TaxTMI 
TaxTMI 
Income-Tax Deduction from salaries during the Financial Year 2021-22 Under Section 192 Of The Income-Tax Act, 1961.
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....s certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred are of Income-tax Act, 1961 and 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. As per section 192(1) of the Act, any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under the head of Salary income for that financial year. The section also provides that a person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof. 1. Definition of "salary", "perquisite" and "profit in lieu of salary" (section 17) 1.1....
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.... otherwise so required. However, no tax is required to be deducted from the commuted portion of pension to the extent exempt under section 10(10A). Family Pension is chargeable to tax under the head "Income from other sources" and not under the head "Salaries". Therefore, provisions of section 192 of the Act are not applicable. Hence, DDOs are not required to deduct TDS on family pension paid to person. 1.2 What is a perquisite ? As per section 17(2) of the Act, perquisites include : (i) The value of rent-free accommodation provided to the employee by his employer ; (ii) The value of any concession in the matter of rent in respect of any accommodation provided to the employee by his employer ; (iii) The value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases : (a) By a company to an employee who is a director of such company ; (b) By a company to an employee who has a substantial interest in the company ; (c) By an employer (including a company) to an employee, who is not covered by (a) or (b) above and whose income under the head "Salaries....
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.... (b) in the scheme referred to in sub-section (1) of section 80CCD ; and (c) in an approved superannuation fund. to the extent it exceeds seven lakh and fifty thousand rupees in a previous year ; (viia) the annual accretion by way of interest, dividend or any other amount of similar nature during the previous year to the balance at the credit of the fund or scheme referred to in clause (vii) above to the extent it relates to the contribution referred to in the said clause which is included in total income ; and (viii) the value of any other fringe benefit or amenity as prescribed in rule 3. 1.3 What is profit in lieu of salary ? As per section 17(2) of the Act, "Profits in lieu of salary" include : I. the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto ; II. any payment (other than any payment referred to in clauses (10), (10A), (10B), (11), (12) (13) or (13A) of section 10) due to or received by an assessee from an employer or a former ....
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....Where the total income exceeds Rs. 10,00,000 Rs. 1,10,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000 C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year Sl. No. Total income Rate of tax 1 Where the total income does not exceed Rs. 5,00,000 Nil 2 Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000 3 Where the total income exceeds Rs. 10,00,000 Rs. 1,00,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000 2.2 Surcharge on income-tax The amount of income-tax computed in accordance with the provisions of section 111A or section 112 or section 112A or the provisions of section 115BAC of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether ....
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....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. 2.3 Health and education cess The amount of income-tax as increased by the applicable surcharge shall be further increased by an additional surcharge, for the purposes of Union, to be called "Health and Education Cess on Income-tax". Health and education cess on income-tax shall be levied at the rate of four percent of income-tax including surcharge wherever applicable. No marginal relief shall be available in respect of such cess. ....
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....ther, where the option is exercised under clause (i) of sub-section (5), in the event of failure to satisfy the conditions contained in sub-section (2), it shall become invalid for subsequent assessment years also and other provisions of the Act shall apply for those years accordingly. The conditions specified in sub-section (2) of section 115BAC is as follows : For the purposes of sub-section (1), the total income of the individual or Hindu undivided family shall be computed- (i) without any exemption or deduction under the provisions of clause (5) or clause (13A) or prescribed under clause (14) (other than those as may be prescribed for this purpose) or clause (17) or clause (32), of section 10 or section 10AA or section 16 or clause (b) of section 24 (in respect of the property referred to in sub-section (2) of section 23) or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35 or section 35AD or section 35CCC or clause (iia) of section 57 or under any of the provisions of Chapter VI-A other than the....
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....ay be, tax on such income within 14 days- (a) after the expiry of 48 months from end of the relevant assessment year ; or (b) from the date of sale of such specified security or sweat equity share by the assessee ; or (c) from the date of the assessee ceasing to be the employee of the person, whichever is the earliest, on the basis of rates in force for the financial year in which the said specified security or sweat equity share is allotted or transferred. Any employee intending to opt for the concessional rates of tax under section 115BAC of the Act, may intimate the deductor, being his employer, of such intention for each previous year and upon such intimation, the deductor shall compute his total income, and make TDS thereon in accordance with the provisions of section 115BAC. If such intimation is not made by the employee, the employer shall make TDS without considering the provision of section 115BAC of the Act. The intimation so made to the deductor shall be only for the purpose of TDS during the previous year and cannot be modified during that year. (CBDT Circular No. CI of 2020 dated April 13, 2020) No tax, however, wil....
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....perquisites as per the provisions discussed in para 3.2 above. Steps : Income chargeable under the head "Salaries" inclusive of all perquisites Rs. 6,00,000 Tax as per normal rates on total salary (including cess) Rs. 33,800 Average rate of tax [(33,800/6,00,000) x 100] 5.63 per cent. Tax payable on Rs. 50,000 = (5.63 per cent. of 50,000) Rs. 2,815 Amount required to be deposited each month Rs. 235 = 2,815/12 The tax so paid by the employer shall be deemed to be TDS made from the salary of the employee. 3.4 Salary from more than one employer Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the tax payer/employee may choose) from the aggregate salary of the employee, who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head "Salaries" due or received from the former/other employer and als....
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....n 10(10C) in respect of such, or any other, assessment year. 3.6 Information regarding income under any other head 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 reproduced as under : I, (name of the assessee), do declare that what is stated above is true to the best of my information and belief. It is reiterated that the DDO can take into account loss only under the head "Income from house property". Loss under any other head cannot be considered by the DDO for calculating the amount of tax to be deducted. It may be noted that loss under the head "Income from house property" can be set off only up to Rs. 2.00 lakh with the income under any other hea....
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....(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 financial year 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 financial years up to the financial year 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 installments for the financial year in question and subsequent four financial years. (c) The employee has to furnish before the DDO a certificate from the person to whom any interest is payable on the borrowed capital specifying the amount of int....
