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INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2020-21 UNDER SECTION 192 OF THE INCOME TAX ACT, 1961
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....tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred are of Income-tax Act, 1961 and the Income-tax Rules, 1962 respectively unless otherwise specified. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income-tax Department - www.incometaxindia.gov.in. 2. Rates of income-tax as per Finance Act, 2020 : As per the Finance Act, 2020, income-tax is required to be deducted under section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2020-21 (i.e., assessment year 2021-22) at the following rates : 2.1 Rates of tax A. Normal rates of tax : Sl. No. Total income Rate of tax 1 Where the total income does not exceed Rs. 2,50,000. Nil 2 Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000. 5 per cent. of the amount by which the total income exceeds Rs. 2,50,000. 3 Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000. Rs. 12,500 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000. 4 Where the total income exceeds Rs. 10,00,000. Rs. 1,12,500 plus 30 per cent. of the....
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....n, such person is required to exercise the option in the prescribed manner along with the return of income to be furnished under section 139(1) of the Act for the previous year relevant to the assessment year. The concessional rates of tax provided under section 115BAC are subject to the condition that the total income shall be computed without specified exemptions or deductions, set off of loss and additional depreciation. The concessional rates of tax under section 115BAC are given in table below : Sl. No. Total income Rate of tax 1. Up to Rs. 2,50,000 Nil 2. From Rs. 2,50,001 to Rs. 5,00,000 5 per cent. 3. From Rs. 5,00,001 to Rs. 7,50,000 10 per cent. 4. From Rs. 7,50,001 to Rs. 10,00,000 15 per cent. 5. From Rs. 10,00,001 to Rs. 12,50,0000 20 per cent. 6. From Rs. 12,50,001 to Rs. 15,00,000 25 per cent. 7. Above Rs. 15,00,000 30 per cent. 2.3 Surcharge on income-tax : The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 1I2A or the provisions of section 115BAC of the Income-tax Act shall be increas....
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.... (b) one crore rupees but does not exceed two crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees ; (c) two crore rupees but does not exceed five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees ; (d) five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees. 2.4 Health and Education Cess "Health and Education Cess" shall be levied at the rate of four per cent. of income-tax including surcharge wherever applicable. No marginal relief shall be available in respect of such cess. 3. Section 192 of the Income-tax Act, 1961 : Broad scheme of tax deduction at so....
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.... An option has been given to the employer to pay the tax on non-monetary perquisites given to an employee. The employer may, at its option, make payment of the tax on such perquisites himself without making any TDS from the salary of the employee. However, the employer will have to pay the 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. 3.2.1 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. 3.2.2 Illustration : The income chargeable under the head "Salaries" of an employee below sixty years of age for the year inclusive of all perquisites is Rs. 6,00,000, out of which Rs. 50,000 is on account of non-monetary perquisites and the employer opts to pay the tax on such perquisites as per the provisions discussed in para 3.2 above. Steps : Income chargeable un....
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.... respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in section 10(10C)(i) (read with rule 2BA), a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under section 10(10C) in respect of such, or any other, assessment year. 3.5 Information regarding income under any other head : (i) Section 192(2B) enables a taxpayer to furnish particulars of income under any head other than "Salaries" (not being a loss under any such head other than the loss under the head-"Income from house property") received by the taxpayer for the same financial year and of any tax deducted at source thereon. The particulars may now be furnished in a simple statement, which is properly signed and verified by the taxpayer in the manner as prescribed under rule 26B(2) of the Rules and shall be annexed to the simple statement. The form of verification is reprodu....
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.... 1 Repair or renewal or reconstruction of the house Any time 30,000 2 Acquisition or construction of the house Before April 1, 1999 30,000 3 Acquisition or construction of the house On or after April 1, 1999 1,50,000 (up to the assessment year 2014-15) 2,00,000 (with effect from the assessment year 2015-16) 4. Aggregate deduction of Sl. 1 and Sl. 3 of the table above shall not exceed Rs.2,00,000 from the financial year 2019-20. In case of serial No. 3 above (a) The acquisition or construction of the house should be completed within 5 years from the end of the FY in which the capital was borrowed. Hence, it is necessary for the DDO to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee. (b) Further any prior period interest for the FYs up to the FY in which the property was acquired or constructed (as reduced by any part of interest allowed as deduction under any other section of the Act) shall be deducted in equal instalments for the FY in question and subsequent four FYs. (c) The employee ....
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....the "person responsible for paying" means the person himself or any person authorised by such person or the agent of such person in India including any person treated as an agent under section 163. 4.1.1 Tax determined to be deducted from salary under section 192 : The tax determined as per para 9 should be deducted from the salary under section 192 of the Act. 4.2. Deduction of tax at lower rate : If the jurisdictional TDS officer of the employer issues a certificate of no deduction or lower deduction of tax under section 197 of the Act, in response to the application filed before him in Form No. 13 by the employee ; then the DDO should take into account such certificate and deduct tax on the salary payable at the rates mentioned therein. (see rule 28AA). The Unique Identification Number of the certificate is required to be reported in Quarterly Statement of TDS (Form 24Q). 4.3. Deposit of tax deducted : Rule 30 prescribes time and mode of payment of tax deducted at source to the account of Central Government. 4.4.1. Due dates for payment of TDS : Prescribed time of payment/deposit of TDS to the credit of Central Government account is as under : 4.4.1.1 ....
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.... has been credited. BIN consist of receipt number of Form No. 24G, DDO sequence number in Form No. 24G and date on which tax is deposited. If the PAO/CDDO/TO etc., as stated above, fails to deliver the statement as required under section 200(2A), he will be liable to pay, by way of penalty, under section 272A(2)(m), a sum which shall be Rs. 100 for every day during which the failure continues. However, the amount of such penalty shall not exceed the amount of tax which is deductible at source. The procedure of furnishing Form No. 24G is detailed in Annexure III. PAOs/DDOs should go through the FAQs in Annexure IV to understand the correct process to be followed. The ZAO/PAO of Central Government Ministries is responsible for filing of Form No. 24G on monthly basis. The person responsible for filing Form No. 24G in case of State Government Departments is shown at Annexure V. The procedure of furnishing Form No. 24G is detailed in Annexure IV. PAOs/DDOs should go through the FAQs therein to understand the correct process to be followed. 4.4.2.2 Payment by an income-tax challan : (i) In case the payment is made by an income-tax challan, the amount of tax so deduct....
