TaxTMI 
TaxTMI 
Income-Tax Deduction From Salaries During The Financial Year 2022-23 Under Section 192 of The Income-Tax Act, 1961.
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....orms 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 What is salary? As per section 15 of the Act, the following incomes are 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 pai....
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....p; 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" (whether due from or paid or allowed by, one or more employers), exclusive of the value of all benefits or amenities not provided for 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)(i....
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....ature 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. However, the following are not included as perquisite,- (i) the value of any medical treatment provided to an employee or any member of his family in any hospital maintained by the employer; (ii) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family- (a) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees; (b) in respect of the prescribed diseases or ailments, in any hospital approved by the Principal Chief Commissioner or Chief Commissioner having regard to the prescribed guidelines; [(c) in respect of any illness relating to COVID-19 subject to such conditions as the Central Government may, by noti....
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....s. 10,00,000/-. Rs. 1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-. B. Rates of tax for every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year: Sl No Total Income Rate of tax 1 Where the total income does not exceed Rs. 3,00,000/- Nil; 2 Where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000/- 5 per cent of the amount by which the total income exceeds Rs. 3,00,000/-; 3 Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 10,000/- 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. 1,10,000/- 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 exce....
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....chargeable under section 111A, section 112 and section 112A of the Income-tax Act, the rate of surcharge on the amount of Income-tax computed in respect of that part of income shall not exceed fifteen per cent.: Provided further that in the case of persons mentioned above having total income exceeding, - (a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees; (b) one crore rupees but does not exceed two crore rupees, the total amount payable as incometax 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 incometax 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 th....
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....ving income from business or profession, such person is required to exercise the option in prescribed manner on or before the due date specified under such-section (1) of section 139 of the Act for any previous year relevant to assessment year commencing on or after 01.04.2021 and such option once exercised shall apply to subsequent assessment years. However, in case of such persons, the option once exercised can be withdrawn only once and such person shall never be eligible to exercise the option again unless such person ceases to have income from business or profession. 3. Section 192 of the the Income-tax Act, 1961: Broad scheme of Tax Deduction at Source from "Salaries" 3.1 Method of Tax Calculation Every person who is responsible for paying any income chargeable under the head "Salaries" shall deduct income-tax on the estimated income of the assessee under the head "Salaries" for the financial year 2022-23. The income-tax is required to be calculated on the basis of the rates given in para 2 above, subject to the provisions related to requirement to furnish PAN or Aadhaar number, as the case may be, as per sec 206AA of the Act, and....
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....; Perquisites are divided in two parts i.e. monetary perquisites and non-monetary perquisites. Monetary perquisites are taxable for all employees and non-monetary perquisites are taxable in the hands of specified employees. The following employees are deemed as specified employees: 1) A director-employee 2) An employee who has substantial interest (i.e. beneficial owner of equity shares carrying 20% or more voting power) in the employer-company 3) An employee whose monetary income under the salary exceeds Rs.50,000. The taxable value of perquisites can be determined on the basis of specific rules for valuation of certain perquisites as laid down in Rule 3 of the Income-tax Rules 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. As per Section 10(10CC) of the Act, the tax paid on such non-monetary perquisites by the employer is exempt from tax in the hands of the employee. However, the employer will have to pay the tax at the....
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....being paid in arrear or advance as a result of which, his total income is assessed at a higher rate than that at which it would otherwise have been assessed. Such an assessee can make an application to the Assessing Officer who shall grant relief in the prescribed manner. Rule 21A of the Rules provide the manner for computation of such relief. 3.5.2 Under section 192(2A) where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university, institution, association or body is entitled to the relief under Section 89, he/she may furnish to the person responsible for making the payment referred to in Para (3.1), such particulars in Form No. 10E (Rule 21AA of the Income tax Rules) duly verified by him, and thereupon the person responsible, as aforesaid, shall compute the relief on the basis of such particulars and take the same into account in making the deduction under Para(3.1) above. Further, such assessee shall upload the aforesaid Form 10E electronically in the e-Filing portal along with the return of income. 3.5.3 Here "university" means a university e....
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.... person responsible for making the payment, to obtain the evidence or proof of the prescribed claims, including claim for set-off of loss. While taking into account the loss from House Property, the DDO shall ensure that the employee files the declaration referred to above and encloses therewith a computation of such loss from house property. Following details shall be obtained and kept by the employer in respect of loss claimed under the head "Income from House Property" separately for each house property: a) Gross annual rent/value b) Municipal Taxes paid, if any c) Deduction claimed for interest paid, if any d) Other deductions claimed e) Address of the property The DDO shall also ensure furnishing of the evidence or particulars in Form No. 12BB in respect of deduction of interest as specified in Rule 26C read with section 192 (2D). 3.7.1 Conditions for claim of deduction of interest on borrowed capital for computation of Income from House Property [section 24(b)] Section 24(b) of the Act allows deduction from income from houses property on interest on borrowed capital as under : i. the deduction is allowed only in c....
