Akhil Jharkhand Prathmik Sikshak Sangh ke Aamaran Ansan Ke Uprant Sahmati

aamaran ansan

Hunger Strike at Raj Bhawan, Ranchi

Think ...........How many

 

                  f’k{kd ,drk ftUnkckn

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           nq[k% dh bl ?kM+h esa lkjk f’k{kd lekt vJqiq.kZ J)katfy lefiZr djrs gq;s ?kVuk dh iqujko`fr jksdus gsrq ljdkj ls f’k{kdksa dks vLkSfud fuekZ.k dk;Z rFkk e/;kà Hkkstu ls eqDr djus dh ekax dj jgk gSA ekaxs iqjh gksus rd lkewfgd vodk’k ,oa f’k{k.k dk;Z cfg"dkj dk fopkj fd;k x;k gSA

           ljdkj rFkk buds izfrfuf/k;ksa dks bl ij xaHkhjrk ls fopkj djuk pkfg;s fd vLkSfud fuekZ.k dk;Z rFkk e/;kà Hkkstu ds uke f’k{kdksa dks dc rd 'kghn gksuk iM+sxk \

HIGH COURT ORDER

29th october 2012 sangh ka state level seminar, palamau

आमंत्रण पत्र

अखिल झारखण्ड प्राथमिक शिक्षक संघ

सेमिनार सह संघ स्थापना दिवस

आमंत्रण

सेवा में ---------------------------------
             ---------------------------------
महाशय,
             अखिल झारखण्ड प्राथमिक शिक्षक संघ के तत्वाधान में दिनांक 29 अक्टूबर 2012 को टाउन हौल,पलामू में संघ स्थापना दिवस के अवसर पर "ग्रामीण परिवेश में प्राथमिक शिक्षा" विषय पर एक दिवसीय सेमिनार आयोजित किया जा रहा है, इस अवसर पर हम श्रीमान को आमंत्रित कर कृतार्थ होना चाहते हैं।
              अतः हमारे आमंत्रण पर अपनी सहमती प्रदान कर उक्त  अवसर पर   अपना  वहुमुल्य   समय देते  हुए हमें सेवा  का अवसर देने की कृपा की जाये।

स्थान: टाउन हाल पलामू
तिथि व समय : 29 अक्तूबर 2012, प्रातः 11.30 बजे।

                                                                          सधान्यवाद .
                                                                                                                  निवेदक

                                                                               अखिल झारखण्ड प्राथमिक शिक्षक संघ

29 अक्तूबर को पलामू में संघ का स्थापना दिवस सह सेमिनार

अखिल झारखण्ड प्राथमिक  शिक्षक संघ

निवंधन संख्या 59/2001-02

सम्बद्धता :अखिल भारतीय प्रारंभिक शिक्षक संघ

एक दिवसीय स्थापना सह सेमिनार:  29 अक्तूबर, पलामू 

"ग्रामीण परिवेश में प्राथमिक शिक्षा "  

आमंत्रण सह अपील

शिक्षक साथियों,
                      प्राथमिक शिक्षा किसी भी समाज, राज्य और राष्ट्र के विकास की बुनियाद है। विकास की इस बुनियाद को मजबूती प्रदान करने का दायित्व हम शिक्षकों पर है और  समाज  की   अपेक्षाओं  तथा  शिक्षा की  आवश्यकताओं के अनुरूप व्यवस्था मुहैया कराने   की जिम्मेवारी शिक्षा विभाग  की है। राज्य के स्कूली बच्चों में से  70 प्रतिशत बच्चे सरकारी स्कूलों में शिक्षा पाते हैं, लेकिन शिक्षा का वह स्तर सरकारी स्कुल के बच्चों को  नहीं मिल पा रहा है जो आधुनिक शिक्षा के लिए आवश्यक है। गरीब व अभिवंचित वर्ग को शिक्षा के अस्त्र से संबल बनाने की चर्चाएँ तो होती हैं लेकिन इस को धार  के लिए आवश्यक संसाधनों की कमी से लक्ष्य की शत प्रतिशत सफलता हासिल करने में कठिनाई हो  है।
                   अखिल झारखण्ड प्राथमिक शिक्षक  संघ अपने स्थापना  काल से लगातार इस विषय पर सर्कार और समाज का ध्यान आक्रिस्ट करता रहा है। पुनः  इस सेमिनार के माध्यम से हम शिक्षकों,  अभिभाभाकों तथा  सरकार की उपश्थिति में एक सकारात्मक तथा गंभीर मंथन कर शिक्षा जगत के हाथों में अमृत का प्याला थमाने का प्रयास करना चाहते हैं। इस  सेमिनार के माध्यम से हम कठिन डगर पे चलते  हुए सफलता की संभावनाओं को तलाशने का प्रयाश करेंगे। इस सफ़र में शिक्षकों की कठिनाई के साथ साथ  विद्यालयों में संसाधनों की कमी को भी ढूंढेंगे।
संघ की  हमेशा   सोंच रही है की अधिअर और कर्त्तव्य के लिए साझा प्रयास समाज को एक सही दिशा प्रदान कर सकता है, और शिक्षकों की  गरिमा को  अक्षुण  बनाये  रखना   व्यवस्था  की  जिम्मेवारी  है। 
                    इन्ही बातों को मद्द्येनजर रखते हुए "शिक्षा दर्पण" नमक एक पत्रिका का विमोचन भी इस अवसर पर किया जायेगा, जिसके माध्यम से हम आपकी पीड़ा के साथ साथ शिक्षा की संवेदनाओं को समाज व सरकार के समक्ष रखने की कोशिश करेंगे।
                  आइये इस सेमीनार में शामिल होकर अपना और संघ की गरिमा को आगे बढ़ाएं तथा इस्मसे से प्राप्त अमृत कलश का लाभ अपने छात्रों तक पहुंचकर सबल राष्ट्र निर्माण के अपने संकल्प को पूरा करें।

निवेदक

अखिल झारखण्ड प्राथमिक  शिक्षक संघ

जामताड़ा जिले में ‘प्राथमिक शिक्षा : चुनौतियाँ और प्रतिबद्धताएँ’ विषय पर सेमीनार

      अखिल झारखण्ड प्राथमिक शिक्षक संघ, जामताड़ा शाखा द्वारा 25/08/2012 को नगर  भवन, जामताड़ा में एक सेमिनार का आयोजन किया गया जिसका विषय था - प्राथमिक शिक्षा : चुनौतियाँ और प्रतिबद्धताएँ .
इसके कुछ तस्वीर प्रस्तुत हैं-

छठे वेतनमान में वन्चिंग

छठे वेतनमान  में  वन्चिंग 

स्टेज 1 -  4500  तथा  स्टेज 2 - 4625 के लिए  9300

स्टेज 3 - 4750 के लिए  9300 * 1.03 = 9579 या  9580 (  प्रत्येक 2 स्टेज पर रनिंग पे 9300 में + 3%  )

स्टेज 4 - 4875 के लिए 9300 * 1.03 = 9579 या 9580

स्टेज 5 - 5000 के लिए 9580 * 1.03 = 9867 या 9870

गुमला जिले में वर्ष 1994 के सितम्बर  में नियुक्त तथा बी 0 एड 0 योग्यताधारी शिक्षकों की नियुक्ति 1995 में होने के कारण  वेतन विसंगति का मामला   के बाद  एक  वेतन वृधि का लाभ दिया   गया

दिनांक 8 जुलाई 2012 को सम्पन्न हुए राज्य कमिटी की बैठक में लिए गए निर्णय

1)   दिनांक 8 जुलाई 2012 को सम्पन्न हुए राज्य कमिटी की बैठक में लिए गए निर्णय के अनुसार 31 अक्टूबर तक 2011 और 2012  का सदस्यता अभियान पूरा करना है, सदस्यता शुल्क निम्नवत है - वार्षिक 50 रु आजीवन 300 रु, शुल्क का बंटवारा - अंचल 25% जिला 40% प्रमंडल 10%, राज्य 25%, राज्यांश संघ के अकाउंट 10326685015, अपर बाज़ार रांची में भेजें .

2) 29 अक्टूबर 2012 को पलामू में संघ का स्थापना दिवस सह सेमिनार आयोजित हो रहा है इस अवसर पर संघ की एक पत्रिका का विमोचन भी होगा पत्रिका में प्रकाशित करने हेतु शिक्षा से सम्बंधित अपना एक आर्टिकल फोटो के साथ 31 अगस्त तक मुझे ईमेल द्वारा भेजें . 

ईमेल - rmt.bokaro@gmail.com

3) शिक्षक समस्याओं के निष्पादन के लिए जल्द ही सी एम् से मिलेगा संघ

New fixation

All India Teachers Seminar-Chennai 2012

All India teachers Seminar- chennai 2012

CHENNAI SHIKSHA SAMMELAN 5-6 MAY 12

The Hindu : NATIONAL / TAMIL NADU : Teachers' conference organised

The Hindu : NATIONAL / TAMIL NADU : Teachers' conference organised

चेन्नई शिक्षा सम्मलेन में भाग लेने हेतु आकस्मिक अवकाश की स्वीकृति

TEACHERS IN NON-TEACHING WORKS

आप अपना मंतब्य अवश्य दे. दैनिक जागरण पेज नंबर ८

कृपया शब्दों के प्रोयोग पर विशेष ध्यान दें

आबंटन २०१२-13

7 april ko PM ko bhejne ke liye maang patra ka namuna

lsok esa]

ekuuh; iz/kkuea=h

Hkkjr ljdkj] ubZ fnYyhA

}kjk&mik;qDr]-----------------A

fo’k;&izkFkfed f”k{kk ls tqM+s vge foanqvksa ij /;kukd’kZ.k ,oa lek/kku ds laca/k esaA

egk”k;k]

lfuosnu vafdr djuk pkgsaxs fd vf[ky Hkkjrh; izkjafHkd f”k{kd egkla/k dh fnukad 27 Qjojh 2012 dks ubZ fnYyh esa lEiUu gqbZ jk’Vªh; dk;Zdkfj.kh dh cSBd esa fofHkUu jkT;ksa ls mifLFkr f”k{kd izfrfuf/k;ksa ds lkFk izkFkfed f”k{kk O;oLFkk ds fofHkUu igywvksa ij fopkj foe”kZ fd;k x;kA ftlds mijkar fUkEu foanqvksa ij Jheku~ dk /;kukd`’V djkus ,oa Hkkjr ljdkj ls f”k{kk o f”k{kd fgr esa bu ij fopkj djus gsrq fuosnu i= lefiZr djus dk fu.kZ; fy;k x;kA

1½ lafonk vk/kkfjr ikjk Vhpj O;oLFkk dks lekIr fd;k tk, ,oa fo|ky;ksa esa ubZ f”k{kd bdkbZ Lohd`r dj osrueku ij LFkkbZ f”k{kdksa dh fu;qfDRk dh tk,A

2½ va”knk;h isa”ku ;kstuk dks okil ysdj iqjkuh isa”ku ;kstuk dks cgky fd;k tk,A

3½ f”k{kdksa dks xSj “kS{kf.kd dk;ksZa ls iw.kZr;k eqDr djus gsrq lHkh jkT;ksa dks funs”k fn;k tk,A

4½ dksBkjh deh”ku dh vuq”kalkvksa ds vuq:Ik leku Ldwy O;oLFkk ykxw fd;k tk,A

5½ f”k{kk dk vf/kdkj dkuwu ds vuq:Ik fo|ky;ksa esa vk/kkjHkwr lajpukvksa dh miyC/rk lqfuf”pr djus gsrq jkT;ksa dks lalk/ku eqgS;k djkbZ tk,A

6½ fofHkUu jkT;ksa esa fo|ky; Hkou fuekZ.k dk;Z vkSj feM Ms fey dk;Z esa f”k{kdksa dh Hkkxhnkjh ls ns”k Hkj ds f”k{kdksa dks eqDr fd;k tk,A

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शिक्षा के अधिकार अधिनियम पर विस्तृत जानकारी

model rte

शिक्षा का अधिकार अधिनियम पर भारत सरकार का राजपत्र

शिक्षा का अधिकार अधिनियम २००९ के संबंध में भारत सरकार के राजपत्र के लिए नीचे दिए गए लिंक पर क्लिक करें या right click कर 'save target as' को सेलेक्ट करें-

(भारत सरकार का राजपत्र) शिक्षा का अधिकार अधिनियम २००९

२०११ १२ में अतिरिक्त आबंटन निर्गत

अखिल भारतीय शिक्षा सम्मलेन चेन्नई में

ALL INDIA FEDRATION OF ELEMENTARY TEACHERS'
ORGANISATIONS [AIFETO]
WORLD FEDERATON OF TEACHERS
,
UNIONS [FISE] &
NATIONAL CO-ORDINATION COMMITTEE OF INDIAN TEACHERS’ ORGANISATIONS [ NCCITO ]
MAHARASHTRA RAJYA PRATHAMIK SHIKSHAK SAMITEE [ MRPSS ]
vSANTOSH,5B,R.S.N0.744,NIKAM PARK,SHIIVAJI NAGAR
DEVAKAR PANAND,KOLHAPUR,MAHARASHTRA [INDIA]
416012,
NATIONAL PRESIDENT: PRABHAKAR G. ARDE:
(Ph & FAX{0231} 2624497, 2624487 & 2326757
Mob 09421970000, 7875227000 e-mail: ardentview@yahoo.com.in
e-mail: prabhakargarade@gmail.com.in
REGD.NO. 908-80-81 [ PATANA] PARTIAL OF CHILDREN,EDUCATION,TEACHERS
REF: AIFETO12/CHCONF/JHARKHAND/105 DATE 03-03-2012
TO
PRESIDENTS AND GENERAL SECRETARY,
ALL AFFILITED UNIONS OF AIFETO,
SUBJECT : ALL INDIA CONFERENCE OF AIFETO AT
CHENNAI [ TAMILNADU ]
REF : AIFETO MEETING DESIGEN AT NEW DELHI
All Office bearers of affilated and consern State
Organisations are informed that, The All India Federation of Elementary
Teachers’ Organisations 7 th All India Conference will
be held at Chennai [ Tamilnadu ] on 5 th and 6 th May 2012.
The seminar on ‘ Impact of Education polocy on chidren of
comman man‘ is the them for discussation. The experts and well
known educationist will state their views and guide to teachers.
Please give the numbers of Delegates immidiate above address
and also to General Secretary immigiate as early as possible.
Also make arrangement for leave and other perimission of
education department in your state level. Give the information to
nearest state organisations and tell them to contact immidiate to
me.
Thanking you,
Yours faithfully,
[ Prabhakar Arade ]

HRA REBATE RULES

(9) Under Section 10(13A) of the Income-tax Act, 1961,any special allowance

specifically granted to an assessee by his employer to meet expenditure

incurred on payment of rent (by whatever name called) in respect of

residential accommodation occupied by the assessee is exempt from

Income-tax to the extent as may be prescribed, having regard to the area

or place in which such accommodation is situated and other relevant

considerations. According to rule 2A of the Income-tax Rules, 1962, the

quantum of exemption allowable on account of grant of special

allowance to meet expenditure on payment of rent shall be:

(a) The actual amount of such allowance received by the assessee in

respect of the relevant period; or

http://www.itaxindia.org/2011/08/tds-rates-11-12-tds-rate-chart-cut-off.html

http://www.itaxindia.org/2011/09/income-tax-help-toolbar.html of 56.24

(b) The actual expenditure incurred in payment of rent in excess of

1/10 of the salary due for the relevant period; or

(c) Where such accommodation is situated in Bombay, Calcutta,

Delhi or Madras, 50% of the salary due to the employee for the

relevant period; or

(d) Where such accommodation is situated in any other places,

40% of the salary due to the employee for the relevant period,

whichever is the least.

For this purpose, "Salary" includes dearness allowance, if the terms of

employment so provide, but excludes all other allowances and perquisites.

It has to be noted that only the expenditure actually incurred on payment of

rent in respect of residential accommodation occupied by the assessee

subject to the limits laid down in Rule 2A, qualifies for exemption from

income-tax. Thus, house rent allowance granted to an employee who is

residing in a house/flat owned by him is not exempt from income-tax. The

disbursing authorities should satisfy themselves in this regard by insisting

on production of evidence of actual payment of rent before excluding the

House Rent Allowance or any portion thereof from the total income of the

employee.

