INDEX

1General
2Finance Act, 2010
3Section 192 of Income-tax Act 1961
4Persons responsible for deducting tax and their duties
5Estimation of income under the head "Salaries"
6Income chargeable under the head "Salaries"
7Incomes not included in the head "Salaries" (Exemptions)
8Deductions from income from salaries u/s 16 of the Act
9Deductions under Chapter Vl-A of the Act
10Calculation of Income-tax to be deducted
11Miscellaneous
Annexures
I. Examples
II. Form No. 12BA (as amended)
III. Revised procedure for furnishing quarterly e-TDS/TCS
statement by deductors/collectors
IV. Person responcible for filling Form 24G in case
of State Govt Departments/Central Govt Departments
V. Deptt. of Eco. Affairs Notification dated 22.12.2003
12Board's Notification dated 24.11.2000
13Board's Notification dated 29.1.2001
14Form No. 10 B A
15Board Notification dated 9.7.2010 (Infrastructure Bond)
16Board Notification dated 11.06.2010 (Gratuity)
X. Board notification dated 31.05.2010 & corrigendum dated 19.7.2010
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CIRCULAR NO.: 08/2010
F.No. 275/192/2009-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 13h December, 2010
SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2010-2011 UNDER
SECTION 192 OF THE INCOME-TAX ACT, 1961.
Reference is invited to Circular No.01/2010 dated 11.01.2010 whereby the rates of deduction of income-tax from the
payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961, during the financial year
2009-2010, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of
income chargeable under the head "Salaries" during the financial year 2010-2011 and explains certain related provisions of
the Income-tax Act. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax
Departmentwww.
incometaxindia.gov.in.
2. FINANCE ACT, 2010
As per the Finance Act, 2010, income-tax is required to be deducted under Section 192 of the Income-tax Act 1961
from income chargeable under the head "Salaries" for the financial year 2010-2011 (i.e. Assessment Year 2011 -2012) at
the following rates:
RATES OF INCOME-TAX
A. Normal Rates of tax:
1. Where the total income does not exceed Rs.1,60,000/- Nil
Where the total income exceeds
Rs.1,60,000 but does not exceed
Rs.5,00,000/-
10 per cent, of the amount by which the total income exceeds
Rs. 1,60,000/-.
3. Where the total income exceeds
Rs.5,00,000/- but does not exceed
Rs.8,00,000/-
Rs.34,000/- plus 20 per cent of the amount by which the
total income exceeds Rs.5,00,000/-.
Where the total income exceeds
Rs.8,00,000/-
Rs.94,000/- plus 30 per cent of the amount
by which the total income exceeds Rs.8,00,000/-.
B. Rates of tax for a woman, resident in India and below sixty-five years of age at any time during the
financial year:
17Where the total income does not
exceed Rs. 1,90,000/-.
18Where the total income exceeds
Rs.1,90,000 but does not exceed
Rs.5,00,000/-.
19Where the total income exceeds
Rs.5,00,000/- but does not exceed
Rs.8,00,000/-.
20Where the total income exceeds
Rs.8,00,000/-.
Nil
10 per cent, of the amount by which the total
income exceeds Rs.1,90,000/-
Rs.31,000/- plus 20 per cent of the amount by which the
total income exceeds Rs.5,00,000/-.
Rs.91,000/- plus 30 per cent of the amount by which the
total income exceeds Rs.8,00,000/-.
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C. Rates of tax for an individual, resident in India and of the age of sixty-five years or more at any time
during the financial year:
21Where the total income does not Nil
exceed Rs.2,40,000/-.
22Where the total income exceeds 10 percent, of the amount by which the
Rs.2,40,000 but does not exceed total income exceeds Rs.2,40,000/-
Rs.5,00,000/-.
23Where the total income exceeds Rs.26,000/- plus 20 per cent of the amount by which
Rs.5,00,000/- but does not exceed the total income exceeds Rs.5,00,000/-. Rs.8,00,000/-.
24Where the total income exceeds Rs.86,000/- plus 30 per cent of the amount
Rs.8,00,000/-. by which the total income exceeds Rs.8,00,000/-.
Surcharge on income tax:
There will be no surcharge on income tax payments by individual taxpayers during FY 2010-11 (AY 2011-12).
Education Cess on income tax:
The amount of income-tax shall be further increased by an additional surcharge (Education Cess on Income Tax) at
the rate of two percent of the income-tax
Additional surcharge on Income Tax (Secondary and Higher Education Cess on Income-tax):
From Financial Year 2007-08 onwards, an additional surcharge is chargeable at the rate of one percent of income-tax
(not including the Education Cess on income tax).
Education Cess, and Secondary and Higher Education Cess are payable by both resident and non-resident assessees.
3. SECTION 192 OF THE INCOME-TAX ACT,1961: BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM
"SALARIES". Method of
Tax Calculation:
3.1 Every person who is responsible for paying any income chargeable under the head "Salaries" shall deduct
income-tax on the estimated income of the assessee under the head "Salaries" for the financial year 2010-2011. The
income-tax is required to be calculated on the basis of the rates given above subject to provisions of sec 206AA of the
Income-tax Act and shall be deducted at the time of each payment. No tax will, however, be required to be deducted at
source in any case unless the estimated salary income including the value of perquisites, for the financial year exceeds
Rs.1,60,000/- or Rs.1,90,000/- or Rs.2,40,000/-, as the case may be, depending upon the gender and age of the
employee.(Some typical examples of computation of tax are given at Annexure-I).
Payment of Tax on Non-monetary Perquisites by Employer:
3.2 An option has been given to the employer to pay the tax on non-monetary perquisites given to an employee. The
employer may, at his option, make payment of the tax on such perquisites himself without making any TDS from the
salary of the employee. The employer will have to pay such tax at the time when such tax was otherwise deductible i.e.
at the time of payment of income chargeable under the head "salaries" to the employee.
Computation of Average Income Tax:
3.3 For the purpose of making the payment of tax mentioned in para 3.2 above, tax is to be determined at the
average of income tax computed on the basis of rate in force for the financial year, on the income chargeable under the
head "salaries", including the value of perquisites for which tax has been paid by the employer himself.
ILLUSTRATION:
Suppose that the income chargeable under the head "salaries" of a male employee below sixty-five years of age for the
year inclusive of all perquisites is Rs.4,50,000/-, out of which, Rs.50,000/- is on account of non-monetary perquisites and
the employer opts to pay the tax on such perquisites as per the provisions discussed in para 3.2 above.
STEPS:
Income Chargeable under the head "Salaries" inclusive of all perquisites: Rs. 4,50,000
Tax on Total Salaries(including Cess): Rs. 29,870
Average Rate of Tax [(29,870/4,50,000) X 100]: 6.63%
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Tax payable on Rs.50,000/= (6.63% of 50,000): Rs. 3,315
Amount required to be deposited each month: Rs. 280(276)
(3315/12)
The tax so paid by the employer shall be deemed to be TDS made from the salary of the employee. Salary
From More Than One Employer:
3.4 Sub- section (2) of section 192 deals with situations where an individual is working under more than one employer
or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the tax
payer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one
employer. The employee is now required to furnish to the present/chosen employer details of the income under the head
"Salaries" due or received from the former/other employer and also tax deducted at source there from, in writing and duly
verified by him and by the former/other employer. The present/ chosen employer will be required to deduct tax at source
on the aggregate amount of salary (including salary received from the former or other employer).
Relief When Salary Paid in Arrear or Advance:
3.5 Under sub-section (2A)of section 192 where the assessee, being a Government servant or an employee in a
company, co-operative society, local authority, university, institution, association or body is entitled to the relief under
Sub-section (1) of Section 89, he may furnish to the person responsible for making the payment referred to in Para (3.1),
such particulars in Form No. 10E duly verified by him, and thereupon the person responsible as aforesaid shall compute
the relief on the basis of such particulars and take the same into account in making the deduction under Para(3.1) above.
Explanation :- For this purpose "University means a University established or incorporated by or under a Central,
State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act,
1956(3 of 1956), to be University for the purposes of the Act.
With effect from 1/04/2010 (AY 2010-11), no such relief shall be granted in respect of any amount received or
receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any
scheme or schemes of voluntary retirement or in the case of a public sector company referred to in subclause
(i) of clause (10C) of section 10 (read with Rule 2BA), a scheme of voluntary separation, if an exemption in
respect of any amount received or receivable on such voluntary retirement or termination of his service or
voluntary separation has been claimed by the assessee under clause (10C) of section 10 in respect of such, or
any other, assessment year.
3.6 (i) Sub-section (2B) of section 192 enables a taxpayer to furnish particulars of income under any head other than
"Salaries" and of any tax deducted at source thereon. Form no. 12C, which was earlier prescribed for furnishing such
particulars, has since been omitted from the Income Tax Rules by the IT (24th amendment) Rules, 2003, w.e.f. 01.10.2003.
However, the particulars may now be furnished in a simple statement, which is properly verified by the taxpayer in the
same manner as was required to be done in Form 12C.
(ii) Such income should not be a loss under any such head other than the loss under the head "Income from House
Property" for the same financial year. The person responsible for making payment (DDO) shall take such other income
and tax deducted at source, if any, from such income and the loss, if any, under the head "Income from House Property" into
account for the purpose of computing tax deductible under section 192 of the Income-tax Act. However, this subsection
shall not in any case have the effect of reducing the tax deductible (except where the loss under the head "Income from House
Property" has been taken into account) from income under the head "Salaries" below the amount that would be so
deductible if the other income and the tax deducted thereon had not been taken into account'. In other words, the DDO can
take into account any loss (negative income) only under the head "income from House Property" and no other
head for working out the amount of total tax to be deducted.* While taking into account the loss from House Property,
the DDO shall ensure that the assessee files the declaration referred to above and encloses therewith a computation
of such loss from House Property.
(iii) Sub-section (2C) lays down that a person responsible for paying any income chargeable under the head "salaries"
shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or
profits in lieu of salary provided to him and the value thereof in form no. 12BA (Annexure-ll). Form no. 12BA alongwith form
no. 16, as issued by the employer, are required to be produced on demand before the Assessing Officer in terms of
Section 139C of the Income Tax Act.
Conditions for Claim of Deduction of Interest on Borrowed Capital for Computation of Income From House
Property
3.7 (i) For the purpose of computing income / loss under the head 'Income from House Property' in respect of a
self-occupied residential house, a normal deduction of Rs.30,000/- is allowable in respect of interest on borrowed
capital. However, a deduction on account of interest up to a maximum limit of Rs.1,50,000/- is available if such loan has
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been taken on or after 1.4.1999 for constructing or acquiring the residential house and the construction or acquisition of
the residential unit out of such loan has been completed within three years from the end of the financial year in which
capital was borrowed. Such higher deduction is not allowable in respect of interest on capital borrowed for the purposes of
repairs or renovation of an existing residential house. To claim the higher deduction in respect of interest upto
Rs.1,50,000/-,the employee should furnish a certificate from the person to whom any interest is payable on the capital
borrowed, specifying the amount of interest payable by such employee for the purpose of construction or acquisition of the
residential house or for conversion of a part or whole of the capital borrowed, which remains to be repaid as a new loan.
3.7 (ii)The essential conditions for availing higher deduction of interest of Rs.1,50.000/- in respect of a s elf-occupied
residential house are that the amount of capital must have been borrowed on or after 01.4.1999 and the acquisition or
construction of residential house must have been completed within three years from the end of the financial year in which
capital was borrowed. There is no stipulation regarding the date of commencement of construction. Consequently, the
construction of the residential house could have commenced before 01.4.1999 but, as long as its construction/ acquisition
is completed within three years, from the end of the financial year in which capital was borrowed the higher deduction
would be available in respect of the capital borrowed after 1.4.1999. It may also be noted that there is no stipulation
regarding the construction/ acquisition of the residential unit being entirely financed by capital borrowed on or after
01.4.1999.The loan taken prior to 01.4.1999 will carry deduction of interest up to Rs.30,000/-only. However, in any case
the total amount of deduction of interest on borrowed capital will not exceed Rs.1,50,000/- in a year.
Adjustment for Excess or Shortfall of Deduction:
3.8 The provisions of sub-section (3) of Section 192 allow the deductor to make adjustments for any excess or
shortfall in the deduction of tax already made during the financial year, in subsequent deductions for that employee within
that financial year itself.
TDS on Payment of Accumulated Balance Under Recognised Provident Fund and contribution from Approved
Superannuation Fund:
3.9 The trustees of a Recognized Provident Fund, or any person authorized by the regulations of the Fund to make
payment of accumulated balances due to employees, shall, in cases where sub-rule(1) of rule 9 of Part A of the Fourth
Schedule to the Act applies, at the time when the accumulated balance due to an employee is paid, make there from the
deduction specified in rule 10 of Part A of the Fourth Schedule to the Act.
3.10 Where any contribution made by an employer, including interest on such contributions, if any, in an approved
Superannuation Fund is paid to the employee, tax on the amount so paid shall be deducted by the trustees of the Fund to
the extent provided in rule 6 of Part B of the Fourth Schedule to the Act.
Salary Paid in Foreign Currency:
3.11 For the purposes of deduction of tax on salary payable in foreign currency, the value in rupees of such salary
shall be calculated at the prescribed rate of exchange.
4. PERSONS RESPONSIBLE FOR DEDUCTING TAX AND THEIR DUTIES:
25Under clause (i) of Section 204 of the Act the "persons responsible for paying" for the purpose of Section 192
means the employer himself or if the employer is a Company, the Company itself including the Principal Officer
thereof.
26The tax determined as per para 6 should be deducted from the salary u/s 192 of the Act.
Deduction of Tax at Lower Rate:
4.3. Section 197 enables the tax-payer to make an application in form No. 13 to his Assessing Officer, and, if the
Assessing Officer is satisfied that the total income of the tax-payer justifies the deduction of income-tax at any lower rate
or no deduction of income tax, he may issue an appropriate certificate to that effect which should be taken into account by
the Drawing and Disbursing Officer while deducting tax at source. In the absence of such a certificate furnished by the
employee, the employer should deduct income tax on the salary payable at the normal rates: (Circular No. 147 dated
28.10.1974.)
Deposit of Tax Deducted:
4.4. Rule 30 of Income Tax Rules, 1962, as amended by S.O. 1261(E), Notification dated 31.05.2010, prescribes
mode of payment of tax deducted to the account of Central Government as detailed below:
4.4.1. (a) The Tax deducted at source in accordance with the provisions of Chapter XVII-B of the Income tax Act,
1961 by an office of the Government shall be paid to the credit of the Central Government?
(i) on the same day where the tax is paid without p-oduction of an income tax challan; and
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(ii) on or before seven days from the end of the month in which the deduction is made or income-tax is due
under sub?section (1A) of section 192, where tax is paid accompanied by an income-tax challan.
(b) The Tax deducted at source in accordance with the provisions of Chapter XVII-B of the Income tax Act, 1961 by
deductors other than an office of the Government shall be paid to the credit of the Central Government ?
(i) on or before 30th day of April where the income or amount is credited or paid in the month of March; and
(ii) in any other case, on or before seven days from the end of the month in which the deduction is made; or
income?tax is due under sub?section (1A) of section 192.
(c ) Notwithstanding anything contained in (b) above, in special cases, the Assessing Officer may, with the prior
approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or
section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of
the Table below by the date referred to in column (3) of the said Table:?
TABLE
SI. No. Quarter of the financial year ended on Date for quarterly payment
(1) (2) (3)
2730th June 7th July
2830th September 7th October
2931st December 7th January
3031st March 30th April
Mode of Payment of TDS
4.4.2. In the case of an office of the Government, where tax has been paid to the credit of the Central Government
without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and
Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and
who is responsible for crediting such sum to the credit of the Central Government, shall?
31submit a statement in Form No. 24G within ten days from the end of the month to the agency authorised by
the Director General of lncome?tax (Systems) in respect of tax deducted by the deductors and reported to
him for that month; and
32intimate the number (hereinafter referred to as the Book Identification Number or BIN generated by the
agency to each of the deductors in respect of whom the sum deducted has been credited. BIN consist of
receipt number of Form 24G, DDO sequence number and date on which tax is deposited.
For the purpose of the above, the Director General of lncome?tax (Systems) shall specify the procedures, formats
and standards for ensuring secure capture and transmission of data, and shall also be responsible for the day?to?day
administration in relation to furnishing the information in the manner so specified.
4.4.3 (i) Where tax has been deposited accompanied by an income?tax challan, the amount of tax so deducted or
collected shall be deposited to the credit of the Central Government by remitting it within the time specified above into any
branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank;
(ii) In case of a company and a person (other than a company), to whom provisions of section 44AB are applicable, the
amount deducted shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any
authorised bank accompanied by an electronic income tax challan.
For the purpose of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or to
the State Bank of India or to any authorised bank, if the amount is remitted by way of:
(a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or
(b) debit card.