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....wever, in case of other lenders, obtaining of PAN or Aadhaar number is mandatory by the DDO. 3.8 Adjustment for Excess or Shortfall of Deduction The provisions of Section 192(3) allow the deductor to make adjustments for any excess or shortfall in Tax deduction arising out of any previous deduction or failure to deduct during the financial year. 3.9 Salary Paid in Foreign Currency For the purposes of deduction of tax on salary payable in foreign currency, the value in rupees of such salary shall be calculated at the "Telegraphic transfer buying rate" of such currency as on the date on which tax is required to be deducted at source (see Rule 26 and Rule 115). 4. Persons Responsible For Deducting Tax And Their Duties Section 204 of the Act explains the meaning of the expression "Person responsible for paying". As per Clause (i) of section 204, in the case of payment of Salary, other than payments by the Central Government or the State Government, the "person responsible for paying" for the purpose of Section 192 means the employer himself or if the employer is a Company, the Company itself including the Principal....
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....to be reported in Quarterly Statement of TDS (Form 24Q). 4.3 Deposit of Tax Deducted As per section 200 of the Act, any person responsible for deducting any sum has to pay within the prescribed time, the sum so deducted to the credit of the Central Government. Rule 30 prescribes time and mode of payment of tax deducted at source to the account of Central Government. 4.3.1 Due dates for payment of TDS Prescribed time of payment/deposit of TDS to the credit of Central Government account is as under: In case of deduction by an Office of Government: Sl No. Description Time up to which the tax deducted is to be deposited 1 Tax deposited without Challan [Book Entry] same day 2 Tax deposited with Challan 7th day of next month 3 Tax on perquisites opted to be deposited by the employer. 7th day of next month In case of deduction by deductor other than an Office of Government Sl No. Description Time up to which to be deposited. 1 Tax deducted in March 30th April next financial year 2 Tax deducted in any other month 7th day of next month 3 Tax on perquisites opted to be deposited by the employe....
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...., a sum which shall be Rs.500/- 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 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 Govt. Departments is shown at Annexure V. 4.4.2 Payment by an Income Tax Challan (i) In case the payment is made by an income-tax challan, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it, within the time specified in Table in para 4.3.1 above, into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank; (ii) In case of a company and a person (other than a company), to whom provisions of section 44AB are applicable, the amount deducted shall be electronically remitted into the Reserve Bank of India or the State Bank of Ind....
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.... penalty, a sum equal to the amount of tax not deducted or paid by him. 4.5.5 Further, section 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 proviso to Section 194B, he/she shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine. 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 Form 16 should be furnished to the employee by 15th June after the end of the financial year in which the income was paid and tax deducted. Even the banks deducting tax at the time of payment of pension are required to issue such certificates. 4.6.2 The certificate in Form 16 shall specify the following: (a) Valid permanent account number (PAN) or Aadhaar number, as the case may be, of the deductee; (b)&nbs....
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....xemptions and deductions. 4.6.6 Vide CBDT notification 36/2019 dated 12.04.2019, Income-Tax (3rd Amendment Rules) 2019 were notified in which the 'Part-B (Annexure)' of Form 16 under Appendix-II of the Income Tax Rules, was modified. Form 16 has been further modified vide Income-tax (26th Amendment) Rules, 2021 notified on 02.09.2021. The modified Form 16 is placed at Annexure XI of this TDS Circular. 4.6.7 Following points are to be kept in mind while filling amended Form 16: 1. Government deductors are required to fill information in item I of Part A if tax is paid without production of an income-tax challan and in item II of Part A if tax is paid accompanied by an income-tax challan. 2. Non-Government deductors are to fill information in item II of Part A. 3. The deductor shall furnish the address of the Commissioner of Income-tax (TDS) having jurisdiction as regards TDS statements of the assessee. 4. If an assessee is employed under one employer only during the year, certificate in Form No. 16 issued for the quarter ending on 31st March of the financial year shall contain the details of tax deduc....
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....and downloaded from the TRACES portal]. 4.6.8 Certain essential points regarding the filing of the Statement in Form 24Q are mentioned below: a. The employer should quote the gross amount of salary (including any amount exempt under section 10 and the deductions under chapter VI A) in column 321 (Amount paid/credited) of Annexure I of Form 24Q as per NSDL RPU (hereafter Return Preparation Utility) and mentioned codes as per Form 24Q of IT Rules, 2022. b. The employer should quote the amount of salary excluding any amount exempt under section 10 in column 338 (Total amount of gross salary) of Annexure II of Form 24Q as per NSDL RPU. c. The reason for non-deduction, lower rate of deduction (as provided under section 197) or higher rate of deduction(on account of non-furnishing of PAN by the deductee) has to be mentioned in column 328 of Annexure I of Form 24Q. d. The total amount of salary received from other employer(s) to be quoted in column 339 of Annexure II of Form No. 24Q. e. Employer is advised to quote Total Taxable Income (Column 380) in Annexure II without rounding-off and TDS should be deducted an....