Though incurring actual expenditure on payment of rent is a pre-requisite for

claiming deduction under section 10(13A), it has been decided as an

administrative measure that salaried employees drawing house rent allowance

upto Rs.3000/- per month will be exempted from production of rent receipt.

It may, however, be noted that this concession is only for the purpose of

tax-deduction at source, and, in the regular assessment of the employee, the

Assessing Officer will be free to make such enquiry as he deems fit for the

purpose of satisfying himself that the employee has incurred actual

expenditure on payment of rent.

Further if annual rent paid by the employee exceeds Rs 1,80,000 per annum, it

is mandatory for the employee to report PAN of the landlord to the employer. In

case the landlord does not have a PAN, a declaration to this effect from the

landlord along with the name and address of the landlord should be filed by

the employee.

(10) Clause (14) of section 10 provides for exemption of the following allowances :-

(i) Any special allowance or benefit granted to an employee to

meet the expenses incurred in the performance of his

duties as prescribed under Rule 2BB subject to the extent to

which such expenses are actually incurred for that purpose.

(ii) Any allowance granted to an employee either to meet his

personal expenses at the place of his posting or at the place he

ordinarily resides or to compensate him for the increased

cost of living, which may be prescribed and to the extent as

may be prescribed.

However, the allowance referred to in (ii) above should not be in the nature of a

personal allowance granted to the assessee to remunerate or compensate him

for performing duties of a special nature relating to his office or employment

unless such allowance is related to his place of posting or residence.

http://www.itaxindia.org/2011/08/tds-rates-11-12-tds-rate-chart-cut-off.html

http://www.itaxindia.org/2011/09/income-tax-help-toolbar.html of 56.25

The CBDT has prescribed guidelines for the purpose of clauses (i) and (ii) of

Section 10(14) vide notification No.SO617(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). The transport allowance granted to an

employee to meet his expenditure for the purpose of commuting between the

place of his residence and the place of duty is exempt to the extent of Rs.800

per month vide notification S.O.No. 395(E) dated 13.5.98.

INCOME TAX RULES

1

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

DEDUCTION OF TAX AT SOURCE —

INCOME–TAX DEDUCTION FROM SALARIES

UNDER SECTION 192 OF THE

INCOME–TAX ACT, 1961

DURING THE FINANCIAL YEAR 2011-2012

CIRCULAR NO. 05/2011

NEW DELHI, dated 16.08.2011

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INDEX

Para No.

Page Nos.

1. General 3

2. Finance Act, 2011 3

3. Section 192 of Income-tax Act 1961 5

4. Persons responsible for deducting tax and their duties 8

5. Estimation of income under the head “Salaries” 15

5.1 Income chargeable under the head “Salaries” 15

5.2 Incomes not included in the head “Salaries” (Exemptions) 20

5.3 Deductions u/s 16 of the Act (Standard Deduction) 25

5.4 Deductions under Chapter VI-A of the Act 25

6. Calculation of Income-tax to be deducted 34

7. Miscellaneous 35

Annexures

I. Examples 39

II. Form No. 12BA (as amended) 45

III. Revised procedure for furnishing qtly e-TDS/TCS

statement by deductors/collectors 47

IV. Person responcible for filling Form 24G in case

Of State Govt Departments/Central Govt Departments 49

V. Deptt. of Eco. Affairs Notification dated 22.12.2003 51

VI. Board's Notification dated 24.11.2000 52

VII. Board's Notification dated 29.1.2001 53

VIII. Form No. 10 B A 54

IX Board Notification dated 9.9.2010(Infrastructure Bond) 55

X. Board Notification dated 11.06.2010(Gratuity) 57

X. Board notification dated 31.05.2010 58

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CIRCULAR NO : 05 /2011

F.No. 275/192/2011-IT(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

.....

New Delhi, dated the

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE

FINANCIAL YEAR 2011-2012 UNDER SECTION 192 OF THE

INCOME-TAX ACT, 1961.

……………

Reference is invited to Circular No.08/2010 dated 13.12.2010 whereby

the rates of deduction of income-tax from the payment of income under the head

"Salaries" under Section 192 of the Income-tax Act, 1961(hereinafter ‘the Act’),

during the financial year 2010-2011, were intimated. The present Circular

contains the rates of deduction of income-tax from the payment of income

chargeable under the head "Salaries" during the financial year 2011-2012 and

explains certain related provisions of the Income-tax Act. The relevant Acts, Rules,

Forms and Notifications are available at the website of the Income Tax Department-

www.incometaxindia.gov.in.

2. FINANCE ACT,2011

As per the Finance Act, 2011, income-tax is required to be deducted under

Section 192 of the Income-tax Act 1961 from income chargeable under the head

"Salaries" for the financial year 2011-2012 (i.e. Assessment Year 2012-2013) at

the following rates:

RATES OF INCOME-TAX

A. Normal Rates of tax:

1. Where the total income does not Nil

exceed Rs. 1,80,000/-.

2. Where the total income exceeds 10 per cent of the

Rs. 1,80,000 but does not exceed amount by which the

Rs. 5,00,000/-. total income exceeds

Rs. 1,80,000/-

3. Where the total income exceeds Rs. 32,000/- plus 20

Rs. 5,00,000/- but does not exceed per cent of the amount

Rs. 8,00,000/-. by which the total

income exceeds

Rs. 5,00,000/-.

4. Where the total income exceeds Rs. 92,000/- plus 30

Rs. 8,00,000/-. per cent of the amount

by which the total income

exceeds Rs. 8,00,000/-.

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B. Rates of tax for a woman, resident in India and below sixty years of

age at any time during the financial year:

1. Where the total income does not Nil

exceed Rs. 1,90,000/-.

2. Where the total income exceeds 10 per cent, of the

Rs. 1,90,000 but does not exceed amount by which the

Rs. 5,00,000/-. total income exceeds

Rs. 1,90,000/-

3. Where the total income exceeds Rs. 31,000/- plus 20

Rs. 5,00,000/- but does not per cent of the

exceed Rs. 8,00,000/-. amount by which the

total income exceeds

Rs. 5,00,000/-.

4. Where the total income exceeds Rs. 91,000/- plus 30

Rs. 8,00,000/-. per cent of the

amount by which the

total income exceeds

Rs. 8,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty

years or more but less than eighty years at any time during the

financial year:

1. Where the total income does not Nil

exceed Rs. 2,50,000/-.

2. Where the total income exceeds 10 per cent, of the

Rs. 2,50,000 but does not exceed amount by which the

Rs. 5,00,000/-. total income exceeds

Rs. 2,50,000/-

3. Where the total income exceeds Rs. 25,000/- plus 20

Rs. 5,00,000/- but does not per cent of the

exceed Rs. 8,00,000/-. amount by which the

total income exceeds

Rs. 5,00,000/-.

4. Where the total income exceeds Rs. 85,000/- plus 30

Rs. 8,00,000/-. per cent of the amount

By which the total income

exceeds Rs. 8,00,000/-.

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D. 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:

1. Where the total income does Nil

not exceed Rs. 5,00,000/-

2. Where the total income exceeds 20 per cent of the amount by

Rs. 5,00,000/- but does not which the total income exceeds

exceed Rs. 8,00,000/- Rs. 5,00,000/-

3. Where the total income exceeds Rs. 60,000/- plus 30 per cent of the

Rs. 8,00,000/- amount by which the total income

exceeds Rs. 8,00,000/-

Surcharge on Income tax:

There will be no surcharge on income tax payments by individual taxpayers

during FY 2011-12 (AY 2012-13).

Education Cess on Income tax:

The amount of income-tax shall be increased by Education Cess on Income Tax

at the rate of two percent of the income-tax.

Additional surcharge on Income Tax (Secondary and Higher Education Cess

on Income-tax):

From Financial Year 2007-08 onwards, an additional surcharge is chargeable

at the rate of one percent of income-tax (not including the Education Cess on

income tax).

Education Cess, and Secondary and Higher Education Cess are payable by

both resident and non-resident assessees.

3.SECTION 192 OF THE INCOME-TAX ACT,1961: BROAD SCHEME

OF TAX DEDUCTION AT SOURCE FROM "SALARIES".

Method of Tax Calculation:

3.1 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 2011-2012. The

income-tax is required to be calculated on the basis of the rates given above

subject to provisions of sec 206AA of the Income-tax Act and shall be deducted

at the time of each payment. No tax will, however, be required to be deducted

at source in any case unless the estimated salary income including the

value of perquisites, for the financial year exceeds Rs. 1,80,000/- or

Rs.1,90,000/- or Rs. 2,50,000/- or Rs. 5,00,000/-, as the case may be,

depending upon the gender and age of the employee.(Some typical examples of

computation of tax are given at Annexure-I).

Payment of Tax on Non-monetary Perquisites by Employer:

3.2 An option has been given to the employer to pay the tax on non-monetary

perquisites given to an employee. The employer may, at his option, make

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payment of the tax on such perquisites himself without making any TDS from

the salary of the employee. The employer will have to pay such tax at the time

when such tax was otherwise deductible i.e. at the time of payment of

income chargeable under the head “salaries” to the employee.

Computation of Average Income Tax:

3.3 For the purpose of making the payment of tax mentioned in para 3.2

above, tax is to be determined at the average of income tax computed on

the basis of rate in force for the financial year, on the income chargeable

under the head "salaries", including the value of perquisites for which tax

has been paid by the employer himself.

ILLUSTRATION:

Suppose that the income chargeable under the head “salaries” of a male

employee below sixty years of age for the year inclusive of all perquisites is

Rs.4,50,000/-, out of which, Rs.50,000/- is on account of non-monetary

perquisites and the employer opts to pay the tax on such perquisites as per the

provisions discussed in para 3.2 above.

STEPS:

Income Chargeable under the head “Salaries”

inclusive of all perquisites: Rs. 4,50,000

Tax on Total Salaries(including Cess): Rs. 27,810

Average Rate of Tax [(27,810/4,50,000) X 100]: 6.18%

Tax payable on Rs.50,000/= (6.18% of 50,000): Rs. 3,090

Amount required to be deposited each month: Rs. 260(257.5)

(3090/12)

The tax so paid by the employer shall be deemed to be TDS made

from the salary of the employee.

Salary From More Than One Employer:

3.4 Sub- section (2) of section 192 deals with situations where an individual

is working under more than one employer or has changed from one employer to

another. It provides for deduction of tax at source by such employer (as the

tax payer may choose) from the aggregate salary of the employee who is or

has been in receipt of salary from more than one employer. The employee is

now required to furnish to the present/chosen employer details of the income

under the head "Salaries" due or received from the former/other employer and

also tax deducted at source there from, in writing and duly verified by him and

by the former/other employer. The present/ chosen employer will be required

to deduct tax at source on the aggregate amount of salary (including salary

received from the former or other employer).

Relief When Salary Paid in Arrear or Advance:

3.5 Under sub-section (2A)of section 192 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

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under Sub-section (1) of Section 89, he may furnish to the person

responsible for making the payment referred to in Para (3.1), such particulars

in Form No. 10E 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.

Explanation :- For this purpose "University means a University established

or incorporated by or under a Central, State or Provincial Act, and

includes an institution declared under section 3 of the University Grants

Commission Act, 1956(3 of 1956), to be University for the purposes of the Act.

With effect from 1/04/2010 (AY 2010-11), no such relief shall be granted in

respect of any amount received or receivable by an assessee on his voluntary

retirement or termination of his service, in accordance with any scheme or

schemes of voluntary retirement or in the case of a public sector company referred

to in sub-clause (i) of clause (10C) of section 10 (read with Rule 2BA), a scheme of

voluntary separation, if an exemption in respect of any amount received or

receivable on such voluntary retirement or termination of his service or voluntary

separation has been claimed by the assessee under clause (10C) of section 10 in

respect of such, or any other, assessment year

3.6 (i) Sub-section (2B) of section 192 enables a taxpayer to furnish

particulars of income under any head other than "Salaries" ( not being a loss

under any such head other than the loss under the head “ income from house

property”) received by the assesse for the same financial year and of any tax

deducted at source thereon. Form no. 12C, which was earlier prescribed for

furnishing such particulars, has since been omitted from the Income Tax Rules

by the IT (24th

amendment) Rules, 2003, w.e.f. 01.10.2003. However, the

particulars may now be furnished in a simple statement, which is properly

verified by the taxpayer in the manner as prescribed under Rule 26B(2 ) of the

Income Tax Rules,1962 and shall be annexed to the simple statement. The form

of verification is reproduced as under

FORM OF VERIFICATION

I, …………………. (name of the assesse), do declare that what is

stated above is true to the best of my information and belief.

(ii) Such income should not be a loss under any such head other than

the loss under the head "Income from House Property" for the same financial

year. The person responsible for making payment (DDO) shall take such other

income and tax deducted at source, if any, on such income and the loss, if any,

under the head "Income from House Property" into account for the purpose

of computing tax deductible in terms of section 192(2B) of the Income-tax Act.

However, this sub-section shall not in any case have the effect of reducing the

tax deductible (except where the loss under the head "Income from House

Property" has been taken into account) from income under the head "Salaries"

below the amount that would be so deductible if the other income and the tax

deducted thereon had not been taken into account'. In other words, the DDO

can take into account any loss (negative income) only under the head

“income from House Property” and no other head for working out the

amount of total tax to be deducted.` While taking into account the loss

from House Property, the DDO shall ensure that the assessee 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

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employer in respect of loss claimed under the head “ income from house

property” separately for each house property:

(A) Computation of income under the head “ income from house

property” specifying

a) Gross annual rent/value

b) Municipal Taxes paid, if any

c) Deduction claimed for interest paid, if any

d) Other deductions claimed

(B) Address of the property

( C) Amount of loan, if any; and

(D) Name and address of the lender (loan provider)

(iii) Sub-section (2C) lays down 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 in form no. 12BA (Annexure-II). Form no. 12BA alongwith form

no. 16, as issued by the employer, are required to be produced on demand

before the Assessing Officer in terms of Section 139C of the Income Tax Act.

Conditions for Claim of Deduction of Interest on Borrowed Capital for

Computation of Income From House Property

3.7(i) For the purpose of computing income / loss under the head

`Income from House Property' in respect of a self-occupied residential

house, a normal deduction of Rs.30,000/- is allowable in respect of interest on

borrowed capital. However, a deduction on account of interest up to a

maximum limit of Rs.1,50,000/- is available if such loan has been taken

on or after 1.4.1999 for constructing or acquiring the residential house and

the construction or acquisition of the residential unit out of such loan has

been completed within three years from the end of the financial year in which

capital was borrowed. Such higher deduction is not allowable in respect of

interest on capital borrowed for the purposes of repairs or renovation of an

existing residential house. To claim the higher deduction in respect of interest

upto Rs.1,50,000/-,the employee should furnish a certificate from the person

to whom any interest is payable on the capital borrowed, specifying the

amount of interest payable by such employee for the purpose of construction

or acquisition of the residential house or for conversion of a part or whole of

the capital borrowed, which remains to be repaid as a new loan.

3.7(ii)The essential conditions for availing higher deduction of interest of

Rs.1,50,000/- in respect of a self-occupied residential house are that the

amount of capital must have been borrowed on or after 01.4.1999 and the

acquisition or construction of residential house must have been completed

within three years from the end of the financial year in which capital was

borrowed. There is no stipulation regarding the date of commencement of

construction. Consequently, the construction of the residential house could

have commenced before 01.4.1999 but, as long as its construction/

acquisition is completed within three years, from the end of the financial year

in which capital was borrowed the higher deduction would be available in

respect of the capital borrowed after 1.4.1999. It may also be noted that there

is no stipulation regarding the construction/ acquisition of the residential

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unit being entirely financed by capital borrowed on or after 01.4.1999.The loan

taken prior to 01.4.1999 will carry deduction of interest up to Rs.30,000/

only. However, in any case the total amount of deduction of interest on

borrowed capital will not exceed Rs.1,50,000/- in a year.

Adjustment for Excess or Shortfall of Deduction:

3.8 The provisions of sub-section (3) of Section 192 allow the deductor to

make adjustments for any excess or shortfall in the deduction of tax already

made during the financial year, in subsequent deductions for that employee

within that financial year itself.