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.... 276B lays down that if a person fails to pay to the credit of the Central Government within the prescribed time, as above, the tax deducted at source by him or tax payable by him under the second proviso to section 194B, he shall be punishable with rigorous imprisonment for a term which shall be between 3 months and 7 years, along with fine. It may be noted that as per the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020 (No. 38 of 2020), in case due date for payment to Central Government after deduction of tax at source falls during the period from 20th, March, 2020 to 29th June, 2020 and such amount has not been paid within such date, but has been paid on or before the 30th June, 2020, the rate of interest on such amount for the period of delay shall be 0.75% for every month or part thereof. Further, no penalty shall be levied and no prosecution shall be sanctioned in respect of such amount for the period of delay. 4.6 Furnishing of certificate for tax deducted (section 203) : 4.6.1. Section 203 requires the DDO to furnish to the employee a certificate in Form 16 detailing the amount of TDS and certain other particulars. Rule 31 prescribes that....
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.... these particulars. Due care should also be taken in indicating correct CIN/BIN in TDS statement. If the DDO fails to issue these certificates to the person concerned, as required by section 203 he will be liable to pay by way of penalty, under section 272A(2)(g) a sum which shall be Rs. 100 for every day during which the failure continues. However, the amount of such penalty shall not exceed the amount of tax which is deductible at source. It is however, clarified that there is no obligation to issue the TDS certificate in case tax at source is not deductible/deducted by virtue of claims of exemptions and deductions. [Note : TRACES is a web-based application of the Income-tax Department that provides an interface to all stakeholders associated with TDS administration. It enables viewing of challan status, downloading of NSDL Conso File, Justification Report and Form 16/16A as well as viewing of annual tax credit statements (Form 26AS). Each deductor is required to register in the Traces portal Form 16/16A issued to deductees should mandatorily be generated and downloaded from the TRACES portal. Certain essential points regarding the filing of the Statement and obtainin....
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.... in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates. (ii) In case of certificates issued under clause (i), the deductor shall ensure that : (a) the conditions prescribed in para 4.6.1 above are complied with ; (b) once the certificate is digitally signed, the contents of the certificates are not amenable to change ; and (c) the certificates have a control number and a log of such certificates is maintained by the deductor. * The digital signature is being used to authenticate most of the e-transactions on the internet as transmission of information using digital signature is failsafe. It saves time specially in organisations having large number of employees where issuance of certificate of deduction of tax with manual signature is time consuming (Circular No. 2 of 2007 dated May 21, 2007). 4.6.4. Furnishing of particulars pertaining to perquisites, etc. (section 192(2C) : 4.6.4.1 As per section 192(2C) the responsibility of providing correct and complete particulars of perquisites or profits in lieu of salary given to an employee is placed on the person responsible for paying such in....
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....e Act for the purpose of estimating the income of the assessee or computing the amount of tax deductible under the said section. The evidence/proof/particulars for some of the deductions/exemptions/allowances/set-off of loss claimed by the employee such as rent receipt for claiming deduction in HRA, evidence of interest payments for claiming loss from self-occupied house property, etc. is not available to the DDO. To bring certainty and uniformity in this matter, section 192(2D) provides that person responsible for paying (DDOs) shall obtain from the assessee evidence or proof or particular of claims such as House rent Allowance (where aggregate annual rent exceeds one lakh rupees) ; Leave Travel Concession or Assistance ; Deduction of interest under the head-"Income from house property" and deduction under Chapter VI-A as per the prescribed Form 12BB laid down by rule 26C of the Rules. Form 12BB is enclosed as Annexure IIa. 4.7 Mandatory quoting of PAN or Aadhaar number as the case may be and TAN : 4.7.1 Section 203A of the Act makes it obligatory for all persons responsible for deducting tax at source to obtain and quote the Tax deduction and collection Account Number (TAN)....
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....ncome of the employee computed for TDS under section 192 is below taxable limit, no tax will be deducted. But where the income of the employee computed for TDS under section 192 is above taxable limit, the deductor will calculate the average rate of income-tax based on rates in force as provided in section 192. If the tax so calculated is below 20 per cent., deduction of tax will be made at the rate of 20 per cent. and in case the average rate exceeds 20 per cent., tax is to be deducted at the average rate. Health and Education cess at 4 per cent. is not to be deducted, in case the tax is deducted at 20 per cent. under section 206AA of the Act. 4.9 Statement of deduction of tax under section 200(3) [Quarterly Statement of TDS] : 4.9.1 The person deducting the tax (employer in case of salary income), is required to file duly verified quarterly statements of TDS in Form 24Q for the periods [details in Table below] of each financial year, to the TIN Facilitation Centres authorized by DGIT (Systems) which is currently managed by M/s. National Securities Depository Ltd. (NSDL) or at www.incometaxindiaefiling.gov.in after registering as deductor. Particulars of e-TDS Intermediary a....
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....sum of Rs.200 for every day during which the failure continues. However, the amount of such fee shall not exceed the amount of tax which was deductible at source. This fee is mandatory in nature and to be paid before furnishing of such statement. 4.9.5 Rectification of mistake in filing TDS statement : A DDO can also file a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered earlier. 4.9.6 Penalty for failure in furnishing statements or furnishing incorrect information (section 271H) : If a person fails to deliver or caused to be delivered a statement within the time prescribed in section 200(3) or furnishes an incorrect statement, in respect of tax deducted at source (on or after July 1, 2012), he shall be liable to pay, by way of penalty a sum which shall not be less than Rs. 10,000 but which may extend to Rs. 1,00,000. However, the penalty shall not be levied if the person proves that after paying TDS with the fee and interest, if any, to the credit of Central Government, he had delivered such statement before the expiry of one year from the time prescribed for delivering the statement....
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....he refund can be issued to the employer as the tax has been borne by it (Circular No. 707 dated July 11, 1995). 4.11.2 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. Computation 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 year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year. (2) For the r....
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....ployer ; III. The value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases : (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. [What constitutes concession in the matter of rent have been prescribed in Explanations 1 to 4 below section 17(2)(ii) of the Act] IV. Any sum paid by the employer in respect of any obligation which would otherwise have been payable by the assessee. V. Any sum payable by the employer, whether directly or through a fund, other than a recognized provident fund or an approved superannuation fund or other specified funds under section 17, to effect an assurance on the life of an assessee or to effect a contract for an annuity. ....