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....here issuance of certificate of deduction of tax with manual signature is time consuming (Circular no 2 of 2007 dated 21.05.2007) 4.7 Furnishing of particulars pertaining to perquisites, etc. - Section 192(2C) 4.7.1 As per section 192(2C), the person responsible for paying income chargeable under the head "Salary" shall be responsible for providing correct and complete particulars of perquisites or profits in lieu of salary to the employee. The form and manner of such particulars are prescribed in Rule 26A i.e Form 12BA (placed as Annexure II) and Form 16 of the Rules. Information relating to the nature and value of perquisites, other fringe benefits or amenities and profits in lieu of salary is to be provided by the employer in Form 12BA in case the salary paid or payable is above Rs.1,50,000/-. In other cases, the information would have to be provided by the employer in Form 16 itself. It may be noted that Form 12BA is to be furnished in addition to Form 16 to the employee whose salary is more than one lakh and fifty thousand rupees. 4.7.2 An employer, who has paid the tax on perquisites on behalf of the employee as per th....
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....e Rules. Form 12BB is enclosed as Annexure IIa. 4.8 Mandatory Quoting of PAN or Aadhaar number as the case may be and TAN 4.8.1 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) in the challans, TDS-certificates, statements and other documents. Detailed instructions in this regard are available in this Department's Circular No.497 [F.No.275/118/ 87-IT(B) dated 01.10.1987]. If a person fails to comply with the provisions of section 203A, he/she will be liable to pay, by way of penalty, under section 272BB, a sum of ten thousand rupees. Similarly, as per Section 139A(5B), it is obligatory for persons deducting tax at source to quote PAN or Aadhaar number as the case may be, of the persons from whose income tax has been deducted in the statement furnished u/s 192(2C), certificates furnished u/s 203 and all statements prepared and delivered as per the provisions of section 200(3) of the Act. 4.8.2 All tax deductors are required to file the TDS statements in Form No.24Q (for tax deducted from salaries). As the requirement of filing ....
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....rently managed by M/s National Securities Depository Ltd (NSDL) or at www.incometaxindiaefiling.gov.in after registering as Deductor. Particulars of e-TDS Intermediary at any of the TIN Facilitation Centres are available at http://www.incometaxindia.gov.in and http://tin-nsdl.com portals. The requirement of filing an annual return of TDS has been done away with w.e.f. 1.4.2006. The quarterly statement for the last quarter filed in Form 24Q (as amended by Notification No. S.O.704(E) dated 12.5.2006) shall be treated as the annual return of TDS. Due dates of filing this statement quarter wise is as in the Table below: TABLE: Due dates of filing Quarterly Statements in Form 24Q Sl. No. Date of ending of quarter of financial year Due date 1 30th June 31st July of the financial year 2 30th September 31st October of the financial year 3 31st December 31st January of the financial year 4 31st March 31st May of the financial year immediately following the financial year in which the deduction is made. 4.10.2 The statements in Form 24Q may be furnished in paper form or electronically under digital signature or along with verification....
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....tement. At the time of preparing statements of tax deducted, the deductor is required to: (i) mandatorily quote his tax deduction and collection account number (TAN) in the statement; (ii) mandatorily quote his permanent account number (PAN) or Aadhaar number as the case may be, in the statement except in the case where the deductor is an office of the Government (including State Government). In case of Government deductors ―PANNOTREQD to be quoted in the e-TDS statement; (iii) mandatorily quote of permanent account number PAN or or Aadhaar number as the case may be, of all deductees; (iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be. (v) furnish particular of amounts paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax u/s 197 by the assessing officer of the payee. 4.14 TDS on Income from Pension 4.14.1 As per section 17(1)(ii) of the Income-tax Act, 1961, the term 'salary' includes pension. In the case o....
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.... for claiming deduction under Chapter VI-A shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required. [Notification No. 99/2021/F.No.370142/11/2021-TPL dated 2-9-2021 [G.S.R. 612(E)]]. 4.14.4 A specified Bank means a banking company which is a scheduled bank and has been appointed as agents of Reserve Bank of India under section 45 of the Reserve Bank of India Act, 1934 (2 of 1934). [Notification No. 98/2021/F.No. 370142/11/2021-TPL dated 2-92021 [S.O. 3595(E)]]. 4.15 Matters pertaining to the TDS made in case of Non-Resident 4.15.1 Under section 192 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. This section does not distinguish between the salary paid to a resident or a non resident. Hence all payments taxable under the head Salaries are liable for deduction of TDS irrespective of the residential status of the recipient. 4.15.2 In respect of non-residents, the salary paid for servi....
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.... a house, flat, farm house or part thereof, hotel accommodation, motel, service apartment, guest house, a caravan, mobile home, ship or other floating structure. The value of perquisites for unfurnished, furnished or hotel accommodation provided by different category of employers is detailed below: a) Rent-free unfurnished accommodation: The accommodation is divided into two categories: (i) Accommodation provided by the Central Government or any State governments: The value of perquisite shall be equal to the license fee determined by the Central Government or any State Government as reduced by the rent actually paid by the employee. (ii) Accommodation is provided by any other employer: * The valuation of perquisite in respect of accommodation would be at prescribed rates, as discussed below: * Where the accommodation provided to the employee is owned by the employer: Sl No Cities having population as per the 2001 census Value of the Perquisite 1 Exceeds 25 lakh 15% of salary 2 Exceeds 10 lakhs but does not exceed 25 lakhs 10% of salary 3 For other places 7.5 % of salary * Where the accommodation so provided is take....