TDS on Payment of Accumulated Balance Under Recognised Provident

Fund and contribution from Approved Superannuation Fund:

3.9 The trustees of a Recognized Provident Fund, or any person authorized

by the regulations of the Fund to make payment of accumulated balances

due to employees, shall, in cases where sub-rule(1) of rule 9 of Part A of the

Fourth Schedule to the Act applies, at the time when the accumulated

balance due to an employee is paid, make there from the deduction specified in

rule 10 of Part A of the Fourth Schedule to the Act.

3.10 Where any contribution made by an employer, including interest on

such contributions, if any, in an approved Superannuation Fund is paid to

the employee, tax on the amount so paid shall be deducted by the trustees of

the Fund to the extent provided in rule 6 of Part B of the Fourth Schedule to

the Act.

Salary Paid in Foreign Currency:

3.11 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

prescribed rate of exchange.

4.PERSONS RESPONSIBLE FOR DEDUCTING TAX AND THEIR

DUTIES:

4.1. Under clause (i) of Section 204 of the Act the "persons 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 Officer

thereof.

4.2. The tax determined as per para 6 should be deducted from the salary u/s

192 of the Act.

Deduction of Tax at Lower Rate:

4.3. Section 197 enables the tax-payer to make an application in form

No.13 to the Assessing Officer(TDS), and, if the Assessing Officer(TDS) is

satisfied that the total income of the tax-payer justifies the deduction of

income-tax at any lower rate or no deduction of income tax, he may issue an

appropriate certificate to that effect which should be taken into account by

the Drawing and Disbursing Officer while deducting tax at source. In the

absence of such a certificate furnished by the employee, the employer should

deduct income tax on the salary payable at the normal rates: (Circular No.

147 dated 28.10.1974.)

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Deposit of Tax Deducted:

4.4. Rule 30 of Income Tax Rules, 1962, as amended by S.O. 1261(E),

Notification dated 31.05.2010, prescribes mode of payment of tax deducted to

the account of Central Government as detailed below:

4.4.1.

(a) The Tax deducted at source in accordance with the provisions of Chapter

XVII-B of the Income tax Act, 1961 by an office of the Government shall be

paid to the credit of the Central Government ‐

(i) on the same day where the tax is paid without production of an income

tax challan; and

(ii) on or before seven days from the end of the month in which the

deduction is made or income‐tax is due under sub‐section (1A) of

section 192, where tax is paid accompanied by an income‐tax challan.

(b). The Tax deducted at source in accordance with the provisions of

Chapter XVII-B of the Income tax Act, 1961 by deductors other than an office of

the Government shall be paid to the credit of the Central Government ‐

(i) on or before 30th day of April where the income or amount is credited or

paid in the month of March; and

(ii) in any other case, on or before seven days from the end of the month in

which the deduction is made; or income‐tax is due under sub‐section

(1A) of section 192.

(c ) Notwithstanding anything contained in (b) above, in special cases, the

Assessing Officer may, with the prior approval of the Joint Commissioner,

permit quarterly payment of the tax deducted under section 192 or section

194A or section 194D or section 194H for the quarters of the financial year

specified to in column (2) of the Table below by the date referred to in column

(3) of the said Table:‐

TABLE

Sl.

No.

Quarter of the financial year

ended on

Date for quarterly payment

(1) (2) (3)

1 30th

June 7th

July

2 30th

September 7th

October

3 31st

December 7th

January

4 31st

March 30th

April

Mode of Payment of TDS

4.4.2. In the case of an office of the Government, where tax has been paid to

the credit of the Central Government without the production of a challan, the

Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and

Disbursing Officer or any other person by whatever name called to whom the

deductor reports the tax so deducted and who is responsible for crediting such

sum to the credit of the Central Government, shall‐

(a) submit a statement in Form No. 24G within ten days from the end of the

month to the agency authorised by the Director General of Income‐tax

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(Systems) in respect of tax deducted by the deductors and reported to him for

that month; and

(b) intimate the number (hereinafter referred to as the Book Identification

Number or BIN generated by the agency to each of the deductors in respect of

whom the sum deducted has been credited. BIN consist of receipt number of

Form 24G, DDO sequence number and date on which tax is deposited.

For the purpose of the above, the Director General of Income‐tax

(Systems) shall specify the procedures, formats and standards for ensuring

secure capture and transmission of data, and shall also be responsible for the

day‐to‐day administration in relation to furnishing the information in the

manner so specified.

4.4.3. (i) Where tax has been deposited accompanied by an income‐tax

challan, the amount of tax so deducted or collected shall be deposited to the

credit of the Central Government by remitting it within the time specified above

into any branch of the Reserve Bank of India or of the State Bank of India or of

any authorised 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 India

or any authorised bank accompanied by an electronic income‐tax challan.

For the purpose of this rule, the amount shall be construed as

electronically remitted to the Reserve Bank of India or to the State Bank of

India or to any authorised bank, if the amount is remitted by way of:

(a) internet banking facility of the Reserve Bank of India or of the State

Bank of India or of any authorised bank; or

(b) debit card.

Interest, Penalty & Prosecution for Failure to Deposit Tax Deducted:

4.5 If a person fails to deduct the whole or any part of the tax at source, or,

after deducting, fails to pay the whole or any part of the tax to the credit of the

Central Government within the prescribed time, he shall be liable to action

in accordance with the provisions of section 201. Sub-section (1A) of section

201 lays down that such person shall be liable to pay simple interest (i) at

one percent for every month or part of the month on the amount of such tax

from the date on which such tax was deductible to the date on which such

tax is deducted and (ii) at one and one-half percent for every month or part of

a month on the amount of such tax from the date on which such tax was

deducted to the date on which such tax is actually paid. Such interest, if

chargeable, has to be paid before furnishing of quarterly statement of TDS for

each quarter. Section 271C lays down that if any person fails to deduct

whole or any part of tax at source or fails to pay the whole or part of tax

deducted, he shall be liable to pay, by way of penalty, a sum equal to the

amount of tax not deducted or paid by him. Further, section 276B lays

down that if a person fails to pay to the credit of the Central Government

within the prescribed time the tax deducted at source by him, he shall be

punishable with rigorous imprisonment for a term which shall be between

3 months and 7 years, along fine.

Furnishing of Certificate for Tax Deducted:

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4.6.1 According to the provisions of section 203, every person responsible for

deducting tax at source is required to furnish a certificate in Form 16 to the

payee to the effect that tax has been deducted and to specify therein the

amount deducted and certain other particulars. The certificates in Forms 16

specified above shall be furnished to the employee by 31st day of May of the

financial year immediately following the financial year in which the income

was paid and tax deducted. Due care should be taken indicating correct CIN/

BIN in TDS certificate. Even the banks deducting tax at the time of payment

of pension are required to issue such certificates. The Form16 has been

revised and TDS certificated only determine tax payable on total income and

tax deducted is to be reported in annexure ‘A’ and ‘B’ of the Form 16 (revised

Form 16 annexed to Notification dated 31.05.2010 is enclosed). The

certificate in Form 16 shall specify

(a) valid permanent account number (PAN) of the deductee;

(b) valid tax deduction and collection account number (TAN) of the

deductor;

(c) (i) book identification number or numbers where deposit of tax

deducted is without production of challan in case of an office of the

Government;

(ii) challan identification number or numbers in case of payment

through bank.

(d) receipt numbers of all the relevant quarterly statements in case the

statement referred to in clause (i) is for tax deducted at source from

income chargeable under the head “Salaries”. The receipt number of

the quarterly statement is of 8 digit.

It may be noted that under the new TDS procedure, the accuracy

and availability of TAN, PAN and receipt number of TDS statement filed by

the deductor will be unique identifier for granting online credit for TDS.

Hence due care should be taken in filling these particulars.

It is, however, clarified that there is no obligation to issue the TDS

certificate in case tax at source is not deductible/deducted by virtue of

claims of exemptions and deductions.

4.6.2. If an assessee is employed by more than one employer during the year,

each of the employers shall issue Part A of the certificate in Form No. 16

pertaining to the period for which such assessee was employed with each of the

employers and Part B may be issued by each of the employers or the last

employer at the option of the assessee.

4.6.3. The employer may issue a duplicate certificate in Form No. 16 if the

deductee has lost the original certificate so issued and makes a request for

issuance of a duplicate certificate and such duplicate certificate is certified as

duplicate by the deductor.

4.6.4. (i) Where a certificate is to be furnished in Form No. 16, the deductor

may, at his option, use digital signatures to authenticate such

certificates.

(ii) In case of certificates issued under clause (i), the deductor shall

ensure that

(a) the conditions prescribed in para 4.6.1 above are complied with;

(b) once the certificate is digitally signed, the contents of the

certificates are not amenable to change; and

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(c) the certificates have a control number and a log of such

certificates is maintained by the deductor.

The digital signature are being used to authenticate most of the etransactions on the internet as transmission of information using digital

signature is failsafe. It saves time specially in organisations having large

number of employees where issuance of certificate of deduction of tax with

manual signature is time consuming (circular no 2 of 2007 dated 21.05.2007)

Explanation. For the purpose of this rule, challan identification number (CIN)

means the number comprising the Basic Statistical Returns (BSR) Code of the

Bank branch where the tax has been deposited, the date on which the tax has

been deposited and challan serial number given by the bank.

4.6.5. As per section 192, the responsibility of providing correct and

complete particulars of perquisites or profits in lieu of salary given to an

employee is placed on the person responsible for paying such income i.e., the

person responsible for deducting tax at source. The form and manner of

such particulars are prescribed in Rule 26A, Form 12BA and Form 16 of the

Income-tax Rules . Information relating to the nature and value of

perquisites is to be provided by the employer in Form no. 12BA in case of

salary paid or payable is above Rs.1,80,000/-. In other cases, the information

would have to be provided by the employer in Form 16 itself.

4.6.6. An employer, who has paid the tax on perquisites on behalf of the

employee as per the provisions discussed in paras 3.2 and 3.3 of this

circular, shall furnish to the employee concerned a certificate to the effect that

tax has been paid to the Central Government and specify the amount so paid,

the rate at which tax has been paid and certain other particulars in the

amended Form 16.

4.6.7. The obligation cast on the employer under Section 192(2C) for

furnishing a statement showing the value of perquisites provided to the

employee is a serious responsibility of the employer, which is expected to be

discharged in accordance with law and rules of valuation framed there

under. Any false information, fabricated documentation or suppression of

requisite information will entail consequences thereof provided under the law.

The certificates in Forms 16 specified above shall be furnished to the employee

by 31st day of May of the financial year immediately following the financial year

in which the income was paid and tax deducted. If he fails to issue these

certificates to the person concerned, as required by section 203, he will be

liable to pay, by way of penalty, under section 272A, a sum which shall be

Rs.100/- for every day during which the failure continues.

Mandatory Quoting of PAN and TAN:

4.7.1 According to the provisions of section 203A of the Income-tax Act, it

is obligatory for all persons responsible for deducting tax at source to

obtain and quote the Tax-deduction Account No. (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 9.10.1987). If a person fails to comply with the provisions of

section 203A, he will be liable to pay, by way of penalty, under section

272BB, a sum of ten thousand rupees. Similarly, as per Section 139A(5B),

it is obligatory for persons deducting tax at source to quote PAN of the persons

from whose income tax has been deducted in the statement furnished u/s

192(2C), certificates furnished u/s 203 and all returns prepared and

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delivered as per the provisions of section 200(3) of the Income Tax Act, 1961.

4.7.2 All tax deductors/collectors are required to file the TDS returns in Form

No.24Q (for tax deducted from salaries). As the requirement of filing TDS/TCS

certificates has been done away with, the lack of PAN of deductees is creating

difficulties in giving credit for the tax deducted. Tax deductors and tax

collectors are, therefore, advised to quote correct PAN details of all deductees in

the TDS returns for salaries in Form 24Q. Taxpayers liable to TDS are also

advised to furnish their correct PAN with their deductors, It may be noted that

non-furnishing of PAN by the deductee (employee) to the deductor (employer)

will result in deduction of TDS at higher rates u/s 206AA of the Income-tax

Act,1961 mentioned in para 4.9 below.

4.8 Section 206AA.

4.8.1 Finance Act (No. 2) 2009, w.e.f. 01/04/2010 has inserted sec. 206AA in

the Income-tax Act which makes furnishing of PAN by the employee compulsory

in case of payments liable to TDS. If employee (deductee) fails to furnish

his/her PAN to the deductor , the deductor shall make TDS at a higher of the

following rates

i. at the rate specified in the relevant provision of this Act; or

ii. at the rate or rates in force; or

iii. at the rate of twenty per cent.

4.8.2 The deductor has to determine the tax amount in all the three

conditions and apply the higher rate of TDS . This section applies to any person

entitled to receive any sum or income or amount, on which tax is deductible

under Chapter XVII-B of Income Tax Act. As chapter XVII-B covers all

Payments including Salaries, Salaries are also covered by Section 206AA. In

case of salaries there can be following situations

a) Where the income of the employee computed for TDS u/s 192 is below

taxable limit.

b) Where the income of the employee computed for TDS u/s 192 is above

taxable limit.

In first situation, as the tax is not liable to be deducted no tax will be

deducted. In the second case, if PAN is not furnished by the employee, the

deductor will calculate the average rate of income-tax based on rates in

force as provided in sec 192. If the tax so calculated is below 20%, deduction

of tax will be made at the rate of 20% and in case the average rate exceeds 20%,

tax is to deducted at the average rate. Education cess@ 2% and Secondary

and Higher Education Cess@ 1% is not to be deducted, in case the TDS is

deducted at 20% u/s 206AA of the Income-tax Act.

Quarterly Statement of TDS:

4.9. Statement of deduction of tax under subsection (3) of section 200.

4.9.1. The person deducting the tax (employer in case of salary income), is

required to file Quarterly Statements of TDS in Form 24Q for the periods ending

on 30th

June, 30th

September, 31st

December and 31st

March of each financial

year, duly verified, to the Director General of Income Tax (Systems), ARA centre,

Jhandewalan Extn, New Delhi or M/s National Securities Depository Ltd

(NSDL). These statements are required to be filed on or before the 15th

July,

the 15th

October, the 15th

January in respect of the first three quarters of the

financial year and on or before the 15th

May following the last quarter of the

financial year. The requirement of filing an annual return of TDS has been done

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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.

4.9.2. The statements referred above may be furnished in paper form or

electronically in accordance with the procedures, formats and standards

specified by the Director General of Income‐tax (Systems) along with the

verification of the statement in Form 27A.

4.9.3. It is now mandatory for all Govt. deductors or companies or other

deductors who are required to get their accounts audited under section

44AB of the Income Tax Act or where the number of deductee’s records

in a statement for any quarter of the financial year are twenty or more to

file, quarterly statements of TDS on computer media only in accordance

with the “Electronic Filing of Returns of Tax Deducted at Source Scheme,

2003” as notified vide Notification No. S.O. 974 (E) dated 26.8.2003 read

with Notification No. SO 1261(E) dated 31.05.2010. The quarterly

statements are to be filed by such deductors in electronic format with the

e-TDS Intermediary at any of the TIN Facilitation Centres, particulars of

which are available at www.incometaxindia.gov.in and at

http://tin-nsdl.com. If a person fails to furnish the quarterly statements in

due time, he shall be liable to pay by way of penalty under section 272A(2)(k),

a sum which shall be Rs.100/- for every day during which the failure

continues. However, this sum shall not exceed the amount of tax which was

deductible at source.

4.9.4. At the time of preparing statements of tax deducted, the deductor is

required to quote

(i) his tax deduction and collection account number (TAN) in the statement;

(ii) quote his permanent account number (PAN) in the statement except in

the case where the deductor is an office of the Government( including state

Govt). In case of Government deductors “PANNOTREQD” to be quoted in

the eTDS statement.

(iii) quote the permanent account number 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.

4.10. A return filed on the prescribed computer readable media shall be

deemed to be a return for the purposes of section 200(3) and the Rules made

there under, and shall be admissible in any proceeding there under,

without further proof of production of the original, as evidence of any

contents of the original.

