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TMI BlogINCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2014-15 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.X X X X Extracts X X X X X X X X Extracts X X X X ..... NANCE (No. 2) ACT, 2014: As per the Finance (No. 2) Act, 2014 , income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head Salaries for the financial year 2014-15 (i.e. Assessment Year 2015-16) at the following rates: 2.1 Rates of tax A. Normal Rates of tax: Sl No Total Income Rate of tax 1 Where the total income does not exceed ₹ 2,50,000/-. Nil 2 Where the total income exceeds ₹ 2,50,000 but does not exceed ₹ 5,00,000/-. 10 per cent of the amount by which the total income exceeds ₹ 2,50,000/- 3 Where the total income exceeds ₹ 5,00,000/- but does not exceed ₹ 10,00,000/- ₹ 25,000/- plus 20 per cent of the amount by which the total income exceeds ₹ 5,00,000/-. 4 Where the total income exceeds ₹ 10,00,000/-. ₹ 1,25,000/- plus 30 per cent of the amount by which the total income exceeds ₹ 10,00,000/- B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year : Sl No Total Income Rate of tax 1 Where the total income does not exceed ₹ 3,00,000/- Nil 2 Where the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be calculated on the basis of the rates given above, subject to the provisions related to requirement to furnish PAN as per sec 206AA of the Act , and shall be deducted at the time of each payment. No tax, however, will 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 ₹ 2,50,000/- or ₹ 3,00,000/- or ₹ 5,00,000/-, as the case may be, depending upon the age of the employee.(Some typical illustrations of computation of tax are given at Annexure-I). 3.2 Payment of Tax on Perquisites by Employer: An option has been given to the employer to pay the tax on non-monetary perquisites given to an employee. The employer may, at its option, make payment of the tax on such perquisites himself without making any TDS from the salary of the employee. However, the employer will have to pay the tax at the time when such tax was otherwise deductible i.e. at the time of payment of income chargeable under the head -salaries to the employee. 3.2.1 Computation of Average Income Tax: For the purpose of making the payment of tax mentioned in para 3.2 above, tax is to be determined at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same into account in making the deduction under Para(3.1) above. 3.4.2 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 section 10(10C)(i) (read with Rule 2BA ), a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under section 10(10C) in respect of such, or any other, assessment year. 3.5 Information regarding Income under any other head: (i) Section 192(2B) enables a taxpayer to furnish particulars of income under any head other than Salaries ( not being a loss under any such head other than the loss under the head - Income from house property ) received by the taxpayer for the same financial year and of any tax deducted at source thereon. The particulars may now be furnished in a simple statement, which is properly signed and verified by the taxpayer in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the DDO to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee . (b) Further any prior period interest for the FYs upto the FY in which the property was acquired or constructed (as reduced by any part of interest allowed as deduction under any other section of the Act) shall be deducted in equal installments for the FY in question and subsequent four FYs. (c) The employee has to furnish before the DDO a certificate from the person to whom any interest is payable on the borrowed capital specifying the amount of interest payable. In case a new loan is taken to repay the earlier loan, then the certificate should als o show the details of Principal and Interest of the loan so repaid. 3.7 Adjustment for Excess or Shortfall of Deduction: The provisions of Section 192(3) allow the deductor to make adjustments for any excess or shortfall in the deduction of tax already made during the financial year, in subsequent deductions for that employee within that financial year itself. 3.8 Salary Paid in Foreign Currency: For the purposes of deduction of tax on salary payable in foreign curr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the jurisdictional Additional/Joint Commissioner of Income Tax to permit quarterly payments of TDS under section 192 , the Rule 30(3) allows for payments on quarterly basis and as per time given in Table below: Sl. No. Quarter of the financial year ended on Date for quarterly payment 1 30th June 7th July 2 30th September 7th October 3 31st December 7th January 4 31st March 30th April next Financial Year 4.4.2 Mode of Payment of TDS 4.4.2.1 Compulsory filing of Statement by PAO, Treasury Officer, etc in case of payment of TDS by Book Entry: 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 [Book Entry], the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports about the tax deducted and who is responsible for crediting such sum to the credit of the Central Government, shall- (a) submit a statement in Form No. 24G within ten days from the end of the month to the agency authorized by the Director General of Income-tax (Systems) [TIN Facilitation Centres currently managed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be an assessee-in-default in respect of such tax and liable for penal action u/s 221 of the Act. Further Section 201(1A) provides that such person shall be liable to pay simple interest (i) at the rate of 1% for every month or part of the month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and (ii) at the rate of 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, is mandatory in nature and has to be paid before furnishing of quarterly statement of TDS for respective quarter. 