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....al hire charges payable for the same as reduced by any charges paid or payable for the same by the employee. (ii) Accommodation is provided by any other employer: The value of perquisite shall be as determined for unfurnished accommodation and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee. It is added that where the accommodation is provided by the Central Government or any State Government to an employee who is serving on deputation with anybody or undertaking under the control of such Government, - (i). the employer of such an employee shall be deemed to be that body or undertaking where the employee is serving on deputation; and (ii). the value of perquisite of such an accommodation shall be the amount calculated in accordance with Table in Para (a)(ii) above, as if the accommodation is owned by the employer. c) Furnished Accommodatio....
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.... for official purposes; * The employer gives a certificate that the expenditure was incurred wholly and exclusively for performance of official duties. b) In case the motor car is exclusively for private or personal purposes of the employee or any member of his household the value of perquisite shall be, the actual expenditure incurred by the employer on the running and maintenance of motor car including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car (10% per annum of the actual cost of the motor-car) and as reduced by any amount charged from the employee for such use. c) 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, and * the expenses on maintenance and running of motor car are met or reimbursed by the employer, the value of perquisite will be Rs. 1800/- (plus Rs. 900/-, if chauffeur is also provided) per month for motor car where cubic capacity of engine does not exceed 1.6 litres. However, the value of perquisite will be Rs. 2400/- (plus Rs. 900/-, if chauffeu....
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....the employer, no perquisite shall be chargeable to tax if the reimbursement is for the use of the vehicle wholly and exclusively for official purposes. However, if the reimbursement is for the use of vehicle partly for official or partly for private purposes then the amount of perquisite shall be the actual expenditure incurred by the employer as reduced by the amount of Rs 900. In both the cases 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 for official purposes; * The employer gives a certificate that the expenditure was incurred wholly and exclusively for performance of official duties. (IV) In case where one or more motor-cars are owned or hired by the employer and the employee or any member of his household are allowed the use of such motor-car or all of any of such motor-cars (otherwise than wholly and exclusively in the performance of his duties), the value 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 perfo....
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....n of his being in employment of that employer, the value of perquisite shall be taken as Nil if the cost of such education or the value of such benefit per child does not exceed one thousand rupees per month. (F) 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/her 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 an airline or the railways. (G) Interest free or concessional loans [Rule 3(7)(i)] The 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 intere....
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....ay or vacation, reduced by the amount paid or recovered from the employee for such perquisite. (I) Value of Subsidized / Free food / non-alcoholic beverages provided by employer to an employee [Rule 3(7)(iii)] The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer, as reduced by the amount paid or recovered from the employee. For the following the value shall be treated as NIL: (a) free food and non-alcoholic beverages provided during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof does not exceed fifty rupees per meal, or (b) tea or snacks provided during working hours, or (c) free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation Vide Notification no. G.S.R. 415(E) dated 26.06.2020, 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....
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....sses of employee by the employer are exempt. (M) Use of assets [Rule 3(7)(vii)] The value of perquisite of a movable asset (other than laptops and computers and those referred in other sub rules of rule 3) owned by the employer and used by the employee or any member of his/her household shall be calculated at 10% per annum of the actual cost of the asset or the amount of rent paid/payable by the employer as reduced by any charges recovered from the employee for such use. (N) Transfer of assets [Rule 3(7)(viii)] The value of perquisite arising from transfer of any movable asset belonging to the employer directly or indirectly to the employee or any member of his/her household shall be the actual cost of such asset to the employer as reduced by the following: (a) cost of normal wear and tear @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)(viii)]: The value of any other benefit or a....
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....approved by the Central Government or IRDA, for the purpose of section 80D. (e) any expenditure incurred by the employer * on medical treatment of the employee (or any member of his/her family) outside India * on travel & stay abroad of the employee (or any member of his/her family) for medical treatment * on travel and stay abroad of one attendant who accompanies the patient. However, the expenditures on medical treatment abroad are excluded from perquisites subject 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. "Family" in relation to an individual, shall have the same meaning as in clause (5) of section 10. It means the spouse and children of the individual and the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual. "....
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....ions applicable to the members of the defence service is exempt. Gratuity received in cases other than those mentioned above, on retirement, termination etc is exempt up to the limit as prescribed by the Board. Presently the limit is Rs. 20 lakhs w.e.f. 29.03.2018 [Notification No. 16/2019/F. No. 200/8/2018-ITA-I dated 08.03.2019] 5.3.3 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 Section10(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, a....
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....d. 5.3.5 Under Section 10(10B), the retrenchment compensation received by a workman is exempt from income-tax subject to certain limits. The maximum amount of retrenchment compensation exempt is the sum calculated on the basis provided in section 25F(b) of the Industrial Disputes Act, 1947 or any amount not less than Rs.50,000/- as the Central Government may by notification specify in the Official Gazette, whichever is less. These limits shall not apply in the case where the compensation is paid under any scheme which is approved in this behalf by the Central Government, having regard to the need for extending 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 after 1.1.1997 as specified in Notification No. 10969 dated 25-06-1999. 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....
