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 ..... ww.incometaxindia.gov.in. 2. RATES OF INCOME-TAX AS PER FINANCE (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount (assessee s total income minus one crore) then it will be restricted to the amount of total income minus Rupees one crore. 2.3. 1 Education Cess on Income tax: The amount of income-tax including the surcharge if any, shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax. 2.3.2 Secondary and Higher Education Cess on Income-tax: An additional education cess is chargeable at the rate of one percent of income-tax including the surcharge if any, but not including the education cess on income-tax as in 2.3.1. 3. SECTION 192 OF THE INCOME-TAX ACT, 1961 : BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM SALARIES : 3.1 Method of Tax Calculation: Every person who is responsible for paying any income chargeable under the head Salaries shall deduct income-tax on the estimated income of the assessee under the head Salaries for the financial year 2014-15. The income-tax is required to 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nged from one employer to another. It provides for deduction of tax at source by such employer (as the tax payer may choose) from the aggregate salary of the employee, who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head Salaries due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer . The present/chosen employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from the former or other employer). 3.4 Relief When Salary Paid in Arrear or Advance: 3.4.1 Under section 192(2A) where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university,institution, association or body is entitled to the relief under Section 89(1) he may furnish to the person responsible for making the payment referred to in Para (3.1), such particulars in Form No. 10E duly verified by him, and thereupon the person responsible, as aforesaid, shall compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty f) Amount of loan, if any; and g) Name and address of the lender (loan provider) 3.6.1 Conditions for Claim of Deduction of Interest on Borrowed Capital for Computation of Income From House Property [Section 24(b)]: Section 24(b) of the Act allows deduction from income from houses property on interest on borrowed capital as under:- (i) the deduction is allowed only in case of house property which is owned and is in the occupation of the employee for his own residence. However, if it is actually not occupied by the employee in view of his place of the employment being at other place, his residence in that other place should not be in a building belonging to him. (ii) the quantum of deduction allowed as per table below: Sl No Purpose of borrowing capital Date of borrowing capital Maximum Deduction allowable 1 Repair or renewal or reconstruction of the house Any time ₹ 30,000/- 2 Acquisition or construction of the house Before 01.04.1999 &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by or on behalf of Central Government or State Government, the DDO or any other person by whatever name called, responsible for crediting, or as the case may be, paying such sum is the -persons responsible for paying for the purpose of Section 192 . 4.2. The tax determined as per para 9 should be deducted from the salary u/s 192 of the Act . 4.3. Deduction of Tax at Lower Rate: If the jurisdictional TDS officer of the Taxpayer issues a certificate of No Deduction or Lower Deduction of Tax under section 197 of the Act , in response to the application filed before him in Form No 13 by the Taxpayer; then the DDO should take into account such certificate and deduct tax on the salary payable at the rates mentioned therein.(see Rule 28AA ). The Unique Identification Number of the certificate is required to be reported in Quarterly Statement of TDS ( Form 24Q ) 4.4. Deposit of Tax Deducted: Rule 30 prescribes time and mode of payment of tax deducted at source to the account of Central Government. 4.4.1. Due dates for payment of TDS: Prescribed time of payment/deposit of TDS to the credit of Central Government account is as under: a) In c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 M/s National Securities Depository Ltd] in respect of tax deducted by the deductors and reported to him for that month; and (b) intimate the number (hereinafter referred to as the Book Identification Number or BIN) generated by the agency to each of the deductors in respect of whom the sum deducted has been credited. BIN consists of receipt number of Form 24G , DDO sequence number in Form No. 24G and date on which tax is deposited. The procedure of furnishing Form 24G is detailed in Annexure III. PAOs/DDOs should go through the FAQs in Annexure IV to understand the correct process to be followed. The ZAO/PAO of Central Government Ministries is responsible for filing of Form No. 24G on monthly basis. The person responsible for filing Form No. 24G in case of State Govt. Departments is shown at Annexure V. The procedure of furnishing Form 24G is detailed in Annexure IV. PAOs/DDOs should go through the FAQs therein to understand the correct process to be followed. 