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....in rule 3. 5.2.2 A Rules for valuation of such benefit or amenity as given in rule 3 are as under : I. Residential Accommodation provided by the employer [rule 3(1)] : "Accommodation" includes a house, flat, farm house or part thereof, hotel accommodation, motel, service apartment, guest house, a caravan, mobile home, ship or other floating structure. A. For valuation of the perquisite of rent free unfurnished accommodation, all employees are divided into two categories : (i) For employees of the Central and State Governments the value of perquisite shall be equal to the licence fee charged for such accommodation as reduced by the rent actually paid by the employee. Employees of autonomous, semi-autonomous institutions, PSUs/PSEs and subsidiaries, Universities, etc. are not covered under this method of valuation. (ii) For all others, i.e., those salaried taxpayers not in employment of the Central Government and the State Government, the valuation of perquisite in respect of accommodation would be at prescribed rates, as discussed below : (a) Where the accommodation provided to the employee is owned by the employer : Sl. No. Cities having....
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.... (ii) the value of perquisite of such an accommodation shall be the amount calculated in accordance with Table in A(ii)(a) above, as if the accommodation is owned by the employer. C. Furnished Accommodation in a hotel : The value of perquisite shall be determined on the basis of lower of the following two : 1. 24 per cent. of salary paid or payable in respect of period during which the accommodation is provided ; or 2. Actual charges paid or payable by the employer to such hotel, for the period during which such accommodation is provided as reduced by any rent actually paid or payable by the employee. However, nothing in (C) shall be taxable if following two conditions are satisfied : 1. The hotel accommodation is provided for a total period not exceeding in aggregate 15 days in a previous year, and 2. Such accommodation is provided on an employee's transfer from one place to another place. 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....
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...., the value of perquisite will be Rs.2,400 (plus Rs. 900, if chauffeur is also provided) per month if the cubic capacity of engine of the motor car exceeds 1.6 litres. (II) Rs. 600 (plus Rs. 900, if chauffeur is also provided) per month (In case the motor car is used partly in performance of duties and partly for private or personal purposes of the employee or any member of his household if the expenses on maintenance and running of motor car for such private or personal use are fully met by the employee). However, the value of perquisite will be Rs. 900 (plus Rs. 900, if chauffeur is also provided) per month if the cubic capacity of engine of the motor car exceeds 1.6 litres. If the motor car or any other automotive conveyance is owned by the employee but the actual running and maintenance charges are met or reimbursed by the employer, the method of valuation of perquisite value is different and as below : (a) where the motor car or any other automotive conveyance is owned by the employee but actual maintenance and running expenses (including chauffeur salary, if any) are met or reimbursed by the employer, no perquisite shall be chargeable to tax if the car is used who....
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....e employee. VI Carriage of passenger goods (rule 3(6)) : The value of any benefit or amenity resulting from the provision by an employer, who is engaged in the carriage of passengers or goods, to any employee or to any member of his household for personal or private journey free of cost or at concessional fare, in any conveyance owned, leased or made available by any other arrangement by such employer for the purpose of transport of passengers or goods shall be taken to be the value at which such benefit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity. This will not apply to the employees of any airline or the railways. VII Interest free or concessional loans (rule 3(7)(i)) : It is common practice, particularly in financial institutions, to provide interest free or concessional loans to employees or any member of his household. The value of perquisite arising from such loans would be the 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 r....
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....value of food/non-alcoholic beverages including "paid vouchers which are not transferable and usable only at eating joints" xxx Less : Fixed value of a sum of Rs. 50 per meal xxx Less : Amount recovered from the employee xxx xxx Balance amount is taxable as perquisites on the value of food provided to the employees xxx Note : Exemption is given in following situations : 1. Tea/snacks provided in working hours. 2. Food and non-alcoholic beverages provided in working hours in remote area or in an offshore installation. Vide Notification No. G.S.R. 415(E) dated June 26, 2020, the said rule has been amended so as to provide that in case of an assessee opting for concessional taxation regime under section 115BAC of the Act the exemption provided in respect of free food and non-alcoholic beverages provided by employer through paid voucher shall not be available. X Gifts (rule 3(7)(iv)) : The value of any gift or vouchers or token in lieu of which such gift may be received, given by the employer to the employee or member of his household, is taxable as perquisite. However gift, etc. less than Rs. ....
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....)(vii)) : It is common practice for a movable asset other than those referred in other sub-rules of rule 3 owned by the employer to be used by the employee or any member of his household. This perquisite is to be charged at the rate of 10 per cent. of the original cost of the asset as reduced by any charges recovered from the employee for such use. However, the use of computers and laptops would not give rise to any perquisite. XIV Transfer of assets (rule 3(7)(viii)) : Often an employee or member of his household benefits from the transfer of movable asset (not being shares or securities) at no cost or at a cost less than its market value from the employer. The difference between the original cost of the movable asset (not being shares or securities) and the sum, if any, paid by the employee, shall be taken as the value of perquisite. In case of a movable asset, which has already been put to use, the original cost shall be reduced by a sum of 10 per cent. of such original cost for every completed year of use of the asset. Owing to a higher degree of obsolescence, in case of computers and electronic gadgets, however, the value of perquisite shall be worked out by reducing 50 per....
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....employer or former employer for himself and his family, in connection with his proceeding (a) on leave to any place in India or (b) after retirement from service, or, after termination of service to any place in India is exempt under section 10(5) subject, however, to the conditions prescribed in rule 2B of the Rules. 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. As discussed in para 4.6.5 section 192(2D) read with rule 26C makes it mandatory for the DDO to obtain details/evidence in respect of claim of exemption for leave travel concession or assistance before allowing the said exemption the relevant form for furnishing details by employee is Form 12BB. Government of India allowed payment of cash allowance equivalent to LTC fare to Central Government employees subject to fulfilment of certa....
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....3 Any payment in commutation of pension received under the Civil Pensions (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 posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or a corporation established by a Central, State or Provincial Act, is exempt under section 10(10A)(i). As regards payments in commutation of pension received under any scheme of any other employer, exemption will be governed by the provisions of section 10(10A)(ii). Also, any payment in commutation of pension from a fund referred to in section 10(23AAB) is exempt under section 10(10A)(iii). 5.3.4 Any payment received by an employee of the Central Government or a State Government, as cash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement, whether on ....