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.... after 1.4.2013 in cases of persons with disability or person with severe disability as per Sec 80U or suffering from disease or ailment as specified in Sec 80DDB, in respect of which the premium payable for any of the years during the term of the policy exceeds 15 percent of the actual capital sum assured. However, any sum received under such policy referred to in (iii), (iv) and (v) above, on the death of a person would be exempt. The said clause was amended by the Finance Act, 2021 to provide that: (a) with effect from 1st February, 2021, the sum received under a Unit Linked Insurance Policy (ULIP) issued on or after 1st February, 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 1st February, 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 pe....
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....der the said clause will not be applicable to the income by way of interest accrued during the previous year in the account of a person to the extent it relates to the amount or the aggregate of amounts of contribution made by that person exceeding prescribed threshold limit two lakh and fifty thousand rupees in any previous year in that fund, on or after the 1st day of April, 2021 and computed in prescribed manner. Second proviso to clause (12) of section 10 provides that if the contribution by such person in a fund in which there is no contribution by the employer of such person, the threshold limit would be five lakhs rupees. 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. It is clarified that the threshold limit shall mean:- (i) five lakh rupees, if the second proviso to clause (11) or clause (12) of section 10 is applicable; and (ii) two lakh and fifty thousand rupees in other cases. (Ref: Notification No. 95/2021 G.S.R.604(E) Dated 31st August, 2021) 5.3.10 Under section 10(13A) of the Act, any....
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.... under the head income from salary. For example, no exemption is provided in rule 2BB for the training allowance paid for the posting in any training institute. Hence whole of the training allowance shall be included in the salary. The CBDT has prescribed guidelines for the purpose of Section 10(14) (i) & 10 (14) (ii) vide notification No.SO 617(E) dated 7th July, 1995 (F.No.142/9/95-TPL) which has been amended vide notification SO No.403(E) dt 24.4.2000 (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 upto Rs. 3200 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 Centra....
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....ime under section 115BAC of the Act shall be entitled exemption only in respect of the following allowances: (a) Transport Allowance granted to an employee who is blind or deaf and dumb or orthopedically handicapped with disability of lower extremities to meet expenditure for the purpose of commuting between place of his residence and place of his duty; (b) Any allowance granted to meet the cost of travel on tour or on transfer; (c) Any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty; (d) Any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit subject to the condition that the free conveyance is not provided by the employer." Please Note: A. With regard to section 194S of the Income-tax Act, 1961 (TDS on transfer of Virtual Digital Asset) kindly refer to the Circular No. 13 of 2022 dated 22nd June 2022 on the subject, "Guidelines for removal of difficulties under sub-section (6) of section 194S of the Inco....
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....n as is referred to in item (7) herein below on the life of the individual, the spouse or any child of the individual, provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; (3) Any sum deducted from the salary payable by, or, on behalf of the Government to any individual, being a sum deducted in accordance with the conditions of his service for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum deducted does not exceed 1/5th of the salary; (4) Any contribution made: (a) by an individual to any Provident Fund to which the Provident Fund Act, 1925 applies; (b) to any provident fund set up by the Central Government, and notified by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name of an individual, or spouse or children; [The Central Government has since notified Public Provident Fund vide Notification S.O. No. 1559(E) dated 3.11.05] (c) by an employee to a Recognized Provident Fund; (d) by an employ....
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.... vide Notification S.O. No. 847(E) dated 1.6.2006, Jeevan Akshay-VI vide Notification S.O. No. 1184(E) dated 19.05.2010 and Jeevan Akshay-VII vide Notification S.O. No. 5056(E) dated 06.12.2021] (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 Undertaking & Repeal) Act, 2002 under any plan formulated in accordance with any scheme as the Central Government, may, by notification in the Official Gazette, specify in this behalf; [The Central Government has since notified the Equity Linked Saving Scheme, 2005 for this purpose vide Notification S.O. No. 1563(E) dated 3.11.2005] The investments made after 1.4.2006 in plans formulated in accordance with Equity Linked Saving Scheme, 1992 or Equity Linked Saving Scheme, 1998 shall also qualify for deduction under section 80C. (9) Any contribution made by an individual to any pension fund set up by any Mutual Fund referred to in section 10(23D), or, by the Administrator or the specified company defined in Unit Trust of India (Transfer of Undertaking & Repeal) Act, 2002, as the Central Government....
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....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 cooperative society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act. Payment towards the purchase of house property shall include the stamp duty, registration fee and other expenses but shall not cover admission fee or cost of share or initial deposit or the cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the completion certificate by competent authority, or after the occupation of the house by the assessee or after it has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Act will also not be included in pa....
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....er 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) 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 clause. Explanation.-For the purposes of this clause, "specified account" means an additional account referred to in sub-section (3) of section 20 of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013). B. Section 80C(3) & 80C(3A) states that in case of Insurance Policy other than contract for a deferred annuity the amount of any premium or other payment made is restricted to: Policy issued before 1st April 2012 20% of the actual capital sum Assured Policy issued on or after 1st April 2012 10% of the actual capital sum Assured Policy issued on or after 1st April 2013 * - In cases of persons with disability or person with severe disabi....
