GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI -110066

CPAO/IT&Tech/ Misc.Corres/35 (Vol-II) (PF)/10370/ 2023-24/ 109

22.08.2023

OFFICE MEMORANDUM

Attention is invited to this office OM No. CPAO/IT & Tech/ Gallantry Award/26/2020-21/06 dated 12.05.2021 wherein it was stated that all the Pension disbursing banks are required to ensure that Income Tax at source is not be deducted from pension in respect of Gallantry Awardees, as per the Provisions of Section 10 clause 18(i) of the IT Act, CBDT Notification dated 24th November, 2000.

2. It is observed that the banks are not complying with the instructions as this office has been receiving grievances regarding deduction of income tax from pension of Gallantry Awardees.
3. In view of the above, Heads of CPPCs/ GBDs of all Authorized banks are requested to follow the instructions issued by the Income Tax department, on the subject, without fail.

This issues with the approval of the Chief Controller (Pensions).

(Shailesh Bhathagar)
Sr. Accounts Officer (IT Tech)

Source

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Circular No. 9/2023

F.No.370149/ 109/ 2023 -TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Tax

North Block, New Delhi 28th June, 2023

Sub: Order under section 119 of the Income-tax Act, 1961 for extension of time limits for submission of certain TDS/TCS Statements – Reg.

The Central Board of Direct Taxes, in exercise of its powers under section 119 of the Income-tax Act, 1961 provides relaxation in respect of the following compliances, namely :

• The statement of deduction of tax for the first quarter of the financial year 2023-24, required to be furnished in Form No. 26Q or Form No. 27Q, on or before 31st July, 2023 under Rule 31A of the Income-tax Rules, 1962 (“the Rules”), may be furnished on or before 30th September, 2023.
• The statement of collection of tax for the first quarter of the financial year 2023-24, required to be furnished in Form No. 27EQ, on or before 15th July, 2023 under Rule 31AA of the Rules, may be furnished on or before 30th September, 2023.

(Sourabh Jain)
Under Secretary (TPL)-I

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Increased limit for tax exemption on leave encashment for non-government salaried employees notified CBDT

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 25th May, 2023

PRESS RELEASE

Increased limit for tax exemption on leave encashment for non-government salaried employees notified

The tax exemption on leave encashment of non-government salaried employees (in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise) was earlier upto a limit of Rs.3 lakh only under section 10(10AA)(ii) of the Income-tax Act,1961(the Act).

In pursuance to the proposal in the Budget Speech, 2023, by the hon’ble FM, the Central Government has notified the increased limit for tax exemption on leave encashment on retirement or otherwise of non-government salaried employees to Rs.25 lakh w.e.f. 01.04.2023.

The aggregate amount exempt from income-tax under section 10(10AA)(ii) of the Act shall not exceed the limit of Rs. 25 lakh where any such payments are received by a non-government employee from more than one employer in the same previous year.

Further, the amount exempt from income-tax under section 10(10AA)(ii) of the Act shall not exceed the limit of Rs. 25 lakh as reduced by the tax exemption already allowed in the total income of the employee under section 10(10AA)(ii) of any previous year or years.

Notification No.31/2023 dated 24.05.2023 has been published and is available at https://egazette.nic.in.

(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION
New Delhi, the 24th May, 2023

(INCOME-TAX)

S.O. 2276(E)– In exercise of the powers conferred by sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the maximum amount receivable by its employees as cash equivalent of leave salary in respect of the period of earned leave at their credit at the time of their retirement, whether superannuation or otherwise, hereby specifies the amount of Rs. 25,00,000 (twenty-five lakhs rupees only) as the limit in relation to employees mentioned in that sub-clause who retire, whether on superannuation or otherwise.

2. This notification shall be deemed to have come into force with effect from the 1st day of April, 2023.

[Notification No. 31/2023/F. No. 200/3/2023-ITA-I]
SOURABH JAIN, Under Secy.

Explanatory Memorandum : It is hereby certified that no person is being adversely affected by giving retrospective effect to this notification.

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Smt Nirmala Sitharaman provides major relief in the personal income tax. The indirect tax proposals contained in the budget aim to promote exports enhance domestic value addition, encourage green energy and mobility.

Personal Income Tax

There are five major announcements relating to the personal income tax. The rebate limit in the new tax regime has been increased to ₹ 7 lakh, meaning that peons in the new tax regime with income upto ₹ 7 lakh will not have to pay any tax. The tax structure in the new personal tax regime has been changed by reducing number of slabs to five and increasing the tax exemption limit to ₹ 3 lakh. This will provide major relief to all tax payers in the new regime.