4.5.2 Section 271C inter alia 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 under the second proviso to section 194B, he shall be liable to pay, by way of penalty , a sum equal to the amount of tax not deducted or paid by him. 4.5.3 Further, section 276B lays down that if a person fails to pay to the credit of the Central Government within the prescribed time, as above, the tax deducted at source by him or ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 272A(2)(g), a sum which shall be ₹ 100/- for every day during which the failure continues. It is, however, clarified that there is no obligation to issue the TDS certificate in case tax at source is not deductible/deducted by virtue of claims of exemptions and deductions. [Note: TRACES is a web-based application of the Income - tax Department that provides an interface to all stakeholders associated with TDS administration. It enables viewing of challan status, downloading of NSDL Conso File, Justification Report and Form 16 / 16A as well as viewing of annual tax credit statements ( Form 26AS ). Each deductor is required to Register in the Traces portal. Form 16 / 16A issued to deductees should mandatorily be generated and downloaded from the TRACES portal ]. Certain essential points regarding the filing of the Statement and obtaining TDS certificates are mentioned below: (a) TDS certificate (Form16) would be generated for the deductee only if Valid PAN is correctly mentioned in the Annexure II of Form 24Q in Quarter 4 filed by the deductor. Moreover, employers are advised to ensure in Form 16 that the status of -matching with respect to - Form 24G /OLTAS is ‗F . If t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ) 4.6.4. Furnishing of particulars pertaining to perquisites, etc ( section 192(2C) ): 4.6.4.1 As per section 192(2C) , the responsibility of providing correct and complete particulars of perquisites or profits in lieu of salary given to an employee is placed on the person responsible for paying such 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 (Annexure II) and Form 16 of the Rules. Information relating to the nature and value of perquisites is to be provided by the employer in Form 12BA in case salary paid or payable is above ₹ 1,50,000/-. In other cases, the information would have to be provided by the employer in Form 16 (PART B) itself. 4.6.4.2 An employer, who has paid the tax on perquisites on behalf of the employee as per the provisions discussed in para 3.2 of this circular, shall furnish to the employee concerned, a cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctees is creating difficulties in giving credit for the tax deducted. Tax deductors are, therefore, advised to procure and quote correct PAN details of all deductees in the TDS statements for salaries in Form 24Q. Taxpayers are also liable to furnish their correct PAN to their deductors. 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 Act mentioned in para 4.8 below. 4.8 Compulsory Requirement to furnish PAN by employee (Section 206AA): 4.8.1 Section 206AA in the Act makes furnishing of PAN by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If employee (deductee) fails to furnish his/her PAN to the deductor , the deductor has been made responsible to make TDS at higher of the following rates: i) at the rate specified in the relevant provision of this Act; or ii) at the rate or rates in force; or iii) at the rate of twenty per cent. The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS. However, where the income of the employee computed for TDS u/s 192 is below taxable limit, no tax wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts audited under section 44AB of the Act . [Notification No. 11 dated 19.02.2013]. 4.9.4 Fee for default in furnishing statements (Section 234E) : If a person fails to deliver or caused to be delivered a statement within the time prescribed in section 200(3) in respect of tax deducted at source on or after 1.07.2012 he shall be liable to pay, by way of fee a sum of ₹ 200 for every day during which the failure continues. However, the amount of such fee shall not exceed the amount of tax which was deductible at source. This fee is mandatory in nature and to be paid before furnishing of such statement. 4.9.5 Rectification of mistake in filing TDS Statement : A DDO can also file a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered earlier. 4.9.6 Penalty for failure in furnishing statements or furnishing incorrect information (section 271H): If a person fails to deliver or caused to be delivered a statement within the time prescribed in section 200(3) or furnishes an incorrect statement, in respect of tax deducted at source on or after 1.07.2012, he shall be liable to pay, by way of penalty a su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been entrusted with the task of payment 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 13.1.1998. 4.11. Matters pertaining to the TDS made in case of Non Resident: 4.11.1 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 11.07.1995 ]. 4.11.2 In respect of non-residents, the salary paid for services rendered in India shall be regarded as income earned in India. It has been specifically provided in the Act that any salary payable for rest period or leave period which is both preceded or succeeded by service in India and forms part of the service contract of employment will also be regarded as income earned in India. 5. COMPUTATION OF INCOME UNDER THE HEAD SALARIES 5.1 INCOME CHARGEABLE UNDER THE HEAD SALARIES : (1) The following income shall be chargeable to income-tax under the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and not under the head -Salaries . Therefore, provisions of section 192 of the Act are not applicable. Hence no TDS is required to be made on family pension. 