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TMI BlogIncome-tax Deduction from salaries during the Financial Year 2019-20 under section 192 of the Income-tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... F INCOME-TAX AS PER FINANCE ACT, 2019: As per the Finance (No.2) Act, 2019 , income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head Salaries for the financial year 2019 -20 (i.e. Assessment Year 2020-21) 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/-. 5 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/-. ₹ 12,500/- 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/-. ₹ 1,12,500/- plus 30 per cent of the amount by which the total income exceeds ₹ 10,00,000/- B. Rates of tax for every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year: Sl No Total Income Rate of tax 1 Where the total income does not exceed ₹ 3,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding five crore rupees, at the rate of thirty-seven per cent of such income-tax: (e) having a total income (including income under the provisions of section 111A and 112A ) exceeding two crores rupees,but is not covered under clauses (c) and (d), shall be applicable at the rate of fifteen percent of such income tax: Provided that in case where total income includes any income chargeable under section 111A and 112A of the Income Tax Act, the rate of surcharge on the amount of income tax computed in respect of that part of income shall not exceed fifteen percent. Provided that in the case of persons mentioned above having total income exceeding,- (a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees; (b) one crore rupees but does not exceed two crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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. 3.2.2 Illustration: The income chargeable under the head salaries of an employee below sixty years of age for the year inclusive of all perquisites is ₹ 6,00,000/-, out of which, ₹ 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 ₹ 6,00,000/- Tax on Total Salary (including Cess) ₹ 33,800/- Average Rate of Tax [(33, 800/6,00,000) X 100] 5.63/% Tax payable on ₹ 50,000/= (5.63% of 50,000) ₹ 2815 Amount required to be deposited each month ₹ 235= 2815/12 The tax so paid by the employer shall be deemed to be TDS made from the salary of the employee. 3.3 Salary From More Than One Employer: Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead other than Salaries ( not being a loss under any such head other than the loss under the head ― Income from house property‖) received by the taxpayer for the same financial year and of any tax deducted at source thereon. The particulars may now be furnished in a simple statement , which is properly signed and verified by the taxpayer in the manner as prescribed under Rule 26B(2) of the Rules and shall be annexed to the simple statement. The form of verification is reproduced as under: I, .. (name of the assessee), do declare that what is stated above is true to the best of my information and belief. It is reiterated that the DDO can take into account any loss only under the head Income from house property . Loss under any other head cannot be considered by the DDO for calculating the amount of tax to be deducted. It may be noted that loss under the head Income from house property can be set off only up to ₹ 2.00 lakh with the income under any other head of income in view of the amendment to section 71 of the Act vide Finance Act, 2017. Hence, loss under the head Income from house property in excess of ₹ 2.00 lakh is to be ignored for calculating the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 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 also show the details of Principal and Interest of the loan so repaid. As discussed in para 4.6.5 section 192(2D) read with rule 26C makes it mandatory for the DDO to obtain following details/evidences in respect of Interest deductible. (i) Interest payable or paid (ii) Name of the lender (iii) Address of the lender (iv) PAN or Aadhaar number as the case may be,of the lender PAN or Aadhaar number as the case may be, of the lender being financial institution or employer, is mandatory if it is available with the employee, however in case of other lender obtaining of PAN or Aadhaar number as the case may be, is mandatory by the DDO. 3.7 Adjustment for Excess or Shortfall of Deduction: The provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY NEXT MONTH b) In any case other than an Office of Government Sl No. Description Time up to which to be deposited. 