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....fied vide Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 National Pension System-NPS or as may be notified by the Central Government. However, the deduction shall not exceed an amount equal to 10% of his salary (includes Dearness Allowance but excludes all other allowance and perquisites) in the case of an employee and 20% of his gross total income in any other case. 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 year in his account under the pension scheme notified or as may be notified by the Central Government, which shall not exceed Rs. 50,000. The deduction of Rs. 50,000 shall be allowed whether or not any deduction is allowed under sub-section(1). However, the same amount cannot be claimed both under sub-section (1) and sub-section (1B) of section 80CCD. As per Section 80CCD(2), where any contribution in the said pension scheme is made by the Central Government or the State Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or a....
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.... shall be the income of the employee or his nominee for that Financial Year and accordingly will be charged to tax. Further, the amount received by the nominee, on the death of the assessee, on closure or opening of the pension 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, it has been specified that w.e.f 01.04.09 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 80 CCD(1B) is an additional deduction in respect of any amount paid in the NPS upto Rs. 50,000/-. However, the contribution made by the Central Government or any other employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of Rs. 1,50,000/- provided un....
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....mount 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 dependents 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 Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in this regard and approved by the Board in this behalf for the maintenance of a dependent, being a person with disability, the employee shall be allowed a deduction of a sum of Rs 75,000/- from ....
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....anner, is obtained. b. 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 cer....
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....d Multiple Disabilities Act, 1999; (f) "Person with disability" means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or clause (j) of section 2 of the National Trust for Welfare of 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. 5.5.6 Deduction in respect of medical treatment, etc. (Section 80DDB): Section 80DDB allows a deduction in cas....
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....ablished for charitable purposes and approved by the prescribed authority section 10(23C), or an institution referred to in section 80G(2)(a); (b) "financial institution" means 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); 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; 5.5.8 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 ....
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....plies, or any bank or banking institution referred to in section 51 of that Act and includes any deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company as defined in clauses (e) and (g) of Explanation 4 to section 43B. The amount of this deduction shall not exceed Rs. 1,50,000/- and it shall be allowed in computing the total income of the individual for the assessment year 2020-21 and subsequent assessment years. 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. 5.5.10 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 issu....
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....ations for scientific research or rural development (Section 80 GGA): Section 80GGA allows deduction from total income of employee in respect of donations of any sum as given in the Table below: Sl No Donations made to persons Approval /Notification under Section Authority granting approval/Notification 1. A research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research u/s 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 u/s 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 u/s 35CCA (2) Prescribed Authority under Rule 6AAA 4. An association or institution which has as its object the training of per....
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....es, the whole of such amount; and (ii) in any other case, ten thousand rupees. The deduction is available if such savings account is maintained in a- (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) Post Office as defined in clause (k) of section 2 of the Indian Post Office 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 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 ....
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....rovided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during the period, if that period is less than three years, when he/she was member of the fund. The deductor shall remain liable to deduct tax on any sum paid on account of returned contributions (including interest, if any) even if a fund or part of a fund ceases to be an approved Superannuation fund. 7.3 As per section 192A of the Act, w. e. f. 01.06.2015 the trustees of the EPF Scheme 1952 framed under section 5 of the EPF & 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 @ 10% if the amount of such payment or aggregate of such payment exceeds Rs 50,000. In case the employee does not provide his/....
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....on for leave travel concession or assistance before allowing the said exemption. The relevant form for furnishing details by employee is Form 12BB. It may be noted that the DDOs shall allow income-tax exemption as referred to in Para 5.3.1 after obtaining copies of invoices of specified expenditure incurred during the specified period. 9. Calculation of income-tax to be deducted: 9.1 Salary income for the purpose of section 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 & 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 ....
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.... ANNEXURE-I SOME ILLUSTRATIONS# Example 1 For Assessment Year 2023-24 (A) Calculation of Income tax in the case of an employee (Male or Female) below the age of sixty years and having gross salary income of: i) Rs.2,50,000/-, ii) Rs.6,00,000/-, iii) Rs.10,50,000/- iv) Rs.55,50,000/-. and v) Rs. 1,10,50,000/- (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) 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 3....
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....yment 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 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/- &nb....
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....ion of perquisite and calculation of tax in the case of an employee below age of sixty years of 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(b) Perquisite for hotel: Lower of (24% of salary of 2 months=Rs 33,600) an....
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....bsp; 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 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 2023-24 A. Calculation of Income tax in the case of a retired employees 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/-. B What will be the amount of TDS in case of above employees, if PAN@ is not submitted by them ....
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....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.2023-24 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 (1/3 rd 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. p.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 Computation of Tax S.No. Particulars Rupees 1. Income from Salary Basic Pay @ Rs 40,000 p.m (March to June '22) 1,60,000 @ Rs 41,200 p.m * (July 2022 to Feb 2023) 3,29,600 4,89,600 Dearness Allowance(assumed) 1....