TDS on Income from Pension:

4.11. In the case of pensioners who receive their pension from a

nationalized bank, the instructions contained in this circular shall apply in

the same manner as they apply to salary-income. The deductions from the

amount of pension under section 80C on account of contribution to Life

Insurance, Provident Fund, NSC etc., if the pensioner furnishes the relevant

details to the banks, may be allowed. Necessary instructions in this regard

were issued by the Reserve Bank of India to the State Bank of India and other

nationalized Banks vide RBI's Pension Circular(Central Series)

No.7/C.D.R./1992 (Ref. CO: DGBA: GA (NBS) No.60/GA.64(11CVL)-/92) dated

the 27th April, 1992, and, these instructions should be followed by all the

branches of the Banks, which have been entrusted with the task of payment

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of pensions. Further all branches of the banks are bound u/s 203 to issue

certificate of tax deducted in Form 16 to the pensioners also vide CBDT

circular no. 761 dated 13.1.98.

4.12 New Pension Scheme

The New Pension Scheme(NPS) has become operational since 1st

Jan, 2004 and

is mandatory for all new recruits to the Central Government Services from 1st

January, 2004. Since then it has been opened to employees of State

Governments, Private Sector and Self Employed. The income received by the

NPS trust is exempt. The NPS trust is exempted from the Dividend Distribution

Tax and is also exempted from the Securities Transaction Tax on all purchases

and sales of equities and derivatives. The NPS trust will also receive income

without tax deduction at source. The above amendments are retrospectively

effective from 1/4/09 (AY 2009-10) onwards

4.13. Where Non-Residents are deputed to work in India and taxes are

borne by the employer, if any refund becomes due to the employee after he

has already left India and has no bank account in India by the time the

assessment orders are passed, the refund can be issued to the employer as the

tax has been borne by it: Circular No. 707 dated 11.7.1995.

4.14 In respect of non-residents, the salary paid for services rendered in India

shall be regarded as income earned in India. It has been specifically provided

in the Act that any salary payable for rest period or leave period which is

both preceded or succeeded by service in India and forms part of the service

contract of employment will also be regarded as income earned in India.

5. COMPUTATION OF INCOME UNDER THE HEAD "SALARIES"

5.1 Income chargeable under the head "Salaries".

(1) The following income shall be chargeable to income-tax under the head

"Salaries" :

(a) any salary due from an employer or a former employer to an

assessee in the previous year, whether paid or not;

(b) any salary paid or allowed to him in the previous year by or on

behalf of an employer or a former employer though not due or before it

became due to him.

(c) any arrears of salary paid or allowed to him in the previous year

by or on behalf of an employer or a former employer, if not charged

to income-tax for any earlier previous year.

(2) For the removal of doubts, it is clarified that where any salary paid in

advance is included in the total income of any person for any previous year it

shall not be included again in the total income of the person when the salary

becomes due. Any salary, bonus, commission or remuneration, by whatever

name called, due to, or received by, a partner of a firm from the firm shall not

be regarded as "Salary".

Definition of Salary:

(3)"Salary" includes wages, fees, commissions, perquisites, profits in lieu of,

or, in addition to salary, advance of salary, annuity or pension, gratuity,

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payments in respect of encashment of leave etc. It also includes the annual

accretion to the employee's account in a recognized provident fund to the

extent it is chargeable to tax under rule 6 of Part A of the Fourth Schedule of

the Income-tax Act. Contributions made by the employer to the account of

the employee in a recognized provident fund in excess of 12% of the salary

of the employee, along with interest applicable, shall be included in the

income of the assessee for the previous year. Any contribution made by the

Central Government or any other employer to the account of the

employee under the New Pension Scheme as notified vide Notification No.

F.N. 5/7/2003- ECB&PR dated 22.12.2003(enclosed as Annexure-IVA)

referred to in section 80CCD (para 5.4(C) of this Circular) shall also be

included in the salary income. Other items included in salary, profits in

lieu of salary and perquisites are described in Section 17 of the Income-tax

Act. It may be noted that, since salary includes pensions, tax at source

would have to be deducted from pension also, if otherwise called for.

However, no tax is required to be deducted from the commuted portion of

pension which is exempt, as explained in clause (3) of para 5.2 of this Circular.

(4) Section 17 defines the terms "salary", "perquisite" and "profits in lieu of

salary".

Perquisite includes:

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:

i) By a company to an employee who is a director of

such company;

ii) By a company to an employee who has a

substantial interest in the company;

iii) By an employer (including a company)to an

employee, who is not covered by (i) or (ii) above and

whose income under the head Salaries ( whether

due from or paid or allowed by one or more

employers), exclusive of the value of all benefits and

amenities not provided by way of monetary

payment, exceeds Rs.50,000/-.

What constitute concession in the matter of rent have been prescribed

in Explanation 1 to 4 below 17(2)(ii) of the Income Tax Act, 1961.

IV. Any sum paid by the employer in respect of any obligation which

would have been paid by the assessee.

V. Any sum payable by the employer, whether directly or through a

fund, other than a recognized provident fund or an approved

superannuation fund or other specified funds u/s 17, to effect

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an assurance on the life of an assessee or to effect a contract for

an annuity.

VI. With effect from 1/04/2010 (AY 2010-11) it is further

clarified that the value of any specified security or sweat

equity shares allotted or transferred, directly or indirectly,

by the employer, or former employer, free of cost or at

concessional rate to the assessee, shall constitute a

perquisite in the hand of employees.

Explanation.—For the purposes of this sub-clause,—

(a) “specified security” means the securities as defined in

clause (h) of section 2 of the Securities Contracts (Regulation) Act,

1956 (42 of 1956) and, where employees’ stock option has been

granted under any plan or scheme therefore, includes the

securities offered under such plan or scheme;

(b) “sweat equity shares” means equity shares issued by a

company to its employees or directors at a discount or for

consideration other than cash for providing know-how or making

available rights in the nature of intellectual property rights or

value additions, by whatever name called;

(c) the value of any specified security or sweat equity shares

shall be the fair market value of the specified security or sweat

equity shares, as the case may be, on the date on which the

option is exercised by the assessee as reduced by the amount

actually paid by, or recovered from the assessee in respect of such

security or shares;

(d) “fair market value” means the value determined in

accordance with the method as may be prescribed;

(e) “option” means a right but not an obligation granted to an

employee to apply for the specified security or sweat equity shares

at a predetermined price;

VII. The amount of any contribution to an approved superannuation

fund by the employer in respect of the assessee, to the extent it

exceeds one lakh rupees; and

VIII. The value of any other fringe benefit or amenity as may be

prescribed.

It is further provided that 'profits in lieu of salary' shall include

amounts received in lump sum or otherwise, prior to employment or after

cessation of employment for the purposes of taxation.

The rules for valuation of perquisite are as under : -

I. Accommodation :- For purpose of valuation of the perquisite of

unfurnished accommodation, all employees are divided into two categories:

(i)Central Govt. & State Govt. employees; and (ii)Others.

For employees of the Central and State governments the value of

perquisite shall be equal to the licence fee charged for such accommodation

as reduced by the rent actually paid by the employee.

For all others, i.e., those salaried taxpayers not in employment of the

Central government and the State government, the valuation of perquisite

in respect of accommodation would be at prescribed rates, as discussed

below:

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1. Where the accommodation provided to the employee is owned by

the employer, the rate is 15% of 'salary' in cities having

population exceeding 25 lakh as per the 2001 census. The rate is

10% of salary in cities having population exceeding 10 lakhs but not

exceeding 25 lakhs as per 2001 Census. For other places, the

perquisite value would be 7.5 % of the salary.

2. Where the accommodation so provided is taken on lease/ rent by

the employer, the prescribed rate is 15% of the salary or the actual

amount of lease rental payable by the employer, whichever is lower,

as reduced by any amount of rent paid by the employee.

For furnished accommodation, the value of perquisite as determined by the

above method shall be increased by-

i) 10% of the cost of furniture, appliances and equipments, or

ii) where the furniture, appliances and equipments have been taken on

hire, by the amount of actual hire charges payable.

- as reduced by any charges paid by the employee himself.

Explanation: For the purpose of this rule, where the accommodation is

provided by the Central Government or any State Government to an employee

who is serving on deputation with any body 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 Sl. No.(2)(a) of Table I, as

if the accommodation is owned by the employer.

"Accommodation" includes a house, flat, farm house, hotel accommodation,

motel, service apartment, guest house, a caravan, mobile home, ship etc.

However, the value of any accommodation provided to an employee working

at a mining site or an on-shore oil exploration site or a project execution

site or a dam site or a power generation site or an off-shore site will not be

treated as a perquisite. However, for not being treated as perquisite, such

accommodation should either be located in a “remote area” or where it is not

located in a “remote area”, the accommodation should be of a temporary nature

having plinth area of not more than 800 square feet and should not be located

within 8 kilometers of the local limits of any municipality or cantonment board.

A project execution site for the purposes of this sub-rule means a site of

project up to the stage of its commissioning. A "remote area" means an area

located at least 40 kilometers away from a town having a population not

exceeding 20,000 as per the latest published all-India census.

If an accommodation is provided by an employer in a hotel the value of the

benefit in such a case shall be 24% of the annual salary or the actual charges

paid or payable to such hotel, whichever is lower, for the period during

which such accommodation is provided as reduced by any rent actually paid or

payable by the employee. However, where in cases the employee is provided

such accommodation for a period not exceeding in aggregate fifteen days on

transfer from one place to another, no perquisite value for such

accommodation provided in a hotel shall be charged. It may be clarified that

while services provided as an integral part of the accommodation, need not be

valued separately as perquisite, any other services over and above that for

which the employer makes payment or reimburses the employee shall be

valued as a perquisite as per the residual clause. In other words, composite

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tariff for accommodation will be valued as per these Rules and any other

charges for other facilities provided by the hotel will be separately valued

under the residual clause. Also, if on account of an employee's transfer from

one place to another, the employee is provided with accommodation at the new

place of posting while retaining the accommodation at the other place, the

value of perquisite shall be determined with reference to only one such

accommodation which has the lower value as per the table prescribed in Rule

3 of the Income Tax Rules, for a period up to 90 days. However, after that

the value of perquisite shall be charged for both accommodations as

prescribed.

II Personal attendants etc.: The value of free service of all personal

attendants including a sweeper, gardener and a watchman is to be taken at

actual cost to the employer. Where the attendant is provided at the

residence of the employee, full cost will be taxed as perquisite in the hands

of the employee irrespective of the degree of personal service rendered to

him. Any amount paid by the employee for such facilities or services shall be

reduced from the above amount.

III Gas, electricity & water: For free supply of gas, electricity and water for

household consumption, the rules provide that the amount paid by the

employer to the agency supplying the amenity shall be the value of

perquisite. Where the supply is made from the employer's own resources, the

manufacturing cost per unit incurred by the employer would be taken for the

valuation of perquisite. Any amount paid by the employee for such facilities or

services shall be reduced from the above amount.

IV Free or concessional education: Perquisite on account of free or

concessional education shall be valued in a manner assuming that such

expenses are borne by the employee, and would cover cases where an

employer is running, maintaining or directly or indirectly financing the

educational institution. Any amount paid by the employee for such facilities

or services shall be reduced from the above amount. However, where such

educational institution itself is maintained and owned by the employer or where

such free educational facilities are provided in any institution by reason of his

being in employment of that employer, the value of the perquisite to the

employee shall be determined with reference to the cost of such education in a

similar institution in or near the locality if the cost of such education or such

benefit per child exceeds Rs.1000/- p.m.

V Interest free or concessional loans - It is common practice, particularly in

financial institutions, to provide interest free or concessional loans to employees

or any member of his household. The value of perquisite arising from such

loans would be the excess of interest payable at prescribed interest rate over

interest, if any, actually paid by the employee or any member of his

household. The prescribed interest rate would now be the rate charged per

annum by the State Bank of India as on the 1st

day of the relevant financial year

in respect of loans of same type and for the same purpose advanced by it to the

general public. Perquisite value would be calculated on the basis of the

maximum outstanding monthly balance method. For valuing perquisites under

this rule, any other method of calculation and adjustment otherwise adopted by

the employer shall not be relevant.

However, small loans up to Rs. 20,000/- in the aggregate are exempt. Loans

for medical treatment specified in Rule 3A are also exempt, provided the

amount of loan for medical reimbursement is not reimbursed under any

medical insurance scheme. Where any medical insurance reimbursement is

received, the perquisite value at the prescribed rate shall be charged from the

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date of reimbursement on the amount reimbursed, but not repaid against

the outstanding loan taken specifically for this purpose.

VI Use of assets: It is common practice for an asset owned by the

employer to be used by the employee or any member of his household. This

perquisite is to be charged at the rate of 10% of the original cost of the

asset as reduced by any charges recovered from the employee for such use.

However, the use of Computers and Laptops would not give rise to any

perquisite.

VII Transfer of assets: Often an employee or member of his household

benefits from the transfer of movable asset (not being shares or securities) at

no cost or at a cost less than its market value from the employer. The

difference between the original cost of the movable asset(not being

shares or securities) and the sum, if any, paid by the employee, shall be

taken as the value of perquisite. In case of a movable asset, which has

already been put to use, the original cost shall be reduced by a sum of 10% of

such original cost for every completed year of use of the asset. Owing to a

higher degree of obsolescence, in case of computers and electronic gadgets,

however, the value of perquisite shall be worked out by reducing 50% of the

actual cost by the reducing balance method for each completed year of

use. Electronic gadgets in this case means data storage and handling

devices like computer, digital diaries and printers. They do not include

household appliance (i.e. white goods) like washing machines, microwave

ovens, mixers, hot plates, ovens etc. Similarly, in case of cars, the value of

perquisite shall be worked out by reducing 20% of its actual cost by the

reducing balance method for each completed year of use.

VIII Medical Reimbursement by the employer exceeding Rs. 15,000/- p.a.

u/s. 17(2)(v) is to be taken as perquisites.

It is further clarified that the rule position regarding valuation of

perquisites are given at Section 17(2) of Income Tax Act, 1961 and at Rule

3 of Income Tax Rules, 1962. The deductors may look into the above

provisions carefully before they determine the perquisite value for

deduction purposes.

It is pertinent to mention that benefits specifically exempt u/s 10(13A), 10(5),

10(14), 17 etc. would continue to be exempt. These include benefits like

travel on tour and transfer, leave travel, daily allowance to meet tour expenses

as prescribed, medical facilities subject to conditions.

5.2 Incomes not included under the Head "Salaries"(Exemptions)

Any income falling within any of the following clauses shall not be included in

computing the income from salaries for the purpose of Section 192 of the Act :-

(1) The value of any travel concession or assistance received by or

due to an employee from his employer or former employer for himself and his

family, in connection with his proceeding (a) on leave to any place in India or

(b) on retirement from service, or, after termination of service to any place

in India is exempt under clause (5) of Section 10 subject, however, to the

conditions prescribed in rule 2B of the Income-tax Rules,1962.

For the purpose of this clause, "family" in relation to an individual means :

(i) The spouse and children of the individual; and

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(ii) the parents, brothers and sisters of the individual or any of

them, wholly or mainly dependent on the individual.

It may also be noted that the amount exempt under this clause shall

in no case exceed the amount of expenses actually incurred for the

purpose of such travel.

(2) Death-cum-retirement gratuity or any other gratuity which is exempt

to the extent specified from inclusion in computing the total income under

clause (10) of Section 10. Any death-cum-retirement gratuity received under

the revised Pension Rules of the Central Government or, as the case may be,

the Central Civil Services (Pension) Rules, 1972, 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 civil services of a State or holders of

civil posts under a State or to the employees of a local authority or any payment

of retiring gratuity received under the Pension Code or Regulations applicable

to the members of the defence service. Gratuity received in cases other than

above on retirement, termination etc is exempt up to the limit as prescribed by

the Board. Presently the limit is Rs ten lakh w.e.f. 24.05.2010 in view of

notification number 43/2010 S.O. 1414(E) issued under F.N. 200/33/2009-

ITA-1.

(3) Any payment in commutation of pension received under the Civil

Pension(Commutation) Rules of the Central Government or under any similar

scheme applicable to the members of the civil services of the Union, or holders

of civil posts/posts connected with defence, under the Union,or civil posts

under a State, or to the members of the All India Services/Defence Services, or,

to the employees of a local authority or a corporation established by a

Central,State or Provincial Act, is exempt under sub-clause (i) of clause (10A)

of Section 10. As regards payments in commutation of pension received

under any scheme of any other employer, exemption will be governed by the

provisions of sub-clause (ii) of clause (10A) of section 10. Also, any payment in

commutation of pension received from a Regimental Fund or Non-Public Fund

established by the Armed Forces of the Union referred to in Section 10(23AAB)

is exempt under sub-clause (iii) of clause (10A) of Section 10.