1 Tax deducted in March 30 th APRIL NEXT FINANCIAL YEAR 2 Tax deducted in any other month 7 TH DAY NEXT MONTH 3 Tax on perquisites opted to be deposited by the employer 7 TH DAY NEXT MONTH However, if a DDO applies 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 30 th June 7 th July 2 30 th September 7 th October 3 31 st December 7 th January 4 31 st March 30 th 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 u/ s 200 (2A) : 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 nam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan ( Rule125). The amount shall be construed as electronically remitted to the Reserve Bank of India or to the State Bank of India or to any authorized bank, if the amount is remitted by way of: (a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorized bank; or (b) debit card. {Rule 30(7)} 4.5 Interest, Penalty Prosecution for Failure to Deposit Tax Deducted: 4.5.1 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 and shall be deemed 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -04-2013 all deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading it through TRACES Portal and after duly authenticating and verifying it, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number. The deductor shall generate Part B (Annexure) of Form No. 16 from the Traces website and issue to the deductee after due authentication and verification along with the Part A of the Form No. 16. It may be noted that under the new TDS procedure, TAN of deductee/ PAN or Aadhaar number, as the case may be,of the deductee and receipt number of TDS statement filed by the deductor act as unique identifier for granting online credit of TDS to the decutee. Hence due care should be taken in filling these particulars. Due care should also be taken in indicating correct CIN/ BIN in TDS statement. If the DDO fails to issue these certificates to the person concerned, as required by section 203, he will be liable to pay, by way of pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Total Taxable Income (Rounded Off) TDS to be Deducted TDS Deducted/ Reported after rounding-off of income Short Deduction ₹ 1350094 ₹ 1350090 ₹ 235028.20 ₹ 235028 ₹ 1.20 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. Authentication by Digital Signatures : (i) Where a certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates. (ii) In case of certificates issued under clause (i), the deductor shall ensure that a) the conditions prescribed in para 4.6.1 above are complied with; b) once the certificate is digitally signed, the contents of the certificates are not amenable to change; and c) the certificates have a control number and a log of such certificates is maintained by the deductor. The digital signature is being used to authenticate most of the e-transactions on the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to produce Form 12BA along with Form 16, as issued by the employer . 4.6.5 DDOs empowered to obtain evidence of proof or particulars of the prescribed claim (including claim for set-off of loss) under the section 192(2D) : DDOs have been authorized u/s 192 to allow certain deductions, exemptions or allowances or set-off of certain loss as per the provisions of the Act for the purpose of estimating the income of the assessee or computing the amount of tax deductible under the said section. The evidence /proof /particulars for some of the deductions/exemptions/allowances/set-off of loss claimed by the employee such as rent receipt for claiming deduction in HRA, evidence of interest payments for claiming loss from self-occupied house property, etc. is not available to the DDO. To bring certainty and uniformity in this matter, section 192(2D) provides that person responsible for paying (DDOs) shall obtain from the assessee evidence or proof or particular of claims such as House rent Allowance (where aggregate annual rent exceeds one lakh rupees); Leave Travel Concession or Assistance; Deduction of interest under the head ―Income from house property‖ and deduction under Chap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes: 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 will be deducted . But where the income of the employee computed for TDS u/s 192 is above taxable limit, 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 be deducted at the average rate. Health and Education cess @ 4% is not to be deducted, in case the tax is deducted at 20% u/s 206AA of the Act. 4.9 Statement of deduction of tax under section 200(3) [Quarterly Statement of TDS]: 4.9.1 The person deducting the tax (employer in case of salary income), is required to file duly verified Quarterly Statements of TDS in Form 24Q for the periods [details in Table below] of each financial year, to the TIN Facilitation Centres authorized by DGIT (Sy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 sum which shall not be less than ₹ 10,000/- but which may extend to ₹ 1,00,000/-. However, the penalty shall not be levied if the person proves that after paying TDS with the fee and interest, if any, to the credit of Central Government, he had delivered such statement before the expiry of one year from the time prescribed for delivering the statement. 4.9.7 At the time of preparing statements of tax deducted, the deductor is required to: (i) mandatory quote his tax deduction and collection account number (TAN) in the statement; (ii) mandatory quote his permanent account number (PAN) or Aadhaar number as the case may be, in the statement except in the case where the deductor is an office of the Government( incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill 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 . 5.2 DEFINITION OF SALARY , PERQUISITE AND PROFIT IN LIEU OF SALARY (SECTION 17): 5.2.1 Salary includes: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, 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 otherwise have been payable 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 an assurance on the life of an assessee or to effect a contract for an annuity. VI. 