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....ible 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 Tax deduction at source The concept of Tax deduction at Source (TDS) was introduced with an aim to collect tax from the source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee, from whose income, tax has been deducted at source, would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. 4.1.2 Rates for tax deduction at source Section 192 does not specify any TDS rate. However as per section 192(1). the tax deduction shall be made at the average rate of income-tax on the amount payable, computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income under the head of Salary for that financial year. The rates as per different income slabs are specified in the Fir....
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....nt 1 30th June 7th July 2 30th September 7th October 3 31st December 7th January 4 31st March 30th April next financial year 4.4 Mode of Payment of TDS 4.4.1 Compulsory filing of Statement by PAO. Treasury Officer, etc. in case of payment of TDS by book entry under section 200(2A) In case of an office of the Government, where tax has been paid to the credit of the Central Government without the production of a challan [book entry], the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, to whom the deductor reports about the tax deducted and who is responsible for crediting such sum to the credit of the Central Government, shall- (a) submit a statement in Form No. 24G under section 200(2A) on or before the 30th day of April where statement relates to the month of March : and in any other case, on or before 15 days from the end of relevant month to the agency authorized by the Principal Director General of Income-tax (Systems) (TIN Facilitation Centres cu....
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.... authorised bank accompanied by an electronic income-tax challan (rule 125). The amount shall be construed as electronically remitted to the Reserve Bank of India or to the State Bank of India or to any authorized bank, if the amount is remitted by way of : (a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorized bank ; or (b) debit card. (rule 30(7)) 4.5 Interest, penalty and prosecution 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/she shall be deemed to be an assessee-in-default in respect of such tax in accordance with the provisions of section 201, and shall also be liable to penal action under section 221 of the Act. Further section 201(1A) provides that such person shall be liable to pay simple interest at the rate of 1% for every month or part of the month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted ; and at the....
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....n which the tax has been deposited and challan serial number given by the bank.) (d) Receipt numbers of all the relevant quarterly statements of TDS (24Q). The receipt number of the quarterly statement is of 8 digit. 4.6.3 Further as per Circular 4 of 2013 dated April 17, 2013 all deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading it through TRACES Portal and after duly authenticating and verifying it, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number. The deductor shall generate "Part B (Annexure)" of Form No. 16 from the TRACES website and issue to the deductee after due authentication and verification along with the Part A of the Form No. 16. 4.6.4 It may be noted that under the new TDS procedure, TAN of deductor/PAN or Aadhaar number of the deductee and receipt number of TDS statement filed by the deductor act as unique identifier for granting online credit of TDS to the de....
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....e in Form 16 may be issued by the specified bank to a specified senior citizen (refer section 194P of the Act). 6. In Part A, in items I and II, in the column for tax deposited in respect of deductee, furnish total amount of tax, surcharge and health and education cess. 7. Deductor shall duly fill details, where available, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee. 8. If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers and Part B may be issued by each of the employers or the last employer at the option of the assessee. 9. TDS certificate (Form 16) would be generated for the deductee only if valid PAN or Aadhaar number as the case may be, is correctly mentioned in the Annexure II of Form 24Q in Quarter 4 filed by the deductor. Moreover, employers are advised to ensure in Form 16 that the status of "matching" with respect to "Form 24G/OLTAS" is "F". If the status of matching is other than "F" kindly take necessary action promp....
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....he credit of Central Government through book adjustment. Other deductors to write "C". (j) Challan/Transfer Voucher (CIN/BIN) particulars, i. e., 310, 311, 312 should be exactly the same as available at Tax Information Network. (k) In column 313, mention minor head as marked on the challan. (l) Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to any approved superannuation fund, all such deductions or payments should be included in the statement. 4.6.9 Authentication by digital signatures ; (i) Where a certificate is to be furnished 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 signa....
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....ate for furnishing Form 16 for the financial year 2020-21 to the employee was extended up to July 31, 2021. Form 12BA should be furnished to the employee by 30th April of the assessment year. If the person responsible for paying any income chargeable under the head salaries and therefore responsible for furnishing statement under Form 12BA and Form 16, as the case may be fails to issue these certificates to the person concerned, as required by section 192(2C), he/she will be liable to pay, by way of penalty, under section 272A(2)(i), a sum which shall be Rs. 100 for every day during which the failure continues. 4.7.4 DDOs empowered to obtain evidence of proof or particulars of the prescribed claim (including claim for set-off of loss) under the section 192(2D) DDOs have been authorized under section 192 to allow certain deductions, exemptions or allowances or set-off of certain loss as per the provisions of the 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 re....
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....e, by the deductee (employee) to the deductor (employer) will result in deduction of TDS at higher rates under section 206AA of the Act mentioned in para 4.9 below. 4.9 Compulsory requirement to furnish PAN or Aadhaar by employee (section 206AA) 4.9.1 Section 206AA in the Act makes furnishing of PAN or Aadhaar number as the case may be, by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If the employee (deductee) fails to furnish his/her PAN or Aadhaar number, as the case may be, to the deductor, the deductor has been made responsible to make TDS at higher of the following rates : (i) at the rate specified in the relevant provision of this Act; or (ii) at the rate or rates in force; or (iii) at the rate of twenty percent. 4.9.2 The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS. However, where the income 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 calcul....
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....ied through an electronic process in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems). The procedure for furnishing the e-TDS/TCS statement is detailed at Annexure VI. 4.10.3 Where the deductor is an office of the Government or is the principal officer of a company or is a person who is required to get his accounts audited under section 44AB in the immediately preceding financial year, or the number of deductee's records in a statement for any quarter of the financial year are twenty or more, the deductor shall furnish the statement electronically under digital signature or along with the verification of the statement in Form 27A or verified through an electronic process (Rule 31 A(3)]. 4.11 Fee for default in furnishing statements under section 200(3) of the Act Under section 234E of the Act if a person fails to deliver or caused to be delivered ? statement within the time prescribed in section 200(3) in respect of tax deducted at source (on or after July 1, 2012) he/she shall be liable to pay, by way of fee a sum of Rs. 200 for every day during which the failure continues. However, the amoun....