4.4.2.2 Payment by an Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 tax payable by him under the second proviso to section 194B , he shall be punishable with rigorous imprisonment for a term which shall be between 3 months and 7 years, along with fine. 4.6 Furnishing of Certificate for Tax Deducted ( Section 203 ): 4.6.1 Section 203 requires the DDO to furnish to the employee a certificate in Form 16 detailing the amount of TDS and certain other particulars. Rule 31 prescribes that Form 16 should be furnished to the employee by 31st May after the end of the financial year in which the income was paid and tax deducted. Even the banks deducting tax at the time of payment of pension are required to issue such certificates. Revised Form 16 annexed to Notification No 11 dated 19-02-2013 is enclosed. The certificate in Form 16 shall specify (a) Valid permanent account number (PAN) of the deductee; (b) Valid tax deduction and collection account number (TAN) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the status of matching other than ‗F , kindly take necessary action promptly to rectify the same. It is pertinent to mention here that certain facilities have been provided to the deductors at website www.tdscpc.gov.in / including online correction of statements ( Form 24Q ). (b) The employer should quote the gross amount of salary (including any amount exempt under section 10 and the deductions under chapter VI A) in column 321 (Amount paid/credited) of Annexure I of Form 24Q as per NSDL RPU (hereafter Return Preparation Utility). (c) The employer should quote the amount of salary excluding any amount exempt under section 10 in column 337 (Total amount of salary) of Annexure II of Form 24Q as per NSDL RPU. (d) TDS on Income (including loss from House Property) under any Head other than the head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 certificate to the effect that tax has been paid to the Central Government and specify the amount so paid, the rate at which tax has been paid and certain other particulars in the amended Form 16. 4.6.4.3 The obligation cast on the employer under Section 192(2C) for furnishing a statement showing the value of perquisites provided to the employee is a crucial responsibility of the employer , which is expected to be discharged in accordance with law and rules of valuation framed there under. Any false information, fabricated documentation or suppress ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyee (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 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 deducted at the average rate. Education cess @ 2% and Secondary and Higher Education Cess @ 1% is not to be deducted, in case the tax is deducte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee 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 sum which shall not be less than ₹ 10,000/- but which may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is chargeable to tax under head -Income from other sources 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) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obile home, ship or other floating structure. A. For valuation of the perquisite of rent free unfurnished accommodation , all employees are 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined on the basis of lower of the following two: 1. 24% of salary paid or payable in respect of period during which the accommodation is provided; or 2. Actual charges paid or payable by the employer to such hotel, for the period during which such accommodation is provided as reduced by any rent actually paid or payable by the employee. However, nothing in C shall be taxable if following two conditions are satisfied: 1. The hotel accommodation is 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 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 900/- (plus ₹ 900/-, if chauffeur is also provided) per month if the cubic capacity of engine of the motor car exceeds 1.6 litres. (2) If the motor car or any other automotive conveyance is owned by the employee but the actual running and maintenance charges are met or reimbursed by the employer, the method of valuation of perquisite value is different and as below: a) where the motor car or any other automotive conveyance is owned by the employee but actual maintenance running expenses (including 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 moto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch benefit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity. This will not apply to the employees of any airline or the railways. VII Interest free or concessional loans [Rule 3(7)(i)] : It is common practice, particularly in financial institutions, to provide interest free or concessional loans to employees or any member of his household. The value of perquisite arising from such loans would be the excess of interest payable at prescribed interest rate over interest, if any, actually paid by the employee or any member of his household. The prescribed interest rate would 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 aggrega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided in working hours in remote area or in an offshore installation. X Membership fees and Annual Fees [Rule 3(7)(v)]: Any membership fees and annual fees incurred by the