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....titute 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. Further, if relief has been allowed under section 89 for any assessment year in respect of amount received on voluntary retirement or superannuation, no exemption under section 10(10C) shall be available. 5.3.7 Any sum received under a Life Insurance Policy (section 10(10D)), including the sum allocated by way of bonus on such policy other than the following is exempt under section 10(10D) : (i) any sum received under section 80DD(3) or section 80DDA(3) ; or (ii) any sum received under a Keyman insurance policy ; or (iii) any sum received under an insurance policy issued on or after April 1, 2003, but on....
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.... having regard to the area or place in which such accommodation is situated and other relevant considerations. According to rule 2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following : (a) the actual amount of such allowance received by the assessee in respect of the relevant period, i.e., the period during which the accommodation was occupied by the assessee during the financial year ; or (b) the actual expenditure incurred in payment of rent in excess of one-tenth of the salary due for the relevant period ; or (i) where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50 per cent. of the salary due to the employee for the relevant period ; or (ii) where such accommodation is situated in any other places, 40 per cent. of the salary due to the employee for the relevant period. For this purpose, "Salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites. It has to be noted that only the expenditure actually incurred on payment of rent in respe....
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....O. 403(E), dated April 24, 2000 (F. No. 142/34/99-TPL). Rule 2BB has been amended and the exemption in respect of transport allowance for financial year 2018-19 shall be available up to Rs. 3,200 per month only to the person who is blind or orthopaedically handicapped with disabilities of lower extremities, to meet his expenditure for the purpose of commuting between the place of the residence and the place of his duties. 5.3.11 Under section 10(15)(iv)(i) of the Act, interest payable by the Government on deposits made by an employee of the Central Government or a State Government or a public sector company out of his retirement benefits, in accordance with such scheme framed in this behalf by the Central Government and notified in the Official Gazette is exempt from income-tax. By Notification No. F.2/14/89-NS-II dated June 7, 1989, as amended by Notification No. F.2/14/89-NS-II dated October 12, 1989, the Central Government has notified a scheme called Deposit Scheme for Retiring Government Employees, 1989 for the purpose of the said clause. 5.3.12 Any scholarship granted to meet the cost of education is not to be included in total income as per provisions of section 10(16)....
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....nk of India. It may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from perquisites only if the employee's gross total income, as computed before including the said expenditure, does not exceed Rs. 2 lakhs. For the purpose of availing exemption on expenditure incurred on medical treatment, "hospital" includes a dispensary or clinic or nursing home, and "family" in relation to an individual means the spouse and children of the individual. Family also includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual. It is pertinent to mention that benefits specifically exempt under sections 10(13A), 10(5), 10(14), 17, etc. of the Act would continue to be exempt. These include benefits like house rent allowance, leave travel concession, travel expense allowance on tour and transfer, daily allowance to meet tour expenses as prescribed, medical facilities subject to conditions. 5.3.15 In this connection it is to be noted that as per section 10(14) read with rule 2BB any allowance granted to meet the cost of travel on tour or on transfer includes any sum paid in connection with ....
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....come under the head "Salaries". 5.5 Deductions under Chapter VI-A of the Act In computing the taxable income of the employee, the following deductions under Chapter VI-A of the Act are to be allowed from his gross total income : 5.5.1 Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. (section 80C) A. Section 80C, entitles an employee 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. 1,50,000 : (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 f....
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....f an individual, for himself, spouse or any child, (a) for participation in the Unit Linked Insurance Plan, 1971 of the Unit Trust of India ; (b) for participation in any unit-linked insurance plan of the LIC Mutual Fund referred to in section 10(23D) and as notified by the Central Government. [The Central Government has since notified Unit Linked Insurance Plan (formerly known as Dhanraksha, 1989) of LIC Mutual Fund vide Notification No. S.O. 1561(E), dated November 3, 2005] (7) Any subscription made to effect or keep in force a contract for such annuity plan of the Life Insurance Corporation or any other insurer as the Central Government may, by notification in the Official Gazette, specify ; [The Central Government has since notified New Jeevan Dhara, New Jeevan Dhara-I, New Jeevan Akshay, New Jeevan Akshay-I and New Jeevan Akshay-II vide Notification No. S.O. 1562(E) dated November 3, 2005 and Jeevan Akshay-III vide Notification No. S.O. 847(E) dated June 1, 2006] (8) Any subscription made to any units of any Mutual Fund, of section 10(23D), or from the Administrator or the specified company referred to in Unit Trust of India (Transfer of Und....
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....ax under that head) where such payments are made towards or by way of any instalment or part payment of the amount due under any self- financing or other scheme of any Development Authority, Housing Board, etc. The deduction will also be allowable in respect of repayment of loans borrowed by an assessee from the Government, or any bank or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long-term finance for construction or purchase of houses in India. Any repayment of loan borrowed from the employer will also be covered, if the employer happens to be a public company, or a public sector company, or a university established by law, or a college affiliated to such university, or a local authority, or a co-operative society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act. The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or the cost of any addition or alte....
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....al of any company. (16) Investment as a term deposit for a fixed period of not less than five years with a scheduled bank, which is in accordance with a scheme framed and notified by the Central Government, in the Official Gazette for these purposes. [The Central Government has since notified the Bank Term Deposit Scheme, 2006 for this purpose vide Notification No. S.O. 1220(E), dated July 28, 2006] (17) Subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by such notification in the Official Gazette, specify in this behalf. (18) Any investment in an account under the Senior Citizens Savings Scheme Rules, 2004. (19) Any investment as five year time deposit in an account under the Post Office Time Deposit Rules, 1981. (20) From financial year 2019-20, any contribution by employee of the Central Government to a specified account of the pension scheme referred to in section 80CCD- (a) for a fixed period of not less than three years ; and (b) which is in accordance with the scheme as may be notified by the Central Government in the Official Gazette for the purposes of this ....
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....or that Financial Year and accordingly will be charged to tax. Where any amount paid or deposited by the employee has been taken into account for the purposes of this section, a deduction with reference to such amount shall not be allowed under section 80C. 5.5.3 Deduction in respect of contribution to pension scheme of Central Government (section 80CCD) : Section 80CCD(1) allows an employee, being an individual employed by the Central Government on or after January 1, 2004 or being an individual employed by any other employer, or any other assessee being an individual, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide Notification F. No. 5/7/2003-ECB and PR dated December 22, 2003 National Pension System-NPS or as may be notified by the Central Government. However, the deduction shall not exceed an amount equal to 10 per cent. of his salary (includes Dearness Allowance but excludes all other allowance and perquisites). As per section 80CCD(1B), an assessee referred to in 80CCD(1) shall be allowed a deduction in computation of his income, of the whole of the amount paid or deposited in the previous yea....