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....use) from a nationalized bank, the instructions contained in this circular shall apply in the same manner as they apply to salary-income. The deductions from the amount of pension under section 80C on account of contribution to Life Insurance, Provident fund, subscription to certain equity shares or debentures, etc., if the pensioner furnishes the relevant details to the banks, may be allowed. Necessary instructions in this regard were issued by the Reserve Bank of India to the State Bank of India and other nationalized banks vide RBI's Pension Circular (Central Series) No. 7/C.D.R./1992 (Ref. CO : DGBA : GA (NBS) No. 60/GA.64 (11CVL)-/92), dated the April 27, 1992, and, these instructions should be followed by all the branches of the banks, which have been entrusted with the task of payment of pensions. 4.14.2 Under section 194P of the Act, the specified bank shall compute the total income of specified senior citizen and deduct income-tax on the basis of rates in force. As per clause (2) of section 194P. The provisions of section 139 will not apply to specified senior citizen for the assessment year for which tax has been deducted. The specified senior citizen has be....
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.... contract of employment will also be regarded as income earned in India. 4.15.3 Where non-residents are deputed to work in India and taxes are borne by the employer, if any refund becomes due to the employee after he/she has already left India and has no bank account in India by the time the assessment orders are passed, the refund can be issued to the employer as the tax has been borne by it [Circular No. 707, dated July 11, 1995]. 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 removal of doubts, it is clarified t....
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....) the actual amount of lease rental paid or payable by the employer, as reduced by any amount of rent actually paid by the employee. For the purpose of calculation of value of perquisite under rule 3, the term "Salary" includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called from one or more employers, as the case may be, but docs not include the following : (a) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned ; (b) employer's contribution to the provident fund account of the employee : (c) allowances which are exempted from payment of tax ; (d) the value of perquisites specified in clause (2) of section 17 of the Income-tax Act ; (e) any payment or expenditure specifically excluded under proviso to sub-clause (iii) of clause (2) or proviso to clause (2) of section 17 ; (f) lump-sum payments received at the time of termination of service or superannuation or voluntary retirement, like gratuity, severance pay, leave encashment, voluntary retrenchment benefits, c....
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....mined on the basis of lower of the following two : 1. 24% of salary paid or payable in respect of period during which the accommodation is provided ; or 2. Actual charges paid or payable 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 para (c) above shall be taxable if the hotel accommodation is provided for a total period not exceeding in aggregate 15 days on transfer of an employee 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 be valued as a perquisite as per the residual clause. In other words, composite tariff for accommodation will be valued as per the Rules and any other charges for other facilities provided by the hotel will be separately valued under the residual clause. (d) However, the value of any accommodation provided to an employee working at a mining site or an on-shore oil exp....
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....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. • the expenses on maintenance and running of motor car for such private or personal use are fully met by the employee, the value of perquisite will be Rs. 600 (plus Rs. 900, if chauffeur is also provided) per month for motor car where cubic capacity of engine of the motor car does not exceed 1.6 litres. 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, (II) If the motor car is owned by the employee but the actual running and maintenance charges (including remuneration of chauffeur, if any) are met or reimbursed by the employer, and (a) Such reimbursement is for the use of vehicle wholly and exclusively for official purposes, the value of perquisites shall be Nil, However, following compliances are necessary : • The employer has maintained complete details of the journey undertaken which may include date of journey, destination, mileage and the amount of expenditure incurred thereon fo....
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.... of perquisite shall be the amount calculated in respect of one car as if the employee had been provided one motor-car for use partly in the performance of his duties and partly for his private or personal purposes and the amount calculated in respect of the other car or cars as if he had been provided with such car exclusively for his private or personal purposes. The normal wear and tear of the motor shall be taken at 10% per annum of the actual cost of the motor car. (C) Personal attendants etc. (rule 3(3)) : The value of benefit of all personal attendants including a sweeper, gardener and a watchman shall be the actual cost to the employer. Where the attendant is provided at the residence of the employee, full cost will be taxed as perquisite in the hands of the employee irrespective of the degree of personal service rendered to him. Any amount paid by the employee for such facilities or services shall be reduced from the above amount. (D) Gas, electricity A water for household consumption (rule 3(4)) : The value of benefit in the nature of gas, electricity and water shall be the amount paid by the employer to the agency supplying ga....
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....e value of perquisite arising from interest free or concessional loans to employees or any member of his/her household 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 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, for loans up to Rs. 20,000 in the aggregate no value would be charged. Loans for medical treatment of diseases 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....
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..... G.S.R. 415(E), dated June 26, 2020. the said rule has been amended so as to provide that in case of an employee 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. (J) Gifts [rule 3(7)(iv)] The value of any gift or vouchers or token in lieu of which such gift may be received by the employee or member of his/her household shall be the sum equal to the amount of such gift. However, in case the gift, etc is less than Rs. 5,000 in aggregate per annum, the value of perquisite shall be Nil. (K) Membership fees and annual fees (rule 3(7)(v)) Any membership fees and annual fees incurred by the employee (or any member of his/her household), which is charged to a credit card (including any add-on card) provided by the employer, or otherwise, paid for or reimbursed by the employer is taxable on the following basis : Amount of expenditure incurred by the employer xxx Less : Expenditure on use for official purposes xxx Less : Am....
