Friday, 12 December 2014

Download Circular for Income Tax Deduction from Salaries during the Fin. Year 2014-15

Recently, Central Board of Direct Taxes has issued a Circular No.  17/2014 for Income Tax Deduction from Salaries during the Financial Year 2014-15 under section 192 of the income Tax Act, 1961.

Reference is invited to Circular No.08/2013 dated 25.10.2013 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 2013-14, 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 2014-15 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.

As per the recent circular of CBDT the Rates of Income Tax is as under:
As per the Finance (No. 2) Act, 2014, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2014-15 (i.e. Assessment Year 2015-16) at the following rates:

Rates of tax
Normal Rates of tax:



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:



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:



Surcharge on Income tax:
The amount of income-tax shall be increased by a surcharge @10% of the income-tax on payments to an individual taxpayer, if the total income of the individual exceeds Rs 1 crore during FY 2014-15 (AY 2015-16). However the amount of Surcharge shall not exceed the amount by which the individual‘s total income exceeds Rs 1 crore and if surcharge so arrived at, exceeds such amount (assessee‘s total income minus one crore) then it will be restricted to the amount of total income minus Rupees one crore.

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.

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.

To Download Circular for Income Tax Deduction from Salary For Asstt. Year 2015-16

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