5.2.2 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 ₹ 50,000/-. [What constitutes concession in the matter of rent have been prescribed in Explanations 1 to 4 below section 17(2)(ii) of the Act] IV. Any sum paid by the employer in respect of any obligation which would o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e divided into two categories: (i) For employees of the Central and State governments the value of perquisite shall be equal to the licence fee charged for such accommodation as reduced by the rent actually paid by the employee. Employees of autonomous, semi-autonomous institutions, PSUs/PSEs subsidiaries, Universities, etc. are not covered under this method valuation. (ii) For all others, i.e., those salaried taxpayers not in employment of the Central government and the State government, the valuation of perquisite in respect of accommodation would be at prescribed rates, as discussed below: a) Where the accommodation provided to the employee is owned by the employer: Sl No Cities having population as per the 2001 census Perquisite 1 Exceeds 25 lakh 15% of salary 2 Exceeds 10 lakhs but does not exceed 25 lakhs 10% of salary 3 For other places 7.5 % of salary b) 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. Meaning of ‗Salary ‗for the purpose of calculation of perq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s provided for a total period not exceeding in aggregate 15 days in a previous year, and 2. Such accommodation is provided on an employee s transfer from one place to another place. It may be clarified that while services provided as an integral part of the accommodation, need not be valued separately as perquisite, any other services over and above that for which the employer makes payment or reimburses the employee shall be valued as a perquisite as per the residual clause. In other words, composite tariff for accommodation will be valued as per the Rules and any other charges for other facilities provided by the hotel will be separately valued under the residual clause. D. However, the value of any accommodation provided to an employee working at a mining site or an on-shore oil 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 if: i) such accommodation is located in a -remote area or ii) where it is not located in a -remote area , the accommodation is 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 limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng chauffeur salary, if any) are met or reimbursed by the employer, no perquisite shall be chargeable to tax if the car is used wholly and exclusively for official purposes. However following compliances are necessary: - The employer has maintained complete details of the journey undertaken for official purposes; - The employer gives a certificate that the expenditure was incurred wholly for official duties. However if the motor car is used partly for official or partly for private purposes then the amount of perquisite shall be the actual expenditure incurred by the employer as reduced by the amounts in c) referred to in (1) above. Normal wear and tear of the motor shall be taken at 10 % per annum of the actual cost of the motor car. III Personal attendants etc. [Rule 3(3)] : 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest rate over interest, if any, actually paid by the employee or any member of his household. The prescribed interest rate would be t he 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 ₹ 20,000/- in the aggregate are exempt. Loans for medical treatment of diseases specified in Rule 3A are also exempt, provided the amount of loan for medical reimbursement is not reimbursed under any medical insurance scheme. Where any medical insurance reimbursement is received, the perquisite value at the prescribed rate shall be charged from the date of reimbursement on the amount reimbursed, but not repaid against the outstanding loan taken specifically for this purpose. VIII Perquisite on account of travelling, touring, accommodation and any other expenses paid for or reimbu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred wholly and exclusively for official purposes it will be exempt if the following conditions are fulfilled i) Complete details of such expense, including date and nature of expenditure is maintained by the employer. ii) Employer gives a certificate that the same was incurred wholly and exclusively for official purpose. XI Club Expenditure [Rule 3(7)(vi)]: Any annual or periodical fee for Club facility and any expenditure in a club by the employee (or any member of his household), which is paid or reimbursed by the employer is taxable on the following basis: Amount of expenditure incurred by the employer XXX Less : Expenditure on use for official purposes XXX Less : Amount, if any, recovered from the employee XXX XXX Amount taxable as perquisite XXX However if the amount is incurred wholly and exclusively for official purposes it will be exempt if the following conditions are fulfilled i) Complete details of such expense, including date and nature of expenditure and its business expediency is maintained by the employer. ii) Employer gives a certificate that the same was incurred wholly and exclusively for official purpose. Note: 1) Health club, sport facilities etc. provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding ₹ 15,000/- p.a. u/s 17(2) is to be taken as perquisite. It is further clarified that the method regarding valuation of perquisites are given in section 17(2) of the Act and in rule 3 of the Rules. 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. of the Act would continue to be exempt. These include benefits like house rent allowance, leave travel concession, travel expense/allowance on tour and transfer, daily allowance to meet tour expenses as prescribed, medical facilities subject to conditions. 5.2.3 ' Profits in lieu of salary' shall include I. the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto; II. any payment (other than any payment referred to in clauses (10), (10A), (10B), (11), (12) (13) or (13A) of section 10) due to or received by an assessee from an employer or a former employer or from a provident or othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich in turn is strictly limited to expenses on air fare, rail fare and bus fare only. No other expenses like local conveyance, sight-seeing expense etc., shall qualify for exemption. o Where the journey is performed in a circuitous route, the exemption is limited to what is admissible by the shortest route. Likewise, where the journey is performed in a circular form touching different places, the exemption is limited to what is admissible for the journey from the place of origin to the farthest point reached in India, by the shortest