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....normal wear and tear at 10% for each year during which that asset is put to use and further ; (b) the amount recovered or paid by the employee as consideration for such transfer. Note : Rate of wear and tear for computers and electronic items is 50% and for motor cars is 20% (calculated by reducing balance method). (O) Value of perquisite [rule 3(7)(ix)] The value of any other benefit or amenity, service, right or privilege provided by the employer shall be determined on the basis of cost to the employer under arm's length transaction as reduced by the employee's contribution. If it is related to the expenses on telephones including a mobile phone actually incurred on behalf of the employee by the employer, the value shall be Nil. In paras (A) to (N) above, the phrase "member of household" shall include- (a) spouse(s), (b) children and their spouses, (c) parents, (d) servants and dependents. Medical Reimbursement by the employer : As per the amendment vide Finance Act, 2018 the total amount of medical reimbursement is to be taken as perquisite under section 17(2). It is ....
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....rson or persons to the extent that such sum or aggregate of such sums does not exceed ten lakh rupees, where the cause of death of such person is illness relating to Covid-19 and the payment is, received within twelve months from the date of death of such person, and subject to such other conditions, as may be notified by the Central Government in this behalf, shall not be the income of such person. Further, it is proposed to provide that for the purpose of both of the said clauses, "family" in relation to an individual shall have the same meaning as assigned to in the Explanation 1 to clause (5) of section 10. These amendments will take effect retrospectively from April 1, 2020 and will accordingly apply in relation to the assessment year 2020-21 and subsequent assessment years. 5.3 Incomes not included under the head "Salaries" (exemptions) Any income falling within any of the following clauses shall not be included in computing the income from salaries for the purpose of section 192 of the Act 53.1 The value of any travel concession or assistance received by or due to an employee from his employer or former employer for self and his/her family....
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....ed 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) of the Act. 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 superannuation or otherwise, is exempt under section 10(10AA)(i) of the Act. In the case of employees other than Government employees, this exemption will be determined with reference to the leave to their credit at the time of retirement on superannuation or otherwise, subject to a maximum of ten months' ....
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....xtending special protection to the workmen in the undertaking to which the scheme applies and other relevant circumstances. The maximum limit of such payment is Rs. 5,00,000 where retrenchment is on or alter January 1, 1997 as specified in Notification No. 10969, dated June 25, 1999. 5.3.6. Under section 10(10C), any payment received or receivable (even if received in installments) by an employee of the following bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempt from income-tax to the extent that such amount does not exceed Rs. 5,00,000 : (a) A public sector company : (b) Any other company ; (c) An Authority established under a Central, State or Provincial Act ; (d) A Local Authority : (e) A Co-operative 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 ....
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....t from February 1, 2021, the sum received under a Unit Linked Insurance Policy issued on or after February 1, 2021, shall not be exempt if the amount of premium payable for any of the previous years during the term of such policy exceeds Rs. 2,50,000, (b) if premium is payable for more than one ULIP, issued on or after February 1, 2021, the exemption under this clause shall be available only with respect to such policies where the aggregate premium does not exceed Rs. 2,50,000 for any of the previous years during the term of any of those policies. However, the above amendments will not be applicable in case of sum received on death of the person. Under section 10(12A) of the Act, any payment from the National Pension System Trust to an assessee on closure of his account or on his opting out of the pension scheme referred to in section 80CCD to the extent it does not exceed sixty percent from financial year 2019-2020 (as amended by Finance (No. 2) Act. 2019), of the total amount payable to him at the time such closure of his opting out of the scheme shall be exempt. Under section 10(12B) of the Act, any payment from the National Pension System Tru....
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....to clause (11) of section 10, with effect from April 1, 2022, provides that if the contribution by a person is in a fund in which there is no contribution by the employer of such person, the provisions of the first proviso shall have the effect as if for the words "two lakh and fitly thousand rupees", the words "five lakh rupees" had been substituted. Rule 9D of the Income-tax Rules, 1962 provides for the calculation of taxable interest relating to contribution in a provident fund or recognized provident fund, exceeding specified limit. 5.3.10 Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from income-tax to the extent as may be prescribed having regard to the area or place in which such accommodation is situated and other relevant considerations, 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 : In Mumbai/Delhi/Kolkata/Chennai In Any other cities ....
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.... 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 orthopedically handicapped with disabilities of lower extremities, to meet his/her expenditure for the purpose of commuting between the place of the residence and the place of his duties. 5.3.12 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 tor the purpose of the said clause. 5.3.13 Any scholarship granted to meet the cost of education is not to be included in total income as per provisions of ....
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....ber of his/her family) for medical treatment and expenditure on travel and stay abroad of one attendant who accompanies the patient. However, the expenditures on medical treatment abroad are excluded from perquisites only to the extent permitted by the Reserve Bank of India. Further, the expenditure on travel shall be excluded from perquisite only in the case of an employee whose gross total income, as computed before including therein the said expenditure, does not exceed two lakh rupees ; (f) any sum paid by the employer for any expenditure in relation with medical treatment abroad, subject to the conditions mentioned in (e) above. 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 section 10(13A), 10(5), 10(14), 17, etc., of the Act would continue to be exempt. These include benefi....
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....h of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees whichever is less. 5.4.3 Tax on employment (section 16(iii)) : The tax on employment (professional tax) within the meaning of article 276(2) of the Constitution of India, leviable by or under any law, shall also be allowed as a deduction in computing the income 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 ....
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.... vide Notification No. G.S.R. 848(E), dated the November 29, 2011, publishing the National Savings Certificates (IX-Issue) Rules, 2011, G.S.R. 868(E), dated the December 7, 2011, specifying the National Savings Certificates IX Issue as the class of Savings Certificates F. No.13/2011-NS-II r/w amendment Notification No. G.S.R. 319(E), dated April 25, 2012] (6) Any sum paid as contribution in the case of 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 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 S.O. No. 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 notifi....
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....n or for the purpose of planning, development or improvement of cities, towns and villages, or for both. [The Central Government has since notified the Public Deposit Scheme of HUDCO vide Notification S.O. No. 37(E), dated January 11, 2007, for the purposes of section 80C(2)(xvi)(a)] (12) Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income from which is chargeable to tax under the head "Income from house property" (or which would, if it has not been used for assessee's own residence, have been chargeable to tax under that head) where such payments are made towards or by way of any installment or part payment of the amount due under any self-financing or other scheme of any Development Authority, Housing Board or other authority engaged in the construction and sale of house property on ownership basis or by way of instalment or part payment of the amount due to any company or cooperative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him. The deduction will also be allowable in respect of re-payment of loans borrowed by an assessee ....
