CBDT Guidelines for TDS on Salary A Y 2017-18

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

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The above circular have detailed procedure about TDS on Salary for A Y 2017-18. The index of all items is as under:

Para No. Page No.
1 GENERAL 1
2 RATES OF INCOME-TAX AS PER FINANCE ACT, 2013 1
2.1 Rates of tax 1
2.2 Surcharge on Income tax 2
2.3.1 Education Cess on Income tax 2
2.3.2 Secondary and Higher Education Cess on Income-tax 2
3 BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM “SALARIES”. 2
3.1 Method of Tax Calculation 2
3.2 Payment of Tax on Non monetary Perquisites by Employer 2
3.2.1 Computation of Average Income Tax 2
3.3 Salary From More Than One Employer 3
3.4 Relief When Salary Paid in Arrear or Advance 3
3.5 Information regarding Income under any Other head 3
3.6 Computation of Income under the head “Income from house property’ 3
3.7 Adjustment for Excess or Shortfall of Deduction 4
3.8 Salary Paid in Foreign Currency 4
4 PERSONS RESPONSIBLE FOR DEDUCTION TAX AND THEIR DUTIES 4
4.1 Stipulation of section 204 of the Act 4
4.2 Tax determined to be deducted from Salary u/s 192 4
4.3 Deduction of Tax at Lower Rate 5
4.4 Deposit of Tax Deducted 5
4.4.1 Due dates for payment of TDS 5
4.4.2 Mode of payment of TDS 5
4.5 Interest, Fee, Penalty & Prosecution for Failure to Deposit Tax Deducted: 6
4.6 Furnishing of Certificate for Tax Deducted (Section 203) 6
4.7 Mandatory Quoting of PAN and TAN 8
4.8 Compulsory Requirement to furnish PAN by employee (Section 206AA) 8
4.9 Statement of Deduction of tax under of section 200(3) [Quarterly Statement of TDS] 9
4.10 TDS on Income from Pension 10
4.11 Matters pertaining to the TDS made in case of Non Resident 10
5 COMPUTATION OF INCOME UNDER THE HEAD “SALARIES” 10
5.1 Income chargeable under the head “Salaries”: 10
5.2 Definition of “Salary”, “perquisite” and “profit in lieu of salary” (Section 17) 10
5.3 Income not included under the Head “Salaries” (Exemptions) 16
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 19
6 REBATE OF RS.5000 FOR INDIVIDUAL HAVING TOTAL INCOME UPTO RS. 5 LAKHS (SECTION 87A) 27
7 TDS        ON      PAYMENT OF        ACCUMULATED             BALANCE                UNDER RECOGNISED   PROVIDENT   FUND        AND    CONTRIBUTION   FROM APPROVED SUPERANNUATION FUND 27
8 DDOS TO SATISFY THEMSELVES OF THE GENUINENESS OF CLAIM 28
9 CALCULATION OF INCOME-TAX TO BE DEDUCTED 28
10 MISCELLANEOUS 28
READ  CBDT Circular on TDS on payments by broadcasters to production houses

ANNEXURES 

Anne xure Descriptions Page No.
No

I

 

SOME ILLUSTRATIONS

 

31-41

II FORM NO 12BA 42-43
IIa FORM NO 12BB 44-45
III REVISED PROCEDURE FOR FURNISHING QTLY E-TDS/TCS 46
STATEMENT BY DEDUCTORS/COLLECTORS
IV THE PROCEDURE OF FURNISHING FORM 24G 47-52
V PERSON RESPONSIBLE FOR FILLING FORM 24G IN CASE OF STATE 53
GOVT DEPARTMENTS/CENTRAL GOVT DEPARTMENTS
VI PROCEDURE OF PREPARATION OF QUARTERLY STATEMENT OF 54-55
DEDUCTION OF TAX u/s 200 (3)
VII DEPTT. OF ECO. AFFAIRS NOTIFICATION DATED 22.12.2003 56
VIII BOARD’S NOTIFICATION DATED 24.11.2000 57
IX BOARD’S NOTIFICATION DATED 29.01.2001 58
X FORM NO. 10 BA 59

Source: http://irsofficersonline.gov.in/Documents/OfficalCommunique/1162017105127.pdf