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 employee and for this purpose, (a) specified security means the securities as defined in section 2(h) of the Securities Contracts (Regulation) Act, 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 providi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se/ 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 perquisite in respect of Residential Accommodation: a. Basic Salary; b. Dearness Allowance, or Dearness Pay if it enters into the computation of superannuation or retirement benefit of the employees; c. Bonus; d. Commission; e. All other taxable allowances (excluding the portion not taxable); and f. Any monetary payment which is chargeable to tax (by whatever name called). Salary from all employers shall be taken into consideration in respect of the period during which an accommodation is provided. Where on account of the transfer of an employee from one place to another, he 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 for a period not exceeding 90 days and thereafter the value of perquisite shall be charged for both such accommodation. B Valuation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 limits of any municipality or cantonment board. A project execution site here 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. II Perquisite on Motor car provided by the Employer [ Rule 3(2)]: (I) If an employer provides motor car facility to his employee, the value of such perquisite shall be : a) Nil, if the motor car is used by the employee wholly and exclusively in the performance of his official duties. 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. b) Actual expenditure incurred by the employer on the running and maintenance of motor car including rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 be reduced from the above amount. IV Gas, electricity water for household consumption [Rule 3(4)]: The value of perquisite in the nature of gas, electricity and water shall be the amount paid by the employer. 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 perquisite value. V Free or concessional education [Rule 3(5)]: Perquisite on account of free or concessional education for any member of the employee s household shall be determined as the sum equal to the amount of expenditure incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 reimbursed by the employer for any holiday availed [Rule 3(7)(ii)]: The value of perquisite on account of travelling, touring, accommodation and any other expenses paid for or reimbursed by the employer for any holiday availed of by the employee or any member of his household, other than leave travel concession (as per section 10(5) ), shall be the amount of the expenditure incurred by the employer in that behalf. However, any amount recovered from or paid by the employee shall be reduced from the perquisite value so determined. Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public. If a holiday ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 uniformly to all classes of employee by the employer at the employer s premises and expenditure incurred on them are exempt. 2) The initial one-time deposits or fees for corporate or institutional membership, where benefit does not remain with a particular employee after cessation of employment are exempt. Initial fees / deposits, in such case, is not included. XIII Use of assets [Rule 3(7)(vii)]: It is common practice for a movable asset other than those referred in ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( 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 other fund, to the extent to which it does not consist of contributions by the assessee or interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy. Keyman insurance policy shall have the same meaning as assigned to it in section 10( 10D ); III. any amount due to or received, whether in lump sum or otherwise, by any assessee from any person- (A) before his joining any employment with that person; or (B) after cessation of his employment with that person. 5.3 INCOMES NOT INCLUDED UNDER THE HEAD SALARIES (EXEMPTIONS) Any income falling within any of the following clauses shall not be included in computing the income from salaries for the purpose of section 192 of the Act :- 5.3.1 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) after retirement from service, or, after termination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 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 cash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement , whether on superannuation or otherwise, is exempt under Section 10(10AA)(i). 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny 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 the years during the term of the policy exceeds 10 percent of the actual capital sum assured; or v) any sum received under an insurance policy issued on or after 1.4.2013 in cases of persons with disability or person with se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... salary due for the relevant period; or (i) where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or (ii) where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period. 