The benefit of standard deduction has been extended to the salaried class and the pensioners including family pensioner under the new tax regime. Salaried individual will get standard deduction of ₹ 50,000 and pensioner ₹ 15,000 as per the proposal. Each salaried person with an income of ₹ 15.5 lakh or more will thus gain ₹ 52,500, from the above proposals.

The highest surcharge rate in personal income tax has been reduced from 37% to 25% in the new tax regime for income above ₹2 crore. This would result in maximum tax rate of personal income tax come down to 39% which was earlier 42.74%.

The limit of tax exemption on leave encashment on retirement of non-government salaried employees has been increased from ₹3 lakh to ₹25 lakh.

The new income tax regime has been made the default tax regime. However, the citizens will continue to have the option to avail the benefit of the old tax regime.

Indirect Tax Proposals

The indirect tax proposals announced in the budget by the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman emphasized on simplification of tax structure with fewer tax rates so as to help in reducing compliance burden and improving tax administration. The number of basic customs duty rates on goods, other than textiles and agriculture, has been reduced from 21 to 13. There are minor changes in the basic customs duties, cesses and surcharges on items including toys, bicycles, automobiles and naphtha.

To avoid cascading of taxes on blended compressed natural gas, excise duty on GST-paid compressed bio-gas contained in it has been exempted from excise duty. Customs duty exemption has been extended to import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles.

To further deepen domestic value addition in manufacture of mobile phones, the Finance Minister announced relief in customs duty on import of certain parts and inputs like camera lens. The concessional duty on lithium-ion cells for batteries will continue for another year. Basic customs duty on parts of open cells of TV panels has been reduced to 2.5%. The Budget also proposes changes in the basic customs duty to rectify inversion of duty structure and encourage manufacturing of electrical kitchen chimneys.

Denatured ethyl alcohol has been exempted from basic customs duty. Basic customs duty has also been reduced on acid grade fluorspar and crude glycerin. Duty is being reduced on key inputs for domestic manufacture of shrimp feed. Basic customs duty on seeds used in the manufacture of Lab Grown Diamonds has also been reduced. The import duty on silver dore, bars and articles has been increased to align them with that on gold and platinum. The basic customs duty rate on compounded rubber has been increased. National Calamity Contingent Duty on specified cigarettes has been revised upwards by about 16%. The basic customs duty on crude glycerin for use in manufacture of epicholorhydrin is proposed to be reduced from 7.5% to 2.5%.

Common IT Return Form

The Union Budget also proposes to roll out a next-generation common IT return form for tax payer convenience. It also stipulates a plan to strengthen the grievance redressal mechanism for direct taxes. The Finance Minister also announced deployment of about 100 Joint Commissioners for disposals of small appeals in direct tax matters. She also said that the department will be more selective in taking up cases for scrutiny of returns already received this year.

Better targeting of tax concessions

For better targeting of tax concessions and exemptions, deduction from capital gains on investment in residential house has been capped at ₹ 10 crore. Income tax exemption from proceeds of insurance policies with very high value will also have limit. There are a number of proposals relating to rationalization and simplification of direct taxes in the Union Budget.

Other major proposals in the Budget relate to Extension of period of tax benefits to funds relocating to IFSC, GIFT City till 31.03.2025; Decriminalisation under section 276A of the Income Tax Act; Allowing carry forward of losses on strategic disinvestment including that of IDBI Bank; and Providing EEE status to Agniveer Fund.

Proposals relating to MSMEs

Describing MSMEs as growth engines of our economy, the Budget proposes enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation. To support MSMEs in timely receipt of payments, the Budget allows deduction for expenditure incurred on payments made to them only when payment is actually made.

Cooperation

The Budget has a slew of proposals for the cooperative sector. New cooperatives that commence manufacturing activities till 31st March next year shall get the benefit of a lower tax rate of 15%. The Budget provides an opportunity to sugar cooperatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. A higher limit of ₹ 2 lakh per member has been provided for cash deposits to and loans in cash by Primary Agricultural Cooperative Societies and Primary Cooperative Agriculture and Rural Development Banks. The Budget proposes a higher limit of ₹ 3 crore for TDS on cash withdrawal for cooperative societies.

Start-ups

The Budget proposes to extend the date of incorporation for income tax benefits to start-ups from 31.03.2023 to 31.03.2024. It also provides the benefit of carry forward of losses on change of shareholding of start-ups from 7 years of incorporation to 10 years.