(4) Any payment received by an employee of the Central Government or a State

Government, as cash-equivalent of the leave salary in respect of the period

of earned leave at his credit at the time of his retirement, whether on

superannuation or otherwise, is exempt under sub-clause(i) of clause

10AA) of Section 10. In the case of other employees, this exemption will be

determined with reference to the leave to their credit at the time of retirement

on superannuation, or otherwise, subject to a maximum of ten months'

leave.This exemption will be further limited to the maximum amount

specified by the Government of India Notification No.S.O.588(E) dated

31.05.2002 at Rs. 3,00,000/- in relation to such employees who retire,

whether on superannuation or otherwise, after 1.4.1998.

(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

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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.

(6) Under Section 10(10C), any payment received or receivable (even if received

in installments) by an employee of the following bodies at the time of his

voluntary retirement or termination of his service, in accordance with any

scheme or schemes of voluntary retirement or in the case of public

sector company , a scheme of voluntary separation, is exempted from incometax to the extent that such amount does not exceed five lakh rupees:

a) A public sector company;

b) Any other company;

c) An Authority established under a Central, State or Provincial Act;

d) A Local Authority;

e) A Cooperative Society;

f) A university established or incorporated or under a Central, State or

Provincial Act, or, an Institution declared to be a University under

section 3 of the University Grants Commission Act, 1956;

g) Any Indian Institute of Technology within the meaning of Clause (g) of

Section 3 of the Institute of Technology Act, 1961;

h) Such Institute of Management as the Central Government may by

notification in the Official Gazette, specify in this behalf.

The exemption of amount received under VRS has been

extended to employees of the Central Government and State Government and

employees of notified institutions having importance throughout India or any State

or States. It may also be noted that where this exemption has been allowed to any

employee for any assessment year, it shall not be allowed to him for any other

assessment year.

(7) Any sum received under a Life Insurance Policy, including the sum allocated

by way of bonus on such policy other than:

i) any sum received under sub-section (3) of section 80DD or

sub-section (3) of section 80DDA or,

ii) any sum received under Keyman insurance policy or,

iii) any sum received under an insurance policy issued on or after

1.4.2003 in respect of which the premium payable for any of the

years during the term of the policy exceeds 20 percent of the

actual capital sum assured. However, any sum received under

such policy on the death of a person would still be exempt.

(8) any payment from a Provident Fund to which the Provident Funds Act,

1925 ( 19 of 1925), applies or from any other provident fund set up by the

Central Government and notified by it in this behalf in the Official Gazette.

(9) Under Section 10(13A) of the Income-tax Act, 1961,any special allowance

specifically granted to an assessee by his employer to meet expenditure

incurred on payment of rent (by whatever name called) in respect of

residential accommodation occupied by the assessee is exempt from

Income-tax to the extent as may be prescribed, having regard to the area

or place in which such accommodation is situated and other relevant

considerations. According to rule 2A of the Income-tax Rules, 1962, the

quantum of exemption allowable on account of grant of special

allowance to meet expenditure on payment of rent shall be:

(a) The actual amount of such allowance received by the assessee in

respect of the relevant period; or

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(b) The actual expenditure incurred in payment of rent in excess of

1/10 of the salary due for the relevant period; or

(c) Where such accommodation is situated in Bombay, Calcutta,

Delhi or Madras, 50% of the salary due to the employee for the

relevant period; or

(d) Where such accommodation is situated in any other places,

40% of the salary due to the employee for the relevant period,

whichever is the least.

For this purpose, "Salary" includes dearness allowance, if the terms of

employment so provide, but excludes all other allowances and perquisites.

It has to be noted that only the expenditure actually incurred on payment of

rent in respect of residential accommodation occupied by the assessee

subject to the limits laid down in Rule 2A, qualifies for exemption from

income-tax. Thus, house rent allowance granted to an employee who is

residing in a house/flat owned by him is not exempt from income-tax. The

disbursing authorities should satisfy themselves in this regard by insisting

on production of evidence of actual payment of rent before excluding the

House Rent Allowance or any portion thereof from the total income of the

employee.

Though incurring actual expenditure on payment of rent is a pre-requisite for

claiming deduction under section 10(13A), it has been decided as an

administrative measure that salaried employees drawing house rent allowance

upto Rs.3000/- per month will be exempted from production of rent receipt.

It may, however, be noted that this concession is only for the purpose of

tax-deduction at source, and, in the regular assessment of the employee, the

Assessing Officer will be free to make such enquiry as he deems fit for the

purpose of satisfying himself that the employee has incurred actual

expenditure on payment of rent.

Further if annual rent paid by the employee exceeds Rs 1,80,000 per annum, it

is mandatory for the employee to report PAN of the landlord to the employer. In

case the landlord does not have a PAN, a declaration to this effect from the

landlord along with the name and address of the landlord should be filed by

the employee.

(10) Clause (14) of section 10 provides for exemption of the following allowances :-

(i) Any special allowance or benefit granted to an employee to

meet the expenses incurred in the performance of his

duties as prescribed under Rule 2BB subject to the extent to

which such expenses are actually incurred for that purpose.

(ii) Any allowance granted to an employee either to meet his

personal expenses at the place of his posting or at the place he

ordinarily resides or to compensate him for the increased

cost of living, which may be prescribed and to the extent as

may be prescribed.

However, the allowance referred to in (ii) above should not be in the nature of a

personal allowance granted to the assessee to remunerate or compensate him

for performing duties of a special nature relating to his office or employment

unless such allowance is related to his place of posting or residence.

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The CBDT has prescribed guidelines for the purpose of clauses (i) and (ii) of

Section 10(14) vide notification No.SO617(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). The transport allowance granted to an

employee to meet his expenditure for the purpose of commuting between the

place of his residence and the place of duty is exempt to the extent of Rs.800

per month vide notification S.O.No. 395(E) dated 13.5.98.

(11) Under Section 10(15)(iv)(i) of the Income-tax Act, interest payable by the

Government on deposits made by an employee of the Central Government or a

State Government or a public sector company out of his retirement

benefits, in accordance with such scheme framed in this behalf by the

Central Government and notified in the Official Gazette is exempt from

income-tax. By notification No.F.2/14/89-NS-II dated 7.6.89, as amended by

notification No.F.2/14/89-NS-II dated 12.10.89, the Central Government has

notified a scheme called Deposit Scheme for Retiring Government

Employees, 1989 for the purpose of the said clause.

(12) Any scholarship granted to meet the cost of education is not to be included in

total income as per subsection (16) of section 10 of Income Tax Act.

(13) Clause (18) of Section 10 provides for exemption of any income by way of

pension received by an individual who has been in the service of the Central

Government or State Government and has been awarded "Param Vir Chakra"

or "Maha Vir Chakra" or "Vir Chakra" or such other gallantry award as may

be specifically notified by the Central Government or family pension received

by any member of the family of such individual. “Family” for this purpose shall

have the meaning assigned to it in Section 10(5) of the Act. Such notification

has been made vide Notifications No.S.O.1948(E) dated 24.11.2000 and

81(E) dated 29.1.2001, which are enclosed as per Annexure VA & VB.

(14) Under Section 17 of the Act, exemption from tax will also be available in

respect of:-

(a) the value of any medical treatment provided to an employee or any

member of his family, in any hospital maintained by the employer;

(b) any sum paid by the employer in respect of any expenditure actually

incurred by the employee on his medical treatment or of any member of

his family:

(i)in any hospital maintained by the Government or any local authority

or any other hospital approved by the Government for the

purposes of medical treatment of its employees;

(ii)in respect of the prescribed diseases or ailments as provided in Rule

3A(2) of I.T. Rules 1962, in any hospital approved by the Chief

Commissioner having regard to the prescribed guidelines as

provided in Rule 3(A)(1)of I.T. Rule, 1962 :

(c) premium paid by the employer in respect of medical insurance taken for

his employees (under any scheme approved by the Central Government or

Insurance Regulatory and Development Authority) or reimbursement of

insurance premium to the employees who take medical insurance for

themselves or for their family members (under any scheme approved by

the Central Government or Insurance Regulatory and Development

Authority);

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(d) reimbursement, by the employer, of the amount spent by an employee in

obtaining medical treatment for himself or any member of his family from

any doctor, not exceeding in the aggregate Rs.15,000/- in an year.

(e) As regards medical treatment abroad, the actual expenditure on

stay and treatment abroad of the employee or any member of his

family, or, on stay abroad of one attendant who accompanies the patient,

in connection with such treatment, will be excluded from perquisites to

the extent permitted by the Reserve Bank of India. It may be noted that

the expenditure incurred on travel abroad by the patient/attendant, shall

be excluded from perquisites only if the employee's gross total

income, as computed before including the said expenditure, does not

exceed Rs.2 lakhs.

For the purpose of availing exemption on expenditure incurred on

medical treatment, "hospital" includes a dispensary or clinic or nursing home, and

"family" in relation to an individual means the spouse and children of the

individual. Family also includes parents, brothers and sisters of the

individual if they are wholly or mainly dependent on the individual.

5.3 Deductions from income from Salaries u/s 16 of the Act

Entertainment Allowance:

A deduction is also allowed under clause (ii) of section 16 in respect of any

allowance in the nature of an entertainment allowance specifically granted by an

employer to the assessee, who is in receipt of a salary from the Government, a sum

equal to one-fifth of his salary(exclusive of any allowance, benefit or other

perquisite) or five thousand rupees whichever is less. No deduction on account of

entertainment allowance is available to non-government employees.

Tax On Employment:

The tax on employment (Professional Tax) within the meaning of clause (2) of Article

276 of the Constitution of India, leviable by or under any law, shall also be

allowed as a deduction in computing the income under the head "Salaries".

It may be clarified that “Standard Deduction” from gross salary income,

which was being allowed up to financial year 2004-05 is not allowable from

financial year 2005-06 onwards.

5.4 Deductions under Chapter VI-A of the Act

In computing the taxable income of the employee, the following deductions under

Chapter VI-A of the Act are to be allowed from his gross total income:

A. As per section 80C, an employee will be entitled to deductions for the whole of

amounts paid or deposited in the current financial year in the following schemes, subject

to a limit of Rs.1,00,000/-:

(1) Payment of insurance premium to effect or to keep in force an insurance on

the life of the individual, the spouse or any child of the individual.

(2) Any payment made to effect or to keep in force a contract for a deferred

annuity, not being an annuity plan as is referred to in item (7) herein below

on the life of the individual, the spouse or any child of the individual,

provided that such contract does not contain a provision for the exercise by

the insured of an option to receive a cash payment in lieu of the payment

of the annuity;

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(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 employee to an approved superannuation fund;

It may be noted that "contribution" to any Fund shall not include any sums in

repayment of loan;

(5) Any subscription :-

(a) to any such security of the Central Government or any such deposit

scheme as the Central Government may, by notification in the Official

Gazette, specify in this behalf;

(b)to any such saving certificates as defined under section 2(c) of the

Government Saving Certificate Act, 1959 as the Government may, by

notification in the Official Gazette, specify in this behalf.

[The Central Government has since notified National Saving Certificate (VIII

th

Issue) vide Notification S.O. No. 1560(E) dated 3.11.05.]

(6) Any sum paid as contribution in the case of an individual, for himself, spouse or

any child,

a. for participation in the Unit Linked Insurance Plan, 1971 of the Unit

Trust of India;

b. for participation in any unit-linked insurance plan of the LIC

Mutual Fund referred to in clause (23D) of section 10 and as notified by the

Central Government.

[The Central Government has since notified Unit Linked Insurance Plan (formerly

known as Dhanraksha, 1989) of LIC Mutual Fund vide Notification S.O. No. 1561(E)

dated 3.11.05.]

(7) Any subscription made to effect or keep in force a contract for such annuity

plan of the Life Insurance Corporation or any other insurer as the Central

Government may, by notification in the Official Gazette, specify;

[The Central Government has since notified New Jeevan Dhara, New Jeevan Dhara-I,

New Jeevan Akshay, New Jeevan Akshay-I and New Jeevan Akshay-II vide

Notification S.O. No. 1562(E) dated 3.11.05 and Jeevan Akshay-III vide Notification

S.O. No. 847(E) dated 1.6.2006 ]

(8) Any subscription made to any units of any Mutual Fund, referred to in

clause(23D) of section 10, or from the Administrator or the specified company

referred to in Unit Trust of India (Transfer of Undertaking & Repeal) Act, 2002

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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 clause (23D) of section 10, or, by the Administrator

or the specified company referred to in Unit Trust of India (Transfer of Undertaking

& Repeal) Act, 2002, as the Central Government may, by notification in the

Official Gazette, specify in this behalf;

[The Central Government has since notified UTI-Retirement Benefit Pension Fund vide

Notification S.O. No. 1564(E) dated 3.11.05.]

(10) Any subscription made to any such deposit scheme of, or, any contribution

made to any such pension fund set up by, the National Housing Bank, as the

Central Government may, by notification in the Official Gazette, specify in this

behalf;

(11) Any subscription made to any such deposit scheme, as the Central Government

may, by notification in the Official Gazette, specify for the purpose of being

floated by (a) public sector companies engaged in providing long-term

finance for construction or purchase of houses in India for residential

purposes, or, (b) any authority constituted in India by, or, under any law,

enacted either for the purpose of dealing with and satisfying the need

for housing accommodation or for the purpose of planning, development or

improvement of cities, towns and villages, or for both.

[The Central Government has since notified the Public Deposit Scheme of HUDCO

vide Notification S.O. No.37(E), dated 11.01.2007, for the purposes of Section

80C(2)(xvi)(a)].

(12) Any sums paid by an assessee for the purpose of purchase or

construction of a residential house property, the income from which is

chargeable to tax under the head "Income from house property" (or which

would, if it has not been used for assessee's own residence, have been

chargeable to tax under that head) where such payments are made towards or

by way of any instalment or part payment of the amount due under any selffinancing or other scheme of any Development Authority, Housing Board

etc.

The deduction will also be allowable in respect of re-payment of loans

borrowed by an assessee from the Government, or any bank or Life Insurance

Corporation, or National Housing Bank, or certain other categories of

institutions engaged in the business of providing long term finance for

construction or purchase of houses in India. Any repayment of loan borrowed

from the employer will also be covered, if the employer happens to be a public

company, or a public sector company, or a university established by law, or a

college affiliated to such university, or a local authority, or a cooperative

society, or an authority, or a board, or a corporation, or any other body

established under a Central or State Act.

The stamp duty, registration fee and other expenses incurred for the purpose

of transfer shall also be covered. Payment towards the cost of house

property, however, will not include, admission fee or cost of share or initial

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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 Income-tax Act will also not be included in payments

towards the cost of purchase or construction of a house property.

Where the house property in respect of which deduction has been allowed under

these provisions is transferred by the tax-payer at any time before the expiry of

five years from the end of the financial year in which possession of such

property is obtained by him or he receives back, by way of refund or

otherwise, any sum specified in section 80C(2)(xviii), no deduction under

these provisions shall be allowed in respect of such sums paid in such

previous year in which the transfer is made and the aggregate amount of

deductions of income so allowed in the earlier years shall be added to the

total income of the assessee of such previous year and shall be liable to tax

accordingly.

(13) Tuition fees, whether at the time of admission or thereafter, paid to any

university, college, school or other educational institution situated in India, for

the purpose of full-time education of any two children of the employee.

Full-time education includes any educational course offered by any

university, college, school or other educational institution to a student

who is enrolled full-time for the said course. It is also clarified that fulltime education includes play-school activities, pre-nursery and nursery

classes.

It is clarified that the amount allowable as tuition fees shall include any payment

of fee to any university, college, school or other educational institution in India

except the amount representing payment in the nature of development fees or

donation or capitation fees or payment of similar nature.

(14) Subscription to equity shares or debentures forming part of any

eligible issue of capital made by a public company, which is approved by the

Board or by any public finance institution.

(15) Subscription to any units of any mutual fund referred to in clause

(23D) of Section 10 and approved by the Board, if the amount of subscription

to such units is subscribed only in eligible issue of capital of any company.

(16) Investment as a term deposit for a fixed period of not less than five

years with a scheduled bank, which is in accordance with a scheme framed

and notified by the Central Government, in the Official Gazette for these

purposes.