employee (or any member of his household), which is charged to a credit card (including any add-on card) provided by the employer, or otherwise, paid for 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndling devices like computer, digital diaries and printers. They do not include household appliance (i.e. white goods) like washing machines, microwave ovens, mixers, hot plates, ovens etc. Similarly, in case of cars, the value of perquisite shall be worked out by reducing 20% of its actual cost by the reducing balance method for each completed year of use. XIV Gifts [Rule 3(7)(iv)]: The value of any gift or vouchers or token in lieu of which such gift may be received, given by the employer to the employee or member of his household, is taxable as perquisite. However gift, etc less than ₹ 5,000 in aggregate per annum would be exempt. XV Medical Reimbursement by the employer exceeding ₹ 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 includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sl No Journey Performed by Exemption Limit 1 Air Air Economy fare of the national carrier (Air India) by the shortest route to the place of destination 2 Places connected by rail and journey performed by any mode other than by air. First Class Air conditioned rail fare by the shortest route to the place of destination 3 Place of origin and destination or part thereof not connected by rail. a) Where public transport system exists, first class or deluxe class fare on such transport by the shortest route to the place of destination. b) Where no public transport system exists, first class A/C rail fare, for the distance of the journey by the shortest route, as if the journey has been performed by rail o This exemption is limited to the actual expenses incurred on the journey which 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 exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence service is exempt. Gratuity received in cases other than those mentioned above, on retirement, termination etc is exempt up to the limit as prescribed by the Board. Presently the limit is ₹ 10 lakhs w.e.f. 24.05.2010 [Notification no. 43/2010 S.O. 1414(E) F.No. 200/33/2009-ITA-1 dated 11th June 2010]. 5.3.3 Any payment in commutation of pension received under the Civil Pensions (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or receivable (even if received in installments) by an employee of the following bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation , is exempt from income-tax to the extent that such amount does not exceed ₹ 5,00,000/-: a) A public sector company; b) Any other company; c) An Authority established under a Central, State or Provincial Act; d) A Local Authority; e) A Cooperative Society; f) A university established or incorporated or under a Central, State or Provincial Act, or, an Institution declared to be a University under section 3 of the University Grants Commission Act, 1956; g) Any Indian Institute of Technology within the meaning of Section 3 (g) of the Institute of Technology Act, 1961; h) Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in this behalf. The exemption of amount received under VRS has been extended to employees of the Central Government and State Government and employees of notified institutions having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding to Rule 2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following: (a) the actual amount of such allowance received by the assessee in respect of the relevant period i. e. the period during which the accommodation was occupied by the assesse during the financial year; or (b) the actual expenditure incurred in payment of rent in excess of one-tenth of the 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 allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich has been amended vide notification SO No.403(E) dt 24.4.2000 (F.No.142/34/99-TPL). The transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of ₹ 800 p. m. or ₹ 1600 p.m (for a blind person) vide notification S.O.No. 395(E) dated 13.5.98. 5.3.11 Under Section 10(15)(iv)(i) of the Act, interest payable by the Government on deposits made by an employee of the Central Government or a State Government or a public sector company out of his retirement benefits, in accordance with such scheme framed in this behalf by the Central Government and notified in the Official Gazette is exempt from income-tax. By notification No.F.2/14/89-NS-II dated 7.6.89, as amended by notification No.F.2/14/89-NS-II dated 12.10.89, the Central Government has notified a scheme called Deposit Scheme for Retiring Government Employees, 1989 for the purpose of the said clause. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. It may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from perquisites only if the employee's gross total income, as computed before including the said expenditure, does not exceed ₹ 2 lakhs. For the purpose of availing exemption on expenditure incurred on medical treatment, hospital includes a dispensary or clinic or nursing home, and family in relation to an individual means the spouse and children of the individual. Family also includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual. 5.4 DEDUCTIONS U/S 16 OF THE ACT FROM THE INCOME FROM SALARIES 5.4.1 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 allowance, benefit or other perquisite) or five thousand rupees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use or children; [The Central Government has since notified Public Provident Fund vide Notification S.O. No. 1559(E) dated 3.11.05] (c) by an employee to a Recognized Provident Fund; (d) by an employee to an approved superannuation fund ; It may be noted that contribution to any Fund shall not include any sums in repayment of loan or advance; (5) Any subscription :- (a) to any such security of the Central Government or any such deposit scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf; (b) to any such saving certificates as defined under section 2(c) of the Government Saving Certificate Act, 1959 as the Government may, by notification in the Official Gazette, specify in this behalf. [The Central Government has since notified National Saving Certificate (VIIIth Issue) vide Notification S.O. No. 1560(E) dated 3.11.05and 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), dated the 7th December, 2011, specifying the National Savings Certificates IX Issue as the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch deposit scheme of, or, any contribution made to any such pension fund set up by, the National Housing Bank , as the Central Government may, by notification in the Official Gazette, specify in this behalf; (11) Any subscription made to any such deposit scheme, as the Central Government may, by notification in the Official Gazette, specify for the purpose of being floated by (a) public sector companies engaged in providing long-term finance for construction or purchase of houses in India for residential purposes, or, (b) any authority constituted in India by, or, under any law, enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both. [The Central Government has since notified the Public Deposit Scheme of HUDCO vide Notification S.O. No.37(E), dated 11.01.2007, for the purposes of Section 80C(2)(xvi)(a)]. (12) Any sums paid by an assessee for the purpose of purchase or construction of a residential house property , the income from which is chargeable to tax under the head Income from house property (or which would, if it has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 lakh. 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 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. 5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD): Section 80CCD(1) allows an employee, being an individual employed by the Central Government or by any other employer on or after 01.01.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equity savings scheme (Section 80 CCG): Section 80CCG provides deduction w.e.f .assessment year 2013-14 in respect of investment made under notified equity saving scheme. Rajiv Gandhi Equity Savings Scheme 2012 has been notified vide SO No 2777 E dated 23.11.2012 as a scheme under this section. The scheme was modified in December 2013 vide notification SO No. 3693 dated 18.12.2013 as RGESS 2013. The deduction under this section in accordance with RGESS 2013, is available if following conditions are satisfied: (a) The assessee is a resident individual (b) His gross total income does not exceed ₹ 12 lakhs; (c) He has acquired listed shares in accordance with a notified scheme or listed units of an equity oriented fund as defined in section 10(38); (d) The assessee is a new retail investor; (e) The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme; (f) The assessee satisfies any other condition as may be prescribed. Amount of deduction -The amount of deduction is at 50% of amount invested in equity shares/units. However, the amount of deduction under this provision cannot exceed ₹ 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to above shall be in accordance with a scheme made in this behalf by- (a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalization) Act, 1972 and approved by the Central Government in this behalf; or (b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999. 5.5.6 Deductions in respect of expenditure on persons or dependants with disability 5.5.6.1 Deductions in respect of maintenance including medical treatment of a dependent who is a person with disability (section 80DD): Under section 80DD , where an employee, who is a resident in India, has, during the previous year- (a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or (b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in this regard and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s where the condition of disability is temporary and requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any subsequent period unless a new certificate is obtained from the medical authority as in 1 above and furnished before the DDO. 3. For the purposes of section 80DD and 80 U some of the terms defined are as under:- (a) -Administrator means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 200 ; (b) -dependant means- (i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them; (ii) in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year; (c) -disability shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion allowed is equal to the amount actually paid or ₹ 40,000 whichever is less. Further the amount paid should also be reduced by the amount received if any under insurance from an insurerer or reimbursed by an employer. In case of a senior citizen (an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year) the amount of deduction allowed is ₹ 60,000/-. DDO must ensure that the employee furnishes a certificate in Form 10-I from a neurologist, an oncologist, a urologist, nephrologist, a haematologist, an immunologist or such other specialist, as mentioned in Rule 11DD. For the purpose of this section in the case of an employee dependant means individual, the spouse, children, parents, brothers and sisters of the employee or any of them, dependant wholly or mainly on the employee for his support and maintenance. 