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. As discussed in para 4.6.5 section 192 (2D) read with rule 26C makes it obligatory for the DDO to obtain following details/evidences in respect of exemptions for house rent allowance. (i) Rend paid to the landlord (ii) Name of the landlord (iii) Address of the landlord (iv) PAN or Aadhaar number as the case may be, of the landlord Where the aggregate rent paid during the financial yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficial 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. 5.3.12 Any scholarship granted to meet the cost of education is not to be included in total income as per provisions of section 10(16) of the Act. 5.3.13 Section 10(18) 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. 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 veraci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owance on tour and transfer, daily allowance to meet tour expenses as prescribed, medical facilities subject to conditions. 5.3.15 In this connection it is to be noted that as per sec. 10 (14) read with rule 2BB any allowance granted to meet the cost of travel on tour or on transfer includes any sum paid in connection with transfer, packing and transportation of personal effects on such transfer shall be exempt. Also any allowance, whether, granted for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty shall be exempt. 5.4 DEDUCTIONS U/S 16 OF THE ACT 5.4.1 Standard deduction under section 16 (ia): From financial year 2019-20, a deduction of fifty thousand rupees or the amount of salary whichever is less shall be allowed as standard deduction. 5.4.2 Entertainment Allowance [Section 16(ii)]: A deduction is also allowed under section 16(ii) 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 allowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 or advance; (5) Any sum paid or deposited during the year as a subscription :- (a) in the name of employee or a girl child of that employee including a girl child for whom the employee is the legal guardian in 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; [The Central Government has since notified the scheme ― Sukanya Samriddhi Account vide Notification GSR No. 863(E) dated 02.12.2014] (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. (c) [The Central Government has since notified National Saving Certificate (VIIIth Issue) vide Notification S.O. No. 1560(E) dated 3.11.05 and National Saving Certificate (IXth Issue) vide Notification . G.S.R. 848 (E), dated the 29th November, 2011, publishing the National Savings Certificates (IX- Issue) Rules, 2011 G.S.R. 868 (E), d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all 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 full-time 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 sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tually assured which may be received under the policy by any person. 5.5.2 Deduction in respect of contribution to certain pension funds (Section 80CCC) Section 80CCC allows an employee deduction of an amount paid or deposited 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 section 10(23AAB). However, the deduction shall exclude interest or bonus accrued or credited to the employee's account, if any and shall not exceed ₹ 1,50,000.However, if any amount is standing to the credit of the employee in the fund referred to above and deduction has been allowed as stated above and the employee or his nominee receives this amount together with the interest or bonus accrued or credited to this account due to the reason of (i) Surrender of annuity plan whether in whole or part (ii) Pension received from the annuity plan then the amount so received during the Financial Year shall be the income of the employee or his nominee for that Financial Year and accordingly will be charged to tax. Where any amount paid or deposited by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployee or his nominee for that Financial Year and accordingly will be charged to tax. Further, the amount received by the nominee, on the death of the assessee, on closure or opening of the pension not be deemed to be the income of the nominee.Where any amount paid or deposited by the employee has been taken into account for the purposes of this section, a deduction with reference to such amount shall not be allowed under section 80C. Further, it has been specified that w.e.f 01.04.09 any amount received by the employee from the New Pension Scheme shall be deemed not to have been received in the previous year if such amount is used for purchasing an annuity plan in the same previous year. It is emphasized that as per the s ection 80CCE the aggregate amount of deduction under sections 80C, 80CCC and Section 80CCD(1) shall not exceed ₹ 1,50,000/-. The deduction allowed under section 80 CCD(1B) is an additional deduction in respect of any amount paid in the NPS upto ₹ 50,000/-. However, the contribution made by the Central Government or any other employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of ₹ 1,50,000/- provided under this section. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem is a senior citizen) Self Family (atleast one of them is a senior citizen) Parents (atleast one of them is a senior citizen) Medical Insurance, etc.