[The Central Government has since notified the Bank Term Deposit Scheme, 2006 for

this purpose vide Notification S.O. No. 1220(E) dated 28.7.2006]

(17) Subscription to such bonds issued by the National Bank for

Agriculture and Rural Development, as the Central Government may, by such

notification in the Official Gazette, specify in this behalf.

(18) Any investment in an account under the Senior Citizens Savings Scheme

Rules, 2004.

(19) Any investment as five year time deposit in an account under the Post Office

Time Deposit Rules, 1981.

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It may be clarified that the amount of premium or other payment made on an

insurance policy [other than a contract for deferred annuity mentioned in subpara (2)] shall be eligible for deduction only to the extent of 20 percent of the

actual capital sum assured. In calculating any such actual capital sum, the

following shall not be taken into account:

i) the value of any premiums agreed to be returned, or

ii) any benefit by way of bonus or otherwise over and above the sum

actually assured which may be received under the policy.

B. As per section 80CCC, where an assessee being an individual has in the previous

year paid or deposited any amount out of his income chargeable to tax to effect

or keep in force a contract for any annuity plan of Life Insurance

Corporation of India or any other insurer for receiving pension from the

Fund referred to in clause (23AAB) of section 10, he shall, in accordance

with, and subject to the provisions of this section, be allowed a

deduction in the computation of his total income, of the whole of the amount

paid or deposited (excluding interest or bonus accrued or credited to the

assessee's account, if any) as does not exceed the amount of one lakh rupees

in the previous year.

Where any amount paid or deposited by the assessee has been taken into

account for the purposes of this section, a rebate/ deduction with reference to

such amount shall not be allowed under section 88 up to assessment year 2005-

06 and under section 80C from assessment year 2006-07 onwards.

C. As per the provisions of section 80CCD, where an assessee, being an individual

employed by the Central Government on or after the 1st day of January, 2004,

has in the previous year paid or deposited any amount in his account under a

pension scheme as notified vide Notification No. F.N. 5/7/2003- ECB&PR

dated 22.12.2003, he shall be allowed a deduction in the computation of his

total income, of the whole of the amount so paid or deposited as does not exceed

ten per cent of his salary in the previous year.

The benefit of new pension scheme has been extended to any other employees

(also self employed person) w.r.e.f 1/04/09 and deduction is allowed to

employees upto 10% of salary in the previous year and in other cases upto 10%

of his gross total income in the previous year. Further it has been specified that

w.r.e.f 1/04/09 any amount received by the assessee from the new pension

scheme shall be deemed not to have received in the previous year if such amount

is used for purchasing an annuity plan in the previous year.

It may be noted that the contribution made by the Central Government or

any other employer, towards a pension scheme notified for section 80 CCD,

shall be allowed as deduction in the computation of total income of the

employee to the extent that it does not exceed ten percent of employee’s

salary. W.e.f. 01.04.2011 (FY 2011-12), the amount of deduction so

allowed shall be outside the overall limit of Rs one lakh under section

80CCE of the Income Tax Act, 1961. It is therefore, clarified that

contribution made by an employee alone will be eligible to deduction limit

of upto Rs.one lakh. The contribution made by the Central Government or

any other employee to a pension scheme u/s 80CCD(2) shall be excluded

from the limit of one lakh rupees provided under Section 80CCE.

Where any amount standing to the credit of the assessee in his account under

such pension scheme, in respect of which a deduction has been allowed as per

the provisions discussed above, together with the amount accrued thereon, if

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any, is received by the assessee or his nominee, in whole or in part, in any

financial year,—

(a) on account of closure or his opting out of such pension scheme; or

(b) as pension received from the annuity plan purchased or taken on

such closure or opting out,

the whole of the amount referred to in clause (a) or clause (b) above shall be

deemed to be the income of the assessee or his nominee, as the case may be, in

the financial year in which such amount is received, and shall accordingly be

charged to tax as income of that financial year.

For the purposes of deduction under section 80CCD, “salary” includes dearness

allowance, if the terms of employment so provide, but excludes all other

allowances and perquisites.

The aggregate amount of deduction under sections 80C, 80CCC and sub

section (1) of Section 80CCD shall not exceed Rs.1,00,000/- (Section

80CCE)

D. A new section 80CCF has been inserted by the Finance Act, 2010, wef 01.04.2011.

The section 80CCF provides for deduction available to an individual or a HUF,

the whole of the amount, to the extent such amount does not exceed Rs 20,000,

paid or deposited during financial year 2010-11, as subscription to long-term

infrastructure bonds as notified by the Central Govt for the purpose of this

section.(Board Notification no 48/2010 dated 09.09.2010)

Deduction under this section can not exceed Rs 20,000 and are available

only for current financial year 2011-12. The deduction under this section

will be in addition to overall limit of deduction of upto Rs one lakh under

section 80C, 80CCC and sub section (1) of Section 80 CCD.

E. Section 80D provides for deduction available for health premia paid etc. In

computing the total income of an assessee, being an individual or a Hindu

undivided family, there shall be deducted such sum, as specified below payment

of which is made by any mode, other than cash, in the previous year out of his

income chargeable to tax.

Where the assessee is an individual, the sum referred to shall be the aggregate of

the following, namely:—

(a) the whole of the amount paid to effect or to keep in force an insurance

on the health of the assessee or his family or any contribution made to the

CGHS as does not exceed in the aggregate fifteen thousand rupees; and

(b) the whole of the amount paid to effect or to keep in force an insurance

on the health of the parent or parents of the assessee as does not exceed in the

aggregate fifteen thousand rupees.

Explanation.—For the purposes of clause (a), “family” means the spouse and

dependent children of the assessee.

Where the assessee is a Hindu undivided family, the sum referred to shall be

the whole of the amount paid to effect or to keep in force an insurance on the

health of any member of that Hindu undivided family as does not exceed in the

aggregate fifteen thousand rupees.

Where the sum specified above is paid to effect or keep in force an insurance on

the health of any person specified therein, and who is a senior citizen, the

deduction available is “twenty thousand rupees” rather than fifteen thousand as

specified above.

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Explanation.—For the above “senior citizen” means an individual resident in

India who is of the age of sixty years or more at any time during the relevant

previous year.

The insurance referred to above shall be in accordance with a scheme made in

this behalf by—

(a) the General Insurance Corporation of India formed under section 9 of

the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and

approved by the Central Government in this behalf; or

(b) any other insurer and approved by the Insurance Regulatory and

Development Authority established under sub-section (1) of section 3 of the

Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]

F. Under section 80DD, where an assessee, who is a resident in India, has, during the

previous year,-

(a) incurred any expenditure for the medical treatment (including nursing),

training and rehabilitation of a dependant, being a person with disability; or

(b) paid or deposited any amount under a scheme framed in this behalf by the

Life Insurance Corporation or any 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 dependant, being a person

with disability,

the assessee shall be allowed a deduction of a sum of fifty thousand rupees from

his gross total income of that year.

However, where such dependant is a person with severe disability, an amount of

one hundred thousand rupees shall be allowed as deduction subject to the

specified conditions.

The deduction under clause (b) of sub-section (1) shall be allowed only if the

following conditions are fulfilled:-

A.(i) the scheme referred to in clause (b) above provides for payment of annuity

or lump sum amount for the benefit of a dependant, being a person with

disability, in the event of the death of the individual in whose name subscription

to the scheme has been made;

(ii) the assessee nominates either the dependant, being a person with

disability, or any other person or a trust to receive the payment on his behalf,

for the benefit of the dependant, being a person with disability.

However, if the dependant, being a person with disability, predeceases the

assessee, an amount equal to the amount paid or deposited under sub-para(b)

above shall be deemed to be the income of the assessee of the previous year in

which such amount is received by the assessee and shall accordingly be

chargeable to tax as the income of that previous year.

B. The assessee, claiming a deduction under this section, shall furnish a copy of

the certificate issued by the medical authority in the prescribed form and

manner, along with the return of income under section 139, in respect of the

assessment year for which the deduction is claimed:

In cases where the condition of disability requires reassessment of its extent after

a period stipulated in the aforesaid certificate, no deduction under this section

shall be allowed for any subsequent period unless a new certificate is obtained

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from the medical authority in the prescribed form and manner and a copy thereof

is furnished along with the return of income.

For the purposes of section 80DD,—

(a) “Administrator” means the Administrator as referred to in clause (a) of

section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act,

2002 (58 of 2002) ;

(b) “dependant” means—

(i) in the case of an individual, the spouse, children, parents,

brothers and sisters of the individual or any of them;

(ii) in the case of a Hindu undivided family, a member of the Hindu

undivided family,dependant wholly or mainly on such individual or Hindu

undivided family for his support and maintenance, and who has not claimed

any deduction under section 80U in computing his total income for the

assessment year relating to the previous year;

(c) “disability” shall have the meaning assigned to it in clause (i) of section

2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and

Full Participation) Act, 1995 (1 of 1996) and includes “autism”, “cerebral palsy”

and “multiple disability” referred to in clauses (a), (c) and (h) of section 2 of the

National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);

(d) “Life Insurance Corporation” shall have the same meaning as in clause

(iii) of sub-section (8) of section 88;

(e) “medical authority” means the medical authority as referred to in clause

(p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection

of Rights and Full Participation) Act, 1995 (1 of 1996) or such other medical

authority as may, by notification, be specified by the Central Government for

certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with

disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of

section 2 of the National Trust for Welfare of Persons with Autism, Cerebral

Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);

(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 (1 of 1996) 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 (44 of 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 (1

of 1996); 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 (44 of 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 (58 of 2002).]

G. Under Section 80E of the Act a deduction will be allowed in respect of

repayment of interest on loan taken for higher education, subject to the

following conditions:

(i)In computing the total income of an assessee, being an

individual, there shall be deducted, in accordance with and subject to the

provisions of this section, any amount paid by him in the previous year, out

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of his income chargeable to tax, by way of interest on loan, taken by him from

any financial institution or any approved charitable institution for the purpose

of pursuing his higher education or for the purpose of higher education of his

spouse or children.

(ii) The deduction specified above shall be allowed in computing the total

income in respect of the initial assessment year and seven assessment

years immediately succeeding the initial assessment year or until the interest

referred to above is paid in full by the assessee , whichever is earlier.

For this purpose -

(a) "approved charitable institution" means an institution established

for charitable purposes and approved by the prescribed authority under clause

(2C) of section 10, or, an institution referred to in clause (a) of sub-section (2)

of Section 80G.

(b) "financial institution" means a banking company to which the Banking

Regulation Act, 1949 (10 of 1949) applies (including any bank or banking

institution referred to in section 51 of that Act); or any other financial

institution which the Central Government may, by notification in the Official

Gazette, specify in this behalf;

(c) "higher education” means any course of study pursued after passing the

Senior Secondary Examination or its equivalent from any school, board or

university recognised by the Central Government or State Government or

local authority or by any other authority authorised by the Central

Government or State Government or local authority to do so;

(d) "initial assessment year" means the assessment year relevant to the

previous year, in which the assessee starts paying the interest on the loan.

(e) relative”, in relation to an individual, means the spouse and children of

that individual or the student for whom the individual is the legal guardian

H. Section 80G provides for deductions on account of donation made to various funds ,

charitable organizations etc. Generally no deduction should be allowed by the

D.D.O. from the salary income in respect of any donations made for

charitable purposes. The tax relief on such donations as admissible under

section 80G of the Act, will have to be claimed by the tax payer in the return of

income. However in cases where employees make donations to the Prime

Minister’s National Relief Fund, the Chief Minister’s Relief Fund or the

Lieutenant Governor’s Relief Fund through their respective employers, it is

not possible for such funds to issue separate certificate to every such

employee in respect of donations made to such funds as contributions

made to these funds are in the form of a consolidated cheque. An employee

who makes donations towards these funds is eligible to claim deduction

under section 80G. It is, hereby, clarified that the claim in respect of such

donations as indicated above will be admissible under section 80G on the

basis of the certificate issued by the Drawing and Disbursing Officer

(DDO)/Employer in this behalf - Circular No. 2/2005, dated 12-1-2005.

I. Under Section 80GG of the Act an assessee is entitled to a deduction in respect

of house rent paid by him for his own residence. Such deduction is

permissible subject to the following conditions :-

(a) the assessee has not been in receipt of any House Rent Allowance

specifically granted to him which qualifies for exemption under section

10(13A) of the Act;

(b) the assessee files the declaration in Form No.10BA. (Annexure-VI )

(c) He will be entitled to a deduction in respect of house rent paid by him in

excess of 10 per cent of his total income, subject to a ceiling of 25 per

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cent thereof or Rs. 2,000/- per month, whichever is less. The total

income for working out these percentages will be computed before

making any deduction under section 80GG.

(d) The assessee does not own:

(i) any residential accommodation himself or by his spouse or minor child

or where such assessee is a member of a Hindu Undivided Family, by such

family, at the place where he ordinarily resides or performs duties of

his office or carries on his business or profession; or

(ii) at any other place, any residential accommodation being

accommodation in the occupation of the assessee, the value of which is

to be determined under clause (a) of sub section (2) or, as the case may

be, clause (a) of sub-section (4) of section 23:

The Drawing and Disbursing Authorities should satisfy themselves that

all the conditions mentioned above are satisfied before such deduction is

allowed by them to the assessee. They should also satisfy themselves in

this regard by insisting on production of evidence of actual payment of

rent.

J. Under section 80U, in computing the total income of an individual, being a resident,

who, at any time during the previous year, is certified by the medical authority to

be a person with disability, there shall be allowed a deduction of a sum of fifty

thousand rupees. However, where such individual is a person with severe disability, a higher deduction of one lakh rupees shall be allowable.

Every individual claiming a deduction under this section shall furnish a copy of

the certificate issued by the medical authority in the prescribed form and manner

along with the return of income, in respect of the assessment year for which the

deduction is claimed.

In cases where the condition of disability requires reassessment of its extent after

a period stipulated in the aforesaid certificate, no deduction under this section

shall be allowed for any subsequent period unless a new certificate is obtained

from the medical authority in the prescribed form and manner and a copy thereof

is furnished along with the return of income.

For the purposes of this section, the expressions “disability”, “medical authority”,

“person with disability” and “person with severe disability” shall have the same

meaning as given in section 80DD (sub-para E of para 5.4 of this Circular).

DDOs to satisfy themselves of the genuineness of claim:

The Drawing and Disbursing Officers should satisfy themselves about the actual

deposits/ subscriptions / payments made by the employees, by calling for such

particulars/ information as they deem necessary before allowing the aforesaid

deductions. In case the DDO is not satisfied about the genuineness of the

employee's claim regarding any deposit/subscription/payment made by the employee,

he should not allow the same, and the employee would be free to claim the

deduction/ rebate on such amount by filing his return of income and furnishing the

necessary proof etc., therewith, to the satisfaction of the Assessing Officer.

6. CALCULATION OF INCOME-TAX TO BE DEDUCTED:

6.1 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 excluding

all the incomes mentioned in para 5.2;

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(b) Allow deductions mentioned in para 5.3 from the figure arrived at (a)

above and compute the amount.

(c) Allow deductions mentioned in para 5.4 from the figure arrived at (b)

above ensuring that the relevant conditions are satisfied. The aggregate of

the deductions subject to the threshold limits mentioned in para 5.4 shall not

exceed the amount at (b) above and if it exceeds, it should be restricted to

that amount.

This will be the amount of income from salaries on which income tax would

be required to be deducted. This income should be rounded off to the nearest

multiple of ten rupees.

6.2 Income-tax on such income shall be calculated at the rates given in para 2 of

this Circular keeping in view the age and gender of the employee, subject to

the provisions of sec. 206AA, as discussed in para 4.9.

6.3 The amount of tax payable so arrived at shall be increased by educational

cess as applicable (2% for primary and 1% for secondary education) to arrive

at the total tax payable.

6.4 The amount of tax as arrived at para 6.3 should be deducted every month

in equal installments. Any excess or deficit arising out of any previous

deduction can be adjusted by increasing or decreasing the amount of

subsequent deductions during the same financial year.

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DDOs/ PAOs who fail to comply with the provisions of Sec 192 of the Income-tax Act, 1961,

would be liable to pay interest u/s 201 (1A) of the Income-tax Act along with penal

consequences.