5.5.8 Deduction in respect of interest on loan taken for higher education (Section 80E): Section 80E allows deduction in respect of payment of interest on loan taken from any financial institution or any approved charitable institution for higher education for the purpose of pursuing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief Fund, the Chief Minister s Relief Fund or the Lieutenant Governor s Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf - Circular No. 2/2005, dated 12-1-2005 . No deduction under this section is allowable in case of amount of donation if exceeds ₹ 10000/- unless the amount is paid by any mode other than cash. 5.5.11 Deductions is respect of rents paid (Section 80GG): Section 80GG allows the employee to a deduction in respect of house rent paid by him for his own residence . Such deduction is permissible subject to the following conditions :- (a) the employee has not been in receipt of any House Rent Allowance specifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titution, 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 company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme. furnishes the certificate u/s 35AC(2)(a) National Committee for Promotion of Social Economic Welfare 6 a rural development fund notified u/s 35CCA (1)(c) set up and notified by the Central Government 7 National Urban Poverty Eradication Fund notified u/s 35CCA (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount 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 to an employee is paid, make therefrom the deduction specified in Rule 10 of Part A of the Fourth Schedule to the Act. The accumulated balance is treated as income chargeable under the head -Salaries 7.2 Where any contribution made by an employer, including interest on such contributions, if any, in an approved Superannuation Fund is paid to the employee, tax on the amount so paid shall be deducted by the trustees of the Fund to the extent provided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 installments. Any excess or deficit arising out of any previous deduction can be adjusted by increasing or decreasing the amount of subsequent deductions during the same financial year. 10. MISCELLANEOUS: 10.1 These instructions are not exhaustive and are issued only with a view to guide the employers to understand the various provisions relating to deduction of tax from salaries. Wherever there is any doubt, reference may be made to the provisions of the Income-tax Act, 1961, the Income-tax Rules, 1962, the Finance (No. 2) Act 2014, the relevant circulars / notifications, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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, Reserve Bank of India Central Office P.B.No.406, Mumbai-400001 (25 copies for distribution to its Branches). 52. Accounts Officer, Inspector General of Assam Rifles, (Hqrs), Shillong 53. All Chambers of Commerce Industry 54. Lok Sabha /Rajya Sabha Secretariat Libraries(15 copies each) 55. All Officers and Sections in Technical Wing of CBDT 56. Asstt. Chief Inspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies 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 96. The Deputy Director (Admn.), NSSO (FOD), Mahalonobis Bhavan, 6th Floor, 164, G.L.Tagore Road, Kolkata-700108. (Sandeep Singh) Under Secretary to the Govt. of India ANNEXURE-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,900 3950 68090 34045 Total tax payable Nil 18,540 1,08,150 406850 3506635 (B) TDS under sec. 206AA in case where PAN is not furnished by the employee Nil 90,000 1,30,000 406850 3506635 Example 2 For Assessment Year 2015-16 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 4,00,000 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 depe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 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/- in view of Section 17(2)(v) 20,000 3 Income from Other Sources i) Interest Income on Savings Account ₹ 8,000 ii) Interest Income on Savings Account ₹ 15,000 23,000 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alary + Dearness Allowance + House Rent Allowance 3,50,000+2,00,000+1,40,000 = 6,90,000 6,90,000 2 Total Salary Income 6,90,000 3 Less: House Rent allowance exempt U/s 10(13A): Least of: (a). Actual amount of HRA received= 1,40,000 (b). Expenditure of rent in excess of 10% of salary (including D.A. presuming that D.A. is taken for retirement benefit) (1,44,000-55,000) = 89,000 (c). 