* 25,000 25,000 25,000 50,000 50,000 50,000 Medical Expenditure** -- -- -- 50,000 50,000 50,000 Maximum deduction allowable 25,000 25,000 25,000 50,000 50,000 50,000 Aggregate amount of deduction allowable under section 80D 50,000 75,000 1,00,000 * Includes (i) contribution to the Central Government Health Scheme/notified scheme for self family; and (ii) amount paid for preventive health check-up up to ₹ 5,000/-. ** Allowable only if no amount is paid for medical insurance. Note 1 : The payment for preventive health check-up can only be made in cash, other payments must be made by non-cash mode. Note 2 : Finance Act, 2018 amended section 80D of the Act to provide that in case of single premium health insurance policy having cover of more than one year, the deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the monetary limits specified above. Here i) ―family‖ means the spouse and dependent children of the employee. ii) Senior citizen me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been made; (ii) the employee 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 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 ₹ 75,000 /- . However, where such individual is a person with severe disability , a higher deduction of ₹ 1,25,000/- shall be allowable. DDOs should note that 80DD deduction is in case of the dependent of the employee whereas 80U deduction is in case of the employee himself. How ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; (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 Retar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en and immediately succeeding seven Financial years or until the Financial year in which the interest is paid in full by the employee, whichever is earlier. For the purpose of this section - (a) approved charitable institution means an institution established for charitable purposes and approved by the prescribed authority section 10(23C), or an institution referred to in section 80G(2)(a); (b) financial institution means a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf; (c) higher education‖ means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so; 5.5.9 Deduction in respect of interest on loan taken for certain house property (Section 80EEA): Section 80EEA introduced by the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nking institution referred to in section 51 of that Act and includes any deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company as defined in clauses (e) and (g) of Explanation 4 to section 43B. The amount of this deduction shall not exceed ₹ 1,50,000/- and it shall be allowed in computing the total income of the individual for the assessment year 2020-21 and subsequent assessment years. Where a deduction under this section is allowed for any interest referred to in this section, no deduction shall be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year. 5.5.11 Deductions on respect of donations to certain funds, charitable institutions, etc. (Section 80G): Section 80G provides for deductions on account of donation made to various funds , charitable organizations etc. In cases where employees make donations to the Prime Minister's National Relief Fund, the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from total income of employee in respect of donations of any sum as given in the Table below: Sl No Donations made to persons Approval / Notification under Section Authority granting approval/Notification 1 A research association which has as its object the undertaking of scientific research or to a University, college or other institution to be used for scientific research u/s 35(1)(ii) Central Government 2 A research association which has as its object the undertaking of research in social science or statistical research or to a University, college or other institution to be used for research in social science or statistical research u/s 35(1)(iii) Central Government 3 an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approved for the purposes of section 35CCA furnishes the certificate u/s 35CCA (2) Prescribed Authority under Rule 6AAA 4 an association or institution which has as its object the training of persons for implementing programmes of rural development. furnishes the certificate u/s 35CCA (2A) Prescribed Authority under Rule 6AAA 5 a public sector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on deposits in case of senior citizens (Section 80TTB): Section 80TTB introduced by Finance Act, 2018 allows deduction to a senior citizen from his gross total income in respect of income by way of interest on deposits with (a) banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act); (b) co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898. The amount of deduction in respect of above interest on deposit is as under:- (i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and (ii) in any other case, fifty thousand rupees. However, no deduction is allowed under section 80TTB to any partner of the firm or any member of the association or any individual of the body if said interest is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals. For this purpose, ―senior citi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pating in a recognized provident fund is includible in his total income owing to the provisions of Rule 8 of Part A of Fourth Schedule not being applicable at the time of payment of accumulated balance due to the employee, deduct income tax thereon @ 10% if the amount of such payment or aggregate of such payment