Interest, Penalty & Prosecution for Failure to Deposit Tax Deducted:
4.5 If a person fails to deduct the whole or any part of the tax at source, or, after deducting, fails to pay the whole or
any part of the tax to the credit of the Central Government within the prescribed time, he shall be liable to action in
accordance with the provisions of section 201. Sub-section (1 A) of section 201 lays down that such person shall be liable to
pay simple interest (i) at one percent for every month or part of the month on the amount of such tax from the date on which
such tax was deductible to the date on which such tax is deducted and (ii) at one and one-half percent for every month or
part of a month on the amount of such tax from the date on which such tax was deducted to the date on which
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such tax is actually paid. Such interest, if chargeablp, has to be paid before furnishing of quarterly statement of TDS for
each quarter. Section 271C lays down that if any person fails to deduct whole or any part of tax at source or fails to pay
the whole or part of tax deducted, he shall be liable to pay, by way of penalty, a sum equal to the amount of tax not
deducted or paid by him. Further, section 276B lays down that if a person fails to pay to the credit of the Central Government
within the prescribed time the tax deducted at source by him, he shall be punishable with rigorous imprisonment for a
term which shall be between 3 months and 7 years, along with fine.
Furnishing of Certificate for Tax Deducted:
4.6.1 According to the provisions of section 203, every person responsible for deducting tax at source is required to
furnish a certificate in Form 16 to the payee to the effect that tax has been deducted and to specify therein the amount
deducted and certain other particulars. The certificates in Forms 16 specified above shall be furnished to the employee by
31st day of May of the financial year immediately following the financial year in which the income was paid and tax
deducted. Due care should be taken indicating correct CIN/ BIN in TDS certificate. Even the banks deducting tax at the
time of payment of pension are required to issue such certificates. The Form16 has been revised and TDS certificated
only determine tax payable on total income and tax deducted is to be reported in annexure 'A' and 'B' of the Form 16
(revised Form 16 annexed to Notification dated 31.05.2010 is enclosed). The certificate in Form 16 shall specify
33valid permanent account number (PAN) of the deductee;
34valid tax deduction and collection account number (TAN) of the deductor;
(c) (i) book identification number or numbers where deposit of tax deducted is without production of challan in
case of an office of the Government; (ii) challan identification number or
numbers in case of payment through bank.
(d) receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for
tax deducted at source from income chargeable under the head "Salaries". The receipt number of the quarterly
statement is of 8 digit.
It may be noted that under the new TDS procedure, the accuracy and availability of TAN, PAN and receipt
number of TDS statement filed by the deductor will be unique identifier for granting online credit for TDS. Hence
due care should be taken in filling these particulars.
It is, however, clarified that there is no obligation to issue the TDS certificate in case tax at source is not deductible/
deducted by virtue of claims of exemptions and deductions.
35If 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.
36The employer may issue a duplicate certificate in Form No. 16 if the deductee has lost the original certificate so issued
and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by
the deductor.
37(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
38the conditions prescribed in para 4.6.1 above are complied with;
39once the certificate is digitally signed, the contents of the certificates are not amenable to change; and
40the certificates have a control number and a log of such certificates is maintained by the deductor.
Explanation. For the purpose of this rule, challan identification number (CIN) means the number comprising the
Basic Statistical Returns (BSR) Code of the Bank branch where the tax has been deposited, the date on which the tax
has been deposited and challan serial number given by the bank.
4.6.5. As per section 192, the responsibility of providing correct and complete particulars of perquisites or profits in
lieu of salary given to an employee is placed on the person responsible for paying such income i.e., the person responsible
for deducting tax at source. The form and manner of such particulars are prescribed in Rule 26A, Form 12BA and Form
16 of the Income-tax Rules . Information relating to the nature and value of perquisites is to be provided by the employer
in Form no. 12BA in case of salary paid or payable is above Rs.1,60,000/-. In other cases, the information would have to
be provided by the employer in Form 16 itself. In either case, Form 16 with Form 12BAorForm 16 by itself will have to be
furnished within a period of one month from the end of relevant financial year.
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41An employer, who has paid the tax on perquisites on behalf of the employee as per the provisions discussed in paras
3.2 and 3.3 of this circular, shall furnish to the employee concerned a certificate to the effect that tax has been paid to
the Central Government and specify the amount so paid, the rate at which tax has been paid and certain other
particulars in the amended Form 16.
42The obligation cast on the employer under Section 192(2C) for furnishing a statement showing the value of
perquisites provided to the employee is a serious responsibility of the employer, which is expected to be discharged
in accordance with law and rules of valuation framed there under. Any false information, fabricated documentation
or suppression of requisite information will entail consequences thereof provided under the law. The certificates in
Forms 16 specified above shall be furnished to the employee by 31st day of May of the financial year immediately
following the financial year in which the income was paid and tax deducted. If he fails to issue these certificates to the
person concerned, as required by section 203, he will be liable to pay, by way of penalty, under section 272A, a
sum which shall be Rs.100/- for every day during which the failure continues.
Mandatory Quoting of PAN and TAN:
43According to the provisions of section 203A of the Income-tax Act, it is obligatory for all persons responsible for
deducting tax at source to obtain and quote the Tax-deduction Account No. (TAN) in the challans, TDScertificates,
statements and other documents. Detailed instructions in this regard are available in this Department's
Circular No.497 (F.No.275/118/ 87-IT(B) dated 9.10.1987). If a person fails to comply with the provisions of section
203A, he will be liable to pay, by way of penalty, under section 272BB, a sum of ten thousand rupees. Similarly, as
per Section 139A(5B), it is obligatory for persons deducting tax at source to quote PAN of the persons from whose
income tax has been deducted in the statement furnished u/s 192(2C), certificates furnished u/s 203 and all returns
prepared and delivered as per the provisions of section 200(3) of the Income Tax Act, 1961.
44All tax deductors/collectors are required to file the TDS returns in Form No.24Q (for tax deducted from salaries). As
the requirement of filing TDSATCS certificates has been done away with, the lack of PAN of deductees is creating
difficulties in giving credit for the tax deducted. Tax deductors and tax collectors are, therefore, advised to quote
correct PAN details of all deductees in the TDS returns for salaries in Form 24Q. Taxpayers liable to TDS are also
advised to furnish their correct PAN with their deductors, It may be noted that non-furnishing of PAN by the deductee
(employee) to the deductor (employer) will result in deduction of TDS at higher rates u/s 206AA of the Income-tax Act,
1961 mentioned in para 4.9 below.
4.8 Section 206AA.
4.8.1 Finance Act (No. 2) 2009, w.e.f. 01/04/2010 has inserted sec. 206AA in the Income-tax Act which makes
furnishing of PAN by the employee compulsory in case of payments liable to TDS. If employee (deductee) fails to furnish
his/her PAN to the deductor, the deductor shall make TDS at a higher of the following rates
i. at the rate specified in the relevant provision of this Act; or ii.
at the rate or rates in force; or iii. at the rate of twenty per cent.
4.8.2 The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS . This
section applies to any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter
XVII-B of Income Tax Act. As chapter XVII-B covers all Payments including Salaries, Salaries are also covered by
Section 206AA. In case of salaries there can be following situations
45Where the income of the employee computed for TDS u/s 192 is below taxable limit.
46Where the income of the employee computed for TDS u/s 192 is above taxable limit.
In first situation, as the tax is not liable to be deducted no tax will be deducted. In the second case, if PAN is not
furnished by the employee, the deductor will calculate the average rate of income-tax based on rates in force as
provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case
the average rate exceeds 20%, tax is to deducted at the average rate. Education cess@ 2% and Secondary and
Higher Education Cess @ 1 % is not to be deducted, in case the TDS is deducted at 20% u/s 206 A A of the Income-tax
Act.
Quarterly Statement of TDS:
4.9. Statement of deduction of tax under subsection (3) of section 200.
4.9.1. The person deducting the tax (employer in case'of salary income), is required to file Quarterly Statements of
TDS in Form 24Q for the periods ending on 30th June, 30th September, 31 st December and 31 st March of each financial
year, duly verified, to the Director General of Income Tax (Systems) or M/s National Securities Depository Ltd (NSDL).
These statements are required to be filed on or before the 15th July, the 15th October, the 15th January in respect of the
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first three quarters of the financial year and on or before the 15th May following the last quarter of the financial year. The
requirement of filing an annual return of TDS has been done away with w.e.f. 1.4.2006. The quarterly statement for the
last quarter filed in Form 24Q (as amended by Notification No. S.0.704(E) dated 12.5.2006) shall be treated as the
annual return of TDS.
47The statements referred above may be furnished in paper form or electronically in accordance with the
procedures, formats and standards specified by the Director General of lncome?tax (Systems) along with the
verification of the statement in Form 27A.
48It is now mandatory for all Govt, deductors or companies or other deductors who are required to get their
accounts audited under section 44AB of the Income Tax Act or where the number of deductee's records in a
statement for any quarter of the financial year are twenty or more to file, quarterly statements of TDS on
computer media only in accordance with the "Electronic Filing of Returns of Tax Deducted at Source
Scheme, 2003" as notified vide Notification No. S.O. 974 (E) dated 26.8.2003 read with Notification No. SO
1261(E) dated 31.05.2010. The quarterly statements are to be filed by such deductors in electronic format
with the e-TDS Intermediary at any of the TIN Facilitation Centres, particulars of which are available at
www.incometaxindia.qov.in and at http://tin-nsdl.com. If a person fails to furnish the quarterly statements in due
time, he shall be liable to pay by way of penalty under section 272A(2)(k), a sum which shall be Rs.100/- for every
day during which the failure continues. However, this sum shall not exceed the amount of tax which was
deductible at source.
4.9.4. At the time of preparing statements of tax deducted, the deductor is required to quote
(i) his tax deduc* in and collection account number (TAN) in the statement;
(ii) quote his permanent account number (PAN) in the statement except in the case where the deductor is an
office of the Government. In case of Government deductors "PANNOTREQD" to be quoted in the eTDS
statement.
(iii) quote the permanent account number of all deductees;
(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan
identification number, as the case may be.
4.10. A return filed on the prescribed computer readable media shall be deemed to be a return for the purposes of
section 200(3) and the Rules made there under, and shall be admissible in any proceeding there under, without further
proof of production of the original, as evidence of any contents of the original.
TDS on Income from Pension:
4.11. In the case of pensioners who receive their pension from a nationalized bank, the instructions contained in this
circular shall apply in the same manner as they apply to salary-income. The deductions from the amount of pension
under section 80C on account of contribution to Life Insurance, Provident Fund, NSC etc., if the pensioner furnishes the
relevant details to the banks, may be allowed. Necessary instructions in this regard were issued by the Reserve Bank of
India to the State Bank of India and other nationalized Banks vide RBI's Pension Circular(Central Series) No.7/C.D.R./
1992 (Ref. CO: DGBA: GA (NBS) No.60/GA.64(11 CVL)-/92) dated the 27th April, 1992, and, these instructions should be
followed by all the branches of the Banks, which have been entrusted with the task of payment of pensions. Further all
branches of the banks are bound u/s 203 to issue certificate of tax deducted in Form 16 to the pensioners also vide CBDT
circular no. 761 dated 13.1.98.
New Pension Scheme
The New Pension Scheme(NPS) has become operational since 1st Jan, 2004 and is mandatory for all new recruits to
the Central Government Services from 1st January, 2004. Since then it has been opened to employees of State
Governments, Private Sector and Self Employed (both organized and unorganized).
The income received by the NPS trust is exempt. The NPS trust is exempted from the Dividend Distribution Tax and is
also exempt from the Securities Transaction Tax on all purchases and sales of equities and derivatives. The NPS trust will
also receive income without tax deduction at source. The above amendments are retrospectively effective from 1/4/ 09
(AY 2009-10) onwards
4.12. Where Non-Residents are deputed to work in India and taxes are borne by the employer, if any refund becomes
due to the employee after he has already left India and has no bank account in India by the time the assessment orders
are passed, the refund can be issued to the employer as the tax has been borne by it: Circular No. 707 dated 11.7.1995.
4.13 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
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preceded or succeeded by service in India and forms part of the service contract of employment will also be regarded as
income earned in India.
5. COMPUTATION OF INCOME UNDER THE HEAD "SALARIES" 5.1
Income chargeable under the head "Salaries".
(1) The following income shall be chargeable to income-tax under the head "Salaries":
49any salary due from an employer or a former employer to an assessee in the previous year, whether paid or
not;
50any 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.
51any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former
employer, if not charged to income-tax for any earlier previous year.
(2) For the removal of doubts, it is clarified that where any salary paid in advance is included in the total income of
any person for any previous year it shall not be included again in the total income of the person when the salary becomes
due. Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm
from the firm shall not be regarded as "Salary".
Definition of Salary:
(3)) "Salary" includes wages, fees, commissions, perquisites, profits in lieu of, or, in addition to salary, advance of
salary, annuity or pension, gratuity, payments in respect of encashment of leave etc. It also includes the annual accretion to
the employee's account in a recognized provident fund to tne extent it is chargeable to tax under rule 6 of Part A of the Fourth
Schedule of the Income-tax Act. Contributions made by the employer to the account of the employee in a recognized provident
fund in excess of 12% of the salary of the employee, along with interest applicable, shall be included in the income of the
assessee for the previous year. Any contribution made by the Central Government or any other employer to the
account of the employee under the New Pension Scheme as notified vide Notification No. F.N. 5/ 7/2003- ECB&PR
dated 22.12.2003(enclosed as Annexure-IVA) referred to in section 80CCD (para 5.4(C) of this Circular) shall also
be included in the salary income. Other items included in salary, profits in lieu of salary and perquisites are described
in Section 17 of the Income-tax Act. It may be noted that, since salary includes pensions, tax at source would have to be
deducted from pension also, if otherwise called for. However, no tax is required to be deducted from the commuted portion
of pension which is exempt, as explained in clause (3) of para 5.2 of this Circular.
(4) Section 17 defines the terms "salary", "perquisite" and "profits in lieu of salary".
Perquisite includes:
52The value of rent free accommodation provided to the employee by his employer;
53The value of any concession in the matter of rent in respect of any accommodation provided to the employee
by his employer;
54The value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the
following cases:
) By a company to an employee who is a director of such company;
i) By a company to an employee who has a substantial interest in the company;
ii) By an employer (including a company)to an employee, who is not covered by (i) or (ii) above and whose
income under the head Salaries ( whether due from or paid or allowed by one or more employers),
exclusive of the value of all benefits and amenities not provided by way of monetary payment, exceeds
Rs.50,000/-.
55Any sum paid by the employer in respect of any obligation which would have been paid by the assessee.
56Any 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.
57With effect from 1/04/2010 (AY 2010-11) it is further clarified that the value of any specified security or
sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer,
free of cost or at concessional rate to the assessee, shall be constituted as perquisites in the hand of
employees.
Explanation.-For the purposes of this sub-clause,-
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58"specified security" means the securities as defined in clause (h) of section 2 of the Securities Contracts
(Regulation) Act, 1956 (42 of 1956) and, where employees' stock option has been granted under any
plan or scheme therefore, includes the securities offered under such plan or scheme;
59"sweat equity shares" means equity shares issued by a company to its employees or directors at a
discount or for consideration other than cash for providing know-how or making available rights in the
nature of intellectual property rights or value additions, by whatever name called;
60the value of any specified security or sweat equity shares shall be the fair market value of the specified
security or sweat equity shares, as the case may be, on the date on which the option is exercised by the
assessee as reduced by the amount actually paid by, or recovered from the assessee in respect of such
security or shares;
61"fair market value" means the value determined in accordance with the method as may be prescribed;
62"option" means a right but not an obligation granted to an employee to apply for the specified security or
sweat equity shares at a predetermined price;
VII. The amount of any contribution to an approved superannuation fund by the employer in respect of the
assessee, to the extent it exceeds one lakh rupees; and
Vlll.The value of any other fringe benefit or amenity as may be prescribed.
It is further provided that 'profits in lieu of salary' shall include amounts received in lump sum or otherwise, prior to
employment or after cessation of employment for the purposes of taxation.
The rules for valuation of perquisite are as under: -
I. Accommodation :- For purpose of valuation of the perquisite of unfurnished accommodation, all employees are
divided into two categories: (I) Central Govt. & State Govt, employees; and (ii) Others.
For employees of the Central and State governments the value of perquisite shall be equal to the licence fee charged for
such accommodation as reduced by the rent actually paid by the employee.
For all others, i.e., those salaried taxpayers not in employment of the Central government and the State government, the
valuation of perquisite in respect of accommodation would be at prescribed rates, as discussed below:
63Where the accommodation provided to the employee is owned by the employer, the rate is 15% of 'salary'
in cities having population exceeding 25 lakh as per the 2001 census. The rate is 10% of salary in cities
having population exceeding 10 lakhs but not exceeding 25 lakhs as per 2001 Census. For other places, the
perquisite value would be 71/2% of the salary.
64Where the accommodation so provided is taken on lease/ rent by the employer, the prescribed rate is 15%
of the salary or the actual amount of lease rental payable by the employer, whichever is lower, as reduced by
any amount of rent paid by the employee.
For furnished accommodation, the value of perquisite as determined by the above method shall be increased by-i)
10% of the cost of furniture, appliances and equipments, or
ii) where the furniture, appliances and equipments have been taken on hire, by the amount of actual hire
charges payable.
- as reduced by any charges paid by the employee himself.
"Accommodation" includes a house, flat, farm house, hotel accommodation, motel, service apartment, guest house, a
caravan, mobile home, ship etc. However, the value of any accommodation provided to an employee working at a
mining site or an on-shore oil exploration site or a project execution site or a dam site or a power generation site or an offshore
site will not be treated as a perquisite. However, such accommodation should either be located in a "remote area" or
where it is not located in a "remote area", the accommodation should be of a temporary nature having plinth area of not more
than 800 square feet and should not be located within 8 kilometers of the local limits of any municipality or cantonment board. A
project execution site for the purposes of this sub-rule means a site of project up to the stage of its commissioning. A "remote
area" means an area located at least 40 kilometers away from a town having a population not exceeding 20,000 as per
the latest published all-India census.