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....f 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.) 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 14 Transfer....
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.... (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) ............... ..... (e) ............... ..... (f) ............... ..... (g) ............... ..... (ii) Section 80CCC (iii) Section 80CCD (B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A. (i) section................... (ii) section................... (iii) section................... (iv) section................... (v) section...................  ....
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....at 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 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. 2. Online upload of Form 24G at TIN websites: For online upload of Form 24G at TIN website, the Accounts Office Identification Number (AIN) is a pre-requisite. For online AIN registration, AO need to file at least one Form 24G through TIN-FC. After AIN registration, AO can file Form 24G through AO Account at TIN website. Preparation and validation of correction Form 24G is in line with regular Form 24G (submitted at TIN-FC). The validated Form 24G correction file (.fvu file) is to be uploaded at TIN website. There is no need....
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....trict 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 and AO? Ordinarily, the PAO office is the one to whom the DDO reports the TDS and therefore, both should be from different offices. However, where the DDO and AO are the same, as in the case of CDDOs, the statistics report of Form 24G should be counter signed by his superior officer. 4. What is AIN and who should apply? Accounts Office Identification Number (AIN) is a unique seven digit which is allotted by the Directorate of Income Tax (Systems), Delhi, to every AO. Each AO is uniquely identified in the system by this number. AOs are required to apply for AIN with jurisdictional TDS office. The AIN application can be downloaded from TIN site. Every AIN holder is required to file Form 24G. Each D....
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....nline . 12. What does Form 24G contain? Every Form 24G should be prepared in accordance with the data structure prescribed by the Income Tax Department (ITD). 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 being filed). - Payment summary; nature of deduction wise (TDS - Salary /TDS Non-salary / TDS - Non-salary Non-resident / TCS). - DDO wise payment details (TAN of DDO, name, demographic details, total tax deducted and remitted to the Government account (A.G. / Pr.CCA). - DDOs which are associated with the AO. If the AO wants to add/delete or update details of DDO, same should be mentioned in the statement. 13. What is the procedure to prepare the Form 24G statement? The AOs can prepare Form 24G either by using in-house facilities, third party software or by using Form 24G Preparation Utility developed by NSDL, which is freely downloadable from the TIN web-site (www.tin-nsdl.com) or ITD website (www.incometaxindia.gov.in). Once the statement is prepared, the AO shall....
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....ite. 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 (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 the Form 24G FVU is being installed. JRE is freely downloadable from http://java.sun.com and http://www.ibm.com/developer works/java/jdk or you can request your computer vendor (hardware) to install the same for you. The Form 24G FVU setup comprises of two files, namely- - Form 24G FVU.bat: This is a setup program for installation of FVU. - Form 24G_FVU_STANDALONE.jar: This is the FVU program file. These files are in an executable zip file (Form24GFVU) (version 1.2). These files are required for installing the Form 24G FVU. Instructions for extracting and setup are given in: - Form 24G FVU Extract and Setup 17. After preparation of Form No. 24G st....
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....nd 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 "Receipt number of Previous Statement". 20. What is M -Type of Correction Statement? This type of correction statement is to be furnished by AO, if it wishes to update any of its details like its name, address, Responsible person details, category, Ministry, State or deletion and addition of DDO (Drawing & Disbursing Officer) etc. Modifications in AIN (Account office Identification Number), Financial Year and Month are not allowed. There are three modes by which changes can be made in the DDO details provided in original Form 24G statement: - Add: DDO records can be added to the original Form 24G statement - Update: details of DDO (i.e. TAN, TAN Name, demographic and contact details, amount of tax deducted and remitted, nature of deduction) can be updated for the DDO records provided in original or subsequent correction statement - Delete: DDO records provided in original Form 24G or subsequent correc....
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....come 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 Tax deducted and remitted or nature of deduction. - BIN details will not be generated for deleted DDO records. 26. What is the utility of BIN? The BIN details and amount of TDS reported in the quarterly TDS/TCS Statement filed by the DDO will be matched with the respective details filed in Form No.24G filed by the PAO for verification purpose. 27. Are there instances where BIN details and amount of TDS reported in TDS/TCS statements do not match with that reported in Form 24G? What are the consequences of such mismatch? (i) Instances of wrong/incorrect reporting of BIN by the DDOs in the TDS/TCS Statement have been observed. Reporting of incorrect BINs and corresponding amount in TDS statement will lead to mismatch with the respective amount as reported in the Form No. 24G. In this situation, the corresponding deductees may not get credit of the TDS/TCS. Therefore, the BIN as disseminated by the respective PAO should be reported correctly along with the corresponding amount in the TDS/TCS Statement filed by the D....
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....9; of Form 16 for salary details. 32. Is there any scenario where the DDO is also required to obtain the AIN? Yes, if the deductor is in the capacity of CDDO and directly reports tax deduction through transfer voucher to State AG, in that case CDDO is required to obtain the AIN and file 24G for the respective book adjustment entries and then also required to file the TDS/TCS statement as a TAN holder. For example in the case of Executive Engineer in state Government who are making payments to the contractors after deducting the TDS/TCS through cheque are liable to file Form 26Q for reporting such TDS transactions. They will be required to obtain the AIN and file form 24G for monthly reporting of these book adjustment entries and file quarterly TDS statements as TAN holder by quoting the corresponding BINs. *** 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 ....