Amendments in CGST Act

The Budget provides for amending the CGST Act so as to raise the minimum threshold of tax amount for launching prosecution under GST from ₹ 1 crore to ₹ 2 crore, except for the offence of issuance of invoices without supply of goods and services or both. The compounding amount will be reduced from the present range of 50 to 150% of tax amount to the range of 25 to 100%. It will also decriminalize certain clauses of the Act like obstruction and preventing of any officer from discharge of his duties, deliberate tempering of evidence or failure to supply the information.

Implications of tax changes

Announcing the changes in the direct and indirect taxes, the Finance Minister said that revenue of about ₹ 38,000 crore will be foregone as a result of these proposals, while revenue of about ₹3,000 crore will be additionally mobilised. She said thus the total revenue foregone is about ₹35,000 crore annually on account of these proposals.

PIB

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF DIRECT TAXES

DEDUCTION OF TAX AT SOURCE- INCOME-TAX
DEDUCTION FROM SALARIES
UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961

DURING THE FINANCIAL YEAR 2022-23

CIRCULAR NO. 24/2022

NEW DELHI, the 07th December, 2022

Table of Contents

1. Definition of “salary”, “perquisite” and “profit in lieu of salary” (section 17)

1.1 What is salary?

1.2 What is a Perquisite?

1.3 What is profit in lieu of salary ?

2. Rates of income-tax as per Finance Act, 2022

2.1 Rates of tax

2.2 Surcharge on Income-tax

2.3 Health and Education Cess

2.4 Concessional Rates of Tax u/s 115BAC

3. Section 192 of the Income-tax Act, 1961: Broad scheme of Tax Deduction at Source from “Salaries”

3.1 Method of Tax Calculation

3.2 Payment of Tax on Perquisites by Employer

3.3 Computation of Average Income Tax

3.4 Salary from more than one employer

3.5 Relief When Salary Paid in Arrear or Advance

3.6 Information regarding Income under any other head

3.7 Computation of income under the head “Income from house property”

3.7.1 Conditions for claim of deduction of interest on borrowed capital for computation of Income from House Property [section 24(b)]

3.8 Adjustment for Excess or Shortfall of Deduction

3.9 Salary Paid in Foreign Currency

4. Persons Responsible For Deducting Tax And Their Duties

4.1 Tax Deduction at Source

4.1.2 Rates for tax deduction at source

4.2 Deduction of Tax at Nil or Lower Rate

4.3 Deposit of Tax Deducted

4.3.1 Due dates for payment of TDS

4.4 Mode Of Payment Of TDS

4.4.1 Compulsory filing of Statement by PAO, Treasury Officer, etc in case of payment of TDS by Book Entry u/ s 200 (2A)

4.4.2 Payment by an Income Tax Challan

4.5 Interest, Penalty & Prosecution for Failure to Deposit Tax Deducted

4.6 Furnishing of Certificate for Tax Deducted (Section 203)

4.7 Furnishing of particulars pertaining to perquisites, etc. – Section 192(2C)

4.8 Mandatory Quoting of PAN or Aadhaar number as the case may be and TAN

4.9 Compulsory Requirement to furnish PAN or Aadhaar by employee (Section 206AA)

4.10 Statement of deduction of tax under section 200(3) [Quarterly Statement of TDS]

4.11 Fee for default in furnishing statements u/s 200(3) of the Act

4.12 Rectification of mistake in filing TDS Statement

4.13 Penalty for failure to furnishing statements or furnishing incorrect information (section 271H)

4.14 TDS on Income from Pension
4.15 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 Value of Perquisites as per Rule

5.3 Incomes not included under the head “Salaries” (Exemptions)

5.4 Deductions u/s 16 of the Act

5.5 Deductions Under Chapter VI-A of the Act

5.5.1 Deduction in respect of Life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. (section 80C)

5.5.2 Deduction in respect of contribution to certain pension funds (Section 80CCC)

5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD)

5.5.4 Deduction in respect of health insurance premia paid, etc. (Section 80D)

5.5.5 Deductions in respect of expenditure on persons or dependants with disability

5.5.6 Deduction in respect of medical treatment, etc. (Section 80DDB)

5.5.7 Deduction in respect of interest on loan taken for higher education (Section 80E)

5.5.8 Deduction in respect of interest on loan taken for certain house property (Section 80EEA)

5.5.9 Deduction in respect of the interest payable on loan taken for the purpose of purchase of an
electric vehicle (80EEB)