exceeds ₹ 50,000/-. In case the employee does not provide his/her PAN or Aadhaar number as the case may be, or provides an invalid PAN or Aadhaar number as the case may be, then the deduction will have to be made at maximum marginal rate. The Rule-8 of Part-A of fourth schedule excludes the following accumulated balance due and becoming payable to the employee from the total income; (i) If, he has rendered continuous service with his employer for a period of five years or more, or (ii) If, though he has not rendered such continuous service, the service has been terminated by reason of - the employees ill health, or by the contraction or discontinuance of the employer's business or other cause beyond the control of employee, or (iii) if, on cessation of his employment, the employee obtains employment with any other employer, to the extent amount of such accumulated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s allowable by DDO other than loss under the Head ―Income from House property‖ to the extent of ₹ 2.00 lakh. 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 up to ₹ 12,500/- 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 as increased by the surcharge if applicable so arrived at shall be increased by Health and Education Cess at the rate of 4% to arrive at the total tax payable. 9.4 The amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess @ 4%. Nil Nil 3700 63,030 1,41,795 Total tax payable Nil Nil 96,200 16,38,780 36,86,670 @ or Aadhaar number, as the case may be, * After rebate of ₹ 12500 u/s 87A Example 2 For Assessment Year 2020-21 Calculation of Income Tax in the case of an employee below the age of sixty years having a handicapped dependent (With valid PAN@ furnished to employer). S.No. Particulars Rupees 1 Gross Salary 4,70,000 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) 60,000 4 GPF Contribution 25,000 5 LIP Paid 10,000 6 Interest Income on Savings Account 12,000 Computation of Tax S.No. Particulars Rupees 1 Gross Salary 4,70,000 2 Less: Standard deduction u/s 16(ia) 50,000 3 Add: Income from Other Sources Interest Income on Savings Account ₹ 12,000 4 Gross Total Income 4,32,000 5 Less: Deduction U/s 80DD (Restricted to ₹ 75,000/- only) 60,000 6 Less: Deduction U/s 80C (i) GPF ₹ 25,000/- (ii) LIP ₹ 10,000/- = ₹ 35,000/- 35,000 7 Less: Deduction u/s 80TTA on Interest Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 3,50,000+2,00,000+1,40,000 = 6,90,000 7,40,000 2 Total Salary Income 7,40,000 3 Less: Standard deduction u/s 16(ia) 50,000 4 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) (1,44,000-55,000) = 89,000 (c). 50% of Salary (Basic+ DA) = 2,75,000 [Bombay/Kolkata/Delhi/Chennai] or 40% of salary (Basic + DA) in case of other cities 89,000 Gross Total Income 6,01,000 Less: Deduction U/s 80C (i) GPF ₹ 36,000/- (ii) LIC ₹ 4,000 (iii) Investment in Unit-Linked Insurance Plan ₹ 50,000/- Total =₹ 90,000/- 90,000 5 Total Income 5,11,000 Tax payable 14700 Add: Health Education Cess @ 4%. 588 Total Income Tax payable 15288 Rounded off to 15290 @ or Aadhaar number, as the case may be, Example 5 For Assessment Year 2020-21 Illustrating valuation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed to employer). S.No. Particulars Rupees 1 Salary 4,50,000 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 for house hired by employee 1,20,000 9 Repayment of House Building Loan (Principal) 60,000 10 Tuition Fees for three children (₹ 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) 7,42,000 Less : House rent allowance exempt U/s 10 (13A) Least of: (a). Actual amount of HRA received. :₹ 1,80,000 (b). Expenditure on rent in excess of 10% of salary (Including D.A.) assuming D.A. is included for retirement benefits (1,20,000- 50,000) :Rs . 70,000 (c). 50% of salary (including D.A) : ₹ 2,50,000 70,000 2 Less: Standard deduction u/s 16(ia) 50,000 3 Gross Total Taxable Income 6,22,000 4 Less: Deduction U/s 80C (i). Provident Fund : 60,000 (ii). LIP : 10,000 (iii). NSC VIII Issue : 30,000 (iv). Repayment of HBA : 60,000 (v). Tuition Fees (Restricted to two children) : 20,000 Total : 1,80,000 Restricted to 1,50,000 1,50,000 5 Total Income 4,72,000 6 Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y (for private use only) Expenditure by employer p.m. 700 4. House Rent Allowance p.m. 2,800 5. Employer s contribution to URPF p.m. (Mr. A also made equal contribution) 1,000 W.e.f. 01.11.2018, Mr. A joined PQR Ltd., with following pay package : 1. Basic pay p.m. 18,000 2. House Rent Allowance p.m. 1,600 3. Club Facility (for private use only) Expenditure by employer p.m. 1,100 4. Use of car for journey between office and residence Employer s expenditure p.m. 600 5. Employer s contribution to RPF p.m. (Mr. A also made equal contribution) 2,000 Other particulars of Mr. A are as under : 1. Mr. A resides at Amritsar paying a monthly rent of 3,500 2. Mr. A s income from other sources 1,35,000 3. Mr. A contributed to LIC/PPR/NSC etc. 20,000 Compute Mr. A s taxable income and tax liability for A.Y. 2019-20 . Computation of Tax S.No. Particulars Rupees 1. Income from Salary (a) From XYZ Ltd. Basic pay (₹ 13,000 x 7) 91,000 Bonus 7,200 Club facility (₹ 700 x 7) Rupees 4,900 H.R.A. (₹ 2,800 x 7) 19,600 Less : Exempt u/s 10(13A) 15,400 4,200 Employer s Contribution to U.R.P.F. 1,07,300 (b) From PQR Ltd. Rupees Basic pay (₹ 