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.... forming part of any eligible issue of capital made by a public company, which is approved by the Board or by any public finance institution, (15) Subscription to any units of any mutual fund referred to in clause (23D) of section 10 and approved by the Board, if the amount of subscription to such units is subscribed only in eligible issue of capital 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 S. O. No. 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, 1....
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....yee in the fund referred to above and deduction has been allowed as stated above and the employee or his nominee receives this amount together with the interest or bonus accrued or credited to this account due to the reason of- (i) surrender of annuity plan whether in whole or part, (ii) pension received from the annuity plan, then the amount so received during the financial year shall be the income of the employee or his nominee for 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.N. 5/7/20....
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....minee, on the death of the assessee, on closure or his opting out of the pension scheme referred to in sub-section (1) or sub-section (1B) shall not be deemed to be the income of the nominee. 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. Further, as per section 80CCD(5), it has been specified that with effect from April 1, 2009, any amount received by the employee from the New Pension Scheme shall be deemed not to have been received in the previous year if such amount is used for purchasing an annuity plan in the same previous year. It is emphasized that as per the section 80CCE the aggregate amount of deduction under sections 80C, 80CCC and section 80CCD(1) shall not exceed Rs. 1,50,000. The deduction allowed under section 80CCD(1B) is an additional deduction in respect of any amount paid in the NPS up to Rs.50,000. However, the 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. ....
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....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 Act, 1999. 2. Lump sum payment of health insurance premium. In case, a lump sum amount is paid to effect or to keep in force an insurance on health for more than a year, proportionate deduction (appropriate fraction) will be allowable for the year in which it was paid and for subsequent year/years in accordance with sub-section (4A) of section 80D. 5.5.5 Deductions in respect of expenditure on persons or dependants with disability (a) Deductions in respect of maintenance including medical treatment of a dependent who is a person with disability (section 80DD) : Under section 80DD, where an employee, 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 Corpora....
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....ility, a higher deduction of Rs. 1,25,000 shall be allowable. DDOs should note that section 80DD deduction is in case of the dependent of the employee whereas section 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 deduction under this section shall be allowed for any subsequent period unless a new certificate is obtained from the medical authority as in I above and furnished before the DDO. 3. For the purposes of sections 80DD and 80U some of the terms defined are as under :- (a) "Administrator" means the Administrator as referred to in clause (a) of section 2 of the ....
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....ticipation) 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. 5.5.6 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 the rules 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 dependant or Rs. 40,000 whichever is less. Now the deduction can be allowed on the basis of a prescription from an oncologist, a urologist, nephrologist, a hematolegist, an immunologist or such other specialist, as mentioned in rule 11DD. However, the amount of the claim shall be reduced by the amount if any received from the insurer or r....
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....al 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. 5.5.8 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 property does not exceed forty-five lakh rupees : (iii) the assessee does not own any residential house property on the date of sanction of loan. For the purposes of this section,- (a) the expression "financial institution" shall have the meaning assigned to it in clause (a) of sub-section ....
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....other provision of this Act for the same or any other assessment year. 5.5.10 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 behalf - Circular No. 2 of 2005, dated January 12, 2005. No deduction under this section is allowable in case the amount of donation exceeds Rs. 2,000 ....
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.... 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. An association or institution, which has as its object the undertaking of any programme of conservation of natural resources or of afforestation. Approved for the purposes of section 35CCB. Set up and notified by the Central Government 6. ....
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....Act, 1898. For this section, "time deposits" means the deposits repayable on expiry of fixed periods. 5.5.14 Deduction in respect of interest on deposits in case of senior citizens (section 80TTB) : Section 80TTB introduced by the 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 ....
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....ection 192A of the Act, with effect from June 1, 2015 the trustees of the EPF Scheme, 1952 framed under section 5 of the EPF and Misc. Provisions Act, 1952 or any person authorized under the scheme to make payment of accumulated balance due to employees, shall, in a 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% 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 ease may be, then the deduction will have to be made at maximum marginal rate. Rule 8 of Part-A of fourth schedule of the Act excludes the following accumulated balance due and becoming payable to the employee from the total income : (i) If, he/she has rendered continuous service with his employer for a period of five years or more, or (ii) If, though be/she has not re....
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....192 shall be computed as follow :- (a) First compute the gross salary as mentioned in para 5.1 including all the incomes mentioned in para 5.2 and excluding the income mentioned in para 5.3. (b) Allow deductions mentioned in para 5.4 from the figure arrived at (a) above and compute the amount 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 para 3.6. 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. 2.00 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....
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.... iv) Rs.55,50,000/-, and v) Rs.1,10,50,000/- (A) 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) Rupees (iv) Rupees (v) Gross Salary Income (including allowances) 2,50,000 6,00,000 10,50,000 55,50,000 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 63,0....
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....ium 20,000 5 Repayment of House Building Advance 25,000 6 Tuition fees for two children 60,000 7 Investment in Unit-Linked Insurance Plan 30,000 8 Interest Income on Savings Account 8,000 9 Interest Income on Time Deposit 15,000 Computation of Tax S.No. Particulars Rupees I 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/....
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....alculation of tax in the case of an employee below age of sixty years or a private company in Mumbai who was provided accommodation in a flat at concessional rate for ten months and in a hotel for two months (With valid PAN@ furnished to employer). S.No. Particulars Rupees 1 Salary 7,00,000 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 7,00,000 2 Bonus 1,40,000 3 Total Salary (1+2) for Valuation of Perquisites 8,40,000 Valuation of perquisites 4(a) Perquisite for flat (Cities having population>25 lakh as per 2001 census) 15% of salary for 10 months=Rs. 1,05,000/- 1,38,600 4....