route. - Restriction on children - The exemption will not be available to more than 2 surviving children of an individual born after 01.10.1998. This restriction shall not apply in respect of children born before 01.10.1998 and also in case of multiple births after one child. It may be noted that section 2 (15B) of the Act defines a child as includes a step child and an adopted child of the individual. - Definition of Family - As per the provisions of the Rules, family means: o Spouse and children of the individual. o Parents, brothers and sisters who are wholly or mainly dependent on the individual. - Foreign Travel - As per the provisions of the Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all- India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority] or a corporation established by a Central, State or Provincial Act, is exempt under Section10(10A)(i). As regards payments in commutation of pension received under any scheme of any other employer, exemption will be governed by the provisions of section 10(10A)(ii). Also, any payment in commutation of pension from a fund referred to in Section 10(23AAB) is exempt under Section 10(10A)(iii). 5.3.4 Any payment received by an employee of the Central Government or a State Government, as c ash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise, is exempt under Section 10(10AA)(i). In the case of other employees, this exemption will be determined with reference to the leave to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Government and State Government and employees of notified institutions having importance throughout India or any State or States. It may also be noted that where this exemption has been allowed to any employee for any assessment year, it shall not be allowed to him for any other assessment year. Further, if relief has been allowed under section 89 for any assessment year in respect of amount received on voluntary retirement or superannuation, no exemption under section 10(10C) shall be available. 5.3.7 Any sum received under a Life Insurance Policy (Sec 10(10D) , including the sum allocated by way of bonus on such policy other than the following is exempt under section 10(10D): i) any sum received under section 80DD(3) or section 80DDA(3); or ii) any sum received under a Keyman insurance policy; or iii) any sum received under an insurance policy issued on or after 1.4.2003, but on or before 31-03-2012, 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; or iv) any sum received under an insurance policy issued on or after 1.4.2012 in respect of which the premium payable for any of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-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 ₹ 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 ₹ 1,00,000 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome 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. Family pension received by any member of the family of such individual is also exempt [Notifications No. S.O.1948(E) dated 24.11.2000 and 81(E) dated 29.1.2001, which are enclosed as per Annexure VIII IX]. -Family for this purpose shall have the meaning assigned to it in Section 10(5) of the Act. DDO may not deduct any tax in the case of recipients of such awards after satisfying himself about the veracity of the claim. 5.3.14 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce is available to non-government employees. 5.4.2 Tax on Employment [Section 16(iii)]: The tax on employment (Professional Tax) within the meaning of article 276(2) of the Constitution of India, leviable by or under any law, shall also be allowed as a deduction in computing the income under the head Salaries . 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. 5.5 DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT In computing the taxable income of the employee, the following deductions under Chapter VI-A of the Act are to be allowed from his gross total income: 5.5.1 Deduction in respect of Life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. (section 80C) A. Section 80C , entitles an employee to deductions for the whole of amounts paid or deposited in the current financial year in the following schemes, s ubject to a limit of ₹ 1,50,000/- : (1) Payment of insurance premium to effect or to keep in force an insurance on the life of the individual, the spouse or any child of the indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual, for himself, spouse or any child, a. for participation in the Unit Linked Insurance Plan, 1971 of the Unit Trust of India; b. for participation in any unit-linked insurance plan of the LIC Mutual Fund referred to section 10 (23D) and as notified by the Central Government. [The Central Government has since notified Unit Linked Insurance Plan (formerly known as Dhanraksha, 1989) of LIC Mutual Fund vide Notification S.O. No. 1561(E) dated 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, of section 10(23D), or from the Administrator or the specified company referred to in Unit Trust of India (Transfer of Undertaking Repeal) Act, 2002 under any plan formulated in accordance with any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 occupati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. B. Section 80C(3) 80C(3A) states that in case of Insurance Policy other than contract for a deferred annuity the amount of any premium or other payment made is restricted to: Policy issued before 1st April 2012 20% of the actual capital sum assured Policy issued on or after 1st April 2012 10% of the actual capital sum assured Policy issued on or after 1st April 2013 * - In cases of persons with disability or person with severe disability as per Sec 80 U or suffering from disease or ailment as specified in Sec 80DDB 15% of the actual capital sum assured *Introduced by Finance Act 2013 Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 80CCD(1) shall not exceed ₹ 1,00,000/-. As per Section 80CCD(2), where any contribution in the said pension scheme is made by the Central Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or any other employer subject to limit of 10% of his salary of the previous year. If any amount is standing to the credit of the employee in the pension scheme referred above and deduction has been allowed as stated above, and the employee or his nominee receives this amount together with the amount accrued thereon, due to the reason of (i) Closure or opting out of the pension scheme or (ii) Pension received from the annuity plan purchased and taken on such closure or opting out then the amount so received during the FYs shall be the income of the employee or his nominee for that Financial Year and accordingly will be charged to tax. Where any amount paid or deposited by the employee has been taken into account for the purposes of this section, a deduction with reference to such amount shall not be allowed under section 80C. Further it has been specified that w.e.f 01. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s section for any other year. 5.5.5 Deduction in respect of health insurance premia paid, etc. (Section 80D) Section 80D provides for deduction available for health insurance premia paid, etc. which is calculated as under: Sl No Persons for whom payment made Nature of payment Mode of payment Allowable Deduction (in Rs) 1 Employee or his family * the whole of the amount paid to effect or to keep in force an insurance on the health of the employee or his family or * any contribution made to the CGHS or such other scheme as may be notified by Central Government (Finance Act 2013) * any payment on account of preventive health check-up of the employee or family, [restricted to ₹ 5000/-; cash payment allowed here] any mode other than cash Aggregate allowable is ₹ 15,000/ {For Senior Citizens it is ₹ 20000/-}. 2 Parent or Parents of employee * the whole of the amount paid to effect or keep in force an insurance on the health of the parent or parents of the employee or * any payment made on account of preventive health check-up of the parent or parents of the employee [restricted to ₹ 5000/-; cash payment allowed here] any mode other than cash Aggregate allowable is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment 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 employee, an amount equal to the amount paid or deposited under sub-para(b) above shall be deemed to be the income of the employee of the previous year in which such amount is received by the employee and shall accordingly be chargeable to tax as the income of that previous year. 5.5.6.2 Deductions in respect of a person with disability (section 80U): Under section 80U, in computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a sum of fifty thousand rupees. However, where such individual is a person with severe disability , a higher deduction of one lakh rupees shall be allowable. DDOs should note that 80DD deduction is in case of the dependent of the employee whereas 80U deduction is in case of the employee himself. However under both the Sections the employee shall furnish to the DDO following: 1. A copy of the certificate issued by the medical authority as define ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999; (f) -person with disability means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999; (g) -person with severe disability means- (i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995; or (ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999; (h) -specified company means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002. 5.5.7. Deduction in respect of medical treatment, etc. (Section 80DDB): Section 80DDB allows a deduction in case of employee, who is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so; 5.5.9 Deduction in respect of interest on loan taken for residential house property (Section 80EE): Vide Finance Act 2013, an individual is allowed a deduction upto a limit of ₹ 1,00,000 being paid as interest on a loan taken from a Financial Institution, sanctioned during the period 01-04-2013 to 31-03-2014 (loan not to exceed ₹ 25 lakhs) for acquisition of a residential house whose value does not exceed ₹ 40 lakhs. However the deduction is available if the assessee does not own any residential house property on the date of sanction of the loan. If in case of above loan the interest claimed during AY 2014-15 is less than ₹ 1,00,000/- then the balance amount is allowed in AY 2015-16. 5.5.10 Deductions on respect of donations to certain funds, charitable institutions, etc. (Section 80G): Section 80G provides for deductions on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above are satisfied before such deduction is allowed by them to the employee. They should also satisfy themselves in this regard by insisting on production of evidence of actual payment of rent. 5.5.12 Deductions in respect of certain donations for scientific research or rural development (Section 80 GGA): Section 80GGA allows deduction from total income of employee in respect of donations of any sum as given in the Table below: Sl No Donations made to persons Approval / Notification under Section Authority granting approval/ Notification 1 a research association which has as its object the undertaking of scientific research or to a University, college or other institution to be used for scientific research u/s 35(1)(ii) Central Government 2 a research association which has as its object the undertaking of research in social science or statistical research or to a University, college or other institution to be used for research in social science or statistical research u/s 35(1)(iii) Central Government 3 an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or (c) Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898, For this section, time deposits means the deposits repayable on expiry of fixed periods. 6. REBATE OF ₹ 2000 FOR INDIVIDUALS HAVING TOTAL INCOME UPTO ₹ 5 LAKH [SECTION 87A] Finance Act 2013 provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not exceeding ₹ 5,00,000/-. The amount of rebate is ₹ 2000/- or the amount of tax payable, whichever is lower. This rebate is available for A.Y. 2014-15 and subsequent assessment years. 