50% of Salary(Basic+ DA) = 2,75,000 89,000 4 Gross Total Income 6,01,000 5 Less: Deduction U/s 80C (i). GPF ₹ 60,000/- (ii). LIC ₹ 4,000/- (iii). Investment in Unit-Linked Insurance Plan ₹ 50,000/- Total =Rs.1,14,000/- 1,14,000 6 Total Income 4,87,000 7 Tax payable on total income (includes Rebate of ₹ 2000 as per Section 87A) 21700 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less : Rent recovered ₹ 60000/- ₹ 45,000 4(b) Perquisite for hotel : Lower of (24% of salary of 2 months=Rs 33,600) and (actual payment= ₹ 1,00,000) ₹ 33,600 4(c) Perquisites for furniture @ 10% of cost of ₹ 2,00,000 ₹ 20,000 4(d) Perquisite for free gas, electricity, water etc. ₹ 40,000 4 Total 1,38,600 5 Gross Total Income (Rs.8,40,000+ 1,38,600) 9,78,600 6 Gross Total Income 9,78,600 7 Less: Deduction U/s 80C: (i). Provident Fund (80C) : ₹ 42,000/- (ii). LIC (80C) : ₹ 10,000/- (iii). Subscription to Unit Linked Insurance Plan(80C) : ₹ 50,000/- Total = ₹ 1,02,000/- 1,02,000 8 Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 Gross Total Taxable Income 6,22,000 Less: Deduction U/s 80C (i). Provident Fund : ₹ 60,000 (ii). LIP : ₹ 10,000 (iii). NSC VIII Issue : ₹ 30,000 (iv). Repayment of HBA : ₹ 60,000 (v). Tuition Fees (Restricted to two children) : ₹ 20,000 Total : ₹ 1,80,000 Restricted to ₹ 1,50,000 1,50,000 Total Income 4,72,000 Income Tax thereon/payable (includes Rebate of ₹ 2000 as per Section 87A) 20,200 Add: (i). Education Cess @2% (ii). Secondary and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,20,000 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 5,00,000 8,00,000 12,50,000 Less: Deduction u/s 80C 80,000 1,20,000 1,50,000 Taxable Income 4,20,000 6,80,000 11,00,000 Tax thereon (A) Nil 36,000 1,30,000 Add: (i) Education Cess @ 2%. (ii) Secondary and Higher Education Cess @1% 720 360 2600 1300 Total tax payable Nil 37,080 1,33,900 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 Credit card expenses 12 Club expenses 13 Use of movable assets by employees 14 Transfer of assets to employees 15 Value of any other benefit/amenity/service/privilege 16 Stock options (non-qualified options) 17 Other benefits or amenities 18 Total value of perquisites 19 Total value of Profits in lieu of salary as per 17(3) 9. Details of tax, - (a) Tax deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details to respective DDOs. BIN is to be quoted by the DDOs in quarterly e-TDS/TCS statements. BIN consists of receipt number of Form 24G. DDO serial number and date of transfer voucher. The AO is required to furnish Form 24G within ten days from the end of the month in respect of tax deducted by the deductors and reported to him for that month. Only one regular Form 24G for a ‗month-FY can be submitted. 1.1 Correction in Form 24G: 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) copied on a CD/pen drive is to be submitted along with the provisional receipt of original Form 24G and SSR to TIN-FC. On successful acceptance of correction Form 24G at the TIN-FC, an acknowledgement containing 15 digit Token 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 regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant PAO/CDDO/DTO who is liable for filing Form 24G? A relevant PAO/CDDO/DTO is that office to whom the Deductor/DDO (TAN holder) reports remittance of TDS/TCS through book adjustment. Generally, the Central Government DDOs report TDS through book entry to their respective Pay and Accounts Officers (PAOs) and the State Government DDOs report TDS through book entry to their respective District Treasury Officers(DTOs). Such PAOs and DTOs are required to file Form 24G on monthly basis. There are also cases of Cheque Drawing and Disbursing Officers (CDDOs) who report TDS through book entry directly to State AG. For example, PWD, Forest Department etc. Such CDDOs are also required to file Form 24G on monthly basis. Schematic Diagram at Annexure-III clarifies the person responsible for filing Form 24G in different scenarios. 3. Can the same office/officer also act as DDO and AO? Ordinarily, the PAO office is the one to whom the DDO reports the TDS and therefore, both should 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Identification Number) details, update AO profile and upload Form No. 24G. The status tracking is based on AIN and concerned Provisional Receipt Number (PRN) of Form 24G. 10. Can the AO furnish Form No. 24G in paper form? No. Form 24G is to be filed only in electronic form. 11. Can the AO submit the electronically prepared Form No.24G at the Income Tax Office ? No. Electronically prepared Form No.24G can only be submitted at TIN-FC or online . 12. What does Form 24G contain? Every Form 24G should be prepared in accordance with the data structure prescribed by the Income Tax Department (ITD). Form 24G contains- - Details of the AO filing Form 24G (AIN, name, demographic information, contact details). - Category of AO (Central / State Government) along with details of ministry / state.\ - Statement details (month and year for which Form 24G is being filed). - Payment summary; nature of deduction wise (TDS - Salary /TDS Non-salary / TDS - Non-salary Non-resident / TCS). - DDO wise payment details (TAN of DDO, name, demographic details, total tax deducted and remitted to the Government account (A.G. / Pr.CCA). - DDOs which are associated with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5;Help in the Form 24G Preparation Utility. This utility can be used for preparation of Form 24G with upto 75,000 records. Form 24G Preparation Utility (version 1.2) should be used for regular and correction statements. 