If an accommodation is provided by an employer in a hotel the value of the benefit in such a case shall be 24% of the
annual salary or the actual charges paid or payable to such hotel, whichever is lower, for the period during which such
accommodation is provided as reduced by any rent actually paid or payable by the employee. However, where in cases
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the employee is provided such accommodation for a period not exceeding in aggregate fifteen days on transfer from one
place to another, no perquisite value for such accommodation provided in a hotel shall be charged. It may be clarified that
while services provided as an integral part of the accommodation, need not be valued separately as perquisite, any other
services over and above that for which the employer makes payment or reimburses the employee shall be valued as a
perquisite as per the residual clause. In other words, composite tariff for accommodation will be valued as per these
Rules and any other charges for other facilities provided by the hotel will be separately valued under the residual clause.
Also, if on account of an employee's transfer from one place to another, the employee is provided with accommodation at the
new place of posting while retaining the accommodation at the other place, the value of perquisite shall be determined with
reference to only one such accommodation which has the lower value as per the table prescribed in Rule 3 of the Income
Tax Rules, for a period up to 90 days. However, after that the value of perquisite shall be charged for both
accommodations as prescribed.
II. Personal attendants etc.: The value of free service of all personal attendants including a sweeper, gardener
and a watchman is to be taken at actual cost to the employer. Where the attendant is provided at the residence of the
employee, full cost will be taxed as perquisite in the hands of the employee irrespective of the degree of personal service
rendered to him. Any amount paid by the employee for such facilities or services shall be reduced from the above
amount.
65Gas, electricity & water: For free supply of gas, electricity and water for household consumption, the rules
provide that the amount paid by the employer to the agency supplying the amenity shall be the value of perquisite.
Where the supply is made from the employer's own resources, the manufacturing cost per unit incurred by the
employer would be taken for the valuation of perquisite. Any amount paid by the employee for such facilities or
services shall be reduced from the above amount.
66Free or concessional education: Perquisite on account of free or concessional education shall be valued in a
manner assuming that such expenses are borne by the employee, and would cover cases where an employer is
running, maintaining or directly or indirectly financing the educational institution. Any amount paid by the employee
for such facilities or services shall be reduced from the above amount. However, where such educational institution
itself is maintained and owned by the employer or where such free educational facilities are provided in any institution
by reason of his being in employment of that employer, the value of the perquisite to the employee shall be determined
with reference to the cost of such education in a similar institution in or near the locality if the cost of such education or
such benefit per child exceeds Rs.1000/- p.m.
67Interest free or concessional loans - It is common practice, particularly in financial institutions, to provide
interest free or concessional loans to employees or any member of his household. The value of perquisite arising
from such loans would be the excess of interest payable at prescribed interest rate over interest, if any, actually paid
by the employee or any member of his household. The prescribed interest rate would now be the rate charged per
annum by the State Bank of India as on the 1st day of the relevant financial year in respect of loans of same type
and for the same purpose advanced by it to the general public. Perquisite value would be calculated on the basis of the
maximum outstanding monthly balance method. For valuing perquisites under this rule, any other method of calculation
and adjustment otherwise adopted by the employer shall not be relevant.
However, small loans up to Rs. 20,000/- in the aggregate are exempt. Loans for medical treatment specified in Rule
3A are also exempt, provided the amount of loan for medical reimbursement is not reimbursed under any medical
insurance scheme. Where any medical insurance reimbursement is received, the perquisite value at the prescribed rate
shall be charged from the date of reimbursement on the amount reimbursed, but not repaid against the outstanding loan
taken specifically for this purpose.
68Use of assets: It is common practice for an asset owned by the employer to be used by the employee or any
member of his household. This perquisite is to be charged at the rate of 10% of the original cost of the asset as
reduced by any charges recovered from the employee for such use. However, the use of Computers and Laptops
would not give rise to any perquisite.
69Transfer of assets: Often an employee or member of his household benefits from the transfer of movable asset (not
being shares or securities) at no cost or at a cost less than its market value from the employer. The difference
between the original cost of the movable asset(not being shares or securities) and the sum, if any, paid by the
employee, shall be taken as the value of perquisite. In case of a movable asset, which has already been put to use,
the original cost shall be reduced by a sum of 10% of such original cost for every completed year of use of the asset.
Owing to a higher degree of obsolescence, in case of computers and electronic gadgets, however, the value of
perquisite shall be worked out by reducing 50% of the actual cost by the reducing balance method for each
completed year of use. Electronic gadgets in this case means data storage and handling devices like computer,
digital diaries and printers. They do not include household appliance (i.e. white goods) like washing machines,
microwave ovens, mixers, hot plates, ovens etc. Similarly, in case of cars, the value of perquisite shall be worked out
by reducing 20% of its actual cost by the reducing balance method for each completed year of use.
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VIII. Medical Reimbursement by the employer exceeding Rs. 15,000/- p.a. u/s. 17(2)(v) is to be taken as
perquisites.
It is further clarified that the rule position regarding valuation of perquisites are given at Section 17(2) of
Income Tax Act, 1961 and at Rule 3 of Income Tax Rules, 1962. The deductors may look into the above provisions
carefully before they determine the perquisite value for deduction purposes.
It is pertinent to mention that benefits specifically exempt u/s 10(13A), 10(5), 10(14), 17 etc. would continue to be
exempt. These include benefits like travel on tour and transfer, leave travel, daily allowance to meet tour expenses as
prescribed, medical facilities subject to conditions.
5.2 Incomes not included in the Head "Salaries"(Exemptions)
Any income falling within any of the following clauses shall not be included in computing the income from salaries for
the purpose of Section 192 of the Act :-
(1) The value of any travel concession or assistance received by or due to an employee from his employer or former
employer for himself and his family, in connection with his proceeding (a) on leave to any place in India or (b) on
retirement from service, or, after termination of service to any place in India is exempt under clause (5) of Section 10
subject, however, to the conditions prescribed in rule 2B of the Income-tax Rules, 1962.
For the purpose of this clause, "family" in relation to an individual means :
(i) The spouse and children of the individual; and
(ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual.
It may also be noted that the amount exempt under this clause shall in no case exceed the amount of
expenses actually incurred for the purpose of such travel.
70Death-cum-retirement gratuity or any other gratuity which is exempt to the extent specified from inclusion in
computing the total income under clause (10) of Section 10. Any death-cum-retirement gratuity received under the
revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension)
Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of
posts connected with defence or of civil posts under the Union (such members or holders being persons not
governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a
State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity
received under the Pension Code or Regulations applicable to the members of the defence service. Gratuity received
in cases other than above on retirement, termination etc is exempt up to the limit as prescribed by the Board.
Presently the limit is Rs ten lakh w.e.f. 24.05.2010 in view of notification number 43/2010 S.O. 1414(E) issued under
F.N. 200/33/2009-ITA-1.
71Any payment in commutation of pension received under the Civil Pension(Commutation) Rules of the Central
Government or under any similar scheme applicable to the members of the civil services of the Union, or holders of
civil posts/posts connected with defence, under the Union,or civil posts under a State, or to the members of the All
India Services/Defence Services, or, to the employees of a local authority or a corporation established by a
Central,State or Provincial Act, is exempt under sub-clause (i) of clause (10A) of Section 10. As regards payments in
commutation of pension received under any scheme of any other employer, exemption will be governed by the
provisions of sub-clause (ii) of clause (10A) of section 10. Also, any payment in commutation of pension received from
a Regimental Fund or Non-Public Fund established by the Armed Forces of the Union referred to in Section
10(23AAB) is exempt under sub-clause (iii) of clause (10A) of Section 10.
72Any payment received by an employee of the Central Government or a State Government, as cash-equivalent of the
leave salary in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation
or otherwise, is exempt under sub-clause(i) of clause 10AA) of Section 10. In the case of other employees, this
exemption will be determined with reference to the leave to their credit at the time of retirement on superannuation,
or otherwise, subject to a maximum of ten months' leave.This exemption will be further limited to the maximum amount
specified by the Government of India Notification No.S.0.588(E) dated 31.05.2002 at Rs. 3,00,000/- in relation to
such employees who retire, whether on superannuation or otherwise, after 1.4.1998.
73Under Section 10(10B), the retrenchment compensation received by a workman is exempt from income-tax
subject to certain limits. The maximum amount of retrenchment compensation exempt is the sum calculated on the
basis provided in section 25F(b) of the Industrial Disputes Act, 1947 or any amount not less than Rs.50,000/- as the
Central Government may by notification specify in the official gazette, whichever is less. These limits shall not apply
in the case where the compensation is paid under any scheme which is approved in this behalf by the Central
Government, having regard to the need for extending special protection to the workmen in the undertaking to which
the scheme applies and other relevant circumstances. The maximum limit of such payment is Rs. 5,00,000 where
retrenchment is on or after 1.1.1997.
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(6) Under Section 10(10C), any payment received or receivable (even if received in installments) by an employee of
the following bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme
or schemes of voluntary retirement or in the case of public sector company , a scheme of voluntary separation, is
exempted from income-tax to the extent that such amount does not exceed five lakh rupees:
74A public sector company;
75Any other company;
76An Authority established under a Central, State or Provincial Act;
77A Local Authority;
78A Cooperative Society;
79A 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;
80Any Indian Institute of Technology within the meaning of Clause (g) of Section 3 of the Institute of Technology
Act, 1961;
h) Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in
this behalf.
The exemption of amount received under VRS has been extended to employees of the Central Government and
State Government and employees of notified institutions having importance throughout India or any State or States. It
may also be noted that where this exemption has been allowed to any employee for any assessment year, it shall not be
allowed to him for any other assessment year.
(7) Any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy
other than:
i) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA or,
ii) any sum received under Keyman insurance policy or,
iii) any sum received under an insurance policy issued on or after 1.4.2003 in respect of which the premium
payable for any of the years during the term of the policy exceeds 20 percent of the actual capital sum
assured. However, any sum received under such policy on the death of a person would still be exempt.
81any payment from a Provident Fund to which the Provident Funds Act, 1925 (19 of 1925), applies or from any
other provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette.
82Under Section 10(13A) of the Income-tax Act, 1961 ,any special allowance specifically granted to an assessee by his
employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential
accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having
regard to the area or place in which such accommodation is situated and other relevant considerations. According to
rule 2A of the Income-tax Rules, 1962, the quantum of exemption allowable on account of grant of special
allowance to meet expenditure on payment of rent shall be:
83The actual amount of such allowance received by an employer in respect of the relevant period; or
84The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or
85Where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the
employee for the relevant period; or
86Where such accommodation is situated in any other place, 40% of the salary due to the employee for the relevant
period, whichever is the least.
For this purpose, "Salary" includes dearness allowance, if the terms of employment so provide, but excludes all other
allowances and perquisites.
It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation
occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus,
house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax.
The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual
payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.
Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it
has been decided as an administrative measure that salaried employees drawing house rent allowance upto
Rs.3000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is
only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer
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will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred
actual expenditure on payment of rent.
(10) Clause (14) of section 10 provides for exemption of the following allowances :-
(i) Any special allowance or benefit granted to an employee to meet the expenses incurred in the performance of
his duties as prescribed under Rule 2BB subject to the extent to which such expenses are actually incurred
for that purpose.
(ii) Any allowance granted to an employee either to meet his personal expenses at the place of his posting or at the
place he ordinarily resides or to compensate him for the increased cost of living, which may be
prescribed and to the extent as may be prescribed.
However, the allowance referred to in (ii) above should not be in the nature of a personal allowance granted to the
assessee to remunerate or compensate him for performing duties of a special nature relating to his office or employment
unless such allowance is related to his place of posting or residence.
The CBDT has prescribed guidelines for the purpose of clauses (i) and (ii) of Section 10(14) vide notification
No.S0617(E) dated 7th July, 1995 (F.No.142/9/95-TPL)which has been amended vide notification SO No.403(E) dt
24.4.2000 (F.No. 142/34/99-TPL). The transport allowance granted to an employee to meet his expenditure for the purpose of
commuting between the place of his residence and the place of duty is exempt to the extent of Rs.800 per month vide
notification S.O.No. 395(E) dated 13.5.98.
87Under Section 10(15)(iv)(i) of the Income-tax Act, interest payable by the Government on deposits made by an
employee of the Central Government or a State Government or a public sector company out of his retirement benefits,
in accordance with such scheme framed in this behalf by the Central Government and notified in the Official
Gazette is exempt from income-tax. By notification No.F.2/14/89-NS-ll 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.
88Any scholarship granted to meet the cost of education is not to be included in total income as per subsection (16) of
section 10 of Income Tax Act.
89Clause (18) of Section 10 provides for exemption of any income by way of pension received by an individual who has
been in the service of the Central Government or State Government and has been awarded "Param Vir Chakra" or
"Maha Vir Chakra" or "Vir Chakra" or such other gallantry award as may be specifically notified by the Central
Government or family pension received by any member of the family of such individual. "Family" for this purpose
shall have the meaning assigned to it in Section 10(5) of the Act. Such notification has been made vide
Notifications No.S.0.1948(E) dated 24.11.2000 and 81 (E) dated 29.1.2001, which are enclosed as per Annexure
VA & VB.
90Under Section 17 of the Act, exemption from tax will also be available in respect of:-
91the value of any medical treatment provided to an employee or any member of his family, in any hospital
maintained by the employer;
92any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical
treatment or of any member of his family:
(i) in any hospital maintained by the Government or any local authority or any other hospital approved by
the Government for the purposes of medical treatment of its employees;
(ii) in respect of the prescribed diseases or ailments as provided in Rule 3A(2) of IT. Rules 1962, in any
hospital approved by the Chief Commissioner having regard to the prescribed guidelines as provided in
Rule 3(A)(1)of IT. Rule, 1962:
93premium paid by the employer in respect of medical insurance taken for his employees (under any scheme
approved by the Central Government or Insurance Regulatory and Development Authority) or reimbursement of
insurance premium to the employees who take medical insurance for themselves or for their family members
(under any scheme approved by the Central Government or Insurance Regulatory and Development Authority);
94reimbursement, by the employer, of the amount spent by an employee in obtaining medical treatment for
himself or any member of his family from any doctor, not exceeding in the aggregate Rs.15,000/- in an year.
95As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee
or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection
with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. It
may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from
perquisites only if the employee's gross total income, as computed before including the said expenditure, does
not exceed Rs.2 lakhs.
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For the purpose of availing exemption on expenditure incurred on medical treatment, "hospital" includes a dispensary or
clinic or nursing home, and "family" in relation to an individual means the spouse and children of the individual. Family also
includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual.
5.3 Deductions from income from Salaries u/s 16 of the Act
Entertainment Allowance:
A deduction is also allowed under clause (ii) of section 16 in respect of any allowance in the nature of an entertainment
allowance specifically granted by an employer to the assessee, who is in receipt of a salary from the Government, a sum
equal to one-fifth of his salary(exclusive of any allowance, benefit or other perquisite) or five thousand rupees whichever is
less. No deduction on account of entertainment allowance is available to non-government employees.
Tax On Employment:
The tax on employment (Professional Tax) within the meaning of clause (2) of Article 276 of the Constitution of India,
leviable by or under any law, shall also be allowed as a deduction in computing the income under the head "Salaries".
It may be clarified that "Standard Deduction" from gross salary income, which was being allowed up to
financial year 2004-05 is not allowable from financial year 2005-06 onwards.
5.4 Deductions under chapter Vl-A of the Act
In computing the taxable income of the employee, the following deductions under Chapter Vl-A of the Act are to be
allowed from his gross total income:
A. As per section 80C, an employee will be entitled to deductions for the whole of amounts paid or deposited in the
current financial year in the following schemes, subject to a limit of Rs.1,00,000/-:
96Payment of insurance premium to effect or to keep in force an insurance on the life of the individual, the spouse or
any child of the individual.
97Any payment made to effect or to keep in force a contract for a deferred annuity, not being an annuity plan as is
referred to in item (7) herein below on the life of the individual, the spouse or any child of the individual, provided that
such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in
lieu of the payment of the annuity;
(3) Any sum deducted from the salary payable by, or, on behalf of the Government to any individual, being a sum
deducted in accordance with the conditions of his service for the purpose of securing to him a deferred annuity or
making provision for his spouse or children, in so far as the sum deducted does not exceed 1/5th of the salary;
(4) Any contribution made :
98by an individual to any Provident Fund to which the Provident Fund Act, 1925 applies;
99to any provident fund set up by the Central Government, and notified by it in this behalf in the Official
Gazette, where such contribution is to an account standing in the name of an individual, or spouse or children;
[The Central Government has since notified Public Provident Fund vide Notification S.O. No. 1559(E) dated
3.11.05.]
100by an employee to a Recognized Provident Fund;
101by an employee to an approved superannuation fund;
It may be noted that "contribution" to any Fund shall not include any sums in repayment of loan;
(5) Any subscription :-
102to 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;
103to 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 (Vlllth Issue) vide Notification S.O. No.
1560(E) dated 3.11.05.]
(6) Any sum paid as contribution in the case of an individual, for himself, spouse or any child,
104for participation in the Unit Linked Insurance Plan, 1971 of the Unit Trust of India;
105for participation in any unit-linked insurance plan of the LIC Mutual Fund referred to in clause (23D) of
section 10 and as notified by the Central Government.