7 TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND : 7.1 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r than loss under the Head -Income from House property . (d) Allow deductions mentioned in para 5.5 from the figure arrived at (c) above ensuring that the relevant conditions are satisfied. The aggregate of the deductions subject to the threshold limits mentioned in para 5.5 shall not exceed the amount at (b) above and if it exceeds, it should be restricted to that amount. This will be the amount of total income of the employee on which income tax would be required to be deducted. This income should be rounded off to the nearest multiple of ten rupees. 9.2 Income-tax on such income shall be calculated at the rates given in para 2.1 of this Circular keeping in view the age of the employee and subject to the provisions of sec. 206AA, as discussed in para 4.8. Rebate as per Section 87A upto ₹ 2000/- to eligible persons (see para 6) may be given. Surcharge shall be calculated in cases where applicable (see para 2.2). 9.3 The amount of tax payable so arrived at shall be increased by education cess as applicable (2% for primary and 1% for secondary education) to arrive at the total tax payable. 9.4 The amount of tax as arrived at para 9.3 should be deducted every month in equal ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Ranchi 26. Accountant General-II, Bihar, Patna 27. Accountant General-I, Gujarat, Ahmedabad 28. Accountant General-II, Gujarat, Rajkot 29. Accountant General, Kerala, Thiruananthapuram 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, Bengaluru 35. Accountant General, Orissa, Bhubaneshwar 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, Kolkata 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)Kolkata 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, Nationalized including State Bank of India) 51. Secretary, Reser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conomic Affairs, New Delhi 80. The Editor, 'The Income-tax Reporter' Company Law Institute of India (P) Ltd., 88, Thyagaraja Road, Thyagaraja Nagar, Chennai-600017 81. The Editor, Chartered Secretary, The Institute of Company Secretaries of India, 'ICSI House, 22, Institutional Area, Lodhi Road, New Delhi-110003 82. The Editor, Taxation 174, Jorbagh, New Delhi 83. The Editor, The Tax Law Review Post Box No.152, Jallandhar-144001 84. The Editor, Taxmann Allied Services (P)Ltd., 1871, Kucha Chelan, Khari Baoli, Delhi-110006 85. The Min. of Law (Deptt. of Legal Affairs), Shastri Bhawan New Delhi. 86. Food Corporation of India, 16-17, Barakhamba Lane, New Delhi-110001 87. IFCI, Bank of Baroda Building, 16, Parliament Street, New Delhi 88. IDBI, IDBI Tower, Cuffe Parad, Mumbai-400 005 89. ICICI, 163, Backbay Reclamation, Mumbai-400 020 90. NABARD, Poonam Chambers, Dr.Annie Besant Road, P.B.No.552,Worli, Mumbai 91. National Housing Bank, 3rd Floor, Bombay Life Building, 45, Veer Nariman Road, Mumbai 92. IRBI, 19, Netaji Subhash Road, Kolkata 93. All Foreign Banks operating in India 94. Air India, New Delhi 95. University Grants Commission, Bahadur Shah Jafar Marg, New Delhi 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LIP ₹ 10,000/- = ₹ 35,000/- 35,000 6 Less: Deduction u/s 80TTA on Interest Income on savings account (restricted to ₹ 10000/-) 10000 7 Total Income 3,17,000 8 Income Tax thereon/payable (includes Rebate of ₹ 2000 as per Section 87A) 4,700 9 Add: (i). Education Cess @2% (ii). Secondary and Higher Education Cess @1% 94 47 10 Total Income Tax payable 4,841 11 Rounded off to 4,840 Example 3 For Assessment Year 2015-16 Calculation of Income Tax in the case of an 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 5,20,000 2 Medical Reimbursement by employer on the treatment of self and dependent family member 35,000 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 30,000 8 Interest Income on Savings Account 8,000 9 Interest Income on Savings Account 15,000 Computation of Tax S.No. Particulars Rupees 1 Gross Salary 5,20,000 2 Add: Perquisite in respect of reimbursement of Medical Expenses In excess of ₹ 15,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax payable 22351 10 Rounded off to 22350 Example 5 For Assessment Year 2015-16 Illustrating valuation of perquisite and calculation of tax in the case of an employee below age of sixty years of a private company in Mumbai who was provided accommodation in a flat at concessional rate for ten months and in a hotel for two months ( With valid PAN furnished to employer). S.No. Particulars Rupees 1 Salary 7,00,000 2 Bonus 1,40,000 3 Flat at concessional rate (for ten month). = ₹ 3,60,00 3,60, 000 4 Hotel rent paid by employer (for two month) 1,00,000 5 Cost of furniture 2,00,000 6 Free gas, electricity, water etc. (Actual bills paid by company) 40,000 7 Rent recovered from employee 60,000 8 Subscription to Unit Linked Insurance Plan 50,000 9 Life Insurance Premium 10,000 10 Contribution to recognized P.F. 42,000 COMPUTATION OF TOTAL INCOME AND TAX PAID THEREON: S.No. Particulars Rupees 1 Salary 7,00,000 2 Bonus 1,40,000 3 Total Salary(1+2) for the purpose of 8,40,000 valuation of perquisites (12 months) 4(a) Perquisite for flat: Lower of (15% of salary for 10 months = ₹ 1,05,000/-) and (actual rent paid= ₹ 3,60,000) i.e. ₹ 1,05,000/- Less : Rent recovered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Higher Education Cess @1% 404 202 Total Income Tax payable 20,806 Rounded off to 20,810 Example 7 For Assessment Year 2015-16 A. Calculation of Income tax in the case of a retired employee above the age of sixty years but below the age of 80 years and having gross pension of: Particulars Rupees (i) Rupees (ii) Rupees (iii) Gross Pension 4,50,000 8,00,000 12,50,000 Contribution of P.P.F. 70,000 1,00,000 1,50,000 B What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices: Computation of Total Income and tax payable thereon Particulars Rupees (i) Rupees (ii) Rupees (iii) Gross Pension 4,50,000 8,00,000 12,50,000 Less: Deduction U/s 80C 70,000 1,00,000 1,50,000 Taxable Income 3,80,000 7,00,000 11,00,000 Tax thereon (A) 6,000 60,000 1,50,000 Add: (i) Education Cess @ 2%. (ii) Secondary and Higher Education Cess @1% 120 60 1200 600 3000 1500 Total tax payable 6,180* 61,800 1,54,500 B. TDS under sec. 206AA in case where