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....00-55,000) : Rs. 65,000 (iii) 50% of salary (including D.A) : Rs.2,75,000 65,000 Less: Standard deduction u/s 16(ia) 50,000 Gross Total Taxable Income 6,27,000 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 4,77,000 6 Income Tax thereon/payable (includes Rebate 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 numbers 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 2022-23 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 pensions of: i) Rs.5,00,000 ii) Rs.8,50,000 iii) Rs.13,00,000/-....
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....ion for Interest on Housing Loan and Deduction u/s 80C. Mr. X, a Central Govt. Officers in Delhi, is receiving Basic Pay Rs.40,000, DA at prescribed rates, transport allowances @ Rs,3600+DA thereon, and HRA (existing- from Ist July 2021 @24% of basic pay (though living in his own house). His date of increment is 1st July. The following are other particulars of his income. Compute his taxable income and tax payable, for A.Y .2022-23 S.No. Particulars Rupees 1. Honorarium for valuation of answer books of a departmental Examination 3,000 2. Fee for work done for a private body (1/3rd of fees has been retained by Govt.) 6,000 3. Contributions to G.P.F. p.m. 4,700 4. Postal Life Insurance Premium financed from G.P.F. -m. 280 5. Contribution to Central Govt. Employees Group Insurance Scheme p.m. 500 6. Life Insurance Premium (being a Life Insurance Policy of Rs.1,00,000 taken in name of his wife before 1.04.2012) 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 Computat....
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.... Tax Liability Tax payable 4,030 Less : Rebate u/s 87A 4,030 Net Income-tax payable Nil Add : he/shealth & Education Cess @ 4% Nil Total Tax Payable Nil # 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. ANNEXURE-II 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 I) Name and address of employer : 2) TAN 3) TDS Assessment range of the employer: 4) Name, designation and PAN or Aadhaar number 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 thehe/shead "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.) Amou....
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.... ................. Annexure IIA FORM NO.12BB (See rule 26C) Statement showing particulars of claims by an employee for deduction of tax under section 192 1. Name and address of the employee: 2. Permanent Account Number or Aadhaar number of the employee: 3. Financial year: Details of claims and evidence thereof Sl. No. Nature of claim Amount (Rs.) Evidence / particulars (1) (2) (3) (4) 1 House Rent Allowance: (i) Rent paid to the landlord (ii) Name of the landlord (iii) Address of the landlord (iv) Permanent Account Number or Aadhaar number, as the ease may be, of the landlord 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) Inter....
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....ure (File format) prescribed by the DIT (Systems), Delhi which is available on TIN website www.tin-nsdl.com. The AOs can prepare Form 24G either by using in-house facilities, third party software or by using form 24G Return Preparation Utility (RPU) developed by NSDL e-Governance Infrastructure Limited (NSDL), which is freely downloadable from the TIN web-site www.tin-nsdl.com. After preparation of form 24G, the AO is required to validate the same by using the Form 24G File Validation Utility (FVU) which is freely available on TIN website. Once file is validated through FVU, 'fvu file' in CD/DVD/Pen Drive along with physical Statement Statistic Report (SSR) signed by the AO, to be furnished at TIN-FCs. On successful acceptance of Form 24G at the TIN-FC, an acknowledgement 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 ....
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....owledgement containing a 15 digit token number is generated and displayed to the AO. The format of the acknowledgement is identical to the one issued by the TIN-FC. There is no need to submit SSR and provisional receipt of original form 24G in online upload. 2. For FAQs and further details, AOs are advised to log on TIN website www.tin-nsdl.com ****** ANNEXURE IV Furnishing of Monthly Form No. 24G Statements by Pay and Accounts Officers (PAOs)/District Treasury Officers (DTOs)/Cheque Drawing and Disbursing Officers(CDDOs) 1. Under what income tax rule should Form 24G be filed? Income-tax Department Notification no. 41/2010 dated May 31. 2010 amended the Income Tax Rule 30 which mandates that in case of an office of the Government, where tax has 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/....
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.... TDS-Non Salary / TDS-Non Salary Non Residents / TCS made by each DDO under his jurisdiction. 7. Where should Form 24G be submitted? Form 24G is to be furnished only in electronic form in a CD/pen drive at TIN-FCs or online through AO Account at www.tin-nsdl.com web portal. The facility to submit Form No. 24G online is available free of cost. Provisional Receipt Number (PRN) is issued as an acknowledgement of the receipt of Form 24G. 8. How to register for online facility? Registration for AO Account is mandatory for filing Form No. 24G online through TIN website, www.tin-nsdl.com. Registration AO Account is required once only. AO required to submit the Form No. 24G at TIN-FC at least once to comply with the Know Your Customer (KYC) norms for registration 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 Provisiona....
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.... be saved on the local disk of the machine. JRE (Java Run-time Environment) [versions: SUN JRE: 1.4.2_02 or 1.4.2_03 or 1.4.2_04 or IBM JRE: 1.4.1.0] should be installed on the computer where Form 24G Preparation Utility is being installed. JRE is freely downloadable from http://java.sun.com and http://www.ibm.com/developrworks/java/jdk or you can ask your computer vendor (hardware) to install the same for you. Form 24G Preparation Utility can be executed on Windows platform(s) Win 2K Prof. / Win 2K Server/ Win NT 4.0 Server/ Win XP Prof. To run the _Form 24G Preparation Utility', click on the _24GRPU.bat' file. If JRE is not installed on the computer, then on clicking _24GRPU.bat', a message will be displayed. In such cases, install JRE and try again. 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 "HeIp" in the Form 24G Preparation Utility. This utility can be used for preparation of Form 24G with upto 75,000 r....