5.5.10 Deductions on respect of donations to certain funds, charitable institutions, etc. (Section 80G)

5.5.11 Deductions in respect of rents paid (Section 80GG)

5.5.12 Deductions in respect of certain donations for scientific research or rural development (Section 80 GGA)

5.5.13 Deduction in respect of interest on deposits in savings account (Section 80TTA)

5.5.14 Deduction in respect of interest on deposits in case of senior citizens (Section 80TTB)

6. Rebate Of Rs12,500 For Individuals Having Total Income Upto Rs 5 Lakh [Section 87A]

7. TDS on payment of accumulated balance under recognised provident fund and contribution from
approved superannuation fund

8. DDOs to obtain evidence/proof of claims

9. Calculation of income-tax to be deducted

10. Miscellaneous

ANNEXURE

1. Some Illustrations
2. Form No. 12BA
   IIA Form No. 12BB
3. Procedure of preparation and furnishing Form 24G at TIN-Facilitation Centres (TIN-FCs)
4. The procedure of furnishing Form 24G
5. Person responsible for filing Form 24G in case of State Government Departments/ Central Government Departments
6. Procedure of preparation of quarterly statement of Deduction of Tax u/s 200 (3) VII Deptt. of Economic Affairs Notification dated 22.12.2013
7. CBDT’s Notification dated 24.11.2000 IX CBDT’s Notification dated 29.01.2001 X Form No. 10 BA

CIRCULAR NO: 24/2022

F. No. 275/15/2022-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi
Dated the 7th Dec, 2022

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2022-23 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Reference is invited to Circular No. 04/2022 dated 15.03.2022 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 2021-22, 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 2022-23 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred are of Income-tax Act, 1961 and Income-tax Rules, 1962 respectively unless otherwise specified. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.

As per section 192(1) of the Act, any person responsible for paying any income chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under the head of Salary income for that financial year.

The section also provides 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.

1. Definition of “salary”, “perquisite” and “profit in lieu of salary” (section 17)

1.1 What is salary?

As per section 15 of the Act, the following incomes are chargeable to income-tax under the head “Salaries” –

(a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;
(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him;
(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.

For any income to be called as Salary, the existence of employer-employee relation is must. As per section 17 of the Act, Salary includes the following:

i) wages;
ii) any annuity or pension;
iii) any gratuity;
iv) any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;
v) any advance of salary;
vi) any payment received by an employee in respect of any period of leave not availed of by him;
vii) the annual accretion to the balance at the credit of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under rule 6 of Part A of the Fourth Schedule;

a) 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, and

b) interest credited on the balance to the credit of the employee in so far as it is allowed at a rate exceeding such rate as may be fixed by Central Government by notification in the Official Gazette;

viii) the 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 F.N.5/7/2003- ECB&PR dated 22.12.2003 (enclosed as Annexure VII) referred to in section 80CCD (para 5.5.3 of this Circular);

ix) the aggregate of all sums that are comprised in the transferred balance as referred to in sub rule (2) of rule 11 of Part A of the Fourth schedule of the Act in case of an employee participating in a recognized provident fund, to the extent to which it is chargeable to tax under sub-rule (4) thereof.

It may be noted that, since salary includes pension, tax at source would have to be deducted from pension also, unless otherwise so required. However, no tax is required to be deducted from the commuted portion of pension to the extent exempt under section 10 (10A).
Family Pension is chargeable to tax under the head “Income from other sources” and not under the head “Salaries”. Therefore, provisions of section 192 of the Act are not applicable. Hence, DDOs are not required to deduct TDS on family pension paid to person.

1.2 What is a Perquisite?

As per Section 17(2) of the Act, perquisites include:

i) The value of rent-free accommodation provided to the employee by his employer;

ii) The value of any concession in the matter of rent in respect of any accommodation provided to the employee by his employer;

iii) The value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:

• a) By a company to an employee who is a director of such company;
• b) By a company to an employee who has a substantial interest in the company;
• c) By an employer (including a company) to an employee, who is not covered by (a) or (b) 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 or amenities not provided for by way of monetary payment, exceeds Rs.50,000/-.