PAN is not furnished by the employee 16,000 80,000 1,60,000 *includes Rebate of ₹ 2000 as per Section 87A Example 8 For Assessment Year 2015-16 A. Calculation of Income tax in the case of a retired employee abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... signation) 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 ANNEXURE III POINT NO.4.4.2.1 OF CIRCULAR OF DEDUCTION OF TAX AT SOURCE - INCOME TAX DEDUCTION FROM SALARIES U/S 192 OF THE INCOME-TAX ACT, 1961 - FINANCIAL YEAR 2013-14 Compulsory filing of Statement by PAO, Treasury Officer, etc. in case of payment of TDS by Book Entry 1. Procedure of preparation and furnishing Form 24G at TIN-Facilitation Centres (TIN-FCs) : The Form 24G should be prepared by the PAO/DTO/CDDO (hereinafter referred to as AOs) as per the data structure (File format) prescribed by the DIT (Systems), Delhi which is available on TIN website www.tin-nsdl.com . The AOs can prepare Form 24G either by using in-house facilities, third party software or by using form 24G Return Preparation Utility (RPU) developed by NSDL e-Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upload. For Form 24G accepted at TIN Central System an online acknowledgement containing a 15 digit token number is generated and displayed to the AO. The format of the acknowledgement is identical to the one issued by the TIN-FC. No charges are applicable to AOs for online upload of Form 24G. On login, AO can also View/Download BIN details and update demographic details. No Digital Signature Certificate (DSC) is required for registration and online uploading of Form 24G. 2.1 Online uploading of correction Form 24G at TIN website: AO can file a correction Form 24G for any modification or cancellation of Form 24G accepted at TIN Central System. Preparation and validation of correction form 24G is in line with regular form 24G. The validated Form 24G correction file (.fvu file) can be uploaded online through AO account at TIN website. For correction Form 24G accepted at TIN central system, an online acknowledgement containing a 15 digit token number is generated and displayed to the AO. The format of the acknowledgement is identical to the one issued by the TIN-FC. There is no need to submit SSR and provisional receipt of original form 24G in online upload. 3. For FAQs and further de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Deduction and Collection Account Number (TAN). This number is allotted by Income Tax Department. 5. Where should the Accounts Office Identification Number (AIN) application be submitted ? The duly filled and signed application for AIN allotment is to be submitted in physical form by the PAO / CDDO / DTO to the jurisdictional CIT (TDS). Complete and correct AIN application forms will be forwarded by the jurisdictional CIT (TDS) to NSDL e-Governance Infrastructure Limited (NSDL), Times Tower, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400013 recommending allotment of AIN to the PAO / CDDO / DTO. 6. What information should be submitted through Form 24G? Every AO should furnish one complete, correct and consolidated Form 24G every month having details of each type of deduction / collection separately viz. TDS-Salary / TDS-Non Salary / TDS-Non Salary Non Residents / TCS made by each DDO under his jurisdiction. 7. Where should Form 24G be submitted? Form 24G is to be furnished only in electronic form in a CD/pen drive at TIN-FCs or online through AO Account at www.tin-nsdl.com web portal. The facility to submit Form No. 24G online is available free ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) developed by NSDL and freely available at the TIN or ITD website. The statement can be furnished in Compact Disk (CD) at any of the TIN-Facilitation Centres (TIN-FC) managed by NSDL along with Form 24G Statement Statistics Report (generated through File Validation Utility), duly signed by the AO. The list of TIN-FCs is available at TIN or ITD website. Once Form 24G is accepted by the TIN-FC, it will issue a provisional receipt with a unique Provisional Receipt Number (PRN) to the AO as a proof of submission of the statement. 14. What is Form 24G Preparation Utility? The Form 24G Preparation Utility is a Java based utility. Form 24G Preparation Utility can be freely downloaded from www.tin-nsdl.com. After downloading, it needs to be saved on the local disk of the machine. JRE (Java Run-time Environment) [versions: SUN JRE: 1.4.2_02 or 1.4.2_03 or 1.4.2_04 or IBM JRE: 1.4.1.0] should be installed on the computer where Form 24G Preparation Utility is being installed. JRE is freely downloadable from http://java.sun.com and http://www.ibm.com/developerworks/java/jdk or you can ask your computer vendor (hardware) to install the same for you. Form 24G Preparation Utility can be executed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO required to take all three files in CD /Pen drive to TIN-FC? When a valid file is passed through the FVU, the following three files are generated:- (a) The upload file (b) Form 24G statement Statistics Report and (c) Form 24G. Every Form 24G (upload file) mentioned at Sr. No. (a) is to be saved in CD and the same should be accompanied with the Statement Statistic Report mentioned at Sr. No. (b), in paper form duly signed by the Accounts Officer , which needs to be submitted at TIN-FCs. Form 24G: Form 24G, at serial number (c) above, is a reader friendly format of TDS/TCS Book Adjustment form. This is like the physical form of Form 24G in html format. It contains all the details of Accounts Officer as well as Drawing and Disbursement Officer. There is no need to submit this file. 18. Can the Form 24G Statement be corrected? Every Form 24G is to be prepared in accordance with the data structure prescribed by the Income Tax Department (ITD). If it does not confirm to the new data structure it will be rejected by TIN. As per procedure, statements relating to Form 24G should be complete and correct. No fragmented statements are expected to be filed (i.e. separate statements giving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 21. What is X-Type of Correction Statement? This type of correction statement is to be furnished by AO if it wishes to cancel an existing Form 24G statement. Filing of Correction type X will allow AOs to file regular Form 24G for the same primary key (AIN, Financial year and Month). This type of correction is to be filed only if the Form 24G has been filed with wrong AIN, F.Y. or Month. 