Receive Daily Updates by Email (Free Subscription)

[Tax] TDS from Salaries(Sec 192) - Financial Year 2016-17(AY 2017-18) - CBDT Circular

Central Board of Direct Taxes (CBDT) Circular No. : 01/2017, dated the 2nd January, 2017

Income-tax Deduction from Salaries during the Financial year 2016-17 under Section 192 of the Income-tax Act, 1961

1. Reference is invited to Circular No.20/2015 dated 02.12.2015 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 (hereinafter ‘the Act’), during the financial year 2015-16, 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 2016-17 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules).

2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2016:

As per the Finance Act, 2016, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2016-17 (i.e. Assessment Year 2017-18) at the following rates:

2.1 Rates of tax

A. Normal Rates of tax:

Sl. No.
Total Income
Rate of tax
1
Where the total income does not exceed Rs. 2,50,000/-
Nil
2
Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-
10 per cent of the amount by which the total income exceeds Rs. 2,50,000/-
3
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-
Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/
4
Where the total income exceeds Rs. 10,00,000/-
Rs. 1,25,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

Sl. No.
Total Income
Rate of tax
1
Where the total income does not exceed Rs. 3,00,000/-
Nil
2
Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-
10 per cent of the amount by which the total income exceeds Rs. 3,00,000/-
3
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-
Rs. 20,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/
4
Where the total income exceeds Rs. 10,00,000/-
Rs. 1,20,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

Sl. No.
Total Income
Rate of tax
1
Where the total income does not exceed Rs. 5,00,000/-
Nil
2
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-
20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
3
Where the total income exceeds Rs. 10,00,000/-
Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

2.2 Surcharge on Income tax:

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, having a total income exceeding one crore rupees, be increased by a surcharge for the purpose of the Union calculated at the rate of fifteen per cent of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

2.3.1 Education Cess on Income tax:
The amount of income-tax including the surcharge if any, shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.

2.3.2 Secondary and Higher Education Cess on Income-tax:
An additional education cess is chargeable at the rate of one percent of income-tax including the surcharge if any, but not including the Education Cess on income tax as in 2.3.1



REST OF THE CONTENTS OF THE CIRCULAR IS AVAILABLE HERE - LINK


INDEX of Contents of the Circular
1. GENERAL 
2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2013
2.1 Rates of tax
2.2 Surcharge on Income tax
2.3.1 Education Cess on Income tax
2.3.2 Secondary and Higher Education Cess on Income-tax
3 BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM “SALARIES”.
3.1 Method of Tax Calculation
3.2 Payment of Tax on Non monetary Perquisites by Employer
     3.2.1 Computation of Average Income Tax
3.3 Salary From More Than One Employer
3.4 Relief When Salary Paid in Arrear or Advance
3.5 Information regarding Income under any Other head
3.6 Computation of Income under the head “Income from house property’
3.7 Adjustment for Excess or Shortfall of Deduction
3.8 Salary Paid in Foreign Currency
4 PERSONS RESPONSIBLE FOR DEDUCTION TAX AND THEIR DUTIES 4
4.1 Stipulation of section 204 of the Act
4.2 Tax determined to be deducted from Salary u/s 192
4.3 Deduction of Tax at Lower Rate
4.4 Deposit of Tax Deducted
4.4.1 Due dates for payment of TDS
4.4.2 Mode of payment of TDS
4.5 Interest, Fee, Penalty & Prosecution for Failure to Deposit Tax Deducted:
4.6 Furnishing of Certificate for Tax Deducted (Section 203)
4.7 Mandatory Quoting of PAN and TAN
4.8 Compulsory Requirement to furnish PAN by employee (Section 206AA)
4.9 Statement of Deduction of tax under of section 200(3) [Quarterly Statement of TDS]
4.10 TDS on Income from Pension
4.11 Matters pertaining to the TDS made in case of Non Resident
5 COMPUTATION OF INCOME UNDER THE HEAD “SALARIES”
5.1 Income chargeable under the head “Salaries”:
5.2 Definition of “Salary”, “perquisite” and “profit in lieu of salary” (Section 17)
5.3 Income not included under the Head “Salaries” (Exemptions)
5.4 Deductions u/s 16 of the Act from the Income from Salaries
5.5 Deductions under Chapter VI-A of the Act
6. REBATE OF RS.5000 FOR INDIVIDUAL HAVING TOTAL INCOME UPTO RS. 5 LAKHS (SECTION 87A) 
7. TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND 
8. DDOS TO SATISFY THEMSELVES OF THE GENUINENESS OF CLAIM 
9. CALCULATION OF INCOME-TAX TO BE DEDUCTED 
10. MISCELLANEOUS
ANNEXURES
I. SOME ILLUSTRATIONS
II. FORM NO 12BA
IIa. FORM NO 12BB
III. REVISED PROCEDURE FOR FURNISHING QTLY E-TDS/TCS STATEMENT BY DEDUCTORS/COLLECTORS
IV. THE PROCEDURE OF FURNISHING FORM 24G
V. PERSON RESPONSIBLE FOR FILING FORM 24G IN CASE OF STATE GOVT DEPARTMENTS/CENTRAL GOVT DEPARTMENTS
VI. PROCEDURE OF PREPARATION OF QUARTERLY STATEMENT OF DEDUCTION OF TAX u/s 200 (3)
VII. DEPTT. OF ECO. AFFAIRS NOTIFICATION DATED 22.12.2003
VIII. BOARD’S NOTIFICATION DATED 24.11.2000
IX. BOARD’S NOTIFICATION DATED 29.01.2001
X. FORM NO. 10 BA

No comments:

Post a Comment

Share your valuable opinion or your query here.