[What constitutes concession in the matter of rent have been prescribed in Explanations 1 to 4 below section 17(2)(ii) of the Act.]

iv) Any sum paid by the employer in respect of any obligation which would otherwise have been payable by the assessee.

v) Any sum payable by the employer, whether directly or through a fund, other than a recognized provident fund or an approved superannuation fund or other specified funds u/s 17, to effect an assurance on the life of an assessee or to effect a contract for an annuity.

vi) The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the employee. For this purpose,

(a) “specified security” means the securities as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956 and, where employees’ stock option has been granted under any plan or scheme therefore, includes the securities offered under such plan or scheme;

(b) “sweat equity shares” means equity shares issued by a company to its employees or directors at a discount or for consideration other than cash for
providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called;

(c) the 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;

(d) “fair market value” means the value determined in accordance with the method as may be prescribed (refer Rule 3(9) of the IT Rules);

(e) “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 or the aggregate of amounts of any contribution made to the account of the assessee by the employer –

• (a) in a recognised provident fund;
• (b) in the scheme referred to in sub-section (2) of section 80CCD; and
• (c) in an approved superannuation fund,

to the extent it exceeds seven lakh and fifty thousand rupees in a previous year;

(viia) the annual accretion by way of interest, dividend or any other amount of similar nature during the previous year to the balance at the credit of the fund or scheme referred to in clause

(vii) above to the extent it relates to the contribution referred to in the said clause which is included in total income; and

(viii) the value of any other fringe benefit or amenity as prescribed in Rule 3.

However, the following are not included as perquisite,—

(i) the value of any medical treatment provided to an employee or any member of his family in any hospital maintained by the employer;

(ii) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family—

(a) 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;

(b) in respect of the prescribed diseases or ailments, in any hospital approved by the Principal Chief Commissioner or Chief Commissioner having regard to the prescribed guidelines;

[(c) in respect of any illness relating to COVID-19 subject to such conditions as the Central Government may, by notification in the Official Gazette, specify in this behalf. This has been inserted as amendment through Finance Act 2022 with retrospective effect from 01.04.2020 and thus accordingly, applies in relation to the assessment year 2020-2021 and subsequent assessment years. The conditions have been notified vide CBDT Notification No. [S.O. 3703(E)] 90/2022 dated: 05.08.2022.

1.3 What is profit in lieu of salary ?

As per Section 17(2) of the Act, ‘Profits in lieu of salary’ include:

I. the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto;

II. any payment (other than any payment referred to in clauses (10), (10A), (10B), (11),
(12) (13) or (13A) of section 10) due to or received by an assessee from an employer or a former employer or from a provident or other fund, to the extent to which it does not consist of contributions by the assessee or interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.

“Keyman insurance policy” shall have the same meaning as assigned to it in section 10(10D);

III. any amount due to or received, whether in lump sum or otherwise, by any assessee from any person –

(A) before his joining any employment with that person; or
(B) after cessation of his employment with that person.

2. Rates of Income-tax as per Finance Act, 2022

As per the Finance Act, 2022, the rates of income tax for the FY 2022-23 (i.e. Assessment Year 2023-24) are as follows:

2.1 Rates of tax

A. Normal Rates of tax: In the case of every individual other than the individuals referred to in para (B) and (C) below:

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

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:

2.2 Surcharge on Income-tax

The amount of Income-tax computed in accordance with the provisions of section 111A or section 112 or section 112A or the provisions of section 115BAC of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, 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 1961—

(a) having a total income (including the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income- tax;

(b) having a total income (including the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding one crore rupees but not exceeding two crore rupees, at the rate of fifteen per cent. of such income-tax;

(c) having a total income (excluding the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding two crore rupees but not exceeding five crore rupees, at the rate of twenty-five per cent. of such income-tax;

(d) having a total income (excluding the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding five crore rupees, at the rate of thirty-five per cent of such income-tax; and

(e) having a total income (including the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A) exceeding two crore rupees, but is not covered under clauses (c) and (d), shall be applicable at the rate of fifteen per cent. of such income-tax:

Provided that in case where the total income includes any income by way of dividend or income chargeable under section 111A, section 112 and section 112A of the Income-tax Act, the rate of surcharge on the amount of Income-tax computed in respect of that part of income shall not exceed fifteen per cent.:

Provided further that in the case of persons mentioned above having total income exceeding, –

• (a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income- tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;
• (b) one crore rupees but does not exceed two crore rupees, the total amount payable as income- tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees;
• (c) two crore rupees but does not exceed five crore rupees, the total amount payable as income- tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees;
• (d) five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees.

2.3 Health and Education Cess

The amount of Income tax as increased by the applicable surcharge shall be further increased by an additional surcharge, for the purposes of Union, to be called “Health and Education Cess on Income-tax”.
Health and Education Cess on Income-tax shall be levied at the rate of four percent of income tax including surcharge wherever applicable. No marginal relief shall be available in respect of such cess.