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....24G in html format. It contains all the details of Accounts Officer as well as Drawing and Disbursement Officer. There is no need to submit this file, 18. Can the Form 24G Statement be corrected? Every Form 24G is to be prepared in accordance with the data structure prescribed by the Income Tax Department (ITD). If it does not confirm to the new data structure it will be rejected by TIN. As per procedure, statements relating to Form 24G should be complete and correct. No fragmented statements are expected to be filed (i.e. separate statements giving details for deductions under different form type with respect to the same AIN, FY and month). However, any mistake made in an original accepted statement can be rectified by submitting a 'correction statemen'. 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 furni....
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....of the following: (i) Receipt Number: Receipt number is a seven digit unique number generated on successful acceptance of Form 24G. (ii) DDO Serial Number: It is a five digit unique number generated for every DDO transaction reported in Form 24G statement. (iii) Transfer Voucher Date: It is the last date of month for which Form 24G statement is filed. BIN is required to be disseminated to the respective DDOs who in turn are required to report the same in the TDS/TCS Statement. The quoting of BIN has been made mandatory w.e.f 01^st February, 2012. BIN is a unique number to verify the claim of TDS deposited without production of challan. As it is a verification key, it is advised that valid BIN disseminated by AO to the 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 qu....
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....n CD, DVD, Pen Drive), within 10 days from the end of the month, electronically either at TIN-FC or by direct online upload at TIN website. iv. To track status of the filed Form No. 24G through TIN website. v. To download Book Identification Number (BIN) generated on the basis of 24G statement. vi. To disseminate BIN to the respective DDOs. 29. What are the duties of DDOs? i. To provide correct TAN to their PAOs/DTOs/CDDOs to whom the DDO/Deductor reports the tax so deducted & who is responsible for crediting such sum to the credit of the Central Government. ii. To report to PAOs/DTOs/CDDOs, the details of tax deducted and credited to the Central Government account through book adjustment. 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 d....
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....nt/return, the Deductor/DDO is required to validate the same by using the File Validation Utility (FVU) which is freely available on TIN website. 2. Procedure of furnishing of e-TDS statement/return at TIN Facilitation Centres (TIN-FCs): Once file is validated through FVU, _.fvu file' is generated. Copy of this _.fvu file' in CD/DVD/Pen Drive along with physical Form 27A duly filled and signed by the Deductor/DDO or by the person authorized by the Deductor/DDO, to be furnished at TIN-FC, an acknowledgement containing a unique 15 digit token number is provided to the Deductor/DDO. Deductor/DDO can view the status of e-TDS statement/return on TIN website. Only one regular e-TDS statement/return for a _FY-Quarter-TAN -Form' can be submitted. 2.1 Correction in e-TDS statements/returns: 1.1.1 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 mat....
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....and signed by the Deductor/DDO can be furnished at TIN-FC. On successful acceptance of paper statement/return at the TIN-FC, an acknowledgment containing a unique 15 digit token no. is provided to the Deductor/DDO. Deductor/DDO can view the status of paper statement/return on TIN website. No charges are applicable for paper TDS statement/return. 4. Correction in paper statements/returns: The physical TDS statement/return is to be filed again in ease of any correction to a physical TDS statement/return accepted at TIN. The deductor will submit the duly filled and signed physical TDS statement/return along with a copy of provisional receipt of regular paper statement/return at TIN-FC. On successful acceptance of correction paper statement/return at the TIN-FC, an acknowledgement 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. 5. 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 b....
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....d 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 1^st January 2004 (except the armed forces in the first stage). The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central government. However, there will be no contribution form the Government in respect of individuals who are not Government employees. The contribution and investment returns would be deposited in a non-withdrawable pension tier-I account. The existing provisions of defined benefit pension and GPF would not 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....
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....- do - 7. President's Police Medal When awarded for acts of exceptional for gallantry courage displayed by members of police forces, Central police or security forces and certified to this effect by thehe/shead 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 servicehe/sheadquarters. 10. NaoSena Medal -do- 11. VayuSena 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 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, ....
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.... of the Employee/ Specified senior citizen PAN of Deductor TAN of the Deductor PAN of the Employee/ specificed senior citizen Employee Reference No./ Pension Payment order no. provided by the Employer (If available) CIT (TDS) Address ................................... ........................................ Assessment Year Period with the Employer From To City .......................... Pin Code ........................... Summary of amount paid/credited and tax deducted at source thereon in respect of the employee Quarter(s) Receipt Numbers of original quarterly statement of TDS under sub-section (3) of Section 200 Amount paid/credited Amount of tax deducted (Rs.) Amount of tax deposited/remitted (Rs.) Total (Rs.) 1. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT THROUGH BOOK ADJUSTMENT (the deductor to pro....
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....otal amount of salary received from other employer (s) Rs. ... 2. Less: Allowances to the extent exempt under section 10 (a) Travel concession or assistance under section 10(5) Rs. ... (b) Death-cum-retirement gratuity under section 10(10) Rs. ... (c) Commuted value of pension under section 10(10A) Rs. ... (d) Cash equivalent of leave salary encashment under section 10(10AA) Rs. ... (e) House rent allowance under section 10(13A) Rs. ... (f) Amount of any other exemption under section 10 Clause ... Rs. ... Clause ... Rs. ... Clause ... Rs. ... Clause ... Rs. ... Clause ... Rs. ... ... Rs. ... (g) Total amount of any other exemption under section 10 Rs. ... (h) Total amount of exemption claimed under s....
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....duction in respect of interest on loan taken for higher education under section 80E Rs. ... Rs. ... Gross Amount Qualifying Amount Deductible Amount (i) Total Deduction in respect of donations to certain fund, charitable institutions, etc. under section 80G Rs. ... Rs. ... Rs. ... (j) Total Deduction in respect of interest on deposits in savings account under section 80TTA Rs. ... Rs. ... Rs. ... (k) Amount deductible under any other provision(s) of Chapter VI-A Section ... Rs. ... Rs. ... Rs. ... Section ... Rs. ... Rs. ... Rs. ... Section ... Rs. ... Rs. ... Rs. ... Section ... Rs. ... Rs. ... Rs. ... Section ... Rs. ... Rs. ... Rs. ... Section ... Rs. ... Rs. ... Rs. ... ... Rs. ... Rs. ... Rs. ... (l) Total of amount deductible under any other provision(s) of Chapter VI-A Rs. ... Rs. ... Rs. ... 11. Aggregate of deductible amount under Ch....