7. MISCELLANEOUS:

7.1 These instructions are not exhaustive and are issued only with a view to help

the employers to understand the various provisions relating to deduction of tax

from salaries. Wherever there is any doubt, reference may be made to the

provisions of the Income-tax Act, 1961, the Income-tax Rules, 1962, the Finance

Act 2011 and the relevant circulars / notifications.

7.2 In case any assistance is required, the Assessing Officer/the local Public Relation

Officer of the Income-tax Department may be contacted.

7.3 These instructions may be brought to the notice of all Disbursing Officers and

Undertakings including those under the control of the Central/ State

Governments.

7.4 Copies of this Circular are available with the Director of Income-tax(Research,

Statistics & Publications and Public Relations), 6th Floor, Mayur Bhavan,

Connaught Place, New Delhi-110 001 and at the following websites:

www.finmin.nic.in

www.incometaxindia.gov.in

Hindi version will follow.

(AJAY KUMAR)

Director(Budget)

Central Board of Direct Taxes

Copy to

1. All State Governments/Union Territories.

2. All Ministries/Departments of Government of India etc.

3. President's Secretariat

4. Vice-President's Secretariat

5. Prime Minister's Office

6. Lok Sabha Secretariat

7. Rajya Sabha Secretariat

8. Cabinet Secretariat

9. Secretary, U.P.S.C., Dholpur House, New Delhi

10.Secretary, Staff Selection Commission, Lodhi Complex, New Delhi

11.Supreme Court of India, New Delhi

12.Election Commission, New Delhi

13.Planning Commission, New Delhi

14.Secretariat of Governors/Lt.Governors of all States/Union Territories

15.All Integrated Financial Advisors to Ministries/Departments of Government of

India

16.All Heads of Departments & Offices subordinate to the Department of Revenue

CBDT, CBEC etc.

17.Army Headquarters, New Delhi

18.Air Headquarters, New Delhi

19.Naval Headquarters, New Delhi

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20.Director-General of Posts & Telegraphs, New Delhi(10 copies)

21.Comptroller & Auditor General of India (50 copies)

22.Accountant General - I, Andhra Pradesh, Hyderabad

23.Accountant General-II, Andhra Pradesh, Hyderabad

24.Accountant General, Assam, Shillong

25.Accountant General-I, Bihar, Ranchi

26.Accountant General-II, Bihar, Patna

27.Accountant General-I, Gujarat, Ahmedabad

28.Accountant General-II, Gujarat, Rajkot

29.Accountant General, Kerala, Trivandrum

30.Accountant General, Madhya Pradesh, Gwalior

31.Accountant General, Tamil Nadu, Chennai

32.Accountant General-I, Maharashtra, Mumbai

33.Accountant General-II, Maharashtra, Nagpur

34.Accountant General, Karnataka, Bangalore

35.Accountant General, Orissa, Bhubneshwar

36.Accountant General, Punjab, Chandigarh

37.Accountant General, Himachal Pradesh, Simla

38.Accountant General, Rajasthan, Jaipur

39.Accountant General-I, II & III, Uttar Pradesh, Allahabad

40.Accountant General, West Bengal, Calcutta

41.Accountant General, Haryana, Chandigarh

42.Accountant General, Jammu & Kashmir, Srinagar

43.Accountant General, Manipur, Imphal

44.Accountant General, Tripura, Agartala

45.Accountant General, Nagaland, Kohima

46.Director of Audit(Central)Kolkatta

47.Director of Audit(Central Revenue), New Delhi

48.Director of Audit (Central), Mumbai

49.Director of Audit, Scientific & Commercial Department, Mumbai

50.All Banks (Public Sector, Nationalised including State Bank of India)

51.Secretary, Reserve Bank of India Central Office P.B.No.406, Mumbai-400001(25

copies for distribution to its Branches).

52.Accounts Officer, Inspector General of Assam Rifles, (Hqrs), Shillong

53.All Chambers of Commerce & Industry

54.Lok Sabha /Rajya Sabha Secretariat Libraries(15 copies each)

55.All Officers and Sections in Techinical Wing of CBDT

56.Asstt. Chief Inspector, RBI Inspection Deptt. Regional Cell Mumbai/Kolkata/

Chennai/New Delhi/and Kanpur.

57. Controller of Accounts, Deptt. Of Economic Affairs, New Delhi

58. Manager , Reserve Bank of India, Public Debt Office, Ahmedabad,Banglore/

Bhubneswar/ Mumbai/Kolkata/Hyderabad/Kanpur/Jaipur/Chennai/Nasgpur/

New Delhi/Patna/Guwahati/Trivandrum.

59. Accountant General, Post & Telegraph, Simla.

60. Controller General of Defence Accounts, New Delhi.

61. Directorate of Audit, Defence Services, New Delhi.

62. World Health Organisation, New Delhi.

63. International Labour Office, India Branch, New Delhi.

64. Secretary, Indian Red ross Society, New Delhi

65. Atomic Energy Deptt. Mumbai.

66. Secretary, Development Board, Ministry of Commerce&Industry.

67. Natyional Saving Organisation, Nagpur.

68. Deputy Accountant Geeneral, Post & Telegraph, Kolkata.

69. The Legal Adviuser, Export-Import Bank of India, P.B.No.19969, umbai.4000021.

70. The Deputy Finance4 Manager(Hqdr.) Indian Airlines, New Delhi.

71. Manager, State Bank of India, Local Head Office :-

i) JeevanDeep Buiulding, 1 Middleton Street, Kolkata.

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ii) Circle Top House, Rajai Salai, Chennai-600001.

(iii) Lucknowm Uttar Pradesh.

iv) Bank Street, Hyderabad-500001

v) Hamida Road, Bhopal-462001

vi)Shop Nos.101 to 105, Sector 17-B, Chandigarh

vii)New Amn.Building, Madam Cama Road, Mumbai-400021

viii) 9, Parliament Street, New Delhi-110001

ix) Bhedru, Ahmedabad-380001

x) Judges Court Road, Post Box No.103, Patna-800001

xi) 59, Forest Park, Bhubneshwar and Gauhati, Assam

xii) Gauhati, Assam

72.Chief Controller of Accounts, CBDT, Lok Nayak Bhawan, Khan Market, New Delhi

73.State Bank of Patiala, (Head Office), The Mall, Patiala

74.State Bank of Bikaner and Jaipur, Head Office, Tilak Marg, 'C' Scheme Jaipur

75.State Bank of Hyderabad, Head Office, Gun Factory, Hyderabad

76.State Bank of Indore, 5 Yashwant Nivas Road, Indore.

77.State Bank of Mysore (Head Office), K.G.Road, Bangalore

78.State Bank of Saurashtra, Behind Satyanarayan Road, Bhavnagar, Gujarat

79.State Bank of Travancore, Post Box No.34, Trivandrum

80.N.S.Branch, Department of Economic Affairs, New Delhi

81.The Editory, 'The Income-tax Reporter' Company Law Institute of India (P) Ltd., 88,

Thyagaraja Road, Thyagaraja Nagar, Chennai-600017

82.The Editor, Chartered Secretary, The Institute of Company Secretaries of India,

'ICSI House, 22, Institutional Area, Lodhi Road, New Delhi-110003

83.The Editor, "Taxation" 174, Jorbagh, New Delhi

84.The Editor, "The Tax Law Review" Post Box No.152, Jallandhar-144001

85.The Editor, "Taxmann" Allied Services (P)Ltd., 1871, Kucha Chelan, Khari Baoli,

Delhi-110006

86.The Min. of Law (Deptt. of Legal Affairs), Shastri Bhawan New Delhi.

87.Food Corporation of India, 16-17, Barakhamba Lane, New Delhi-110001

88.IFCI, Bank of Baroda Building, 16, Parliament Street, New Delhi

89.IDBI, IDBI Tower, Cuff Parad, Mumbai-400 005

90.ICICI, 163, Backbay Reclamation, Mumbai-20

91.NABARD, Poonam Chambers,Dr.Annie Besant Road, P.B.No.552,Worli, Mumbai

92.National Housing Bank, 3rd Floor, Bombay Life Building, 45, Veer Nariman Road,

Mumbai

93.IRBI, 19, Netaji Subhash Road, Kolkatta

94.All Foreign Banks operating in India

95.Air India, New Delhi

96.University Grants Commission, Bahadur Shah Jafar Marg, New Delhi

97.The Deputy Director(Admn.), NSSO (FOD), Mahalonobis Bhavan, 6th Floor, 164,

G.L.Tagore Road, Kolkata-700108

(AJAY KUMAR)

Director(Budget)

Central Board of Direct Taxes

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ANNEXURE-I

Example 1

For Assessment Year 2012-2013

(A) Calculation of Income tax in the case of a male employee below the age of sixty

years and having gross salary income of:

i) Rs.1,50,000/-,

ii) Rs.2,00,000/- ,

iii) Rs.5,00,000/- ,

iv) Rs.10,00,000/- and

v) Rs.20,00,000/-.

(B) What will be the amount of TDS in case of above employees, if PAN is not submitted by

them to their DDOs/Offices:

Particulars Rupees

(i)

Rupees

(ii)

Rupees

(iii)

Rupees

(iv)

Rupees

(v)

Gross Salary Income

(including allowances)

1,50,000 2,00,000 5,00,000 10,00,000 20,00,000

Contribution of G.P.F. 10,000 45,000 50,000 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 1,50,000 2,00,000 5,00,000 10,00,000 20,00,000

Less: Deduction U/s 80C 10,000 45,000 50,000 1,00,000 1,00,000

Taxable Income 1,40,000 1,55,000 4,50,000 9,00,000 19,00,000

(A) Tax thereon Nil Nil 27,000 1,22,000 4,22,000

Add:

(i) Education Cess @ 2%.

(ii) Secondary and Higher

Education Cess @1%

Nil

Nil

Nil

Nil

540

270

2440

1220

8440

4220

Total tax payable Nil Nil 27,810 1,25,660 4,34,660

(B) TDS under sec. 206AA

in case where PAN is

not furnished by the

employee

Nil Nil 90,000 1,80,000 4,36,720

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Example 2

For Assessment Year 2012-2013

Calculation of Income Tax in the case of a male employee below the age of sixty years

having a handicapped dependent ( With valid PAN furnished to employer).

S.No. Particulars Rupees

1 Gross Salary 3,20,000

2 Amount spent on treatment of a dependant, being person with

disability (but not severe disability)

7000

3 Amount paid to LIC with regard to annuity for the maintenance

of a dependant, being person with disability( but not severe

disability)

50,000

4 GPF Contribution 25,000

5 LIP Paid 10,000

Computation of Tax

S.No. Particulars Rupees

1 Gross Salary 3,20,000

Less: Deduction U/s 80DD (Restricted to Rs.50,000/- only) (-) 50,000

2 Taxable income 2,70,000

Less: Deduction U/s 80C (i) GPF Rs.25,000/-

(ii) LIP Rs.10,000/- = Rs.35,000/-

(-)35,000

3 Total Income 2,35,000

4 Income Tax thereon/payable 5,500

Add:

(i). Education Cess @2%

(ii). Secondary and Higher Education Cess @1%

110

55

5 Total Income Tax payable 5,665

6 Rounded off to 5,670

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Example 3

For Assessment Year 2012-2013

Calculation of Income Tax in the case of a male employee below age of sixty years where

medical treatment expenditure was borne by the employer ( With valid PAN furnished to

employer).

S.No. Particulars Rupees

1 Gross Salary 3,00,000

2 Medical Reimbursement by employer on the treatment of self and

dependent family member

30,000

3 Contribution of GPF 20,000

4 LIC Premium 20,000

5 Repayment of House Building Advance 25,000

6 Tuition fees for two children 60,000

7 Investment in Unit-Linked Insurance Plan 20,000

Computation of Tax

S.No. Particulars Rupees

1 Gross Salary 3,00,000

Add: Perquisite in respect of reimbursement of Medical Expenses

In excess of Rs.15,000/- in view of Section 17(2)(v)

(+) 15,000

2 Taxable income 3,15,000

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.20,000/-

Total =Rs.1,45,000/-

Restricted to Rs. 1,00,000/- (-)1,00,000

3 Total Income 2,15,000

4 Income Tax thereon/payable 3,500

Add:

(i). Education Cess @2%

(ii). Secondary and Higher Education Cess @1%

70

35

5 Total Income Tax payable 3,605

6 Rounded off to 3,610

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Example 4

For Assessment Year 2012-2013

Illustrative calculation of House Rent Allowance U/s 10 (13A)in respect of residential

accommodation situated in Delhi in case of a female employee below the age of sixty

years (With valid PAN furnished to employer).

S.No. Particulars Rupees

1 Salary 2,50,000

2 Dearness Allowance 1,00,000

3 House Rent Allowance 1,40,000

4 House rent paid 1,44,000

5 General Provident Fund 36,000

6 Life Insurance Premium 4,000

7 Subscription to Unit-Linked Insurance Plan 50,000

Computation of total income and tax payable thereon

S.No. Particulars Rupees

1 Salary + Dearness Allowance + House Rent Allowance

2,50,000+1,00,000+1,40,000 = 4,90,000

4,90,000

2 Total Salary Income 4,90,000

3 Less: House Rent allowance exempt U/s 10(13A):

Least of:

(a). Actual amount of HRA received= 1,40,000

(b). Expenditure of rent in excess of 10% of salary

(including D.A. presuming that D.A. is taken

for retirement benefit) (1,44,000-35,000) = 1,09,000

(c). 50% of Salary(Basic+ DA) = 1,75,000 (-)1,09,000

Gross Total Income 3,81,000

Less: Deduction U/s 80C

(i) GPF Rs.36,000/-

(ii) LIC Rs. 4,000/-

(iii) Investment in Unit-Linked Insurance Plan Rs.50,000/-

Total =Rs.90,000/- (-)90,000

3 Total Income 2,91,000

Tax payable on total income 11,100

Add:

(i). Education Cess @2%

(ii). Secondary and Higher Education Cess @1%

222

111

Total Income Tax payable 11,433

Rounded off to 11,430

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Example 5

For Assessment Year 2012-2013

Illustrating valuation of perquisite and calculation of tax in the case of a male 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.3,60,00 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

8 Investment in long term infrastructure bonds (80CCF) 20,000

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 for Valuation of (1+2):

Perquisites i.e. Rs.70,000 per month.

8,40,000

Valuation of perquisites

4(a) Perq. for flat:Lower of (15% of salary for ten onths=Rs.1,05,000/-)

and (actual rent paid=3,60,000) 1,05,000

4(b) Perquisites for hotel : Lower of (24% of salary of 2 mths=33,600)

and (actual payment=1,00,000) 33,600

4(c) Perquisites for furniture(Rs.2,00,000) @ 10% of cost 20,000

4(c)(i) Total of [4(a)+(b)+(c)] (1,05,000+ 33,600+ 20,000) Rs.158,600

Less: rent recovered (-)Rs. 60,000

= Rs. 98,600

4(d) Add perq. for free gas, electricity, water etc. Rs.40,000 (+) 98,600

[4(c)(i)] = Rs 1,38,600

Total perquisites 1,38,600

5 Gross Total Income (Rs.8,40,000+ 1,38,600) 9,78,600

6 Gross Total Income 9,78,600

7 Less: Deduction U/s 80C & 80CCF:

(i). Provident Fund (80C) :42,000

(ii). LIC (80C) :10,000

(iii). Subscription to Unit Linked Insurance Plan(80C) :50,000/-

(iv). Investment in Infrastructure Bond(80CCF) :20,000

Total = 1,22,000

Restricted to Rs 1,00,000 u/s 80C and Rs 20,000 u/s 80CCF (-)1,20,000

8 Total Income 8,58,600

9 Tax Payable 1,,09,580

10 Add:

(i). Surcharge Nil

(ii). Education Cess @2%

(ii). Secondary and Higher Education Cess @1%

Nil

2,192

1,096

11 Total Income Tax payable 1,12,868

12 Rounded off to 1,12,870

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Example 6

For Assessment Year 2012-2013

Illustrating Valuation of perquisite and calculation of tax in the case of a

female employee below the age of 60 years of a Private Company posted at Delhi

and repaying House Building Loan ( With valid PAN furnished to employer).