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.... contribution made by the Central Government or any other employer to a pension scheme under section 80CCD(2) shall be excluded from the limit of Rs. 1,50,000 provided under this section. 5.5.4 Deduction in respect of investment made under an equity savings scheme (section 80CCG) : Section 80CCG provides deduction with effect from assessment year 2013-14 in respect of investment made under notified equity saving scheme. Rajiv Gandhi Equity Savings Scheme 2012 has been notified vide S.O. No. 2777(E), dated November 23, 2012 (subsequent corrigendum S.O. No. 2835(E), dated December 5, 2012) and amended vide Notification No. S.O. 3693(E), dated December 18, 2013 as a scheme under this section. The scheme was modified in December 2013 vide Notification No. S.O. 3693, dated December 18, 2013 (RGESS, 2013). The deduction under this section in accordance with RGESS, 2013 is available if following conditions are satisfied : (a) The assessee is a resident individual ; (b) His gross total income does not exceed Rs. 12 lakhs ; (c) He has acquired listed shares in accordance with a notified scheme or listed units of an equity oriented fund as defined in section ....
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....ealth check-up can only be made in cash, other payments must be made by non-cash mode. Note 2 : Finance Act, 2018 amended section 80D of the Act to provide that in case of single premium health insurance policy having cover of more than one year, the deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the monetary limits specified above. Here (i) "family" means the spouse and dependent children of the employee. (ii) "Senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year. The DDO must ensure that the medical insurance referred to above shall be in accordance with a scheme made in this behalf by- (a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalization) Act, 1972 and approved by the Central Government in this behalf ; or (b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority ....
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....s year. 5.5.6.2 Deductions in respect of a person with disability (section 80U) : 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 Rs. 75,000. However, where such individual is a person with severe disability, a higher deduction of Rs. 1,25,000 shall be allowable. DDOs should note that 80DD deduction is in case of the dependent of the employee whereas 80U deduction is in case of the employee himself. However, under both the sections, the employee shall furnish to the DDO the following : 1. A copy of the certificate issued by the medical authority as defined in rule 11A(1) in the prescribed form as per rule 11A(2) of the Rules. The DDO has to allow deduction only after seeing that the Certificate furnished is from the Medical Authority defined in this Rule and the same is in the form as mentioned therein. 2. Further in cases where the condition of disability is temporary and requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deducti....
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....f Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 ; (g) "person with severe disability" means- (i) a person with eighty per cent. or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 ; or (ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 ; (h) "specified company" means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002. 5.5.7. Deduction in respect of medical treatment, etc. (section 80DDB) : Section 80DDB allows a deduction in case of employee, who is resident in India, during the previous year, of any amount actually paid for the medical treatment of such disease or ailment as may be specified in rule 11DD(1) for himself or a dependant. The deduction allowed is equal to the amount actually paid is in respect of the employee or his ....
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....or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf ; (c) "higher education" means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so ; 5.5.9 Deduction in respect of interest on loan taken for certain house property (section 80EEA) : Section 80EEA introduced by the Finance (No. 2) Act, 2019 (No. 23 of 2019), allows deduction from gross total income of an individual (not eligible to claim deduction under section 80EE) in respect of the interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property if following conditions are met : (i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2021 ; (ii) the stamp duty value of residential house prop....
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....rs. Where a deduction under this section is allowed for any interest referred to in this section, no deduction shall be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year. 5.5.11 Deductions on respect of donations to certain funds, charitable institutions, etc. (section 80G) : Section 80G provides for deductions on account of donation made to various funds, charitable organizations, etc. In cases where employees make donations to the Prime Minister's National Relief Fund, the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this beh....
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....be used for scientific research under section 35(1)(ii) Central Government 2. A research association which has as its object the undertaking of research in social science or statistical research or to a University, college or other institution to be used for research in social science or statistical research under section 35(1)(iii) Central Government 3. An association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approved for the purposes of section 35CCA furnishes the certificate under section 35CCA(2) Prescribed Authority under rule 6AAA 4. An association or institution which has as its object the training of persons for implementing programmes of rural development. furnishes the certificate under section 35CCA(2A) Prescribed Authority under rule 6AAA 5. A public sector company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme. furnishes the certificate under section 35AC(2)(a) National Committee for Promotion of Social and Ec....
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....posits in case of senior citizens (Section 80TTB) : Section 80TTB introduced by Finance Act, 2018 allows deduction to a senior citizen from his gross total income in respect of income by way of interest on deposits with- (a) banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act) ; (b) co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank) ; or (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898. The amount of deduction in respect of above interest on deposit is as under :- (i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount ; and (ii) in any other case, fifty thousand rupees. However, no deduction is allowed under section 80TTB to any partner of the firm or any member of the association or any individual of the body if said interest is derived from any deposit held by, or on behalf of, a firm, an association of persons or a bo....
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.... case where the accumulated balance due to an employee participating in a recognized provident fund is includible in his total income owing to the provisions of rule 8 of Part A of Fourth Schedule not being applicable at the time of payment of accumulated balance due to the employee, deduct income-tax thereon at 10 per cent. if the amount of such payment or aggregate of such payment exceeds Rs. 50,000. In case the employee does not provide his/her PAN or Aadhaar number as the case may be, or provides an invalid PAN or Aadhaar number as the case may be, then the deduction will have to be made at maximum marginal rate. The rule 8 of Part-A of Fourth Schedule excludes the following accumulated balance due and becoming payable to the employee from the total income : (i) If, he has rendered continuous service with his employer for a period of five years or more, or (ii) If, though he has not rendered such continuous service, the service has been terminated by reason of- * the employees ill health, or * by the contraction or discontinuance of the employer's business or * other cause beyond the control of employee, or (iii) if, on c....
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....mount to arrive at net salary of the employee. (c) Add income from all other heads "House property", "Profits and gains of business or profession", Capital gains and Income from other Sources to arrive at the gross total income as shown in the form of simple statement mentioned at para 3.5. However it may be remembered that no loss under any such head is allowable by DDO other than loss under the head "Income from house property" to the extent of Rs. 2 lakhs. (d) Allow deductions mentioned in para 5.5 from the figure arrived at (c) above ensuring that the relevant conditions are satisfied. The aggregate of the deductions subject to the threshold limits mentioned in para 5.5 shall not exceed the amount at (b) above and if it exceeds, it should be restricted to that amount. This will be the amount of total income of the employee on which income-tax would be required to be deducted. This income should be rounded off to the nearest multiple of ten rupees. 9.2 Income-tax on such income shall be calculated at the rates given in para 2.1 of this Circular keeping in view the age of the employee and subject to the provisions of section 206AA, as discussed in para 4.8....