[The Central Government has since notified Unit Linked Insurance Plan (formerly known as Dhanraksha,
1989) of LIC Mutual Fund vide Notification S.O. No. 1561(E) dated 3.11.05.]
(7) Any subscription made to effect or keep in force a contract for such annuity plan of the Life Insurance Corporation
or any other insurer as the Central Government may, by notification in the Official Gazette, specify;
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[The Central Government has since notified New Jeevan Dhara, New Jeevan Dhara-I, New Jeevan Akshay, New
Jeevan Akshay-I and New Jeevan Akshay-I I vide Notification S.O. No. 1562(E) dated 3.11.05 and Jeevan Akshay-111
vide Notification S.O. No. 847(E) dated 1.6.2006 ]
(8) Any subscription made to any units of any Mutual Fund, referred to in clause(23D) of section 10, or from the
Administrator or the specified company referred to in Unit Trust of India (Transfer of Undertaking & Repeal) Act, 2002
under any plan formulated in accordance with any scheme as the Central Government, may, by notification in the Official
Gazette, specify in this behalf;
[The Central Government has since notified the Equity Linked Saving Scheme, 2005 for this purpose vide Notification
S.O. No. 1563(E) dated 3.11.2005]
The investments made after 1.4.2006 in plans formulated in accordance with Equity Linked Saving Scheme, 1992 or
Equity Linked Saving Scheme, 1998 shall also qualify for deduction under section 80C.
(9) Any contribution made by an individual to any pension fund set up by any Mutual Fund referred to in clause
(23D) of section 10, or, by the Administrator or the specified company referred to in Unit Trust of India (Transfer of
Undertaking & Repeal) Act, 2002, as the Central Government may, by notification in the Official Gazette, specify in this
behalf;
[The Central Government has since notified UTI-Retirement Benefit Pension Fund vide Notification S.O. No. 1564(E)
dated 3.11.05.]
106Any 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;
107Any 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 longterm
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)(xvf)(a)].
(12) Any sums paid by an assessee for the purpose of purchase or construction of a residential house property,
the income from which is chargeable to tax under the head "Income from house property" (or which would, if it has not
been used for assessee's own residence, have been chargeable to tax under that head) where such payments are made
towards or by way of any instalment or part payment of the amount due under any self-financing or other scheme of any
Development Authority, Housing Board etc.
The deduction will also be allowable in respect of re-payment of loans borrowed by an assessee from the Government, or
any bank or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in
the business of providing long term finance for construction or purchase of houses in India. Any repayment of loan
borrowed from the employer will also be covered, if the employer happens to be a public company, or a public sector
company, or a university established by law, or a college affiliated to such university, or a local authority, or a cooperative
society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act.
The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered.
Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or the
cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the
completion certificate by competent authority, or after the occupation of the house by the assessee or after it has been let
out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24
of the Income-tax Act will also not be included in payments towards the cost of purchase or construction of a house
property.
Where the house property in respect of which deduction has been allowed under these provisions is transferred by
the tax-payer at any time before the expiry of five years from the end of the financial year in which possession of such
property is obtained by him or he receives back, by way of refund or otherwise, any sum specified in section 80C(2)(xviii), no
deduction under these provisions shall be allowed in respect of such sums paid in such previous year in which the
transfer is made and the aggregate amount of deductions of income so allowed in the earlier years shall be added to the
total income of the assessee of such previous year and shall be liable to tax accordingly.
(13) Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other
educational institution situated in India, for the purpose of full-time education of any two children of the employee.
Full-time education includes any educational course offered by any university, college, school or other
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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 subscription to such units is subscribed only in eligible issue of capital of any company.
(16) Investment as a term deposit for a fixed period of not less than five years with a scheduled bank, which is in
accordance with a scheme framed and notified by the Central Government, in the Official Gazette for these purposes.
[The Central Government has since notified the Bank Term Deposit Scheme, 2006 for this purpose vide Notification
S.O. No. 1220(E) dated 28.7 2006]
108Subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central
Government may, by such notification in the Official Gazette, specify in this behalf.
109Any investment in an account under the Senior Citizens Savings Scheme Rules, 2004.
110Any investment as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.
It may be clarified that the amount of premium or other payment made on an insurance policy [other than a contract for
deferred annuity mentioned in sub-para (2)] shall be eligible for deduction only to the extent of 20 percent of the actual capital
sum assured. In calculating any such actual capital sum, the following shall not be taken into account: i) the value of
any premiums agreed to be returned, or
ii) any benefit by way of bonus or otherwise over and above the sum actually assured which may be received
under the policy.
B. As per section 80CCC, where an assessee being an individual has in the previous year paid or deposited any
amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance
Corporation of India or any other insurer for receiving pension from the Fund referred to in clause (23AAB) of
section 10, he shall, in accordance with, and subject to the provisions of this section, be allowed a deduction in the
computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or
credited to the assessee's account, if any) as does not exceed the amount of one lakh rupees in the previous year.
Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section, a
rebate/ deduction with reference to such amount shall not be allowed under section 88 up to assessment year 2005-06 and
under section 80C from assessment year 2006-07 onwards.
C. As per the provisions of section 80CCD, where an assessee, being an individual employed by the Central
Government on or after the 1 st day of January, 2004, has in the previous year paid or deposited any amount in his
account under a pension scheme as notified vide Notification No. F.N. 5/7/2003- ECB&PR dated 22.12.2003, he
shall be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited as
does not exceed ten per cent of his salary in the previous year.
The benefit of new pension scheme has been extended to any other employees (also self employed person)
w.r.e.f 1/04/09 and deduction is allowed to employees upto 10% of salary in the previous year and in other cases
upto 10% of his gross total income in the previous year. Further it has been specified that w.r.e.f 1/04/09 any
amount received by the assessee from the new pension scheme shall be deemed not to have received in the
previous year if such amount is used for purchasing an annuity plan in the previous year.
Where any amount standing to the- credit of the assessee in his account under such pension scheme, in respect of
which a deduction has been allowed as per the provisions discussed above, together with the amount accrued thereon, if
any, is received by the assessee or his nominee, in whole or in part, in any financial year,-
111on account of closure or his opting out of such pension scheme; or
112as pension received from the annuity plan purchased or taken on such closure or opting out,
the whole of the amount referred to in clause (a) or clause (b) above shall be deemed to be the income of the assessee or
his nominee, as the case may be, in the financial year in which such amount is received, and shall accordingly be
charged to tax as income of that financial year.
For the purposes of deduction under section 80CCD, "salary" includes dearness allowance, if the terms of employment so
provide, but excludes all other allowances and perquisites.
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The aggregate amount of deduction under sections 80C, 80CCC and 80CCD shall not exceed Rs.1,00,000/-
(Section 80CCE)
D. A new section 80CCF has been inserted by the Finance Act, 2010, wef 01.04.2011. The section 80CCF provides
for deduction available to an individual or a HUF, the whole of the amount, to the extent such amount does not exceed Rs
20,000, paid or deposited during financial year 2010-11, as subscription to long-term infrastructure bonds as notified by
the Central Govt for the purpose of this section.(Board Notification no 48/2010 dated 09.09.2010)
Deduction under this section can not exceed Rs 20,000 and are available only for current financial year
2010-11. The deduction under this section will be in addition to overall limit of deduction of upto Rs one lakh
under section 80C, 80CCC and 80CCD.
E. Section 80D provides for deduction available for health premia paid etc. In computing the total income of an
assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified below payment
of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.
Where the assessee is an individual, the sum referred to shall be the aggregate of the following, namely:-
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his
family or any contribution made to the CGHS as does not exceed in the aggregate fifteen thousand rupees;
and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the
assessee as does not exceed in the aggregate fifteen thousand rupees.
Explanation.-For the purposes of clause (a), "family" means the spouse and dependent children of the assessee.
Where the assessee is a Hindu undivided family, the sum referred to shall be the whole of the amount paid to effect or
to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the
aggregate fifteen thousand rupees.
Where the sum specified above is paid to effect or keep in force an insurance on the health of any person specified
therein, and who is a senior citizen, the deduction available is "twenty thousand rupees" rather than fifteen thousand as
specified above.
Explanation.-For the above "senior citizen" means an individual resident in India who is of the age of sixty-five
years or more at any time during the relevant previous year.
The insurance referred to above shall be in accordance with a scheme made in this behalf by-
113the General Insurance Corporation of India formed under section 9 of the General Insurance Business
(Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or
114any other insurer and approved by the Insurance Regulatory and Development Authority established under
sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]
F. Under section 80DD, where an assessee, who is a resident in India, has, during the previous year,-
115Incurred any expenditure for the medical treatment (including nursing), training and rehabilitation
of a dependant, being a person with disability; or
116paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any
other insurer or the Administrator or the specified company subject to the conditions specified in this regard
and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability,
the assessee shall be allowed a deduction of a sum of fifty thousand rupees from his gross total income of that year.
However, where such dependant is a person with severe disability, an amount of one hundred thousand rupees shall be
allowed as deduction subject to the specified conditions.
The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled:-
A.(i) the scheme referred to in clause (b) above provides for payment of annuity or lump sum amount for the
benefit of a dependant, being a person with disability, in the event of the death of the individual in whose
name subscription to the scheme has been made;
(ii) the assessee nominates either the dependant, being a person with disability, or any other person or a trust to
receive the payment on his behalf, for the benefit of the dependant, being a person with disability.
However, if the dependant, being a person with disability, predeceases the assessee, an amount equal to the amount
paid or deposited under sub-para(b) above shall be deemed to be the income of the assessee of the previous year in
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which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous
year.
B. The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical
authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment
year for which the deduction is claimed:
In cases where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid
certificate, no deduction under this section shall be allowed for any subsequent period unless a new certificate is obtained
from the medical authority in the prescribed form and manner and a'copy thereof is furnished along with the return of
income.
For the purposes of section 80DD,- ;
117"Administrator" means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India
(Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
118"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;
119"disability" shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities
(Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) and includes "autism",
"cerebral palsy" and "multiple disability" referred to in clauses (a), (c) and (h) of section 2 of the National
Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retar-dation and Multiple Disabilities Act,
1999 (44 of 1999);
120"Life Insurance Corporation" shall have the same meaning as in clause (iii) of sub-section (8) of section 88;
121"medical authority" means the medical authority as referred to in clause (p) of section 2 of the Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or such
other medical authority as may, by notification, be specified by the Central Government for certifying "autism",
"cerebral palsy", "multiple disabilities", "person with disability" and "severe disability" referred to in clauses (a),
(c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 (44 of 1999);
122"person with disability" means a person as referred to in clause (t) of section 2 of the Persons with Disabilities
(Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or clause (j) of section 2
of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
Disabilities Act, 1999 (44 of 1999);
123"person with severe disability" means-
(i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of
section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation)
Act, 1995(1 of 1996); or
(ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of
Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);
(h) "specified company" means a company as referred to in clause (h) of section 2 of the Unit Trust of India
(Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).]
G. Under Section 80E of the Act a deduction will be allowed in respect of repayment of interest on loan taken for
higher education, subject to the following conditions:
(i) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance
with and subject to the provisions of this section, any amount paid by him in the previous year, out of his
income chargeable to tax, by way of interest on loan, taken by him from any financial institution or any
approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher
education of his spouse or children.
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(ii) The deduction specified above shall be allowed in computing the total income in respect of the initial
assessment year and seven assessment years immediately succeeding the initial assessment year or until
the interest referred to above is paid in full by the assessee , whichever is earlier.
For this purpose -
124"approved charitable institution" means an institution established lor charitable purposes and approved
by the prescribed authority under clause (2C) of section 10, or, an institution referred to in clause (a) of
sub-section (2) of Section 80G.
125"financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949)
applies (including any bank or banking institution referred to in section 51 of that Act); or any other
financial institution which the Central Government may, by notification in the Official Gazette, specify in
this behalf;
126"higher education" means any course of study pursued after passing the Senior Secondary
Examination or its equivalent from any school, board or university recognised by the Central
Government or State Government or local authority or by any other authority authorised by the
Central Government or State Government or local authority to do so;
127"initial assessment year" means the assessment year relevant to the previous year, in which the assessee
starts paying the interest on the loan.
128relative", in relation to an individual, means the spouse and children of that individual or the
student for whom the individual is the legal guardian.
H. Section 80G provides for deductions on account of donation made to various funds , charitable organizations etc.
Generally no deduction should be allowed by the D.D.O. from the salary income in respect of any donations
made for charitable purposes. The tax relief on such donations as admissible under section 80G of the Act, will have to be
claimed by the tax payer in the return of income. However in cases where employees make donations to the Prime
Minister's National Relief Fund, the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund through
their respective employers, it is not possible for such funds to issue separate certificate to every such employee in
respect of donations made to such funds as contributions made to these funds are in the form of a consolidated
cheque. An employee who makes donations towards these funds is eligible to claim deduction under section
80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible
under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDOVEmployer in
this behalf - Circular No. 2/2005. dated 12-1-2005.
I. Under Section 80GG of the Act an assessee is entitled to a deduction in respect of house rent paid by him for his
own residence. Such deduction is permissible subject to the following conditions :-
129the assessee has not been in receipt of any House Rent Allowance specifically granted to him which qualifies
for exemption under section 10(13A) of the Act;
130the assessee files the declaration in Form No.10BA. (Annexure-VI).
131He will be entitled to a deduction in respect of house rent paid by him in excess of 10 per cent of his total
income, subject to a ceiling of 25 per cent thereof or Rs. 2,000/- per month, whichever is less. The total
income for working out these percentages will be computed before making any deduction under section
80GG.
132The assessee does not own:
(i) any residential accommodation himself or by his spouse or minor child or where such assessee is a
member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs
duties of his office or carries on his business or profession; or
(ii) at any other place, any residential accommodation being accommodation in the occupation of the
assessee, the value of which is to be determined under clause (a) of sub section (2) or, as the case may
be, clause (a) of sub-section (4) of section 23:
The Drawing and Disbursing Authorities should satisfy themselves that all the conditions mentioned above are
satisfied before such deduction is allowed by them to the assessee. They should also satisfy themselves in this regard by
insisting on production of evidence of actual payment of rent.
J. Under section 80U, in computing the total income of an individual, being a resident, who, at any time during the
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21
previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a
sum of fifty thousand rupees. However, where such individual is a person with severe disa-bility, a higher deduction of one
lakh rupees shall be allowable.
Every individual claiming a deduction under this section shall furnish a copy of the certificate issued by the medical
authority in the prescribed form and manner along with the return of income, in respect of the assessment year for which the
deduction is claimed.
In cases where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid
certificate, no deduction under this section shall be allowed for any subsequent period unless a new certificate is obtained
from the medical authority in the prescribed form and manner and a copy thereof is furnished along with the return of
income.
For the purposes of this section, the expressions "disability", "medical authority", "person with disability" and "person
with severe disability" shall have the same meaning as given in section 80DD (sub-para E of para 5.4 of this Circular).
DDOs to satisfy themselves of the genuineness of claim:
The Drawing and Disbursing Officers should satisfy themselves about the actual deposits/ subscriptions / payments
made by the employees, by calling for such particulars/ information as they deem necessary before allowing the aforesaid
deductions. In case the DDO is not satisfied about the genuineness of the employee's claim regarding any deposit/
subscription/payment made by the employee, he should not allow the same, and the employee would be free to claim the
deduction/ rebate on such amount by filing his return of income and furnishing the necessary proof etc., therewith, to the
satisfaction of the Assessing Officer.
6. CALCULATION OF INCOME-TAX TO BE DEDUCTED:
6.1 Salary income for the purpose of Section 192 shall be computed as follow:-
133First compute the gross salary as mentioned in para 5.1 excluding all the incomes mentioned in para 5.2;
134Allow deductions mentioned in para 5.3 from the figure arrived at (a) above and compute the amount.
135Allow deductions mentioned in para 5.4 from the figure arrived at (b) above ensuring that the relevant conditions
are satisfied. The aggregate of the deductions subject to the threshold limits mentioned in para 5.4 shall not
exceed the amount at (b) above and if it exceeds, it should be restricted to that amount.
This will be the amount of income from salaries on which income tax would be required to be deducted. This income
should be rounded off to the nearest multiple of ten rupees.
136Income-tax on such income shall be calculated at the rates given in para 2 of this Circular keeping in view the age and
gender of the employee, subject to the provisions of sec. 206AA, as discussed in para 4.9.
137The amount of tax payable so arrived at shall be increased by educational cess as applicable (2% for primary and 1 % for
secondary education) to arrive at the total tax payable.
138The amount of tax as arrived at para 6.3 should be deducted every month in equal installments. Any excess or deficit
arising out of any previous deduction can be adjusted by increasing or decreasing the amount of subsequent deductions
during the same financial year.
DDOs/PAOs who fail to comply with the provisions of Section 192 of the Income-tax Act, 1961 would be liable to pay
interest under section 201(1)/(1A) of Income Tax Act along with other penal consequences.
Hindi version will follow. I u/j
1 r (Afay
Kumar)
Director (Budget)
7. MISCELLANEOUS:
139These instructions are not exhaustive and are issued only with a view to help the employers to understand the
various provisions relating to deduction of tax from salaries. Wherever there is any doubt, reference may be made to
the provisions of the Income-tax Act, 1961, the Income-tax Rules, 1962, the Finance Act 2010 and the relevant
circulars/ notifications.
140In case any assistance is required, the Assessing Officer/the local Public Relation Officer of the Income-tax
Department may be contacted.
