TaxTMI 
TaxTMI 
Income-Tax Deduction From Salaries During the Financial Year 2024-25 Under Section 192 of the Income-Tax Act, 1961
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....rom the payment of income under the head "Salaries" under section 192 of the Act. Where no amendments have been made by the above referred Acts, in such cases, the above referred Circular No. 24 of 2022 shall continue to be applicable for F.Y. 2024-25. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in. Amendments made vide the Finance (No. 2) Act of 2024, Finance (No. 1) Act of 2024 and Finance Act of 2023 in respect of rates of deduction of income-tax from the payment of income under the head "Salaries" under section 192 of the Income tax Act, 1961, during the financial year 2024-25 1. The term "Salary" has been defined in section 15 of the Act. It has been further explained in section 17. As per the amendment in section 17(1) of the Act vide the Finance Act, 2023, "salary", inter alia, includes the following: ".... ix) the contribution made by the Central Government in the previous year, to the Agniveer Corpus Fund account of an individual enrolled in the Agnipath Scheme referred to in section 80CCH,..." 2. As per the amendment vide the Finance Act, 2023 in section 17(2....
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.... clause (17) or clause (32), of section 10 or section 10AA or clause (ii) or clause (iii) of 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 (I) or sub-section (2AA) of section 35 or section 35AD or section 35CCC or under any of the provisions of Chapter VI-A other than the provisions of sub-section (2) of section 80CCD or sub-section (2) of section 80CCH or section 80JJAA. (ii) without set off of any loss, (a) carried forward or depreciation from any carlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); (b) under the head "Income from house property" with any other head of income; (iii) by claiming the depreciation, if any, under any provision of section 32, except clause (iia) of sub-section (1) of the said section, determined in such manner as may be prescribed; and (iv) without any exemption or deduction for allowances or perquisite, by whatever nam....
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....ent) Rules, 2023, w.e.f. 01.07.2023. Further, the amendment in Form No. 24Q made by the Income-tax (Eighth Amendment) Rules, 2024 w.e.f. 15.10.2024 is as under: (i) In Annexure-II, column No. 388A- 'Amount reported as per section 192(2B), of other tax deducted at source or tax collected at source, other than (388)' has been inserted. 8. As per the amendment vide Income-tax (Eighteenth Amendment) Rules, 2023 w.e.f. 01.09.2023 in the Rule 3 of the Rules, in respect of the accommodation provided by any other employer, the rates prescribed for valuation of perquisites are as under: S. No. Circumstances Where accommodation is unfurnished Where accommodation is furnished (2) Where the accommodation is provided by any other employer and- (a) where the accommodation is owned by the employer, or (i) 10% of salary in cities having population exceeding 40 lakhs as per 2011 census; The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other....
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....erage provided by the employer through paid voucher shall not apply to an employee, being an assessee, who has exercised an option under sub-section (5) of section 115BAC or whose income is chargeable to tax under sub-section (1A) of section 115BAC." 11. The exemption limit of leave encashment, in the case of employees other than Government employees, has been enhanced to Rs 25,00,000/- vide CBDT Notification No. 31/2023 dated 24.05.2023. Accordingly, the exemption in respect of leave encashment in case of a non-Government employee at the time of retirement shall be lower of the following amounts: • Period of earned leave standing to the credit in the employee's account at the time of retirement x average monthly salary. • Average monthly salary x 10 (i.e., 10 months' average salary). • Maximum amount as specified by the Central Government, i.e. Rs. 25,00,000. • Leave encashment actually received at the time of retirement. If an employee receives leave salary from more than one employer in the same year, then the maximum amount of exemption under section 10(10AA)(ii) of the Act cannot exceed the amount specified by t....
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....sand rupees. 14. "Section 80CCH of the Act related to 'Deduction in respect of contribution to Agnipath Scheme' has been inserted vide Finance Act, 2023. Accordingly after paragraph No. 11 of para 5.5.3 the following paragraph No. 12 is inserted and the same is to be read as under: "80CCH. (1) Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said Fund, he shall be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited. (2) Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund referred to in sub-section (1), the assessee shall be allowed a deduction in the computation of his total income of the whole of the amount so contributed. Explanation. For the purposes of this section,-- (a) "Agnipath Scheme" means the scheme for enrolment in Indian Armed Forces introduced vide letter No. 1(23)2022/D(Pay/Services), dated the 29th December. 2022 of the Govern....
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....sistance is required, the Assessing Officer/the Local Public Relation Officer of the Income-tax Department may be contacted. 16.3 These instructions may be brought to the notice of all Disbursing Officers and Undertakings including those under the control of the Central/State Governments. 16.4 Copies of this Circular are available at the following websites: www.finmin.nic.in & www.incometaxindia.gov.in Hindi version will follow. (Rubal Singh) Deputy Secretary (IT-Budget), CBDT Annexure-A FORM NO. 16 [See rule 31(1)(a)] PART A Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source on salary paid to an employee under section 192 or pension or interest income of specified senior citizen under section 194P. Certificate No. Last updated on Name and address of the Employer/Specified Bank Name and address of the Employee/ Specified senior citizen PAN of the 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) A....
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.... TDS deposited and other available records. Place.............................. (Signature of person responsible for deduction of tax) Date............................... Designation:.......................... Full Name: .................................... PART B (Annexure-I) In relation to employees for tax deduction under section 192 Details of salary paid and any other income and tax deducted A Whether opting out of taxation u/s 15BAC(1A)? [YES/NO] 1. Gross Salary (a) Salary as per provisions contained in section 17(1) Rs. (b) Value of perquisites under section 17(2) (as per Form No. 12BA, wherever applicable) Rs. (c) Profits in lieu of salary under section 17(3) (as per Form No. 12BA, wherever applicable) Rs. (d) Total Rs. (e) Reported total 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. ....
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....ect of life insurance premia, contributions to provident fund etc. under section 80C Rs. Rs. Total (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(1) Rs. Rs. (e) Deductions in respect of amount paid/deposited to notified pension scheme under section 80CCD (1B) Rs. Rs. (f) Deduction in respect of contribution by Employer to pension scheme under section 80CCD (2) Rs. Rs. (g) Deduction in respect of health insurance premia under section 80D Rs. Rs. (h) Deduction in respect of interest on loan taken for higher education under section 80E Rs. Rs. (i) Deduction in respect of contribution by the employee to Agnipath Scheme under section 80CCH Rs. Rs. (j) Deduction in respect of contribution by the....
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.... 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 out of taxation u/s 115BAC(1A)? [YES/NO] 1. Gross Salary (a) Pension as per provisions contained in clause (ii) of section 17(1) Rs. 2. Total amount of salary received Rs. 3. Less: Deductions under section 16 (a) Standard deduction under section 16(ia) Rs.... (b) Tax on employment under section 16(iii) Rs. 4. Total amount of deductions under section 16 [3(a)+3(b)] Rs. 5. Income chargeable under the head "Salaries" [(2-4] Rs. 6. Interest Income under the head "Other Sources" paid by the specified ba....
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....sp; 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................................... (Signature of person responsible for deduction of tax) Date.................................... Full Name : ................................. Notes: 1. Government de....