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....000 1,10,50,000 Contribution of G.P.F. 45,000 50,000 1,00,000 1,00,000 1,00,000 Computation of Total Income and tax payable thereon Particulars Rupees (i) Rupees (ii) Rupees (iii) Rupees (iv) Rupees (v) Gross Salary 2,50,000 6,00,000 10,50,000 55,50,000 1,10,50,000 Less: Standard deduction u/s 16(ia) 50000 50000 50000 50000 50000 Less: Deduction U/s 80C 45,000 50,000 1,00,000 1,00,000 1,00,000 Taxable Income 1,55,000 5,00,000 9,00,000 54,00,000 1,09,00,000 (A) Tax Thereon Nil Nil* 92,500 14,32,500 30,82,500 Surcharge 1,43,250 4,62,375 Add: Health & Education Cess @ 4%. Nil Nil 3700 63,030 1,41,795 Total tax payable Nil Nil 96,200 16,38,780 36,86,670 @or Aadhaar number, as the case may be, * After rebate of Rs.12500 u/s 87A # It may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section 115BAC of the Act. Example 2 For Assess....
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....es 1 Gross Salary 5,55,000 2 Add: Perquisite in respect of reimbursement of Medical Expenses 35,000 3 Less: Standard deduction u/s 16(ia) 50,000 4 Income from Other Sources i) Interest Income on Savings Account Rs.8,000 ii) Interest Income on Time Deposit Rs.15,000 23,000 5 Gross Total Income 5,63,000 6 a. Less: Deduction U/s 80C (i) GPF Rs.20,000/- (ii) LIC Rs.20,000/- (iii) Repayment of House Building Advance Rs.25,000/- (iv) Tuition fees for two children Rs.60,000/- (v) Investment in Unit-Linked Insurance Plan Rs.30,000/- Total = Rs.1,55,000/- Restricted to Rs.1,50,000/- b. Less: Deduction u/s 80TTA on Interest Income on savings account (restricted to Rs.10,000/- - available only on Savings account interest) Rs.8000 Total deduction available Rs.1,58,000/- 1,58,000 7 Total Income 4,05,000 8 Income Tax thereon/payable (includes Rebate of Rs 12500 as per Section 87A) Nil* 9 Add: Health & Education Cess @ 4%. Nil 10 Total Income Tax payable Nil @or Aadhaar number, as the case may be. #It may be noted that tax liability m....
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....pees 1 Salary 7,50,000 2 Bonus 1,40,000 3 Free gas, electricity, water etc. (Actual bills paid by company) 40,000 4(a) Flat at concessional rate (for ten month). @ Rs.36000/- month 3,60,000 4(b) Hotel rent paid by employer (for two month) 1,00,000 4(c) Rent recovered from employee 60,000 4(d) Cost of furniture 2,00,000 5 Subscription to Unit Linked Insurance Plan 50,000 6 Life Insurance Premium 10,000 7 Contribution to recognized P.F. 42,000 COMPUTATION OF TOTAL INCOME AND TAX PAID THEREON: S.No. Particulars Rupees 1 Salary 7,50,000 2 Bonus 1,40,000 3 Total Salary (1+2) for Valuation of Perquisites 8,90,000 Valuation of Perquisites 4(a) Perquisites for flat (Cities having population>25 lakh as per 2000 census) Lower of (15% of salary for 10 months = Rs.1,05,000/-) and (actual rent paid = Rs.3,60,000) i.e. Rs.1,05,000 4(b) Perquisites for hotel: Lower of (24% of salary of 2 months = Rs.33,600) and (actual payment = Rs.1,00,000) i.e. Rs.33,600 4(c) Perquisites for furniture @ 10% of cost (10% of Rs.2,00,000) Rs....
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.... 6,22,000 4 Less: Deduction U/s 80C (i) Provident Fund: 60,000 (ii) LIP: 10,000 (iii) NSC VIII Issue: 30,000 (iv) Repayment of HBA: 60,000 (v) Tuition Fees (Restricted to two children): 20,000 Total: 1,80,000 Restricted to 1,50,000 1,50,000 5 Total Income 4,72,000 6 Income Tax thereon/payable (includes Rebate of Rs.12500 as per Section 87A) Nil 7 Add: Health & Education Cess @ 4% Nil 8 Total Income Tax payable Nil 9 Rounded off to Nil @ or Aadhaar number, as the case may be # It may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section 115BAC of the Act. Example 7 For Assessment Year 2021-22 A. Calculation of Income tax in the case of a retired employee above the age of sixty years but below the age of 80 years and having gross pension of: iv) Rs.5,00,000/- v) Rs.8,50,000/-, vi) Rs.13,00,000/-. B. What will be the amount of TDS in case of above employees, if PAN@ is not submitted by them to their DDOs/Offices: Particulars Rupees (i) Rupees (ii) Rupees (iii) Gross Pension ....
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...., 2019 7,200 3. Club facility (for private use only) Expenditure by employer p.m. 700 4. House Rent Allowance p.m. 2,800 5. Employer's contribution to URPF p.m. (Mr. A also made equal contribution) 1,000 W.e.f. 01.11.2019, Mr. A joined PQR Ltd., with following pay package: 1. Basic pay p.m. 18,000 2. House Rent Allowance p.m. 1,600 3. Club facility (for private use only) Expenditure by employer p.m. 1,100 4. Use of car for journey between office and residence - Employer's expenditure p.m. 600 5. Employer's contribution to RPF p.m. (Mr. A. also made equal contribution) 2,000 Other particulars of Mr. A are as under: 1. Mr. A resides at Amritsar paying a monthly rent of 3,500 2. Mr. A's income from other sources 1,35,000 3. Mr. A contributed to LIC/PPR/NSC etc. 20,000 Computed Mr. A's taxable income and tax liability for A.Y. 2020-21. Computation of Tax S.No. Particulars Rupees 1. Income from Salary (a) From XYZ Ltd. Basic pay (Rs.13,000x7) 91,000 Bonus 7,200 Club facility (Rs.700x....