7.3 These instructions may be brought to the notice of all Disbursing Officers and Undertakings including those under
the control of the Central/ State Governments.
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7.4 Copies of this Circular are available with the Director of lncome-tax(Research, Statistics & Publications and
Public Relations), 6th Floor, Mayur Bhavan, Indira Chowk, New Delhi-110 001 and at the following websites:
www.finmin.nic.in
www.incometaxindia.gov.in
(AJ AY KUMAR)
Director (Budget)
Central Board of Direct Taxes
To
141All State Governments (including Administration of Union Territories)
142All Ministries/Departments of Government of India etc.
143President's Secretariat
144Vice-President's Secretariat
145Prime Minister's Office
146Lok Sabha Secretariat
147Rajya Sabha Secretariat
148Cabinet Secretariat
149Secretary, U.P.S.C, Dholpur House, New Delhi
150Secretary, Staff Selection Commission, Lodhi Complex, New Delhi
151Supreme Court of India, New Delhi
152Election Commission, New Delhi
153Planning Commission, New Delhi
154Secretariat of Govemors/Lt.Governors of all States/Union Territories
155All Integrated Financial Advisors to Ministries/Departments of Government of India
156All Heads of Departments & Offices subordinate to the Department of Revenue CBDT, CBEC etc.
157Army Headquarters, New Delhi
158Air Headquarters, New Delhi
159Naval Headquarters, New Delhi
160Director-General of Posts & Telegraphs, New Delhi(10 copies)
161Comptroller & Auditor General of India (50 copies)
162Accountant General -1, Andhra Pradesh, Hyderabad
163Accountant General-ll, Andhra Pradesh, Hyderabad
164Accountant General, Assam, Shillong
165Accountant General-I, Bihar, Ranchi
166Accountant General-ll, Bihar, Patna
167Accountant General-I, Gujarat, Ahmedabad
168Accountant General-ll, Gujarat, Rajkot
169Accountant General, Kerala, Trivandrum
170Accountant General, Madhya Pradesh, Gwalior
171Accountant General, Tamil Nadu, Chennai
172Accountant General-I, Maharashtra, Mumbai
173Accountant General-ll, Maharashtra, Nagpur
174Accountant General, Karnataka, Bangalore
175Accountant General, Orissa, Bhubneshwar
176Accountant General, Punjab, Chandigarh
177Accountant General, Himachal Pradesh, Simla
178Accountant General, Rajasthan, Jaipur
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179Accountant General-I, II & III, Uttar Pradesh, Allahabad
180Accountant General, West Bengal, Calcutta
181Accountant General, Haryana, Chandigarh
182Accountant General, Jammu & Kashmir, Srinagar
183Accountant General, Manipur, Imphal
184Accountant General, Tripura, Agartala
185Accountant General, Nagaland, Kohima
186Director of Audit(Central)Kolkatta
187Director of Audit(Central Revenue), New Delhi
188Director of Audit (Central), Mumbai
189Director of Audit, Scientific & Commercial Department, Mumbai
190All Banks (Public Sector, Nationalised including State Bank of India)
191Secretary, Reserve Bank of India Central Office P.B.No.406, Mumbai-400001(25 copies for distribution to its
Branches).
192Accounts Officer, Inspector General of Assam Rifles, (Hqrs), Shillong
193All Chambers of Commerce & Industry
194Lok Sabha /Rajya Sabha Secretariat Libraries(15 copies each)
195All Officers and Sections in Techinical Wing of CBDT
196Controller of Accounts, Department of Economic Affairs, New Delhi
197Manager, Reserve Bank of India, Public Debt Office, Ahmedabad/Bangalore/Bhubneshwar/Mumbai(Fort)/
Mumbai(Central)/Mumbai-8, Kolkatta/Hyderabad/Kanpur/Jaipur/Chennai/Nagpur/NewDelhi/Patna/Guwahati/
Trivandrum
198Asst.Chief Inspector, R.B.I. Inspection Department Regional audit Cell/Mumbai/Kolkatta/Chennai/New Delhi/
Kanpur
199Accountant General, Post & Telegraph, Simla
200Controller General of Defence Accounts, New Delhi
201Dir.of Audit, Defence Services, New Delhi
202World Health Organisation, New Delhi
203International Labour Office, India Branch, New Delhi
204Secretary, Indian Red Cross Society, India, New Delhi
205Atomic Energy Department, Mumbai
206Secretary, Development Board, Ministry of Commerce & Industry, New Delhi
207National Savings Organisation, Nagpur
208Deputy Accountant General, Post & Telegraph, Kolkatta
209The Legal Adviser, Export - Import Bank of India, Post Box No.19969, Nariman Point, Mumbai-400021
210The Deputy Finance Manager(Headquarters), Indian Airlines(H) - Airlines House, 11, Gurudwara Rakabganj
Road, New Delhi-110001
211Manager, State Bank of India, Local Head Office:-
i) Jeevan Deep Building, 1,Middleton Street, Kolkatta
ii) Circle Top House, Rajaji Salai, Chennai-600001
iii) Lucknow, Uttar Pradesh
iv) Bank Street, Hyderabad-500001
v) Hamida Road, Bhopal-462001
vi) Shop Nos. 101 to 105, Sector 17-B, Chandigarh
vii) New Amn.Building, Madam Cama Road, Mumbai-400021
viii) 9, Parliament Street, New Delhi-110001
ix) Bhedru, Ahmedabad-380001
x) Judges Court Road, Post Box No. 103, Patna-800001
xi) 59, Forest Park, Bhubneshwar and Gauhati, Assam
xii) Gauhati, Assam
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212Chief Controller of Accounts, CBDT, Lok Nayak Bhawan, Khan Market, New Delhi
213State Bank of Patiala, (Head Office), The Mall, Patiala
214State Bank of Bikaner and Jaipur, Head Office, Tilak Marg, 'C Scheme Jaipur
215State Bank of Hyderabad, Head Office, Gun Factory, Hyderabad
216State Bank of Indore, 5 Yashwant Nivas Road, Indore.
217State Bank of Mysore (Head Office), K.G.Road, Bangalore
218State Bank of Saurashtra, Behind Satyanarayan Road, Bhavnagar, Gujarat
219State Bank of Travancore, Post Box No.34, Trivandrum
220N.S.Branch, Department of Economic Affairs, New Delhi
221The Editory, 'The Income-tax Reporter' Company Law Institute of India (P) Ltd., 88, Thyagaraja Road, Thyagaraja
Nagar, Chennai-600017
222The Editor, Chartered Secretary, The Institute of Company Secretaries of India, 'ICSl House, 22, Institutional
Area, Lodhi Road, New Delhi-110003
223The Editor, "Taxation" 174, Jorbagh, New Delhi
224The Editor, "The Tax Law Review" Post Box No.152, Jallandhar-144001
225The Editor, "Taxmann" Allied Services (P)Ltd., 1871, Kucha Chelan, Khari Baoli, Delhi-110006
226The Min. of Law (Deptt. of Legal Affairs), Shastri Bhawan New Delhi.
227Food Corporation of India, 16-17, Barakhamba Lane, New Delhi-110001
228IFCI, Bank of Baroda Building, 16, Parliament Street, New Delhi
229IDBI, IDBI Tower, Cuff Parad, Mumbai-400 005
230ICICI, 163, Backbay Reclamation, Mumbai-20
231NABARD, Poonam Chambers.Dr.Annie Besant Road, P.B.No.552,Worli, Mumbai
232National Housing Bank, 3rd Floor, Bombay Life Building, 45, Veer Nariman Road, Mumbai
233IRBI, 19, Netaji Subhash Road, Kolkatta
234All Foreign Banks operating in India
235Air India, New Delhi
236University Grants Commission, Bahadur Shah Jafar Marg, New Delhi
237The Deputy Director(Admn.), NSSO (FOD), Mahalonobis Bhavan, 6th Floor, 164, G.L.Tagore Road,
Kolkata-700108.
(AJAY KUMAR)
Director (Budget)
Central Board of Direct Taxes
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ANNEXURE-I
EXAMPLE -1
For Assessment Year 2011-2012
Calculation of Income tax in the case of a male employee having gross salary income of:
i) Rs. 1,50,000/-. ii)
Rs.2,00,000/-. iii)
Rs.5,00,000/-iv)
Rs.10,00,000/- and v)
Rs.20,00,000/-
Particu,ars (Rupees)
(')
Gross Salary Income (Including allowances) 1,50,000/-
Contribution to G.P.F. 10 0QO/-
(Rupees) (Rupees) (Rupees) (Rupees)
(ii) (iii) (iv) (v)
2,00,000/- 5,00,000/- 10,00,000 20,00,000
45,000/- 50,000/- 1,00,000/- 1,00,000/-
Computation of Total Income and tax payable thereon
Particulars
Gross Salary
Less: Deduction U/s 80C
Taxable Income
(A) Tax thereon
Add
Education Cess @ 2%
(i) Education Cess @ 2%.
(ii) Secondary and Higher
Education Cess @ 1 %
Total Income tax payable
(B) TDS under sec. 206AA in case
where PAN is not furnished by
the employee
(Rupees)
(0
1,50,000
10,000
1,40,000
Nil
(Rupees)
(ii)
2,00,000
45,000
1,55,000
Nil
(Rupees)
(iii)
5,00,000
50,000
4,50,000
29,000
(Rupees)
(iv)
10,00,000
1,00,000
9,00,000
1,24,000
(Rupees)
(v)
20,00,000
1,00,000
19,00,000
4,24,000
40/- 820/- 3,420/-
Nil Nil 580 2480 8480
Nil Nil 290 1240 4240
Nil Nil 29,870 1,27,720 4,36,720
1,80,000 4,36,720
Nil Nil
90,00
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26 EXAMPLE
- 2
For Assessment Year 2011 -2012
Calculation of Income Tax in the case of a male employee assessee having a handicapped dependent (With valid
PAN furnished to employer).
Particulars:
238Gross Salary Rs.3,20,000/-
239Amount spent on treatment of a dependant, being person
with disability (but not severe disability) Rs. 7,000/-
3. Amount paid to LIC with regard to annuity for the
maintenance of a dependant, being person with
disability( but not severe disability) Rs. 50,000/-
240GPF Contribution Rs. 25,000/-
241LIP Paid Rs. 10,000/-
Computation of Tax
Gross Salary Rs 3,20,000/-
Less: Deduction U/s 80DD (Restricted to Rs.50,000/- only) Rs, 50.000/-
Taxable Income Rs.2,70,000/-
Less: Deduction u/s 80C:
GPF 25,000/-
LIP 10.000/-
Total 35,000/- Rs, 35.000/-
Total Income Rs. 2,35,000/-
Income Tax thereon/payable Rs. 7,500/-
Add: Education Cess @2%: Rs. 150/-
Secondary and Higher Education Cess @ 1 % Rs. 75/-
Total Income tax Payable Rs. 7,725/-
Roundoffto Rs. 7,730/-
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27 EXAMPLE
- 3
For Assessment Year 2011-2012
Calculation of Income Tax in the case of a male employee where medical treatment expenditure was borne by
the employer (With valid PAN furnished to employer).
Particulars:
1. Gross Salary Rs.3,00,000/-
2 Medical Reimbursement by employer on the
treatment of self and dependent family member Rs. 30,000/-
242Contribution of GPF Rs. 20,000/-
243LIC premium Rs. 20,000/-
244Repayment of House Building Advance Rs 25,000/-
245Tuition fees for two children Rs. 60,000/-
246Investment in Unit Linked Insurance Plan Rs. 20,000/-
Computation of Tax
Gross Salary Rs.3,00,000/-
Add: Perquisite in respect of reimbursement of Medical
Expenses in excess of Rs. 15,000/- in view of Sec. 17(2)(v) Rs, 15.000/-
Taxable Income Rs.3,15,000/-
Less: Deduction u/s 80C:
GPF 20,000/-
LIC 20,000/-
Repayment of HBA 25,000/-
Tuition Fees 60,000/-
Investment in Unit-Linked Insurance Plan 20,000/-
Total 1,45,000/-
Restricted to Rs. 1,00,000/- Rs. 1,00,000/-
Total Income: Rs. 2,15,000/-
Tax Payable Rs. 5,500/-
Add: Education Cess @ 2%: Rs. 110/-
Secondary and Higher Education Cess @ 1% Rs. 55/-
Total Income Tax Payable Round
off to
Rs. 5,665/-Rs.
5,670/-
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EXAMPLE - 4
For Assessment Year 2010-2011
Illustrative calculation of House Rent Allowance U/s 10 (13A)in respect of residential accommodation situated in
Delhi in case of a female employee (With valid PAN furnished to employer).
Particulars:
247Salary Rs.2,50,000/-
248Dearness Allowance Rs.1,00,000/-
249House Rent Allowance Rs. 1,40,000/-
250House rent paid Rs.1,44,000/-
251General Provident Fund Rs. 36,000/-
252Life Insurance Premium Rs 4,000/-
253Subscription to Unit-Linked
insurance Plan Rs. 50,000/-
Computation of total income and tax payable thereon
254Salary + D.A. + House Rent Allowance Rs.4,90,000/-
(2,50,000+1,00,000+1,40,000+4,90,000)
255Total Salary income Rs.4.90.000/-
256Less: House Rent allowance exempt U/s 10(13A):
Least of:
a. Actual amount of HRA received=1,40,000
b. Expenditure of rent in excess of 10% of salary (including
D.A. presuming that D.A. is taken for retirement benefit)
(1,44,000-35,000) -1,09,000
c. 50% of Salary(Basic+ DA) = Rs.1,75,000 Rs. 1.09.000/-
Gross Total Income : Rs.3,81,000/-
Less: Deduction u/s 80C:
GPF 36,000/-
LIC 4,000/-
Subscription to Unit
Linked Insurance Plan 50.000/-
Total: 90,000/-
Total Income:
Tax payable on total income
Education Cess @ 2%
Secondary and Higher Education Cess @ 1 %
Total Income Tax Payable Rounded
off to
Rs. 10,403/-Rs.
10,400/-
Rs. 90.000/-
Rs.2,91,000/-
Rs. 10,100/-
Rs. 202/-
Rs. 101/-
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EXAMPLE - 5
For Assessment Year 2011 -2012
(Illustrating valuation of perquisite and calculation of tax in the case of a male employee of a private company in
Mumbai who was provided accommodation in a flat at concessional rate for ten months and in a hotel for two months).
(With valid PAN furnished to employer).
257Salary Rs. 7,00,000/-
258Bonus Rs. 1,40,000/-
259Free gas, electricity, water etc. (Actual
bills paid by company) Rs. 40,000/-
4(b) Flat at concessional rate (for ten months) Rs. 3,60,000/-
4(b)Hotel rent paid by employer (for two months) Rs. 1,00,000/-
4(c) Rent recovered from employee Rs. 60,000/-
4(d) Cost of furniture Rs. 2,00,000/-
5. Subscription to Unit Linked
Insurance Plan Rs. 50,000/-
260Life Insurance Premium Rs. 10,000/-
261Contribution to recognised P. F Rs. 42,000/-
262Investment in long term infrastructure bonds (80CCF) Rs. 20,000/-
Computation of total income and tax paid thereon
263Salary Rs. 7,00,000/-
264Bonus Rs. 1.40. . 000 /-
Total Salary for Valuation of Perquisite
ie; Rs.70,000 per month Rs. 8,40,000/-
Valuation of perquisites
(a) Perq. for flat:
Lower of (15% of salary for ten months = Rs.1,05,000/-) and
(actual rent paid=3,60,000)
265Perq. for hotel Lower of (24% of salary of 2
mths=33,600), and (actual payment=1,00,000)
266Perq for furniture (Rs.2,00,000) @ 10% of cost
Less: Rent recovered from employee
(d) Add perq. for free gas, elec. water
Rs. 1,05,000/-
Rs. 33,600/-
Rs. 20,000/-
Rs. 1,58,600/-
Rs. 60,000/-
Rs. 98,600/-
Rs. 40,000/-
Rs. 1,38,600/-
42,000/-
10,000/-
50,000/-
20,000/-
1,22,000/-
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Total perquisites:
Gross Total Income (8,40,000+1,38,600) Rs. 9,78,600/-
Less: Deduction U/s 80C:
Provident Fund (80C) LIC
(80C)
Subscription to Unit Linked Insurance Plan
Investment in Infrastructure Bond (80CCF)
Total
Restricted to Rs. 1.00,000 u/s 80C and Rs. 20.000 u/s 80 CCF Rs.1.20.000/-
Total income Rs.8,58,600/-
Tax Payable Rs.1,11,400/-
Add : Surcharge : Nil
Education Cess @ 2% Rs 22,28/-
Secondary and Higher Education Cess @1% Rs. 11,14/-
Total Tax Payable Rs. 1,14,742/-
Rounded off to Rs. 1,14,740/-
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30 EXAMPLE
- 6
For Assessment Year 2011 -2012
Illustrating Valuation of perquisite and calculation of tax in the case of a female employee of a Private Company
posted at Delhi and repaying House Building Loan (With valid PAN furnished to employer).
Particulars:
1. Salary Rs.3,00,000/
2. Dearness Allowance Rs.1,00,000/
3. House rent allowance Rs.1,80,000/
4. Special Duties Allowance Rs. 12,000/-
5. Provident Fund Rs. 60,000/-
6. LIP Rs. 10,000/-
7. Deposit in NSC VIII issue Rs. 30,000/-
8. Rent paid by the employee for house hired by her Rs. 1,20,000/
9.