18,000 x 5) 90,000 H.R.A. (₹ 1,600 x 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3780 p.m 12,800 22,680 1.1.2020 to 28.2.2020 @ ₹ 3852 p.m 7704 43,184 43,184 6,92,800 Honorarium 3,000 Fees (2/3 retained by him) 34,800 Total Salary 7,30,600 Less: Standard Deduction u/s section 16(ia) 50,000 Net Salary 6,80,600 2. Income from House Property Self-occupied u/s 23(2)(a) where property is acquired/constructed with borrowed capital on or after 1.4.1999 and such acquisition/construction computed within five years from the end of FY in which capital was borrowed. Nil Less : Interest on HDFC Loan (upto ₹ 2,00,000) 2,00,000 (-) 2,00,000 Gross Total Income 4,80,600 Less: Deduction u/s 80 C - GPF @ ₹ 4,700/-p.m 56,400 - CGEGIS @ ₹ 500/- p.m 6,000 - Life Insurance Premium 10, 500 - Repayment of HDFC Loan 95,000 - Deposit in Public Provident Fund 10,000 1,77,900 1,50,000 Restricted to a maximum of Taxable Income 3,30,600 Computation of Tax Liability Tax payable 4,030 Less : Rebate u/s 87A 4,030 Net Income-tax payable Nil Add : Health Education Cess @ 4%. Nil Total Tax Payable Nil 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 thereo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of the landlord (iv) Permanent Account Number or Aadhaar number, as the case may be, of the landlord Note: Permanent Account Number or Aadhaar number, as the case may be, shall be furnished if the aggregate rent paid during the previous year exceeds one lakh rupees 2 Leave travel concessions or assistance 3 Deduction of interest on borrowing: (i) Interest payable/paid to the lender (ii) Name of the lender (iii) Address of the lender (iv) Permanent Account Number or Aadhaar number, as the case may be, of the lender (a) Financial Institutions (if available) (b) Employer (if available) (c) Others 4 Deduction under Chapter VI-A (A) Section 80C,80CCC and 80CCD (i) Section 80C (a) .. (b) .. (c) .. (d) . .. (e) .. (f) .. (g) .. (ii) Section 80CCC (iii) Section 80CCD (B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A. (i) section . (ii) section . (iii) section . (iv) section . (v) section . Verification I, ..,son/daughter of .. do hereby certify that the information given above is complete and correct. Place ... Date ... (Signature of the employee) Designation . . Full Name ANNEXURE III POINT NO.4.4.2.1 OF CIRCULAR OF DEDUCTION OF TAX AT SOURCE INCOME TAX DEDUCTION FROM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken no. is provided to the AO. The AO can view the status of Form 24G on TIN website. 2. Online upload of Form 24G at TIN websites: For online upload of Form 24G at TIN website, the Accounts Office Identification Number (AIN) is a pre-requisite. For online AIN registration, AO need to file at least one Form 24G through TIN-FC. After AIN registration, AO can file Form 24G through AO Account at TIN website. Preparation and validation of correction Form 24G is in line with regular Form 24G (submitted at TIN-FC). The validated Form 24G correction file (.fvu file) is to be uploaded at TIN website. There is no need to submit SSR in online 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 correcti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be from different offices. However, where the DDO and AO are the same, as in the case of CDDOs, the statistics report of Form 24G should be counter signed by his superior officer. 4. What is AIN and who should apply? Accounts Office Identification Number (AIN) is a unique seven digit which is allotted by the Directorate of Income Tax (Systems), Delhi, to every AO. Each AO is uniquely identified in the system by this number. AOs are required to apply for AIN with jurisdictional TDS office. The AIN application can be downloaded from TIN site. Every AIN holder is required to file Form 24G. Each DDO is identified in the system by a 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, Low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted and remitted to the Government account (A.G. / Pr.CCA). DDOs which are associated with the AO. If the AO wants to add/delete or update details of DDO, same should be mentioned in the statement. 13. What is the procedure to prepare the Form 24G statement? The AOs can prepare Form 24G either by using in-house facilities, third party software or by using Form 24G Preparation Utility developed by NSDL, which is freely downloadable from the TIN web-site ( www.tin-nsdl.com ) or ITD website ( www.incometaxindia.gov.in ). Once the statement is prepared, the AO shall validate the same by using File Validation Utility (FVU) 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? T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orks/java/jdk or you can request your computer vendor (hardware) to install the same for you. The Form 24G FVU setup comprises of two files, namely- Form 24G FVU.bat: This is a setup program for installation of FVU. Form 24G_FVU_STANDALONE.jar : This is the FVU program file. These files are in an executable zip file (Form24GFVU - exe ) (version 1.2). These files are required for installing the Form 24G FVU. Instructions for extracting and setup are given in: Form 24G FVU Extract and Setup 17. After preparation of Form No. 24G statement through RPU, three files are generated when such statement passes through FVU. Is the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Month are not allowed. There are three modes by which changes can be made in the DDO details provided in original Form 24G statement: Add: DDO records can be added to the original Form 24G statement Update : details of DDO (i.e. TAN, TAN Name, demographic and contact details, amount of tax deducted and remitted, nature of deduction) can be updated for the DDO records provided in original or subsequent correction statement Delete : DDO records provided in original Form 24G or subsequent correction statement can be deleted M-type correction statement will always contain AO details and details of DDO which are added and/or deleted. 