2.4 Concessional Rates of Tax u/s 115BAC

Section 115BAC of the Income-tax Act, 1961 was inserted by the Finance Act, 2020 w.e.f. Assessment Year 2021-22. The new section 115BAC provides that the income-tax payable in respect of the total income of a person, being an individual or a HUF, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall, at the option of such person, be computed at the concessional rates as given in table below:

Such person is required to exercise the option in the prescribed manner along with the return of income to be furnished under section 139(1) of the Act for the previous year relevant to the assessment year. The concessional rates of tax provided under section 115BAC are subject to the condition that the total income of the individual or HUF shall be computed without any exemption or deduction specified under clause (i) of sub-section (2) of section 115BAC and without set off of any loss specified in clause (ii) of sub-section 2 of the said section. Further, surcharge on income-tax as contained in Para 2.2 shall be applicable in case of person opting for concessional tax regime.

Furthermore, in case of a person having income from business or profession, such person is required to exercise the option in prescribed manner on or before the due date specified under such-section (1) of section 139 of the Act for any previous year relevant to assessment year commencing on or after 01.04.2021 and such option once exercised shall apply to subsequent assessment years. However, in case of such persons, the option once exercised can be withdrawn only once and such person shall never be eligible to exercise the option again unless such person ceases to have income from business or profession.

The post DEDUCTION OF TAX AT SOURCE INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2022-2023 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
CONTROLLER OF DEFENCE ACCOUNTS, GUWAHATI
Udayan Vihar, Narangi, Guwahati – 781171

CIRCULAR NO. 105
THROUGH OFFICIAL WEBSITE

Subject: Submission of Income Tax Savings Documents for the Financial Year 2022-2023: DAD

For the purpose of assessment and regularization of Income Tax for the Financial Year 2022-2023 (Assessment Year 2023-2024) all the officers and staffs are requested to submit the following documents:-

• I. Proof of savings documents insurance premium receipt, NSC, Infrastructure Bond, PPF Bank statement, Housing Loan Certificate from Bank, rent receipt, copy of House owner’s PAN card etc should be produce as per Annexure I and II (enclosed).
• II. Any Officers and staffs claiming exemption of Income Tax under IT Act 1961 under section 197 who have not forwarded the Exemption Certificate for Fy. 2022-23 from Income Tax Department are advised to do so at the earliest; failing which total Tax payable will be deducted at source and Tax refund if any should be claimed only from IT Department. In this connection it is also stated that exemption allowed will be limited to the amount of salary and period of exemption mentioned in the Income Tax Department. Any amount exceeding the amount mentioned in the Certificate and any salary drawn prior or after the period mentioned will be liable for tax deduction. Moreover, the said certificate must pertain to TAN of CDA Guwahati, i.e. SHLC00100C.
• III. employees who had produced “Self Declaration” earlier, should also submit proof of savings/documents along with Annexure I and Annexure II failing which the “Self Declaration” submitted earlier shall be considered null and void and Tax Deduction at source shall be done accordingly.

It is therefore requested to submit the above documents (whichever applicable) duly completed in all respect such a way that should reached at this office on or before 31.10.2022 to enable the DDO to regulate the Income Tax deduction at source during the current financial year. In absence of receipt of the aforementioned documents from the official, the Income Tax will be deducted based on the available information at this end and any refund, if admissible may be claimed only from the Income Tax Department.

Shri. N.K. Biswas
(GO Admin)

Annexure-I

PROFORMA / SUMMARY OF PROOF OF SAVINGS FOR THE PURPOSE OF CALCULATION OF TAXABLE INCOME / INCOME TAX (FY 2022-2023 AY 2023-2024)

ANNEXURE II

HOUSE RENT RECEIPT (SAMPLE)
Relief (under section 10 (13A) of Income Tax Act)

Received a sum of Rs. —- (Rupees in words —-) towards rent for the Financial year 2022-23 from Mr / Mrs —- @ Rs per month —- from to residing at the address —- .

Date

Signature of House Owner
NAME —
ADDRESS —
PAN NO. —
(IF APPLICABLE)

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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 5th August, 2022

S.O. 3705(E). – In exercise of the powers conferred by clause (XIII) of the first proviso to clause (x) of sub-section (2) of section 56 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the following conditions, namely:-

1. (i) the death of the individual should be within six months from the date of testing positive or from the date of being clinically determined as a COVID-19 case, for which any sum of money has been received by the member of the family;

(ii) the family member of the individual shall keep a record of the following documents, –

• (a) the COVID-19 positive report of the individual, or medical report if clinically determined to be COVID-19 positive through investigations in a hospital or an in­patient facility by a treating physician;
• (b) a medical report or death certificate issued by a medical practitioner or a Government civil registration office, in which it is stated that death of the person is related to corona virus disease (COVID-19).