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.... p.m. 500 6. Life Insurance Premium (being a Life Insurance Policy of Rs. 1,00,000 taken in name of his wife before 01.04.2012) 10,500 7. Contribution to Public Provident Fund 10,000 8. Repayment of HDFC loan borrowed after 1.04.1999 EMI Rs.25,000 (Towards loan Rs.95,000, towards interest Rs.2,05,000) 3,00,000 Computation of Tax S.No. Particulars Rupees 1. Income from Salary Basic Pay @ Rs.40,000 p.m. (March to June'19 1,60,000 @ Rs. 41,200 p.m.* (July 2019 to Feb 2020) 3,29,600 4,89,600 Dearness Allowance 1.3.2019 to 30.06.2019 @ 7% i.e. Rs.40,000 p.m. 11,200 1.7.2019 to 31.12.2019 @ 9% i.e. Rs.41,200 p.m. 22,248 1.1.2020 to 28.02.2020 @ 11% (assumed) i.e. Rs.41,200 p.m. 9,064 5,32,112 House Rent Allowance 1,17,504 6,49,616 Transport Allowance 1.3.2019 to 30.06.2019 @ Rs.32....
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....ployer 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 perquisite (see rule 3) Value of perquisite as per rules (Rs.) Amount, if any recovered from the employee (Rs.) Amount of perquisite chargeable to tax Col(3) - Col(4) (Rs.) (1) (2) (3) (4) (5) 1 Accommodation 2 Cars/Other automotive 3 Sweeper, gardener, watchman or personal attendant 4 Gas, electricity, water 5 Interest free or concessional loans 6 Holiday expenses 7 Free or concessional travel 8 Free meals 9 Free Education 10 Gifts, vouchers etc. 11 Credit card expenses 12 Club expenses 13 Use of movable assets by employees....
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.... Note: Permanent Account Number or Aadhaar number, shall be furnished if the aggregate rent paid during the previous year exceeds one lakh rupees 2 Leave travel concessions or assistance 3 Deduction of interest on borrowing: (i) Interest payable/paid to the lender (ii) Name of the lender (iii) Address of the lender (iv) Permanent Account Number or Aadhaar number of the lender (a) Financial Institutions (if available) (b) Employer (if available) (c) Others 4 Deduction under Chapter VI-A (A) Section 80C, 80CCC and 80CCD (i) Section 80C (a) .................. (b) ................... (c) .................. (d) .................. &nbs....
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....ement containing 15 digit Token no. is provided to the AO. The AO can view the status of Form 24G on TIN website. Book identification Number (BIN) is generated for each _DDO record with valid TAN' reported in Form 24G, which is further disseminated to the AOs on email ID mentioned in Form 24G. AOs need to communicate the BIN details to respective DDOs. BIN is to be quoted by the DDOs in quarterly e-TDS/TCS statements. BIN consists of receipt number of Form 24G. DDO serial number and date of transfer voucher. The AO is required to furnish Form 24G within ten days from the end of the month in respect of tax deducted by the deductors and reported to him for that month. Only one regular Form 24G for a month-FY can be submitted. 1.1 Correction in Form 24G: AO can file a correction Form 24G for any modification or cancellation of Form 24G accepted at TIN central system. Preparation and validation of correction Form 24G is in line with regular form 24G. The validated Form 24G correction file (.fvu file) copied on a CD/pen drive is to be submitted along with the provisional receipt of original Form 24G and SSR to TIN-FC. On successful acceptance of correction Form 24G at th....
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.... been paid to the credit of Central Government without the production of a challan (associated with deposit of the tax in a bank), the relevant PAO/CDDO/DTO or an equivalent office of the government (herein after called as AO in this document) is required to file Form 24G on monthly basis. 2. Who is the relevant PAO/CDDO/DTO who is liable for filing Form 24G? A relevant PAO/CDDO/DTO is that office to whom the Deductor/DDO (TAN holder) reports remittance of TDS/TCS through book adjustment. Generally, the Central Government DDOs report TDS through book entry to their respective Pay and Accounts Officers (PAOs) and the State Government DDOs report TDS through book entry to their respective District Treasury Officers(DTOs). Such PAOs and DTOs are required to file Form 24G on monthly basis. There are also cases of Cheque Drawing and Disbursing Officers (CDDOs) who report TDS through book entry directly to State AG. For example, PWD, Forest Department etc. Such CDDOs are also required to file Form 24G on monthly basis. Schematic Diagram at Annexure-III clarifies the person responsible for filing Form 24G in different scenarios. 3. Can the same office/officer also act as DDO a....
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....ion of the AO Account. After registration, it is optional for AO either to submit the Form No.24G in CD/Pen drive at TIN-FC or online. 9. What are the functionalities available with AO Account? Through the AO Account, the AO can view the status of Form No. 24G filed, obtain BIN (Book Identification Number) details, update AO profile and upload Form No. 24G. The status tracking is based on AIN and concerned Provisional Receipt Number (PRN) of Form 24G. 10. Can the AO furnish Form No. 24G in paper form? No. Form 24G is to be filed only in electronic form. 11. Can the AO submit the electronically prepared Form No.24G at the Income Tax Office? No. Electronically prepared Form No.24G can only be submitted at TIN-FC or online 12. What does Form 24G contain? Every Form 24G should be prepared in accordance with the data structure prescribed by the Income Tax Department (LTD). Form 24G contains- • Details of the AO filing Form 24G (AIN name, demographic information, contact details). • Category of AO (Central / State Government) along with details of ministry / state. • Statement details (month and year for which Form 24G is bei....
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..... If appropriate version of JRE is installed, then the 'Form 24G Preparation Utility' will be displayed. 15. What are the steps to download and install Form 24G preparation Utility? For assistance in downloading and using Form 24G Preparation Utility, please read the instructions provided in "Help" in the Form 24G Preparation Utility. This utility can be used for preparation of Form 24G with upto 75,000 records. Form 24G Preparation Utility (version 1.2) should be used for regular and correction statements. 16. What is File Validation Utility (FVU)? The AO should pass the Form 24G (Regular/Correction) file generated using Preparation Utility through the File Validation Utility (FVU) to ensure format level accuracy of the file. This utility is also freely downloadable from TIN website. In case the Form 24G contains any errors, the AO should rectify the same. After rectifying the errors, user should pass the rectified Form 24G through the FVU. This process should be continued till an error-free Form 24G is generated. Form 24G (regular/correction) prepared from F.Y. 2005-06 onwards can be validated using this utility. The Form 24G FVU is a Java based utility. JRE (....