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....vailable on TIN website www.tin-nsdl.com. Deductor/DDO can prepare e-TDS statement/return either by using in-house facilities, third party software or by using Return Preparation Utility (RPU) developed by NSDL e-Governance Infrastructure Limited (NSDL), which is freely downloadable from the TIN website. After preparation of e-TDS statement/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 TINFC, 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: 2.1.1 CPC-TDS portal (www.tdscpc.gov.in) ....
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....paration and furnishing of paper TDS statement/return at TIN- Facilitation Centres (TIN-FCs): All statement/return in Form 24Q are required to be furnished in computer media except in case where the number of deductee records are equal to or less than 20. Paper statement/return duly filled 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. 3.1 Correction in paper statements/returns: The physical TDS statement/return is to be filed again in case 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 ....
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....ber, 2003 F.No. 5/7/2003-ECB &PR- The government approved on 23rd August, 2003 the proposal to implement the budget announcement of 2003-04 relating to introducing a new restructured defined contribution pension system for new entrants to Central Government service, except to Armed Forces, in the first stage, replacing the existing system of defined benefit pension system. i. The system would be mandatory for all new recruits to the Central Government service from 1stof 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 w....
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....Chakra - do - 4. SarvottanJeevanRaksha When awarded to Civilians for bravery Padak displayed by them in life saving acts. 5. UttamJeevanRaksha Medal - do - 6. JeevanRakshaPadak - 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 the he/she head of the department concerned 8. Police Medal for Gallantry - do - 9. Sena Medal When awarded for acts of courage or conspicuous gallantry and supported by certificate issued to this effect by relevant service headquarters. 10. 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....
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....citizen PAN of Deductor Tan of the Deductor PAN of the Employee/Specified senior citizen Employee Reference No./ Pension Payment order no. provided by the Employer(If available) CIT(TDS) Assessment year Period with the Employer Address : 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 statements of TDS under sub-section (3) of section 200 Amount paid/credited Amount of tax deducted (Rs.) Amount of tax deposited/remitted(Rs. ) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total (Rs.) I. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT THROUGH BOOK ADJUSTMENT(The deductor to provide payment wise details of tax deducted and deposited with respect to the deductee) Sl.No Tax Deposited in respect of the deductee (Rs.) Book Identification Number (BIN) Receipt numbers of Form No.24G DDO serial number in Form No.24G Date of transfer voucher(dd/mm/yyyy) Status of matching with Form No. 24G ....
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....ection 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 section 10 [2(a)+2(b)+2(c)+2(d)+2(e)+2(g)] 3. Total amount of salary received from current employer [1(d)-2(h)] Rs... 4. Less: Deductions under section 16 a) Standard deduction under section 16(ia) Rs... b) Entertainment allowance under section 16(ii) Rs... c) Tax on employment under section 16(iii) Rs... 5. Total amount of deductions under section 16 [4(a)+4(b)+4(c)] Rs... 6. Income chargeable under the head "Salaries" [(3+1(e)-51 Rs... 7. Add: Any other income reported by ....
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....gregate of deductible amount under Chapter VI-A [10(d)+10(e)+10(f)+10(g)+10(h)+10(i) +10(j)+10(l)] Rs... 12. T otal taxable income (9-11) Rs... 13. Tax on total income Rs... 14. Rebate under section 87A, if applicable Rs... 15. Surcharge, wherever applicable Rs... 16. Health and education cess @ 4% Rs... 17. Tax payable (13+15+16-14) Rs... 18. Less: Relief under section 89(attach details) Rs... 19. Net tax payable (17-18) Rs... Verification I, son/daughter of working in the capacity of (designation) do hereby certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, and other available records. Place Date (Signature of person responsible for deduction of tax) Full Name : PART B (Annexure-II) In relation to specified senior citizen for tax deduction under section 194P A. Whether opting for taxation u/s 115BAC? [YES/NO] 1. Gro....
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....bsp; section ... Rs... Rs... Rs... Rs... Rs... Rs... i) Total of amount deductible under any other provision(s) of Chapter VI-A Rs... Rs... Rs... 9 . Aggregate of deductible amount under Chapter VI-A [8(a)+8(b)+8(c)+8(d)+8(e)+8(f)+8(g)+8(h)+8(i)] Rs... 10. Total taxable income (7-9) Rs... 11. Tax on total income Rs... 12. Rebate under section 87A, if applicable Rs... 13. Surcharge, wherever applicable Rs... 14. Health and education cess Rs... 15. Tax payable (11+13+14-12) Rs... 16. Less: Relief under section 89(attach details) Rs... 17. Net tax payable (16-17) Rs... Verification I, Son/daughter of working in the capacity of (designation) do hereby certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, and other available records. Place Date (Signature of person responsible for deduction of tax) Full Name : Notes: 1. Government deductors to fill information in item I of Part A....