2. Statement of any sum of money received by a member of the family of a deceased person from the employer of the deceased person or from any other person or persons, on account of death due to COVID-19 for the purposes of clause (XIII) of the first proviso to clause (x) of sub­section (2) of section 56 of the Income-tax Act, 1961 shall be verified and furnished in Form A.

3. The details of the amount received in any financial year shall be furnished in Form A to the Assessing Officer within nine months from the end of such financial year or 31.12.2022 whichever is later.

Form A:

Declaration

I, … … … … … … … … … … … … … (Name in full and in block letters) son/ daughter/ wife of … … … … … … … … …  do hereby declare that:

To the best of my knowledge and belief whatever is stated in the above columns including the documents attached supporting the statement is correct and complete.

I further declare that during the previous year……. mm/dd/yyyy the total amount received by me is solely on account of death of my family member due to COVID-19.

Place:
Date:

Yours faithfully,

Signature … … …
Name … … … …
Designation … … …

4. This notification shall be deemed to have come into force from the 1st day of April, 2020 and shall apply in relation to the assessment year 2020-2021 and subsequent assessment years.

[Notification No. 92/2022/ F. No. 370142/31/2022-TPL (Part-2)]

UMME FARDINA ADIL, Under Secy., Tax Policy and Legislation Division

Note : It is certified that no person is being adversely affected by granting retrospective effect to this notification

Tax Relief in the repercussion of Covid-19

The Finance Act, 2022 introduced amendments to Section 56 (2)(x) to provide tax relief to taxpayers to tide over the Covid-19 health crisis during the financial year 2019-20 and subsequent years. As per the amendment, the amount received from the employer or any well-wisher for COVID-19 treatment is tax-free. Further, money received by the family members from the employer or any other person in case of demise of a breadwinner of the family will be exempt from tax. There is no exemption limit if the money is received from the employer. But there is an exemption limit of Rs 10 lakh for money received from any other person.

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Documents to be submitted by Employees for Tax Relief in the repercussion of Covid-19 under Section 56 (2)(x): IT Notification No. 90/2022

CBDT specifies Documents to be submitted by Employees for Tax Relief in the repercussion of Covid-19 under Section 56 (2)(x) vide Notification No. 90/2022-Income Tax, Dated: 05.08.2022

Ministry of Finance
(Department of Revenue)
(Central Board of Direct Taxes)
NOTIFICATION

New Delhi, the 5th August, 2022

S.O. 3703(E). – In exercise of the powers conferred by sub-clause (c) of clause (ii) of the first proviso to clause (2) of section 17 of the Income-tax Act,1961 (43 of 1961), the Central Government hereby notifies the following conditions, namely:-

1. The employee shall submit the following documents to the employer, –

• (i) the COVID-19 positive report of the employee or family member, or medical report if clinically determined to be COVID-19 positive through investigations, in a hospital or an in-patient facility by a treating physician of a person so admitted;
• (ii) all necessary documents of medical diagnosis or treatment of the employee or his family member for COVID-19 or illness related to COVID-19 suffered within six months from the date of being determined as COVID-19 positive; and
• (iii) a certification in respect of all expenditure incurred on the treatment of COVID-19 or illness related to COVID-19 of the employee or of any member of his family.

2. This notification shall be deemed to have come into force from the 1st day of April, 2020 and shall apply in relation to the assessment year 2020-2021 and subsequent assessment years.

[Notification No. 90/2022/F. No. 370142/31/2022-TPL (Part-2)]
UMME FARDINA ADIL, Under Secy., Tax Policy and Legislation Division

Note: It is certified that no person is being adversely affected by granting retrospective effect to this notification

Tax Relief in the repercussion of Covid-19

The Finance Act, 2022 introduced amendments to Section 56 (2)(x) to provide tax relief to taxpayers to tide over the Covid-19 health crisis during the financial year 2019-20 and subsequent years. As per the amendment, the amount received from the employer or any well-wisher for COVID-19 treatment is tax-free. Further, money received by the family members from the employer or any other person in case of demise of a breadwinner of the family will be exempt from tax. There is no exemption limit if the money is received from the employer. But there is an exemption limit of Rs 10 lakh for money received from any other person.