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....en'. For correction, the latest version of the RPU should be downloaded from TIN website. Form 24G corrections can also be uploaded directly at the TIN website. For direct upload at TIN Central system, AO has to first register AIN at TIN website and upload the Form 24G correction. 19. What are the different kinds of correction statements allowed? There are two different types of correction statements that can be furnished by the AO. These are listed below. • M (Modify)-: For any modification in the existing Form 24G statement. • X (Cancel) -: For cancellation of an existing Form 24G statement. For preparation of correction statement, the receipt number of the original statement and receipt number of the previous statement is mandatory. In case of first correction, PRN of original statement should be provided in field -Receipt number of Original Statement' and also in the field -Receipt number of Previous Statement - In case a correction statement has already been filed earlier, PRN of original statement should be provided in field "Receipt number of Original Statement" and PRN of last correction to be mentioned in field "Re....
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.... respective DDO should be correctly filled in TDS statement. 23. When is BIN generated? On processing of accepted Form 24G statement, BIN is generated for each DDO record (with valid TAN) present in Form 24G statement. BIN are generated at TIN Central System and intimated to the PAOs with details of TAN and Form Type. 24. What do the PAO and DDO have to do with the BIN? PAOs have to disseminate the BINS to respective DDOs. While preparing the quarterly TDS/TCS statement, DDO has to quote the said BIN details, if tax has been paid through transfer voucher (book adjustment). BINs generated for a particular 24G are mailed to the AO on the e-mail id provided in Form 24G. In addition, AO may also download the BIN details through AO login at TIN Site. 25. Under what circumstances will BIN be generated? • BIN will be generated for valid TAN-DDO records added in Form 24G correction statement. • BIN will be generated for DDO records where invalid TANs/TAN not present in Income Tax Department database is updated with a valid TAN. • New BIN will not be generated for any update made in TAN name, demographic and contact details, amount of....
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....tment. iii. To quote BIN in the quarterly TDS/TCS Statement (24Q, 26Q, etc) for the tax deducted and credited through book adjustment. iv. Filing of TDS/TCS statement (24Q, 26Q etc) within the due date. v. To download Form 16/26A from TRACES website (www.tdscpc.gov.in) and timely issuance of the same to the deductees. 30. What are the consequences of non-quoting of BIN details in quarterly TDS/TCS statement? (a) BIN details and amount of TDS reported in the quarterly TDS/TCS Statement filed by the DDO will be matched with the details filed in Form No.24G filed by the PAO for verification purpose. (b) Any wrong information reported by the DDOs in TDS/TCS Statement may lead to mismatch due to which credit to the respective deductee will not be available in the deductee's Form 26AS. (c) Further details are available at TIN website www.tin-nsdl.com and ITD website www.incometaxindia.gov.in. 31. What is the format of Form 16/16A to be issued to the deductees? It is mandatory to download and generate the Form 16/16A from the TRACES portal only. Deductor is allowed to issue manually only part 'B' of Form 16 for salary details.....
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.... submitted. 2.1 Correction in e-TDS statements/returns: 2.1.1 CPC-TDS portal (wsvw.tdscpg.gov.in) has also introduced online correction of statements whereby personal information, PAN correction, add/update of challan information, add/update of salary detail, add/update/movement of deductee row etc. can be done in the statements filed by the deductors, with or without the digital signatures. For further details, kindly refer the matrix below: Default Summary View Personal information Challan Correction (Unmatched, Matched Deduetee+ Deductee Movement PAN Correction (Annex-I) PAN Correction (Annex-II) Add ChalIan to statement Interest Levy Payment Modify/ Add deductee rows Delete/ Add Deductee Rows Online Correction (with digital signature, 2013-14 onwards) Y Y Y Y Y Y Y Y Y Online Correction (with digital signature, prior to 2013-14 onwards) Y Y Y N N Y Y Y Y Online Correction (without digital signature, 2013-14 onwards) Y N Y N N Y Y N N Online Correction (without digital Signature, prior to 2013-14 onwards) Y N Y N N Y Y N ....
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....ent containing a unique 15 digit token number is provided to the Deductor/DDO. Deductor/DDO can view the status of paper statement/return on TIN website. 4. Procedure of furnishing of e-TDS statement/return online at TIN website: Deductor/DDO is required to procure Digital Signature Certificate (DSC) for online upload of e-TDS statement/return. After registration on TIN website, an authorization letter by the Deductor/DDO should be provided on the letterhe/shead of the organisation to NSDL. Once application is approved by NSDL, user ID is created and intimated to Deductor/DDO on their registered email ID provided at the time of registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC). Deductor/DDO can login with its user ID and DSSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token no. and 8 digit receipt number is generated and displayed. There is no need to submit physical form 27A in online upload. Deductor/DDO can view the status of e-TDS statement/return....
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....t be available to the new recruits in the Central Government service. ii. In addition to the above pension account, each individual may also have a voluntary tier-II withdrawable account at his option. This option is given as GPF will be withdrawn for new recruits in Central government service. Government will make no contribution into this account. These assets would be managed through exactly the above procedures. However, the employee would be free to withdraw part or all of the 'second tier' of his money anytime. This withdrawable account does not constitute pension investment, and would attract no special tax treatment. iii. Individuals can normally exit at or after age 60 years for tier-I of the pension system. At the exit the individual would be mandatorily required to invest 40 percent of pension wealth to purchase an annuity (from an IRDA- regulated life insurance company). In case of Government employees the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which he/she would be free to utilize in ....
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....o this effect by the lasthe/Shead of Department. 13. President's Police & Fire Services Medal for Gallantry -do- 14. President's Fire Services Medal for Gallantry -do- 15. President's Home Guards and Civil Defence Medal for Gallantry -do- 16. Home Guard and Civil Defence Medal for Gallantry -do- (Notification no. 1156/F.No. 142/29/99-TPL) T.K. SHAH Director ANNEXURE IX MINISTRY OF FINANCE Department of Revenue Central Board of Direct Taxes New Delhi, the 29th January, 2001 S.O.81 (E) - In exercise of the powers conferred by sub-clause (i) of clause (18) of Section 10 of the Income -tax Act, 1961 (43 of 1961)), the Central Government, hereby specifies the gallantry awards for the purposes of the said Section and for that purpose makes the following amendment in the notification of the Government of India in the Ministry of Finance, Department of Revenue (Central Board of Direct Taxes) number S.O. 1048(E), dated the 24th November 2000, namely:- In the said notification, in the Table, against serial numbers 1,2 and 3 under column (3) relating to 'Circumstances for eligibility' the words 'to civilians' shall ....