertising material issued by them and such other matters as he deems fit. Powers of the Board 8. The Board may revoke the authorisation of an e-filing Intermediary on grounds of improper conduct, misrepresentation, unethical practices, fraud or established lack of service to the e-deductors or such other ground as it may deem fit. AnnexureVA Notification [F.No. 5/7/2003-ECB & PR], dated 22-12-2003 The Government approved on 23rd August, 2003 the proposal to implement the Budget announcement of 2003-04 relating to introducing a new restructured defined contribution pension system for new entrants to Central Government service, except to Armed Forces, in the first stage, replacing the existing system of defined benefit pension system: (i) The system would be mandatory for all new recruits to the Central Government service from 1st of January, 2004 (except the armed forces in the first stage). The monthly contribution would be 10 per cent of the salary and DA to be paid by the employee and matched by the Central Government. However, there will be no contribution from the Government in respect of individuals who are not Government employees. The contribution and investm....
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....low awarded in the circumstances as mentioned in corresponding column 3 thereof. Table Sl. No. Name of gallantry award Circumstances for eligibility (1) (2) (3) 1. Ashok Chakra When awarded to civilians for gallantry. 2. Kirti Chakra - do - 3. Shaurya Chakra - do - 4. Sarvottam Jeevan Raksha Padak When awarded to civilians for bravery displayed by them in life saving acts. 5. Uttam Jeevan Raksha Medal - do - 6. Jeevan Raksha Padak - do - 7. Presidents Police Medal for Gallantry When awarded for acts of exceptional courage displayed by members of police forces, Central police or security forces and certified to this effect by the head of the department concerned. 8. Police Medal for Gallantry - do - 9. Sena Medal When awarded for acts of courage or conspicuous gallantry and supported by certificate issued to this effect by relevant service headquarters. 10. Nao Sena Medal - do - 11 Vayu Sena Medal - do - 12. Fire Services Medal for Gallantry When awarded for acts of courage or conspicuous gallantry and supported by certificate issued to this effect by the last Head of Department. 13. Presidents Police and Fire Services Medal for Gallantry....