9911796707
TMI BlogINCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2024-25 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 ..... section 192 of the Act. Where no amendments have been made by the above referred Acts, in such cases, the above referred Circular No. 24 of 2022 shall continue to be applicable for F.Y. 2024-25. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in. Amendments made vide the Finance (No. 2) Act of 2024, Finance (No. 1) Act of 2024 and Finance Act of 2023 in respect of rates of deduction of income-tax from the payment of income under the head "Salaries" under section 192 of the Income tax Act, 1961, during the financial year 2024-25 1. The term "Salary" has been defined in section 15 of the Act. It has been further explained in section 17. As per the amendment in section 17(1) of the Act vide the Finance Act, 2023, "salary", inter alia, includes the following: ".... ix) the contribution made by the Central Government in the previous year, to the Agniveer Corpus Fund account of an individual enrolled in the Agnipath Scheme referred to in section 80CCH,..." 2. As per the amendment vide the Finance Act, 2023 in section 17(2) of the Act, "perquisite", inter alias includes the following: ".... (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-clause (iii) of sub-section (I) or sub-section (2AA) of section 35 or section 35AD or section 35CCC or under any of the provisions of Chapter VI-A other than the provisions of sub-section (2) of section 80CCD or sub-section (2) of section 80CCH or section 80JJAA. (ii) without set off of any loss, (a) carried forward or depreciation from any carlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); (b) under the head "Income from house property" with any other head of income; (iii) by claiming the depreciation, if any, under any provision of section 32, except clause (iia) of sub-section (1) of the said section, determined in such manner as may be prescribed; and (iv) without any exemption or deduction for allowances or perquisite, by whatever name called, provided under any other law for the time being in force. 5. As per the amendment made vide Finance (No. 2) Act, 2024, section 192(2B) is reproduced as under: "...(2B) Where an assessee who receives any income chargeable under the head "Salaries" has, in addition,- (i) any income chargeable under any other head of income (not being a loss under any s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Rules, in respect of the accommodation provided by any other employer, the rates prescribed for valuation of perquisites are as under: S. No. Circumstances Where accommodation is unfurnished Where accommodation is furnished (2) Where the accommodation is provided by any other employer and- (a) where the accommodation is owned by the employer, or (i) 10% of salary in cities having population exceeding 40 lakhs as per 2011 census; The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year. (ii) 7.5% of salary in cities having population exceeding 15 lakhs but not exceeding 40 lakhs as per 2011 census; (iii) 5% of salary in other areas, in respect of the period during wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of retirement shall be lower of the following amounts: * Period of earned leave standing to the credit in the employee's account at the time of retirement x average monthly salary. * Average monthly salary x 10 (i.e., 10 months' average salary). * Maximum amount as specified by the Central Government, i.e. Rs. 25,00,000. * Leave encashment actually received at the time of retirement. If an employee receives leave salary from more than one employer in the same year, then the maximum amount of exemption under section 10(10AA)(ii) of the Act cannot exceed the amount specified by the Central Government (i.e. Rs. 25,00,000). Where any employee has claimed exemption of leave salary under this section in any earlier year(s), then in case of such employee, the ceiling limit (i.e. Rs. 25,00,000) shall be reduced by the amount of exemption earlier claimed. 12. The sub-section (12C) has been inserted in section 10 of the Act vide Finance Act, 2023. Under section 10(12C) of the Act, any payment from the Agniveer Corpus Fund to a person enrolled under the Agnipath Scheme, or to his nominee shall be exempt. Section 10(12C) of the Act is reproduced as under: "(12C) any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ole of the amount so paid or deposited. (2) Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund referred to in sub-section (1), the assessee shall be allowed a deduction in the computation of his total income of the whole of the amount so contributed. Explanation. For the purposes of this section,-- (a) "Agnipath Scheme" means the scheme for enrolment in Indian Armed Forces introduced vide letter No. 1(23)2022/D(Pay/Services), dated the 29th December. 2022 of the Government of India in the Ministry of Defence: (b) "Agniveer Corpus Fund" means a fund in which consolidated contributions of all the Agniveers and matching contributions of the Central Government along with interest on both these contributions are held." 15. Amendments in Penalty and Prosecution provisions on default on account of TDS- (i) As per the Finance Act, 2023, section 271C on 'Penalty for failure to deduct tax at source' has been amended. 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 or ensure payment of, the whole or any part of tax under the proviso to sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 192 or pension or interest income of specified senior citizen under section 194P. Certificate No. Last updated on Name and address of the Employer/Specified Bank Name and address of the Employee/ Specified senior citizen PAN of the Deductor TAN of the Deductor PAN of the Employee/specified senior citizen Employee Reference No./ Pension Payment order No. provided by the Employer (If available) CIT (TDS) Address................................. ......................................... City........................................ Pin Code .................................. Assessment Year Period with the Employer From To Summary of amount paid/credited and tax deducted at source thereon in respect of the employee Quarter(s) Receipt Numbers of original quarterly statement of TDS under sub section (3) of section 200 Amount paid/credited Amount of tax deducted (Rs.) Amount of tax deposited/ remitted (Rs.) Total (Rs.) I. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er employer(s) Rs. 2. Less: Allowances to the extent exempt under section 10 (a) Travel concession or assistance under section 10(5) Rs. (b) Death-cum-retirement gratuity under section 10(10) Rs. (c) Commuted value of pension under section 10(10A) Rs. (d) Cash equivalent of leave salary encashment under section 10(10AA) Rs. (e) House rent allowance under section 10(13A) Rs. (f) Other special allowances under section 10(14) Rs. (g) Amount of any other exemption under section 10 clause ... Rs. clause ... Rs. clause ... Rs. clause ... Rs. clause ... Rs. ... Rs. (h) Total amount of any other exemption under section 10 Rs. (i) Total amount of exemption claimed under section 10 Rs. [2(a)+2(b)+2(c)+2(d)+2(e)+2(f)+2(h)] 3. Total amount of salary received from current employer [1(d)-2(i)] &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction in respect of donations to certain funds, charitable institutions, etc. under section 80G Rs. Rs. Rs. (l) Deduction in respect of interest on deposits in savings account under section 80TTA Rs. Rs. Rs. (m) Amount deductible under any other provision(s) of Chapter VI‐A section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. ... Rs. Rs. Rs. (n) Total of amount deductible under any other provision(s) of Chapter VI‐A Rs. Rs. Rs. 11. Aggregate of deductible amount under Chapter VI-A [10(d)+10(e)+10(f)+10(g)+10(h)+ 10(i)+10(j) +10(k) +10(l) +10(n)] Rs. 12. Total taxable income (9-11) Rs. 13. Tax on total income Rs. 14 Rebate under section 87A, if applicable Rs. 15. Surcharge, wherever applicable Rs. 16. Health and education cess @ 4% Rs. 17. Tax payable (13+15+16-14) Rs. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) Total deduction under section 80C, 80CCC and 80CCD (1) Rs. Rs. (e) Deductions in respect of amount paid/deposited to notified pension scheme under section 80CCD (1B) Rs. Rs. (f) Deduction in respect of health insurance premia under section 80D Rs. Rs. (g) Deduction in respect of interest on loan taken for higher education under section 80E Rs. Rs. Gross Amount Qualifying Amount Deductible Amount (h) Total Deduction in respect of donations to certain funds, charitable institutions, etc. under section 80G Rs. Rs. Rs. (i) Deduction in respect of interest on deposits in savings account under section 80TTB Rs. Rs. Rs. (j) Amount deductible under any other provision(s) of Chapter VI‐A section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. Rs. section ... Rs. Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