10
Repayment of House Building Loan (Principal) Tution
Fees for three children (Rs. 10,000/- per child)
Rs. 60,000/-
Rs. 30,000/-
Computation of total income and tax payable thereon
1. Gross salary
(Basic+DA+HRA+SDA)
Less: House rent allowance exempt U/s 10 (13A)
Least of:
Rs.5,92,000/-
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
including for retirement benefits (1,20,000-40,000)
c. 50% of salary (including D.A)
80,000/-
2,00,000/-
(-) 80.000/-
Gross Total Taxable Income Rs.5,12,000/
Less : Deduction U/s 88 C
i. Provident Fund 60,000/-
ii. LIP 10,000/-
iii. NSC VIII Issue 30,000/-
iv. Repayment of HBA 60,000/-
v. Tution Fees (Restricted to
two children)
20,000/-
Total 1,80,000/-
Restricted to Total Income: Tax Payable
Add:
Education Cess @ 2%
Secondary and Higher Education Cell @ 1 %
Total Tax Payable
1.00.000/-
4,12,000/-
25,200/-
504/-
252/-
Rs. 25956/-
Rounded off to Rs. 25960/-
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31
ANNEXURE-II
Form No. 12BA
[(See Rule 26A(2)(b)]
Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with
value thereof
267Name and address of employer:
268TAN
269TDS Assessment Range of the employer:
270Name, designation and PAN of employee :
271Is the employee a director or a person with :
substantial interest in the company (where the
employer is a company)
272Income under the head "Salaries" of the employee :
(other than from perquisites)
273Financial Year:
8) Valuation of Perquisites
SI.
No.
Nature of perquisite
(See Rule 3)
Value of
perquisite
as per
rules
(Rs.)
Amount, if
any recovered
from the
employee
(Rs.)
Amount of taxable
perquisite
chargeable to tax
Col(3) - Col(4)
(Rs.)
0) (2) (3) (4) (5)
1. Accommodation
2 Cars/Other automotive
3 Sweeper, gardener, watchman
or personal attendant
4 Gas, electricity, water
5 Interest free or concessional loans
6 Holiday expenses
7 Free or concessional travel
8 Free meals
9 Free Education
10 Gifts, vouchers etc.
11 Credit card expenses
12 Club expenses
13 Use of movable assets by employees
14 Transfer of assets to employees
15 Value of any other benefit/amenity/
service/privilege
16 Stock options (non-qualified options)
17 Other benefits or amenities
18 Total value of perquisites
19 Total value of Profits in lieu of
salary as per 17(3)
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9. Details of tax, -
274Tax deducted from salary of the employee u/s 192(1)
275Tax paid by employer on behalf of the employee u/s 192(1 A)
276Total tax paid
277Date of payment into Government treasury
DECLARATION BY EMPLOYER
n
s/o..................^..................................working as .
(designation) do hereby declare on behalf of............................................................................(name of the employer) that
the information given above is based on the books of account, documents and other relevant records or information
available with us and the details of value of each such perquisite are in accordance with section 17 and rules framed
thereunder and that such information is true and correct.
Signature of the person responsible for
deduction of tax
Place................................. Full Name ...
Date.................................. Designation
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ANNNEXURE-III
F.No. SWATDS/TIN/1/2010-DIT(S)-II
Directorate of Income-tax (System)
New Delhi
REVISED PROCEDURE Furnishing
of Quarterly e-TDS/TCS Statements by deductors/collectors
1.1 QUARTERLY ELECTRONIC STATEMENTS FURNISHED THROUGH TIN-FC: After preparing and validating
the quarterly e-TDS/TCS, the deductor/collector shall furnish the same at any TIN-FC managed by NSDL.
Deductor/collector shall ensure that:
278Each quarterly e-TDS/TCS statement (Form 24Q, 26Q, 27Q and 27EQ) is in a separate computer
media.
279Computer media to be used for furnishing e-TDS/TCS statements will be as defined by e-TDS
Intermediary with approval of e-filing Administrator.
280Each quarterly e-TDS/TCS statement is accompanied by a duly filled and signed (by an authorized
signatory) Form 27A in physical form.
281Each quarterly e-TDS/TCS statement is in one computer media, it should not span across multiple
computer media.
282Quarterly e-TDS/TCS statement should be compressed, if required, only by using licensed version of
Winzip8.1 orZipltFast3.0 (or higher version) compression utility to ensure quick and smooth acceptance of
the file.
283There is no overwriting/striking on Form 27A. If there is any, then the same should be ratified by an
authorized signatory.
284No bank challan or copy of TDS/TCS certificate or physical copies of certificates or no/low
deduction of TDS is required to be furnished along with the statements.
285TAN of deductor is mandatory to be mentioned in the statement. Statement shall not be accepted if
TAN is not quoted.
286TAN details (name, address, etc.,) of the deductor as provided in the quarterly e-TDS/TCS
statement should be same as in the TAN database maintained by ITD (these details can be verified with
the TIN-FC or the ITD web-site www.incometaxindia.gov.in). If they are different the deductor shall
submit a TAN change request application to update the ITD TAN database or a copy of the
acknowledgment of TAN change request already submitted.
287Each branch or Drawing and Disbursement Officer (DDO) of a deductor/collector furnishing separate
quarterly e-TDS/TCS statement should furnish the quarterly e-TDS/TCS statement quoting separate
TAN issued to each branch/DDO respectively.
288Quarterly e-TDS/TCS statement pertains to the period for which they are allowed to furnish.
289The quarterly e-TDS/TCS statement has been successfully validated through the latest version of the
FVU.
290Control totals, TAN and name mentioned in the quarterly e-TDS/TCS statement match with those
mentioned on Form 27A.
291Computer media is virus free.
Acceptance of Quarterly e-TDS/TCS Statements by e-TDS Intermediary (NSDL and TIN-FC branches)
2.1 ACCEPTANCE OF QUARTERLY E-TDS/TCS STATEMENT BY TIN-FC: After deductor/collector furnishes
the quarterly e-TDS/TCS statement to TIN-FC in the manner prescribed, TIN-FC will carry out format
level validations and other checks to validate the quarterly e-TDS/TCS statement.
2.1.1 Acceptance
2.1.1.1 In case quarterly e-TDS/TCS statement is valid TIN-FC will issue a Provisional Receipt to the
deductor/collector. The Provisional Receipt issued by TIN-FC to deductor/collector is deemed to be the
proof of quarterly e-TDS/TCS statements furnished by the deductor/collector.
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2.1.1.2 Deductor/collector will pay upload fee along with service tax (as applicable- 10.20% at present) by
demand draft or cash to the TIN-FC for every accepted quarterly e-TDSATCS statement.
Maximum charges payable per quarterly e-TDS/e-TCS statement accepted:
No. of Deductee Records in
e-TDS/TCS Statement
Upload Upload Charges inclusive
Charges of service tax
Upto 100 deductee records 101 to 1000
deductee records More than 1000
deductee records
'
27.50/-'165
7-' 550/-
'30/-'
182/-'
606/-
2.1.1.3
2.1.1.4
2.1.2
TIN-FC will return the computer media containing the e-TDS/TCS statement to the deductor/collector
TIN-FC will retain physical Form 27A along with other documents, if any, furnished by the deductor/
collector. The retained physical Form 27A along with documents, if any, shall be stored by the TIN-FC for a
period of one year from date of receipt of the statement.
NON-ACCEPTANCE: TIN-FC will not accept the quarterly e-TDS/TCS statement furnished by deductor/
collector if:
292each quarterly e-TDS/TCS statement (Form 24Q, 26Q, 27Q or27EQ) is not furnished in a separate
computer media along with duly filled and signed Form 27A in physical form;
293separate Form 27A is not furnished for each quarterly e-TDS/TCS statement;
294striking and overwriting, if any, on Form 27A are not duly ratified by the person who has signed Form
27A;
295more than one quarterly e-TDS/TCS statement is furnished in one computer media;
296more than one computer media is used for furnishing one quarterly e-TDS/TCS statement;
297quarterly e-TDS/TCS statement is compressed using a compression utility other than winzip 8.1
or ZipltFast 3.0 (or higher version) compression utility;
298quarterly e-TDS/TCS statement is not in conformity with the file formats prescribed by ITD;
299TAN stated in quarterly e-TDS/TCS statement is not present in TAN Master database and deductor/
collector does not submit any proof of TAN stated in the statement;
300deductor/collector does not have a TAN;
301name/address of deductor/collector displayed on TAN Master database does not match with name/
address stated on Form 27A and deductor/collector does not provide TAN change request;
302mismatch of control totals as per with Form 27A and as per e-file;
303the quarterly statement has not been successfully passed through the latest version of FVU;
304Quarterly e-TDS/TCS statements do not pertain to the period for which deductors/collectors are allowed
to submit their statements.
305Computer media is not virus free.
In such cases, TIN-FC shall issue a pre-printed Non - Acceptance Memo citing reasons for non acceptance to the
deductor/collector to carry out necessary corrections.
In case of non-acceptance, TIN-FC shall return the computer media as well as any other documents furnished
and physical Form 27A to the deductor/collector.
No fee will be charged for the e-TDS/e-TCS statement that is not accepted.
***************
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ANNEXURE IV
'Person Responsible for filing Form No. 24G in case of State Govt. Departments"
AG (States)
/ S / s / s
E
D
—>
PAO/DTO F
/ A /\
Sub Treasury office
L /\ / s
B
CDDO CDDO
<s
nno
Type of Reporting of Book Entry Person Responsible (AIN holder) for filing 24G.
PAO / DTO
PAO / DTO
PAO / DTO PAO
/ DTO CDDO
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
A
B
C
D
E
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'Person Responsible for filing Form No. 24G in case of Central Govt. Departments"
ZAO/PAO
DDO/CDDO
ZAO/PAO of Central Governments Ministries is responsible for filing of Form No. 24G on
monthly basis.
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ANNEXUREV
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 1s of January 2004
(except the armed forces in the first stage). The monthly contribution would be 10 percent of the salary and DA to
be paid by the employee and matched by the Central government. However, there will be no contribution form the
Government in respect of individuals who are not Government employees. The contribution and investment
returns would be deposited in a non-withdrawable pension tier-l account. The existing provisions of defined
benefit pension and GPF would not be available to the new recruits in the Central Government service.
(ii) In addition to the above pension account, each individual may also have a voluntary tier-ll withdrawable account at
his option. This option is given as GPF will be withdrawn for new recruits in Central government service.
Government will make no contribution into this account. These assets would be managed through exactly the
above procedures. However, the employee would be free to withdraw part or all of the 'second tier' of his money
anytime. This withdrawable account does not constitute pension investment, and would attract no special tax
treatment.
(iii) Individuals can normally exit at or after age 60 years for tier-l 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 IRDAregulated
life insurance company). In case of Government employees the annuity should provide for pension for
the lifetime of the employee and his dependent parents and his spouse at the time of retirment. The individual
would received a 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
(iv) It will have a central record keeping and accounting (CRA) infrastructure, several pension fund managers (PFMs) to
offer three categories of schemes viz. option A, B and C.
(v) The participating entities (PFMs and CRA) would give out easily understood information about past performance, so
that the individual would be able to make informed choices about which scheme to choose.
2. The effective date for operationalization of the new pension system shall be from 1s' of January, 2004.
U.K. SINNHA, Jt. Secy.
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MINISTRY OF FINANCE
(Department of Revenue)
(Central Board of Direct Taxes)
Notification
ANNEXURE-VI
INCOME- TAX New Delhi, the 24th November, 2000
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
SI. No. Name of gallantry award Circumstances for eligibility
(1)
306Ashok Chakra
307Kirti Chakra
308Shaurya Chakra
309Sarvottan Jeevan Raksha Padak
310Uttam Jeevan Raksha Medal
(3)
When awarded to Civilians for gallantry
-do-
-do-
When awarded to Civilians for bravery
displayed by them in life saving acts.
-do-
311Jeevan Raksha Padak
312President's Police Medal for
gallantry
313Police Medal for Gallantry
314Sena Medal
315Nao Sena Medal
316Vayu Sena Medal
317Fire Secrvices Medal
for Gallantry
318President's Police & Fire
Services Medal for Gallantry
319President's Fire Services Medal for Gallantry
-do-
When awarded for acts of exceptional
courage displayed by members of police
forces, Central police or security forces and
certified to this effect by the head of the
department concerned.
-do-
When awarded for acts of courage or
conspicious gallantry and supported by
certificate issued to this effect by relevant
service headquarters.
-do-
-do-
When awarded for acts of courage or
conspicuous gallantry and supported by
certificate issued to this effect by the last
Head of Department.
-do-
-do-
320President's Home Guards and Civil Defence
Medal for Gallantry
321Home Guard and Civil Defence Medal for
Gallantry
-do-
-do-
(Notification No. 1156/F.N0.142/29/99-TPL)
T.K. SHAH
Director
(2)
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ANNEXURE VII
MINISTRY OF FINANCE
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 29th January,2001
S.0.81 (E)- In exercise of the powers conferred by sub-clause (i) of clause (18) of Section 10 of the Income -tax Act,
1961 (43 of 1961)), the Central Government, hereby specifies the gallanty awards for the purposes of the said Section and
for that purpose makes the following amendment in the notification of the Government of India in the Ministry of
Finance, Department of Revenue (Central Board of Direct Taxes) number S.0.1048(E), dated the 24,h November
2000, namely:-
In the said notification, in the Table, against serial numbers 1,2 and 3 under cloumn (3) relating to "Circumstances for
eligibility" the words "to civilians" shall be omitted.
(Notification N0.22/F.No. 142/29/99-TPL)
T.K. SHAH
Director
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ANNEXURE-VIII
FORM NO. 10BA
(See rule 11B)
DECLARATION TO BE FILED BY THE ASSESSEE
CLAIMING DEDUCTION U/S 80 GG
I/We............................................................................................................................................................................
(Name of the assessee with permanent account number)
do hereby certify that during the previous Year.....................lAA/e had occupied the premise......................................(full
address of the premise) for the purpose of my/our own residence for a period of........................................months and
have paid Rs..................................................In cash/through crossed cheque, bank draft towards payment of rent to
Shri/Ms/M/s............................................(name and complete address of the landlord).
It is further certified that no other residential accommodation is owned by
(a) me/my spouse/my minor child/our family (in case the assessee is HUF), at.........................................................where
l/we ordinarily reside/perform duties of officer or employment or carry on business or profession, or
(a) me/us at any other place, being accommodation in my occupation, the value of which is to be determined u/s
23(2)(a)(i) of u/s 23(2)(b).
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ANNEXURE-IX
3TRcf £? ^WW
(Uie (Baxette of <3ndia
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 9th July, 2010
INCOME-TAX
S.O. 1639(E). - In exercise of the powers conferred by section 80CCF of the Income-tax Act, 1961 (43 of 1961), the
Central Government hereby specifies bonds, subject to the following conditions, as long-term infrastructure bonds for the purposes
of the said section namely :
322Name of the bond - The name of the bond shall be "Long-term Infrastructure Bond".
323Issuer of the bond - The bond shall be issued
by:-(i) Industrial Finance Corporation of India;
(ii) Life Insurance Corporation of India; (iii) Infrastructure
Development Finance Company Limited;
(iv) A Non-Banking Finance Company classified as an Infrastructure Finance Company by the Reserve Bank of
India;
(c) Limit on issuance -
(i) The bond will be issued during financial year 2010-11;
(ii) The volume of issuance during the financial year shall be restricted to twenty-five per cent of the incremental
infrastructure investments made by the issuer during the financial year 2009-10; (iii) Investment' for the
purposes of this limit includes loans, bonds, and other forms of debt, quasi-equity,
preference equity and equity.
(d) Tenure of the bond -
(i) A minimum period of ten years.
(ii) The minimum lock-in period for an investor shall be five years:
(iii) After the lock in, the investor may exit either through the secondary market or through a buyback facility,
specified by the issuer in the issue document at the time of issue; (iv) The bond shall also be allowed as
pledge or lien or hypothecation for obtaining loans from Scheduled
Commercial Banks, after the said lock-in period;
324Permanent Account Number (PAN) to be furnished - It shall be mandatory for the subscribers to furnish
there PAN to the issuer;
325Yield of the bond - The yield of the bond shall not exceed the yield on government securities of corresponding
residual maturity, as reported by the Fixed Income Money Market and Derivatives Association of India (FIMMDA), as
on the last working day of the month immediately preceding the month of the issue of the bond;
326End-use of proceeds and reporting or monitoring mechanism -
(i) The proceeds shall be utilizes towards infrastructure lending' as defined by the Reserve Bank of India in the
Guidelines : issued by it; (ii) the end-use shall be duly reported in the Annual Reports and other reports
submitted by the issuer to the
Regulatory Authority concerned, and specifically certified by the Statutory Auditor of the issuer; (iii) The
issuer shall also file these along with term sheets to the Infrastructure Division, Department of Economic
Affairs, and Ministry of Finance within three months from the end of financial year.
(TPL)] VIMAL ANAND, Under
Secy.
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ANNEXURE-X
(the (Baxette of <3ndia
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION 11th June, 2010
INCOME-TAX
S.0.1414(E). - In exercise of the powers conferred by sub-clause (iii) of clause (10) of Section 10 of the Income-Tax Act,
1961 (43 of 1961), and in supersession of Ministry of Finance, Department of Revenue, notification No. S.O. 287 dated the 20th
January, 1999 the Central Government having regard to the maximum amount of any gratuity payable to employees, hereby specifies
ten lakh rupees as the limit for the purpose of the said sub-clause in relation to the employees who retire or become in
capacitated prior to such retirement or die on or after the 24th day of May, 2010 or whose employment is terminated on or
after the said date.