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 Numberǁ for each form type mentioned in the accepted monthly form No. 24G. BIN consists of the following: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect reporting of BIN by the DDOs in the TDS/TCS Statement have been observed. Reporting of incorrect BINs and corresponding amount in TDS statement will lead to mismatch with the respective amount as reported in the Form No. 24G. In this situation, the corresponding deductees may not get credit of the TDS/TCS. Therefore, the BIN as disseminated by the respective PAO should be reported correctly along with the corresponding amount in the TDS/TCS Statement filed by the DDOs. (ii) In a number of cases, one distinct DDO has been found to be reported by more than one AO in the Form No. 24G for the same form type of TDS statement which is 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 st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DS statements as TAN holder by quoting the corresponding BINs. *** Person Responsible for filing Form No. 24G in case of State Govt. Departments 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 ANNEXURE VI POINT NO.4.9 OF DRAFT CIRCULAR OF DEDUCTION OF TAX AT SOURCE FROM SALARIES U/S 192 OF THE INCOME TAX ACT, 1961 FINANCIAL YEAR 2015-16- PROCEDURE OF PREPARATION OF QUARTERLY STATEMENT OF DEDUCTION OF TAX UNDER SECTION 200(3) OF THE ACT 1. Quarterly e-TDS statement/return should be prepared by Deductor/DDO as per the data structure (File Format) prescribed by the DIT (Systems), Delhi which is available on TIN website www.tin-nsdl.com . Deductor/DDO can prepare e-TDS statement/return either by using in-house facilities, third party software or by using Return Preparation Utility (RPU) developed by NSDL e-Governance Infrastructure Limited (NSDL), which is freely downloadable from the TIN website. After preparation of e-TDS sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to check the processing status promptly so as to utilize this facility. 2.1.3 Deductor/DDO can also file a correction e-TDS statement for any modification in the e-TDS statement. Correction statement can be prepared by using the TDS Consolidated file that is available at TRACES ( www.tdscpc.gov.in ). Validation of correction statement is in line with regular e-TDS statement, physical Form 27A duly signed and Statement Statistical Report at TIN-FC. On successful acceptance of correction e-TDS statement at the TIN-FC, an acknowledgement containing a unique 15 digit token no. is provided to the Deductor/DDO. Deductor/DDO can view the status of e- TDS statement on TRACES website. 3. Procedure of preparation and furnishing of paper TDS statement/return at TINFacilitation Centres (TIN-FCs): All statement/return in Form 24Q are required to be furnished in computer media except in case where the number of deductee records are equal to or less than 20. Paper statement/return duly filled and signed by the Deductor/DDO can be furnished at TIN-FC. On successful acceptance of paper statement/return at the TIN-FC, an acknowledgment containing a unique 15 digit token no. is provided to the Deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of correction e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token number is generated and displayed. There is no need to submit copy of provisional receipt of regular e-TDS statement/return, physical Form 27A and SSR in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website. 5. For FAQs and further details, Deductors/DDOs are advised to log on website www.tin- nsdl.com ******* ANNEXURE-VII MINISTRY OF FINANCE (Department of Economic Affairs) (ECB PR Division) NOTIFICATION New Delhi, the 22nd December, 2003 F.No. 5/7/2003-ECB PR- The government approved on 23rd August, 2003 the proposal to implement the budget announcement of 2003-04 relating to introducing a new restructured defined contribution pension system for new entrants to Central Government service, except to Armed Forces, in the first stage, replacing the existing system of defined benefit pension system. i. The system would be mandatory for all new recruits to the Central Government service from 1stof January 2004 (except the armed forces in the first stage) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Board of Direct Taxes) Notification New Delhi, the 24th 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. SarvottanJeevanRaksha Padak When awarded to Civilians for bravery displayed by them in life saving acts. 5. UttamJeevanRaksha Medal - do - 6. JeevanRakshaPadak - do - 7. President's Police Medal excepti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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