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MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION

New Delhi, the 10th August, 2022

F. No. 16/1/2015-PR.- Atal Pension Yojana. – In partial modification of Ministry of Finance, Department of Financial Services Notification No. 16/1/2015-PR dated 16th October, 2015 on Atal Pension Yojana, published in the Gazette of India, Extraordinary, Part I, Section 1, the following amendment are hereby made:-

I. In the said notification at the end of para 2 the following shall be inserted, namely:-

“Provided that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY.

Explanation: For the purpose of this clause, the expression “income-tax payer” shall mean a person who is liable to pay income-tax in accordance with the Income Tax Act, 1961, as amended from time to time.”.

II. In the said notification, at the end of para 13, the following shall be inserted, namely:-

“In case a subscriber, who joined on or after 1st October, 2022, is subsequently found to have been an income-tax payer on or before the date of application, the APY account shall be closed and the accumulated pension wealth till date would be given to the subscriber.”.

PANKAJ SHARMA, Jt. Secy.

The Original Notification was issued on 16th October, 2015 and was subsequently amended by Notification dated 19th January, 2016 and Notification dated 22nd March, 2016.

Source: egazette.nic.in

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Notification No. 05 of 2022

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Directorate of Systems

New Delhi, dated : 29.07.2022

Subject: Reduction of time limit for verification of Income Tax Return (ITR) from within 120 days to 30 days of transmitting the data of ITR electronically – reg.

The Central Board of Direct Taxes (CBDT) vide Circular No. 3/2009 dated 21-05-2009 notified the new Income Tax Return (ITR) forms for Assessment Year 2009-10 and provided the facility of furnishing ITR in the following manner:

• i. Furnishing the return in paper form
• ii. Furnishing the return electronically under digital signature
• iii. Transmitting the data in the return electronically and thereafter submitting the verification of the return in form ITR-V to CPC within 30 days after transmitting the data electronically
• iv. Furnishing a bar coded return in paper form.

2. Further as per clarifications provided in para 9 of the said circular, the date of transmitting the data electronically will be the date of furnishing the return if the form ITR-V is submitted within 30 days after the date of transmitting the data electronically. In case, form ITR-V is submitted after the above-mentioned period, it will be deemed that the return in respect of which the form ITR-V has been filled was never submitted and it shall be incumbent on the assessee to electronically re-transmit the data and follow it up by submitting the new form ITR-V within 30 days. Later, the CBDT extended the time-limit for filing ITR-V to 120 days from the date of uploading the return of income. (Press Release dated 27.01.2010).

3. The CBDT vide Notification no. 02/2012/F.No.142/27/2011-SO (TPL) dated 04.01.2012, notified the Centralised Processing of Returns Scheme, 2011 (CPR Scheme 2011). Rule 14 of CPR Scheme 2011 delegates the power to specify the mode, manner and time for verification of ITR-V.

4. It has been decided that in respect of any electronic transmission of return data on or after the date this Notification comes into effect, the time-limit for e-verification or submission of ITR-V shall now be 30 days from the date of transmitting/uploading the return data is electronically.

5. It is clarified that where the return data is electronically transmitted before the due date on which this Notification comes into effect, the earlier time limit of 120 days would continue to apply in respect of such returns.

6. It is further clarified:

• (i) Where ITR data is electronically transmitted and e-verified/ITR-V submitted within 30 days of transmission of data – in such cases the date of transmitting the data electronically shall be considered as the date of furnishing the return of income.
• (ii) Where ITR data is electronically transmitted but e-verified or ITR-V submitted beyond the time-limit of 30 days of transmission of data – in such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow.

7. Duly verified ITR-V in the prescribed format and in the prescribed manner should be sent by speed post only to

Centralised Processing Centre,
Income Tax Department,
Bengaluru – 560500, Karnataka.

8. The date of dispatch of Speed Post of duly verified ITR-V shall be considered for the purpose of determination of the 30 days period, from the date of transmitting the data of Income-tax return electronically.

9. This Notification shall be applicable for electronically transmitted Income-tax return data filed on the e-filing portal (www.incometax.gov.in). This issues by the power conferred to the undersigned under the Rule 14 of Centralized Processing of Returns Scheme 2011 (CPR Scheme 2011) dated 04.01.2012, notified by the CBDT Notification No. 02/2012- F.No. 142/27/2011-SO(TPL).

10. This notification will come into effect from 01.08.2022.
11. Hindi version to follow.

(Govind Lal)
Director General of Income-tax(Systems)

Source: www.incometax.gov.in

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