[Notification No. 43/2010/F.No. 200/33/2009-ITA-1]
PADAM SINGH, Under Secy.
Note : The Principal, Notification was last amended by Notification No. S.O. 287 dated 20-1-1999.
42
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[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY,PART-II,SECTION 3,
SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification
New Delhi, the 31st May, 2010
INCOME-TAX
S.O. 1261(E).- In exercise of the powers conferred by section 295 of the Income-tax Act, 1961
(43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to
amend the Income-tax Rules, 1962, namely:-
327(1) These rules may be called the Income-tax (6th Amendment) Rules, 2010.
(2) They shall come into force on the 1st day of April, 2010.
328In the Income-tax Rules, 1962, -
(a) for rules 30, 31, 31A and 31 AA the following rules shall be substituted, namely:-
"Timeand mode of payment to Government account of tax deducted at source or tax
paid under sub-section (1A) of section 192.
30.
(1) All sums deducted in accordance with the provisions of Chapter XVII-B by an office of
the Government shall be paid to the credit of the Central Government -
329on the same day where the tax is paid without production of an income-tax
challan; and
330on or before seven days from the end of the month in which the deduction is
made or income-tax is due under sub-section (1A) of section 192, where tax is
paid accompanied by an income-tax challan.
(2) All sums deducted in accordance with the provisions of Chapter XVII-B by deductors
other than an office of the Government shall be paid to the credit of the Central
Government -
331on or before 30th day of April where the income or amount is credited or
paid in the month of March; and
332in any other case, on or before seven days from the end of the month in which-
(i) the deduction is made; or
(ii) income-tax is due under sub-section (1A) of section 192.
(3) Notwithstanding anything contained in sub-rule (2), in special cases, the Assessing
Officer may, with the prior approval of the Joint Commissioner, permit quarterly
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payment of the tax deducted under section 192 or section 194A or section 194D or
section 194H for the quarters of the financial year specified to in column (2) of the Table
below by the date referred to in column (3) of the said Table:-
Table
SI.
No.
Quarter of the Financial Year ended on Date for quarterly payment
m (21 (3)
i. 30th June 7th July
2. 30th September 7th October
3. 31st December 7th January
4. 31st March 30th April.
B.- Mode of payment
(4) In the case of an office of the Government, where tax has been paid to the credit of
the Central Government without the production of a challan, the Pay and Accounts
Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or
any other person by whatever name called to whom the deductor reports the tax so
deducted and who is responsible for crediting such sum to the credit of the Central
Government, shall-
333submit a statement in Form No. 24G within ten days from the end of the
month to the agency authorised by the Director General of Income-tax
(Systems) in respect of tax deducted by the deductors and reported to him
for that month; and
334intimate the number (hereinafter referred to as the Book Identification
Number) generated by the agency to each of the deductors in respect of
whom the sum deducted has been credited.
(5) For the purpose of sub-rule (4), the Director General of Income-tax (Systems) shall
specify the procedures, formats and standards for ensuring secure capture and
transmission of data, and shall also be responsible for the day-to-day
administration in relation to furnishing the information in the manner so specified.
(6) (i) Where tax has been deposited accompanied by an income-tax challan, the
amount of tax so deducted or collected shall be deposited to the credit of the
Central Government by remitting it within the time specified in clause (b) of
sub-rule (1) or in sub-rule (2) or in sub-rule (3) into any branch of the Reserve
Bank of India or of the State Bank of India or of any authorised bank;
(ii) Where tax is to be deposited in accordance with clause (i), by persons referred
to in sub-rule (1) of rule 125, the amount deducted shall be electronically
remitted into the Reserve Bank of India or the State Bank of India or any
authorised bank accompanied by an electronic income-tax challan.
(7) For the purpose of this rule, the amount shall be construed as electronically
remitted to the Reserve Bank of India or to the State Bank of India or to any
authorised bank, if the amount is remitted by way ofhttp://
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335internet banking facility of the Reserve Bank of India or of the State
Bank of India or of any authorised bank; or
336debit card.
(8) Where tax is deducted before the lsl day of April, 2010, the provisions of this rule
shall apply as they stood immediately before their substitution by the Income-tax (
Amendment) Rules, 2010.
Certificate of tax deducted at source to be furnished under section 203.
31. (1) The certificate of deduction of tax at source by any person in accordance with
Chapter XVII-B or the certificate of payment of tax by the employer on behalf of the
employee under sub-section (1A) of section 192 shall be in-
337Form No. 16, if the deduction or payment of tax is under section 192; and
338Form No. 16A if the deduction is under any other provision of Chapter XVII-B.
(2) The certificate referred to in sub-rule (1) shall specify:-
339valid permanent account number (PAN) of the deductee;
340valid tax deduction and collection account number (TAN) of the deductor;
341(i] book identification number or numbers where deposit of tax deducted is
without production of challan in case of an office of the Government; (ii)challan
identification number or numbers in case of payment through bank.
(d) (f) receipt number of the relevant quarterly statement of tax deducted at
source which is furnished in accordance with the provisions of rule 31 A; (ii)
receipt numbers of all the relevant quarterly statements in case the statement
referred to in clause (i) is for tax deducted at source from income chargeable
under the head "Salaries".
(3) The certificates in Forms specified in column (2) of the Table below shall be
furnished to the employee or the payee, as the case may be, as per the periodicity
specified in the corresponding entry in column (3) and by the time specified in the
corresponding entry in column (4) of the said Table:-
Table
SI. No. Form No. Periodicity Due date
m m P) (4)
i. 16 Annual By 31st day of May of the financial year
immediately following the financial year in
which the income was paid and tax deducted
2. 16A Quarterly Within fifteen days from the due date for
furnishing the statement of tax deducted at
source under rule 31A.
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— 1-i
46
342If 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.
343The deductor may issue a duplicate certificate in Form No. 16 or Form No. 16A
if the deductee has lost the original certificate so issued and makes a request for
issuance of a duplicate certificate and such duplicate certificate is certified as
duplicate by the deductor.
(6) (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-
344the provisions of sub-rule (2) are complied with;
345once the certificate is digitally signed, the contents of the
certificates are not amenable to change; and
346the certificates have a control number and a log of such certificates
is maintained by the deductor.
(7) Where a certificate is to be furnished for tax deducted before the 1st day of
April,
2010, it shall be furnished in the Form in accordance with the provisions of the
rules as they stood immediately before their substitution by the Income-tax
( Amendment) Rules, 2010.
Explanation.- For the purpose of this rule and rule 37D, challan identification
number means the number comprising the Basic Statistical Returns (BSR) Code
of the Bank branch where the tax has been deposited, the date on which the tax
has been deposited and challan serial number given by the bank.
Statement of deduction of tax under sub-section (3) of section 200.
31A. (1) Every person responsible for deduction of tax under Chapter XVII-B, shall, in
accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be
delivered, the following quarterly statements to the Director General of Income-tax
(Systems) or the person authorised by the Director General of Income-tax (Systems),
namely:-
347Statement of deduction of tax under section 192 in Form No. 24Q;
348Statement of deduction of tax under sections 193 to 196D in-
(i) Form No. 27Q in respect of the deductee who is a non-resident not
being a company or a foreign company or resident but not ordinarily
resident; and
(ii) Form No. 26Q in respect of all other deductees.
(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending
with the date specified in column (2) of the Table below shall be furnished by the
due date specified in the corresponding entry in column (3) of the said Table:-
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Table
SI. No. Date of ending of the quarter of the
financial year
Due date
(1) (2) (3)
1. 30th June 15th July of the financial year
2. 30th September 15th October of the financial year
3. 31st December 15th January of the financial year
4. 31st March 15th May of the financial year immediately
following the financial year in which
deduction is made
(3) (i) The statements referred to in sub-rule (1) may be furnished in any of the following
manners, namely:-
349furnishing the statement in paper form;
350furnishing the statement electronically in accordance with the procedures,
formats and standards specified under sub-rule (5) alongwith the verification of the
statement in Form 27A.
(ii) Where,-
351the deductor is an office of the Government; or
352the deductor is the principal officer of a company; or
353the deductor is a person who is required to get his accounts audited under
section 44AB in the immediately preceding financial year; or
(d) the number of deductee's records in a statement for any quarter of the
financial year are twenty or more,
the deductor shall furnish the statement in the manner specified in item (b) of clause
(i).
(iii) Where deductor is a person other than the person referred to in clause (ii), the
statements referred to in sub-rule (1) may, at his option, be delivered or cause to
be delivered in the manner specified in item (b) of clause (i).
(4) The deductor at the time of preparing statements of tax deducted shall,-
(i) quote his tax deduction and collection account number (TAN) in the statement;
(ii) quote his permanent account number (PAN) in the statement except in the
case where the deductor is an office of the Government; (iii) quote the permanent
account number of all deductees; (iv) furnish particulars of the tax paid to the
Central Government including book identification number or challan identification
number, as the case may be.
(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and
standards for the purposes of furnishing of the statements and shall be
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48
responsible for the day to day administration in relation to furnishing of the
statements in the manner so specified.
(6) Where a statement of tax deducted at source is to be furnished for tax deducted
before the 1st day of April, 2010, the provisions of this rule and rule 37A shall apply
as they stood immediately before their substitution or omission by the Income-tax
( Amendment) Rules, 2010.
Statement of collection of tax under proviso to sub-section (3) of section 206C.
31AA. (1) Every collector, shall, in accordance with the provisions of the proviso to subsection
(3) of section 206C, deliver, or cause to be delivered, to the Director General of
Income-tax (Systems) or the person authorised by the Director General of Income-tax
(Systems), a quarterly statement in Form No. 27EQ.
(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the
date specified in column (2) of the Table below shall be furnished by the due date specified
in the corresponding entry in column (3) of the said Table:-
SI. No. Quarter of the financial year ended Due date
(1) (2) (3)
1. 30th June 15th July of the financial year
2. 30th September 15th October of the financial year
3. 31st December 15th January of the financial year
4. 31st March 15th May of the financial year immediately
following the financial year in which
collection is made
(3) (i) The statement referred to in sub-rule (1) may be furnished in any of the
following manners, namely:-
354furnishing the statement in paper form;
355furnishing the statement electronically in accordance with the
procedures, formats and standards specified under sub-rule (5)
alongwith the verification of the statement in Form 27A.
(ii) Where,-
356the collector is an office of the Government; or
357the collector is the principal officer of a company; or
358the collector is a person who is required to get his accounts audited
under section 44AB in the immediately preceding financial year;
359the number of collectee's records in a statement for any quarter of the
financial year are twenty or more,
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49
the collector shall furnish the statement in the manner specified in item (b) of
clause (i).
(iv) Where the collector is a person other than the person referred to in clause (ii),
the statement referred to in sub-rule (1) may, at his option, be delivered or
cause to be delivered in the manner specified in item (b) of clause (i).
(4) The collector at the time of preparing statements of tax collected shall,-
(i) quote his tax deduction and collection account number (TAN) in the
statement;
(ii) quote his permanent account number (PAN) in the statement except
in the case where the collector is an office of the Government;
(iii) quote the permanent account number of all collectees;
(iv) furnish particulars of the tax paid to the Central Government including
book identification number or challan identification number, as the case may
be.
360The Director General of Income-tax (Systems) shall specify the procedures,
formats and standards for the purposes of furnishing of the statements and shall be
responsible for the day to day administration in relation to furnishing of the
statements in the manner so specified.
361Where a statement of tax collected at source is to be furnished for tax collected
before the 1st day of April, 2010, the provisions of this rule shall apply as they stood
immediately before their substitution by the Income-tax ( Amendment) Rules,
2010.";
362rule 37A shall be omitted;
363for rules 37CA and 37D, the following rules shall be substituted, namely:-
"Time and mode of payment to Government account of tax collected at source under
section 206C.
37CA.
(1) All sums collected in accordance with the provisions of sub-section (1) or sub-section
(1C) of section 206C by an office of the Government shall be paid to the credit of the
Central Government -
(a) on the same day where the tax is so paid without production of an income-tax
challan; and
(b) on or before seven days from the end of the month in which the collection is
made, where tax is paid accompanied by an income-tax challan.
(2) All sums collected in accordance with the provisions of sub-section (1) or sub-section
(1C) of section 206C by collectors other than an office of the Government shall be paid
to the credit of the Central Government within one week from the last day of the
month in which the collection is made.
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[3] In the case of an office of the Government, where tax has been paid to the credit of the
Central Government without the production of a challan, the Pay and Accounts Officer
or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other
person by whatever name called to whom the collector reports the tax so collected and
who is responsible for crediting such sum to the credit of the Central Government, shall-
364submit a statement in Form No. 24G within ten days from the end of the
month to the agency authorised by the Director General of Income-tax
(Systems) in respect of tax collected by the collectors and reported to him for
that month; and
365intimate the number (hereinafter referred to as the Book Identification
Number] generated by the agency to each of the collectors in respect of whom
the sum collected has been credited.
366For the purpose of sub-rule (3], the Director General of Income-tax (Systems) shall
specify the procedures, formats and standards for ensuring secure capture and
transmission of data, and shall also be responsible for the day-to-day administration
in relation to furnishing the information in the manner so specified.
367(i) Where tax has been deposited accompanied by an income-tax challan, the tax
collected under sub-section (1) or sub-section (1C) of section 206C shall be
deposited to the credit of the Central Government by remitting it within the
time specified in clause (b) of sub-rule (1) or in sub-rule (2) into any branch of
the Reserve Bank of India or of the State Bank of India or of any authorised bank.
(ii) Where tax is to be deposited in accordance with clause (i), by persons referred
to in sub-rule (1) of rule 125, the amount collected shall be electronically
remitted into the Reserve Bank of India or the State Bank of India or any
authorised bank accompanied by an electronic income-tax challan.
(6)For the purpose of this rule, the amount shall be construed as electronically
remitted to the Reserve Bank of India or to the State Bank of India or to any
authorised bank, if the amount is remitted by way of-
368internet banking facility of the Reserve Bank of India or of the State
Bank of India or of any authorised bank; or
369debit card.
(7) Where tax is collected before the 1st day of April, 2010, the provisions of this rule
shall apply as they stood immediately before their substitution by the Income-tax
( Amendment) Rules, 2010.
Certificate of tax collected at source under section 206C(5).
37D. (1) The certificate of collection of tax at source under sub-section (5) of
section 206C to be furnished by the collector shall be in Form 27D.
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(2) The certificate referred to in sub-rule (1) shall specify:-
370valid permanent account number (PAN) of the collectee;
371valid tax deduction and collection account number (TAN) of the collector;
372(i) book identification number or numbers where deposit of tax collected is
without production of challan in case of an office of the Government;
(ii)challan identification number or numbers in case of payment through bank;
(d) receipt number of the relevant quarterly statement of tax collected at source
which is furnished in accordance with the provisions of rule 31AA.
373The certificate in the Form No. 27D referred to in sub-rule (1) shall be furnished
to the collectee within fifteen days from the due date for furnishing the statement of
tax collected at source specified under sub-rule (2) of rule 31AA.
374The collector may issue a duplicate certificate in Form No. 27D if the collectee
has lost the original certificate so issued and makes a request for issuance of a
duplicate certificate and such duplicate certificate is certified as duplicate by the
collector.
375Where a certificate is to be furnished for tax collected before the 1st day of April,
2010, it shall be furnished in the Form in accordance with the provisions of the rules
as they stood immediately before their substitution by the Income-tax ( Amendment)
Rules, 2010. ";
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52
(d) in Appendix-II,-
(i)for Form. No. 16 and Form N0.I6A, the following Forms shall be substituted, namely:-
"FORMNO.16
(See rule 31(l)(a)|
PART A
Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source on Salary
Name and address of the
Employer
Name and Designation of the Employee
PAN of the
Deductor
TAN of the Deductor PAN of the Employee
CIT(TDS) Assessment Year Period
From To
Summary of tax deducted at source
Quarter Receipt Numbers of original
statements of TDS under sub-section
(3) of section 200.
Amount of tax deducted
in respect of the employee
Amount of tax
deposited/remitted in respect of
the employee
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total W-'-ifiM',^' .*i^-—
PART B (Refer Note 1)
Details of Salary paid and any other income and tax deducted
1 Gross Salary
(a) Salary as per provisions contained in sec.17(1)
(b) Value of perquisites u/s 17(2) (as per Form No. 12BB,
wherever applicable)
(c) Profits in lieu of salary under section 17(3)(as per
Form No.l2BB, wherever applicable)
(d) Total
2 Less: Allowance to the extent exempt u/s 10
Rs
Rs
Rs
Rs.
Rs.
Rs
Rs
Allowance Rs.
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53
376Balance(l-2)
377Deductions:
378Entertainment allowance
379Tax on employment
5 Aggregate of 4(a) and (b)
6 Income chargeable under the head 'salaries' (3-5)
7 Add: Any other income reported by the employee
Rs.
Rs.
Rs
Rs
Rs
Income Rs.
Rs
Gross total income (6+7)
Deductions under Chapter VIA
(A) sections 80C, 80CCC and 80CCD
(a) section 80C
(0 ..................
(ii) .....................
(iii) .....................
(iv) ......................
(v) ......................
(vi) ......................
(vii) ......................