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....n respect of life insurance premia, contributions to provident fund etc. under section 80C Rs. ... Rs. ... (b) Deduction in respect of contribution to certain pension funds under section 80CCC Rs. ... Rs. ... (c) Deduction in respect of contribution by taxpayer to pension scheme under section 80CCD(1) Rs. ... Rs. ... (d) Total deduction under section 80C, 80CCC and 80CCD (I) Rs. ... Rs. ... (e) Deductions in respect of amount paid/deposited to notified pension scheme under section 80CCD (1B) Rs. ... Rs. ... (b) Deduction in respect of health insurance premia under section 80D Rs. ... Rs. ... (e) Deduction in respect of interest on loan taken for higher education under section 80E Rs. ... Rs. ... Gross Amount Qualifying Amount Deductible Amount (f) Total Deduction in respect of donations to certain funds, charitable institutions, etc. under section 80G Rs. ... Rs. ... Rs. ... (g) Deduction in respect of interest on deposits in savings account under section 80TTB Rs. ... Rs. ... Rs. ... ....
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.... the year, certificate in Form No. 16 issued for the quarter ending on 31st March 2021 of the financial year shall contain the details of tax deducted and deposited for all the quarters of the financial year. 5. (i) If an assessee is employed under more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers. (ii) Part B (Annexure-I) of the certificate in Form No.16 may be issued by each of the employers or the last employer at the option of the assessee. (iii) Part B (Annexure-Il) of the certificate in Form 16 may be issued by the specified bank to a specified senior citizen. 6. In Part A, in items 1 and Il, in the column for tax deposited in respect of deductee, furnish total amount of tax, surcharge and health and education cess. 7. Deductor shall duly fill details, where available. in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.] ============= Document 1 E AG (State) D PAO/DTO A F CDDO CDDO C Sub Treasury Office DDO ....
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....)/Book (see note 6) Mode of TDS BSR deposit through Challan (C) Code/receipt number of form no. 24G (See note 8) Adjustment (B) (See Note 7) 37 Challan Serial No./DDO Serial no. of Form 24G (See Note 8) Date on which amount deposited through Minor Head of Challan (See Note 9) challan/Date of transfer voucher (SeeNote8) [301] [302] [303] [304] [305] [306] [30A] [308] [309] [310] [311] [312] 5. Details of salary paid and tax deducted thereon from the employees- (i) enclose Annexure I along with each statement having details of the relevant quarter; (ii) enclose Annexure Il along with the last statement, i.e.. for the quarter ending 31st March having details for the whole financial year. (iii) enclose Annexure III along with the last statement, i.e.. for the quarter ending 31st March having details for the whole financial year. Place:.. Date: Notes: Verification , hereby certify that all the particulars furnished above are correct andcomplete. Signature of the person responsible for deducting tax atsource Name and designation of th....
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....ower 197 issued by the (dd/mm/yyyy) 322, 323, deduction/ Assessing employer/ citizen senior 324) higher Officer for non- PPO citizen deduction [See deduction/lower Notes 1,2 and deduction number, if 31 available [315] [316] [31A] [318] [319] 320] [321] [322] [323] [324] [325] [326] [32A] [328] [329] [ à¤à¤¾à¤— 11-खणà¥à¤¡ 3 (i)] I, above are correct and complete. place: Date: Notes: à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° असाधारण Verification hereby certify that all the particulars furnished Signature of the person responsible for deducting tax at source Name and designation of the person responsible for deducting tax at source 1 Write "A" if certificate has been given by the Assessing Officer for deduction of tax at lower rate under section 197. PAN of employee is mandatory in such cases. 2 Write "B" if certificate has been given by the Assessing Officer for no deduction of tax under section 197. PAN of employee is mandatory in such cases. 3....
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.... (348) [à¤à¤¾à¤— II-खणà¥à¤¡ 3 (i)] à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° असाधारण 41 Income under Gross total income (351+352+ 354). Deduction in respect of life insurance premia. contributions to provident fund etc. under section 80C. Deduction in respect of contribution to certain pension funds under section 80CCC. Deduction in respect of contribution by taxpayer to notified pension scheme under section 80CCD(1) Total Total Income deduction deduction chargeable Income (or admissible PAN of lender, if the head under under under the head loss) from section section "Salaries" house 16(ii). 16(iii). [338+339- (347+348+ property reported by 349+350)]. employee offered for interest on housing loan is claimed under other sources offered for TDS as per section 192 (2B). section TDS as per section 192 (2B). 24(b) (see Note 4). Gross Deductible Gross Deductible Gross am....
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....rrent employer for the whole year [aggregate of the amount in columns 325 of Annexure I for all the quarters in respect of each employee]. Reported amount of tax deducted at source by other employer(s) or deductor(s) (income in respect of which included in computing total taxable income in column 339). Total (387) (388) (389) (390) Notes: 1. Salary includes wages, annuity, pension, gratuity (other than exempted under section 10(10), fees, commission, bonus, repayment of amount deposited under the Additional Emoluments (Compulsory Deposit) Act, 1974 (37 of 1974), perquisites, profits in lieu of or in addition to any salary or wages including payments made at or in connection with termination of employment, advance of salary, any payment received in respect of any period of leave not availed (other than exempted under section 10 (10AA), any annual accretion to the balance of the account in a recognised provident fund chargeable to tax in accordance with rule 6 of Part A of the Fourth Schedule of the Income-tax Act, 1961, any sums deemed to be income received by the employee in ....