22. What is BIN? BIN stands for -Book Identification Number for each form type mentioned in the accepted monthly form No. 24G. BIN consists of the following: (i) Receipt Number : Receipt number is a seven digit unique number generated on successful acceptance of Form 24G. (ii) DDO Serial Number : It is a five digit unique number generated for every DDO transaction reported in Form 24G statement. (iii) Transfer Voucher Date : It is the last date of month for which Form 24G statement is filed. BIN is required to be disseminated to the respective DDOs who in turn are required to report the same in the TDS/TCS Statement. The quoting of BIN has been made mandatory w.e.f 01stFebruary, 2012. BIN is a unique number to verify the claim of TDS deposited without production of challan. As it is a verificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not a valid scenario. The DDOs and respective AOs are advised to reconcile the issue and one DDO should be mapped to one AO only for a particular form type for a particular month. 28. What are the duties of PAOs/DTOs/CDDOs? i. To apply for AIN with jurisdictional TDS office. AIN application can be downloaded from TIN site. ii. To obtain correct TAN from the reporting DDOs. iii. To file Form No. 24G (in CD, DVD, Pen Drive), within 10 days from the end of the month, electronically either at TIN-FC or by direct online upload at TIN website. iv. To track status of the filed Form No. 24G through TIN website. v. To download Book Identification Number (BIN) generated on the basis of 24G statement. vi. To disseminate BIN to the respective DDOs. 29. What are the duties of DDOs? i. To provide correct TAN to their PAOs/DTOs/CDDOs to whom the DDO/Deductor reports the tax so deducted who is responsible for crediting such sum to the credit of the Central Government. ii. To report to PAOs/DTOs/CDDOs, the details of tax deducted and credited to the Central Government account through book adjustment. iii. To quote BIN in the quarterly TDS/TCS Statement (24Q, 26Q, etc) for the tax deducted and cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N website. Only one regular e-TDS statement/return for a ‗FY-Quarter-TAN-Form can be submitted. 2.1 Correction in e-TDS statements/return s: 2.1.1 CPC-TDS portal (www.tdscpc.gov.in) has also introduced online correction of statements whereby personal information, PAN correction, add/update of challan information, add/update of salary detail, add/update/movement of deductee row etc. can be done in the statements filed by the deductors, with or without the digital signatures. For further details, kindly refer the matrix below: Default Summary View Personal Information Challan Correction (Unmatched, matched Deductee + Deductee Movement PAN Correction (Annex.I) PAN Correction (Annex. II) Add Challan to statement Interest, Levy Payment Modify/Add deductee rows Delete/Add salary deducted rows Online Correction (with digital signature, 2013-14 onwards) Y Y Y Y Y Y Y Y Y Online Correction (with digital signature, prior to 2013-14 onwards) Y Y Y N N Y Y N N Online Correction (without digital signature, 2013-14 onwards) Y N Y N N Y Y N N Online Correction (withoutdigital signature, prior to 2013-14 onwards) Y N Y N N Y Y N N For more information, deductors are advised to refer to e-tut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an view the status of paper statement/return on TIN website. 4. Procedure of furnishing of e-TDS statement/return online at TIN website: Deductor/DDO is required to procure Digital Signature Certificate (DSC) for online upload of e-TDS statement/return. After registration on TIN website, an authorization letter by the Deductor/DDO should be provided on the letter head of the organisation to NSDL. Once application is approved by NSDL, user ID is created and intimated to Deductor/DDO on their registered email ID provided at the time of registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC).Deductor/DDO can login with its user ID and DSSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token no. and 8 digit receipt number is generated and displayed. There is no need to submit physical form 27A in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website. No charges are applicable for online upload of e-TDS statement/return. 4.1 Correcti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn for new recruits in Central government service. Government will make no contribution into this account. These assets would be managed through exactly the above procedures. However, the employee would be free to withdraw part or all of the ‗second tier of his money anytime. This withdrawable account does not constitute pension investment, and would attract no special tax treatment. iii. Individuals can normally exit at or after age 60 years for tier-I of the pension system. At the exit the individual would be mandatorily required to invest 40 percent of pension wealth to purchase an annuity (from an IRDA- regulated life insurance company). In case of Government employees the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which he 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 (i) It will have a central record keepin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 gallantry awards for the purposes of the said Section and for that purpose makes the following amendment in the notification of the Government of India in the Ministry of Finance, Department of Revenue (Central Board of Direct Taxes) number S.O.1048(E), dated the 24th November 2000, namely:- In the said notification, in the Table, against serial numbers 1,2 and 3 under column (3) relating to -Circumstances for eligibility the words -to civilians shall be omitted. (F.No.142/29/99-TPL) (T K SHAH) Director ANNEXURE-X 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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