380section 80CCC
381Section 80CCD
Note: 1. Aggregate amount deductible under section 80C shall not
exceed one lakh rupees. 2. Aggregate amount deductible under
the three sections, i.e., 80C, 80CCC and 80CCD shall not exceed
one lakh rupees.
(B) Other sections (e.g. 80E, 80G etc.) under Chapter VI-A.
Gross Amount
Rs Rs
Rs Rs
Rs. Rs.
Rs
Deductible
amount
Rs.
Rs.
(0
(ii)
(iii)
(iv)
(v)
section.
section.
section.
section.
section.
Gross Qualifying Deductible
amount amount amount
Rs. Rs. Rs.
Rs. Rs. Rs.
Rs. Rs. Rs.
Rs. Rs. Rs.
Rs. Rs. Rs.
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54
10 Aggregate of deductible amount under Chapter VIA
11 Total Income (8-10)
12 Tax on total income
13 Education cess @ 3% (on tax computed at S. No. 12)
14 Tax Payable (12+13)
15 Less: Relief under section 89 (attach details)
16 Tax payable (14-15)
Rs
Rs
Rs
Rs.
Rs.
Rs
Rs.
Verification
and deposited to the credit of the Central Government. I further certify that the information given above is true,
complete and correct and is based on the books of account, documents, TDS statements, TDS deposited and other
available records.
Place
Date Signature of person responsible for deduction of tax
Designation: Full
Name:
Notes:
382If an assessee is employed under 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. Part B may be issued by
each of the employers or the last employer at the option of the assessee.
383Government deductors to enclose Annexure-A if tax is paid without production of an
income-tax challan and Annexure-B if tax is paid accompanied by an income-tax challan.
384Non-Government deductors to enclose Annexure-B.
385The deductor shall furnish the address of the Commissioner of Income-tax (TDS)
having jurisdiction as regards TDS statements of the assessee.
386This Form shall be applicable only in respect of tax deducted on or after 1st day of April,
2010.
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ANNEXURE-A
DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT THROUGH
BOOK ENTRY (The Employer to provide payment wise
details of tax deducted and deposited with respect to the employee)
S.No. Tax Deposited in
respect of the
employee (Rs.)
Book identification number (BIN)
Receipt numbers of Form
No.24G
DDO Sequence
Number in the Book
Adjustment Mini
Statement
Date on which tax
deposited
(dd/mm/yyyy)
Total jlflg« MN ^isyli IMMHNMNIMHM SSi»i%B*i *»*": :i
■
Note:
1. In the column for TDS, give total amount for TDS, Surcharge (if applicable) and education cess.
V
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ANNEXURE-B DETAILS OF TAX DEDUCTED AND
DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT THROUGH
CHALLAN (The Employer to provide payment wise details
of tax deducted and deposited with respect to the employee)
S.No. Tax Deposited in
respect of the
employee (Rs.)
Challan identification number (CIN)
BSR Code of the Bank
Branch
Date on which t£
deposited
(dd/mm/yyyy]
IX Challan Serial
Number
Total fpc- * - ■;>•••>• - . r %, li1*? «si ipr
Note:
1. In the column for TDS, give total amount for TDS, Surcharge (if applicable) and education cess.
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57
F0RMN0.16A
|Seerule31(l)(b)|
Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source
Name and address of the Deductor Name and address of the Deduetee
PAN of the Deductor TAN of the Deductor PAN of the Deduetee
CIT(TDS)
Address........................................
City...............................Pin code.
Assessment Year
From
Period
To
Summary of payment
Amount paid/credited Nature of payment Date of payment/credit
Summary of tax deducted at source in respect of deduetee
Quarter Receipt Numbers of original quarterly
statements of TDS under sub-section (3)
of section 200
Amount of tax deducted in
respect of the deduetee
Amount of tax
deposited/remitted in respect
of the deduetee
I. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT
THROUGH CHALLAN (The Deductor to provide payment
wise details of tax deducted and deposited with respect to the deduetee)
S.No. Tax Deposited in
respect of the
deduetee
(Rs.)
Book identification number (BIN)
DDO Sequence Number in
the Book Adjustment Mini
Statement
Date on which tax
deposited
(dd/mm/yyyy)
Total ;|w
II. DETAILS OF TAX DEDUCTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT
THROUGH CHALLAN
(The Deductor to provide payment wise details of tax deducted and deposited with respect to the deduetee)
S.No. Tax Deposited in
respect of the deduetee
(Rs.)
Challan identification number (CIN)
Receipt numbers of Form
No.24G
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(Rs.) BSR Code of the Bank
Branch
Date on which tax
deposited
(dd/mm/yyyy)
Challan Serial
Number
Total SSHEife ^iisM■'■■ ■ . '■> .■"
Verification
and deposited to the credit of the Central Government. I further certify that the information given above is true, complete
and correct and is based on the books of account, documents, TDS statements, TDS deposited and other available records.
Place
Date Signature of person responsible for deduction of tax
Designation: Full
Name:
Notes:
387Government deductors to fill information in item I if tax is paid without production of an
income-tax challan and in item II if tax is paid accompanied by an income-tax challan.
388Non-Government deductors to fill information in item II.
389In item I and II, in the column for TDS, give total amount for TDS, Surcharge (if
applicable) and education cess.
390The deductor shall furnish the address of the Commissioner of Income-tax (TDS) having
jurisdiction as regards TDS statements of the assessee.
391This Form shall be applicableonly in respect of tax deducted on or after 1st day of April,
2010.";
(ii) after Form No. 24, the following Form shall be inserted, namely:-
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(iii) for Form No. 27D, the following Form shall be substituted, namely:-
"FORM N0.27D
[See rule 37D|
Certificate under section 206C of the Income-tax Act, 1961 for Tax collected at source
Name and address of the Collector Name and address of the Collectee
PAN of the Collector TAN of the Collector PAN of the Collectee
Address.
City.......
CIT(TDS)
.Pin code.
Assessment Year
From
Period
To
Summary of receipt
Amount received/debited Nature of receipt Date of receipt/debit
Summary of tax collected at source
Quarter Receipt Number of original
quarterly statements of TCS under
proviso to sub-section (3) of section
206C
Amount of tax collected in respect of
the collectee
Amount of tax
deposited/remitted in
respect of the collectee
I. DETAILS OF TAX COLLECTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT
THROUGH BOOK ENTRY
(The Collector to provide payment wise details of tax collected and deposited with respect to the collectee)
S.No. Tax Deposited
in respect of
the collectee
(Rs.)
Book identification number (BIN)
DDO Sequence Number in
the Book Adjustment Mini
Statement
Date on which tax
deposited
(dd/mm/yyyy)
Total i£M%im
II. DETAILS OF TAX COLLECTED AND DEPOSITED IN THE CENTRAL GOVERNMENT ACCOUNT
THROUGH CHALLAN
(The Collector to provide payment wise details of tax collected and deposited with respect to the collectee)
BAMS Number given by
PAO/CDDO/TO
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60
S.No. Tax Deposited in
respect of the
collectee (Rs.)
Challan identification number (CIN)
BSR Code of the Bank
Branch
Date on which tax
deposited
(dd/mm/yyyy)
Challan Serial Number
Total —-v.t- »*J*W*W»«;,!S-i|-trt'tW^^^^*f,' "^s^f-Hf^SiSXrfsi- •_'-»'»«.■;<fv'..;. - •"•! *-«fi|» fc *»
Verification
source and deposited to the credit of the Central Government. I further certify that the information given above is true,
complete and correct and is based on the books of account, documents, TCS statements, TCS deposited and other available
records.
Place
Date Signature of person responsible for collection of tax
Designation: Full
Name:
Notes:
392Government collectors to fill information in item I if tax is paid without production of an
income-tax challan and in item II if tax is paid accompanied by an income-tax challan.
393Non-Government collectors to fill information in item II.
3. In item I and II, in the column for TCS, give total amount for TCS, Surcharge (if
applicable) and education cess.
4. The collector shall furnish the address of the Commissioner of Income-tax (TDS) having
jurisdiction as regards TCS statements of the assessee.
5. This Form shall be applicable only in respect of tax collected on or after 1st day of April,
2010.".
Notification No. 41 /2010
[F.No. 142/27/2009-SO(TPL)]
(Rajesh Kumar Bhoot)
Director (Tax Policy and Legislation)
Note. The principal rules were published vide, Notification No. 969(E), dated the 26th March
1962 and last amended by the Income-tax (5th Amendment) Rules, 2010 vide Notification
S.0.1211 (E) dated 21st May, 2010.
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" FORM NO. 24C
[ See rule 30 and rule 37CA] TDS/TCS
Book Adjustment Statement
Details of Transfer voucher for the month ending (monthjmm (year) yyyv
1 Accounts Officer details
Accounts Officer Identification Number (AIN)
Account office name"
Accounts Office Address*
Address 1*
Address 3
City*
PIN code*
STD code-Phone No*
PAO registration Number (provided by Central Record Keeping Agency)
Address 2 Address 4 State*
Email id*
2 Responsible persons details (see note 1)
Responsible persons name* Responsible
persons designation* Responsible persons
Address* Address 1* Address 3 City*
PIN code* STD code-
Phone No*
Address 2 Address 4 State* Email id *
JMobileno of the responsible person O
3 Type of statement*
Has the statement been filed eaner for this Month (Yes/No)
If answer to above is "Yes", then Provisional receipt no of original
statement
4 Category of Deductor for whom statement is being submitted*: Central/State Government
~] Ministry Sub
Ministry
S DDO wise details of transfer Vouchers
5a 000 wise details of TDS-Salary (24Q)
SNo* DDO registration no (provided by Central Record Keeping Agency) DDO code TAN of
DDO*
Name of
DDO*
Address 1* Address 2 Address 3 Address 4 City* State* PIN Code* Email id Tax
Deducted/Collected
{Sum of
Ba5_TAX,SUR,EDU_
CESS)*
Total TDS / TCS remitted to
Government account
(AG/PrCCA)*
151 152 153 154 155 156 157 158 159 160 161 162 163 164 165
Total
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5b Total TDS/TCS amount transferred for TDS-Non Salary (260.
SNo* DDO registration no (provided by Central Record Keeping Agency) DDO code TAN of
DDO*
Name of
DDO*
Address 1* Address 2 Address 3 Address 4 City* State* PIN Code* Email id Tax
Deducted/Collected
(Sum of
BaS_TAX,SUR,EDU_
CESS)*
Total TDS / TCS remitted to
Government account
(AG/PrCCA)*
166 167 168 169 170 171 172 173 174 175 176 177 178 179 180
Total
5c Total TDS/TCS amount transferred for TDS Non Resident (27Q
SNo* DDO registration no (provided by Central Record Keeping Agency) DDO code TAN of
DDO*
Name of
DDO*
Address 1* Address 2 Address 3 Address 4 City* State* PIN Code* Email id Tax
Deducted/Collected
(Sum of
BaS_TAX,SUR,EDU_
CESS)*
Total TDS/TCS remitted to
Government account
(AG/PrCCA)*
181 182 183 184 185 186 187 188 189 190 191 192 193 194 195
Total
5d Total TDS/TCS amount transferred for TCS (27EQ!
SNo* DDO registration no (provided by Central Record Keeping Agency) DDO code TAN of
DDO*
Name of
DDO*
Address 1* Address 2 Address 3 Address 4 City* State* PIN Code* Email id Tax
Deducted/Collected
(Sum of
BaS_TAX,SUR,EDU_
CESS)*
Total TDS / TCS remitted to
Government account
(AG/PrCCA)*
196 197 198 199 200 201 202 203 204 205 206 207 208 209 210
Total
6 Statement Summary
Count of Distinct DDOs
No of entries in item 5
Total TDS/TCS amount reported
Total TDS / TCS remitted to Government account (AG/Pr CCA)
VERIFICATION
- hereby certify that all the particulars furnished above are correct and complet*
Signature of the person responsible (see note 1)
Place
Date
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Notes
394Responsible person is the person made responsible in the office of Pay and Accounts Officer (PAO) or Treasury Officer(TO) or Cheque Drawing and Disbursing Officer (CDDO) for filing of this forn
395Payments pertaining to all the nature of payment TDS-Salary(24Q)/TDS-Non-Salary(26Q)/TDS-Non-Resident(27Q)/TCS(27EQ) to be furnished in same form
396Furnishing of either DDO registration no. or ODO code is mandatory
397There can be maximum four entries (Nature of deduction wise) per DDO in every month
398This form shall be applicable only in respect of tax deducted/collected on or after 1st April, 201C
399The fields marked as * are mandatory.
400 Details of Ministry _______________________________________________
Sr. No. Ministry
1 Civil
2 Railway
3 Defence
4 Telecommunication
5 Post
6 Details of Sub Ministryfln case of Civil Ministry)
Sr. No. Sub Ministry name
1 Agriculture
2 Atomic Energy
3 Fertilizers
4 Chemicals and Petrochemicals
5 Civil Aviation and Tourism
6 Coal
7 Consumer Affairs, Food and Public Distributor
8 Commerce and Textiles
9 Environment and Forests and Ministry of Earth Science
10 External Affairs and Overseas Indian Affairs
11 Finance
12 Central Board of Direct Taxes
13 Central Board of Excise and Customs
14 Contoller of Aid Accounts and Audit
15 Central Pension Accounting Office
16 Food Processing Industries
17 Health and Family Welfare
18 Home Affairs and Development of North Eastern Region
19 Human Resource Development
20 Industry
21 Information and Broadcasting
22 Telecommunication and Information Technology
23 Labour
24 Law and Justice and Company Affairs
25 Personnel, Public Grievances and Pensions
26 Petroleum and Natural Gas
27 Plannning, Statistics and Programme Implementation
28 Power
Sr. No. Sub Ministry name
29 New and Renewable Energy
30 Rural Development and Panchayati Raj
31 Science And Technology
32 Space
33 Steel
34 Mines
35 Social Justice and Empowerment
36 Tribal Affairs
37 D/o Commerce (Supply Division)
38 Shipping and Road Transport and Highways
39 Urban Development, Urban Employment and
Poverty Alleviation
40 Water Resources
41 President's Secretariat
42 Lok Sabha Secretariat
43 Rajya Sabha secretariat
44 Election Commission
45 Andaman and Nicobar Islands Administration
46 Chandigarh Administration
47 Dadra and Nagar Haveli
48 Goa, Daman and Diu
49 Lakshadweep
50 Pondicherry Administration
51 Pay and Accounts Officers (Audit)
52 Non-conventional energy sources
53 Government of NCT of Delhi
54 Others
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I
7 Details of State
Sr No State Name
1 ANDAMAN AND NICOBAR ISLANDS
2 ANDHRA PRADESH
3 ARUNACHAL PRADESH
4 ASSAM
5 BIHAR
6 CHANDIGARH
7 CHATTISHGARH
8 DADRA & NAGAR HAVEL!
9 DAMAN & DIU
10 DELHI
11 GOA
12 GUJARAT
13 HARYANA
14 HIMACHAL PRADESH
15 JAMMU & KASHMIR
16 JHARKHAND
17 KARNATAKA
18 KERALA
19 LAKSHWADEEP
20 MADHYA PRADESH
21 MAHARASHTRA
22 MANIPUR
23 MEGHALAYA
24 MI20RAM
25 NAGALAND
26 ORISSA
27 PONDICHERRY
28 PUNJAB
29 RAJASTHAN
30 SIKKIM
31 TAMILNADU
32 TRIPURA
33 UTTAR PRADESH
34 UTTARANCHAL
35 WEST BENGAL
^at^
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
CORRIGENDUM
New Delhi, the 19th July, 2010
INCOMEXTAX
S.O. 1736(E).—In the Notification of Government
of India, Ministry' of Finance, Department of Revenue
(Central Board of Direct Taxes), number 41 !2010, dated
31 st May, 2010 bearing S.O. 1261 (Ii) and published in the
Gazette of India, Extraordinary, Part II, Section 3, Subsection
(ii), dated 31 st May, 2010-
(i) at page 24 in third line of sub-rule (8), at page 26 in
fourth line of sub-rule (7), at page 28 In third line
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66
THE GAZETTE OF INDIA ; EXTRAORDINARY (PART II—SEC. 3£iif/
of sub-rule (6), at page 30 in third line of sub-rule
(?) and at page 30 in fourth line of sub-rule (5), for
'•(Amendment)", read"(6\h Amendment)";
(if) at page 31 of the Gazette Notification, in first line
of Clause (b) of Part B, for "Form No. 12 BB",
«ra</"FormNo. 12 BA";
(iii) at page 36 of the Gazette Notification, in second
line of the heading of Item I, for "Through
Challan", read '-Through Book Entry";
(iv) at page 37 of the Gazette Notification following
note shall be inserted after note 5 :—
"6. Separate annexure may be attached for
Summary of payment in case number of payment/
credit during the relevant quarter is more than
one;"; and
(v) at page 42 of the Gazette Notification following
note shall be inserted after note 5 :—-
"6. Separate annexure may be attached for
Summary of receipt, in case number of receipt/ .
debit during the relevant quarter is more than *
one;".
2. The other contents of the Gazette Notification shall
remain unchanged.
[Notification No. 55/2010/F.No. !42/27,2009-SO(TPL)]
RAJESHKUMARBHOOT, Director (Tax Policy and
Legislation)
Primed by the Manager. Government of India Cress. King Road, Mayapun, New Delhi-I IO064
and PubliMed b> the Controller of Publication). Delhi-110054
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