TDS on Salary AY 2017-18 - CBDT Guidelines

TDS on Salary AY 2017-18 - CBDT Guidelines

CBDT vide its Circular No : 01/2017 dated 02-01-2017 (F.No. 275/192/2016-IT(B)) issued complete guidelines for TDS on Salary A Y 2017-18.  During the Financial Year 2016-17 Under Section 192 of The Income-Tax Act 1961.

This 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 &  explains certain related provisions of the Act and Income-tax Rules, 1962.

Index of Contents

CBDT Circular No. 1/ 2017 dt. 2 Jan. 2017 TDS on Salary F.No. 275/192/2016-IT(B)

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

4.1 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 19 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 FILLING 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

TDS on Salary AY 2017-18 - CBDT Guidelines

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