16. What is File Validation Utility (FVU)? The AO should pass the Form 24G (Regular/Correction) file generated using Preparation Utility through the File Validation Utility (FVU) to ensure format level accuracy of the file. This utility is also freely downloadable from TIN website. In case the Form 24G contains any errors, the AO should rectify the same. After rectifying the errors, user should pass the rectified Form 24G through the FVU. This process should be continued till an error-free Form 24G is generated. Form 24G (regular/correction) prepared from F.Y. 2005-06 onwards can be validated using this utility. The Form 24G FVU is a Java based utility. 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 the Form 24G FVU is being installed. JRE is freely downloadable from http://java.sun.com and http://www.ibm.com/developerworks/java/jdk or you can reque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on statements allowed? There are two different types of correction statements that can be furnished by the AO. These are listed below. - M (Modify) -: For any modification in the existing Form 24G statement. - X (Cancel) -: For cancellation of an existing Form 24G statement. For preparation of correction statement, the receipt number of the original statement and receipt number of the previous statement is mandatory. In case of first correction, PRN of original statement should be provided in field Receipt number of Original Statement and also in the field -Receipt number of Previous Statement -. In case a correction statement has already been filed earlier, PRN of original statement should be provided in field Receipt number of Original Statement and PRN of last correction to be mentioned in field Receipt number of Previous Statement . 20. What is M -Type of Correction Statement? This type of correction statement is to be furnished by AO, if it wishes to update any of its details like its name, address, Responsible person details, category, Ministry, State or deletion and addition of DDO (Drawing Disbursing Officer) etc. Modifications in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PAOs have to disseminate the BINS to respective DDOs. While preparing the quarterly TDS/TCS statement, DDO has to quote the said BIN details, if tax has been paid through transfer voucher (book adjustment). BINs generated for a particular 24G are mailed to the AO on the e-mail id provided in Form 24G. In addition, AO may also download the BIN details through AO login at TIN site. 25. Under what circumstances will BIN be generated? - BIN will be generated for valid TAN-DDO records added in Form 24G correction statement. - BIN will be generated for DDO records where invalid TANs/TAN not present in Income Tax Department database is updated with a valid TAN. - New BIN will not be generated for any update made in TAN name, demographic and contact details, amount of Tax deducted and remitted or nature of deduction. - BIN details will not be generated for deleted DDO records. 26. What is the utility of BIN? The BIN details and amount of TDS reported in the quarterly TDS/TCS Statement filed by the DDO will be matched with the respective details filed in Form No.24G filed by the PAO for verification purpose. 27. Are there instances where BIN details and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported by the DDOs in TDS/TCS Statement may lead to mismatch due to which credit to the respective deductee will not be available in the deductee s Form 26AS. (c) Further details are available at TIN website www.tin-nsdl.com and ITD website www.incometaxindia.gov.in . *** 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-tutorials/FAQs available on TRACES portal. Online correction entails no charges and does away with the requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnishing 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 Correction of e-TDS statement/return online at TIN website: Deductor/DD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral 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 keeping and accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adquarters. 10 NaoSena Medal - do - 11 VayuSena Medal - do - 12 Fire Services Medal for Gallantry When awarded for acts of courage or conspicuous gallantry and supported by certificate issued to this effect by the last Head of Department. 13 President s Police Fire Services Medal for Gallantry -do- 14 President s Fire Services Medal for Gallantry -do- 15 President s Home Guards and Civil Defence Medal for Gallantry -do- 16 Home Guard and Civil Defence Medal for Gallantry -do- (F.No. 142/29/99-TPL) (T K SHAH) Director ANNEXURE IX MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES Notification No.22/2001 New Delhi,the 29th January,2001 S.O.81(E)- In exercise of the powers conferred by sub-clause (i ) of clause (18) of Section 10 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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