S.No. Particulars Rupees

1 Salary 3,00,000

2 Dearness Allowance 1,00,000

3 House Rent Allowance 1,80,000

4 Special Duties Allowance 12,000

5 Provident Fund 60,000

6 LIP 10,000

7 Deposit in NSC VIII issue 30,000

8 Rent Paid by the employee for house hired by her 1,20,000

9 Repayment of House Building Loan (Principal) 60,000

10 Tuition Fees for three children (Rs.10,000 per child) 30,000

Computation of total income and tax payable thereon

S.No. Particulars Rupees

1 Gross Salary (Basic+DA+HRA+SDA) 5,92,000

Less: House rent allowance exempt U/s 10 (13A)

Least of:

(a). Actual amount of HRA received. :Rs.1,80,000

(b). Expenditure on rent in excess of 10% of salary

(Including D.A.)assuming D.A. is including for

retirement benefits (1,20,000- 40,000) :Rs. 80,000

(c). 50% of salary (including D.A) : Rs. 2,00,000

(-) 80,000

2 Gross Total Taxable Income 5,12,000

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 1,00,000 (-)1,00,000

Total Income 4,12,000

Income Tax thereon/payable 22,200

Add:

(i). Education Cess @2%

(ii). Secondary and Higher Education Cess @1%

444

222

Total Income Tax payable 22866

Rounded off to 22870

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ANNEXURE-II

FORM NO.12BA

{See rule 26A(2)(b)}

Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary

with value thereof

1) Name and address of employer :

2) TAN

3) TDS Assessment Range of the employer :

4) Name, designation and PAN of employee :

5) Is the employee a director or a person with :

substantial interest in the company

(where the employer is a company)

6) Income under the head "Salaries" of the employee :

(other than from perquisites)

7) Financial Year :

8) Valuation of Perquisites

S.No Nature of 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 of assets to employees

15 Value of any other

benefit/amenity/service/privilege

16 Stock options (non-qualified

options)

17 Other benefits or amenities

18 Total value of perquisites

19 Total value of Profits in lieu of

salary as per 17(3)

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9. Details of tax, -

(a) Tax deducted from salary of the employee u/s 192(1) ………

(b) Tax paid by employer on behalf of the employee u/s 192(1A) ………

(c) Total tax paid ………

(d) Date of payment into Government treasury ………

DECLARATION BY EMPLOYER

I ………………. s/o …………………. working as ……………………………(designation) do hereby declare on

behalf of ……………..….. (name of the employer) that the information given above is based on the books of

account, documents and other relevant records or information available with us and the details of value of each

such perquisite are in accordance with section 17 and rules framed thereunder and that such information is true and

correct.

Signature of the person responsible

for deduction of tax

Place…

Date… Full Name ……………………

Designation …………………. ";

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ANNNEXURE-III

F . N o . S W / T D S / T I N / 1 / 2 0 1 0 - D I T ( S ) - I I

D i r e c t o r a t e o f I n c o m e - t a x ( S y s t e m )

N e w D e l h i

R E V I S E D P R O C E D U R E

F u r n i s h i n g o f Q u a r t e r l y e - T D S / T C S S t a t e m e n t s b y d e d u c t o r s / c o l l e c t o r s

1.1 QUARTERLY ELECTRONIC STATEMENTS FURNISHED THROUGH TIN-FC: After

preparing and validating the quarterly e-TDS/TCS, the deductor/collector shall

furnish the same at any TIN-FC managed by NSDL. Deductor/collector shall

ensure that:

1.1.1 Each quarterly e-TDS/TCS statement (Form 24Q, 26Q, 27Q and 27EQ) is in a

separate computer media.

1.1.2 Computer media to be used for furnishing e-TDS/TCS statements will be as

defined by e-TDS Intermediary with approval of e-filing Administrator.

1.1.3 Each quarterly e-TDS/TCS statement is accompanied by a duly filled and signed

(by an authorized signatory) Form 27A in physical form.

1.1.4 Each quarterly e-TDS/TCS statement is in one computer media, it should not

span across multiple computer media.

1.1.5 Quarterly e-TDS/TCS statement should be compressed, if required, only by

using licensed version of Winzip 8.1 or ZipItFast 3.0 (or higher version)

compression utility to ensure quick and smooth acceptance of the file.

1.1.6 There is no overwriting/striking on Form 27A. If there is any, then the same

should be ratified by an authorized signatory.

1.1.7 No bank challan or copy of TDS/TCS certificate or physical copies of certificates

or no/low deduction of TDS is required to be furnished along with the

statements.

1.1.8 TAN of deductor is mandatory to be mentioned in the statement. Statement shall

not be accepted if TAN is not quoted.

1.1.9 TAN details (name, address, etc.,) of the deductor as provided in the quarterly eTDS/TCS statement should be same as in the TAN database maintained by ITD

(these details can be verified with the TIN-FC or the ITD web-site

www.incometaxindia.gov.in). If they are different the deductor shall submit a

TAN change request application to update the ITD TAN database or a copy of the

acknowledgment of TAN change request already submitted.

1.1.10 Each branch or Drawing and Disbursement Officer (DDO) of a

deductor/collector furnishing separate quarterly e-TDS/TCS statement should

furnish the quarterly e-TDS/TCS statement quoting separate TAN issued to each

branch/DDO respectively.

1.1.11 Quarterly e-TDS/TCS statement pertains to the period for which they are

allowed to furnish.

1.1.12 The quarterly e-TDS/TCS statement has been successfully validated through the

latest version of the FVU.

1.1.13 Control totals, TAN and name mentioned in the quarterly e-TDS/TCS statement

match with those mentioned on Form 27A.

1.1.14 Computer media is virus free.

A c c e p t a n c e o f Q u a r t e r l y e - T D S / T C S S t a t e m e n t s b y e - T D S I n t e r m e d i a r y

( N S D L a n d T I N - F C b r a n c h e s )

2.1 ACCEPTANCE OF QUARTERLY E-TDS/TCS STATEMENT BY TIN-FC: After

deductor/collector furnishes the quarterly e-TDS/TCS statement to TIN-FC in the

manner prescribed, TIN-FC will carry out format level validations and other

checks to validate the quarterly e-TDS/TCS statement.

2.1.1 Acceptance

2.1.1.1 In case quarterly e-TDS/TCS statement is valid TIN-FC will issue a Provisional

Receipt to the deductor/collector. The Provisional Receipt issued by TIN-FC to

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deductor/collector is deemed to be the proof of quarterly e-TDS/TCS statements

furnished by the deductor/collector.

2.1.1.2 Deductor/collector will pay upload fee along with service tax (as

applicable – 10.20% at present) by demand draft or cash to the TIN-FC for every

accepted quarterly e-TDS/TCS statement.

Maximum charges payable per quarterly e-TDS/e-TCS statement accepted:

No. of Deductee Records in eTDS/TCS Statement

Upload Charges Upload Charges

inclusive of service tax

Upto 100 deductee records ` 27.50/- ` 30/-

101 to 1000 deductee records ` 165/- ` 182/-

More than 1000 deductee records ` 550/- ` 606/-

2.1.1.3 TIN-FC will return the computer media containing the e-TDS/TCS statement

to the deductor/collector

2.1.1.4 TIN-FC will retain physical Form 27A along with other documents, if any,

furnished by the deductor/collector. The retained physical Form 27A along

with documents, if any, shall be stored by the TIN-FC for a period of one year

from date of receipt of the statement.

2.1.2 NON-ACCEPTANCE : TIN-FC will not accept the quarterly e-TDS/TCS

statement furnished by deductor/collector if:

2.1.2.1 each quarterly e-TDS/TCS statement (Form 24Q, 26Q, 27Q or 27EQ) is not

furnished in a separate computer media along with duly filled and signed

Form 27A in physical form;

2.1.2.2 separate Form 27A is not furnished for each quarterly e-TDS/TCS statement;

2.1.2.3 striking and overwriting, if any, on Form 27A are not duly ratified by the

person who has signed Form 27A;

2.1.2.4more than one quarterly e-TDS/TCS statement is furnished in one computer

media;

2.1.2.5more than one computer media is used for furnishing one quarterly eTDS/TCS statement;

2.1.2.6 quarterly e-TDS/TCS statement is compressed using a compression utility

other than winzip 8.1 or ZipItFast 3.0 (or higher version) compression utility;

2.1.2.7 quarterly e-TDS/TCS statement is not in conformity with the file formats

prescribed by ITD;

2.1.2.8 TAN stated in quarterly e-TDS/TCS statement is not present in TAN Master

database and deductor/collector does not submit any proof of TAN stated in

the statement;

2.1.2.9 deductor/collector does not have a TAN;

2.1.2.10 name/address of deductor/collector displayed on TAN Master database

does not match with name/address stated on Form 27A and

deductor/collector does not provide TAN change request;

2.1.2.11 mismatch of control totals as per with Form 27A and as per e-file;

2.1.2.12 the quarterly statement has not been successfully passed through the

latest version of FVU;

2.1.2.13 Quarterly e-TDS/TCS statements do not pertain to the period for which

deductors/collectors are allowed to submit their statements.

2.1.2.14 Computer media is not virus free.

In such cases, TIN-FC shall issue a pre-printed Non - Acceptance Memo citing

reasons for non acceptance to the deductor/collector to carry out necessary

corrections.

In case of non-acceptance, TIN-FC shall return the computer media as well as any

other documents furnished and physical Form 27A to the deductor/collector.

No fee will be charged for the e-TDS/e-TCS statement that is not accepted.

***************

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ANNEXURE IV

“Person Responsible for filing Form No. 24G in case of State Govt.

Departments”

AG (State)

F

E

A

D

C B

PAO/DTO

Sub Treasury Office

CDDO CDDO

DDO

Type of Reporting of Book

Entry

Person Responsible (AIN holder)

for filing 24G.

A PAO / DTO

B PAO / DTO

C PAO / DTO

D PAO / DTO

E CDDO

F STO

AG Accountant General

PAO Pay & Accounts Officer

DTO District Treasury Office

STO Sub Treasury Office

DDO Drawing & Disbursing Officer

CDDO Cheque Drawing & Disbursing Officer

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“Person Responsible for filing Form No. 24G in case of Central Govt.

Departments”

CGA

ZAO / PAO

DDO / CDDO

ZAO / PAO of Central Government Ministries is responsible for filing of

Form No. 24G on monthly basis

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ANNEXURE-V

MINISTRY OF FINANCE

(Department of Economic Affairs)

(ECB & PR Division)

NOTIFICATION

New Delhi, the 22

nd

December, 2003

F.No. 5/7/2003-ECB &PR- The government approved on 23

rd

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

1

st

of January 2004 (except the armed forces in the first stage). The monthly contribution would be

10 percent of the salary and DA to be paid by the employee and matched by the Central

government. However, there will be no contribution form the Government in respect of individuals

who are not Government employees. The contribution and investment returns would be deposited

in a non-withdrawable pension tier-I account. The existing provisions of defined benefit pension

and GPF would not be available to the new recruits in the Central Government service.

(ii) In addition to the above pension account, each individual may also have a voluntary tier-II

withdrawable account at his option. This option is given as GPF will be withdrawn for new recruits

in Central government service. Government will make no contribution into this account. These

assets would be managed through exactly the above procedures. However, the employee would be

free to withdraw part or all of the ‘second tier’ of his money anytime. This withdrawable account

does not constitute pension investment, and would attract no special tax treatment.

(iii) Individuals can normally exit at or after age 60 years for tier-I of the pension system. At the

exit the individual would be mandatorily required to invest 40 percent of pension wealth to

purchase an annuity (from an IRDA- regulated life insurance company). In case of Government

employees the annuity should provide for pension for the lifetime of the employee and his

dependent parents and his spouse at the time of retirment. The individual would received a lumpsum of the remaining pension wealth, which he would be free to utilize in any manner. Individuals

would have the flexibility to leave the pension system prior to age 60. However, in this case, the

mandatory annuitisation would be 80% of the pension wealth.

Architecture of the new Pension System

(iv) It will have a central record keeping and accounting (CRA) infrastructure, several

pension fund managers (PFMs) to offer three categories of schemes viz. option A, B and C.

(v) The participating entities (PFMs and CRA) would give out easily understood

information about past performance, so that the individual would be able to make informed choices

about which scheme to choose.

2. The effective date for operationalization of the new pension system shall be form 1

st

of January, 2004.

U.K. SINNHA, Jt. Secy.

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ANNEXURE-VI

MINISTRY OF FINANCE

(Department of Revenue)

(Central Board of Direct Taxes)

Notification

New Delhi, the 24

th

November, 2000

INCOME- TAX

S.O.1048 (E) - In exercise of the powers conferred by sub-clause (i) of clause (18) of Section

10 of the Income-tax Act, 1961 (43 of 1961), the Central Government, hereby specifies the gallantry awards for

the purposes of the said Section, mentioned in column 2 of the table below awarded in the circumstances as

mentioned in corresponding column 3 thereof:-

Table

----------------------------------------------------------------------------------------

Sl. No. Name of gallantry award Circumstances for eligibility

------------------------------------------------------------------------------------------

(1) (2) (3)

-----------------------------------------------------------------------------------------

1. Ashok Chakra When awarded to Civilians for gallantry

2. Kirti Chakra - do -

3. Shaurya Chakra - do -

4. Sarvottan Jeevan Raksha When awarded to Civilians for bravery

Padak displayed by them in life saving acts.

5. Uttam Jeevan Raksha - do -

Medal

6. Jeevan Raksha Padak - 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 head of the

department concerned.

8. Police Medal for - do -

Gallantry

9. Sena Medal When awarded for acts of courage or

conspicious gallantry and supported

by certificate issued to this effect by

relevant service headquarters.

10. Nao Sena Medal - do -

11. Vayu Sena Medal - do –

12. Fire Secrvices

Medal for Gallantry When awarded for acts of courage

or conspicuous gallantry and supported

by certificate issued to this effect by the

last Head of Department.

13. President’s Police & Fire -do-

Services Medal for Gallantry

14.President’s Fire Services Medal for

Gallantry -do-

15. President’s Home Guards and

Civil Defence Medal for

Gallantry -do-

16. Home Guard and Civil Defence

Medal for Gallantry -do-

( Notification no. 1156/F.No. 142/29/99-TPL)

T.K. SHAH

Director

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ANNEXURE VII

MINISTRY OF FINANCE

Department of Revenue

Central Board of Direct Taxes

New Delhi,the 29

th

January,2001

S.O.81(E)- In exercise of the powers conferred by sub-clause (i ) of clause (18) of Section 10

of the Income –tax Act, 1961 (43 of 1961)), the Central Government, hereby specifies the gallanty awards

for the purposes of the said Section and for that purpose makes the following amendment in the

notification of the Government of India in the Ministry of Finance, Department of Revenue (Central Board

of Direct Taxes) number S.O.1048(E), dated the 24

th

November 2000, namely:-

In the said notification, in the Table, against serial numbers 1,2 and 3 under cloumn (3)

relating to “Circumstances for eligibility” the words “to civilians” shall be omitted.

(Notification No.22/F.No.142/29/99-TPL)

T.K. SHAH

Director

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ANNEXURE-VIII

FORM NO. 10BA

(See rule 11B)

DECLARATION TO BE FILED BY THE ASSESSEE

CLAIMING DEDUCTION U/S 80 GG

I/We………………………………………………………………

( Name of the assessee with permanent account number)

do hereby certify that during the previous Year………….I/We had occupied the

premise………………………….(full address of the premise) for the purpose of my/our own residence

for a period of…………………..months and have paid Rs. ………………. In cash/through crossed

cheque, bank draft towards payment of rent to Shri/Ms/M/s……………………….(name and complete

address of the landlord).

It is further certified that no other residential accommodation is owned by

(a) me/my spouse/my minor child/our family (in case the assessee is HUF), at ………………….where

I/we ordinarily reside/perform duties of officer or employment or carry on business or profession, or

(a) me/us at any other place, being accommodation in my occupation, the value of which is to be

determined u/s 23(2)(a)(i) of u/s 23(2)(b).

**********

http://www.itaxindia.org/2011/08/tds-rates-11-12-tds-rate-chart-cut-off.html

http://www.itaxindia.org/2011/09/income-tax-help-toolbar.html of 56.56

http://www.itaxindia.org/2011/08/tds-rates-11-12-tds-rate-chart-cut-off.html

http://www.itaxindia.org/2011/09/income-tax-help-toolbar.html of 56.