Tuesday, September 4, 2012

TDS RATES ON SALARY FY 2012-13 PROVISION SECTION 192


on Tuesday, September 4, 2012

TDS on Salary (Section 192)
  • Any person responsible for paying any income (employer) chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax on the amount payable at the rates applicable to the estimated income of the assessee (employee) under this head for that financial year. 
  • It is not the total  income that is subject to deduction of tax at source but the estimated income under the head “Salaries” that is important. 
  • W.e.f. August 1, 1998, an assessee having an income under the head ‘salaries’ may furnish in the prescribed manner(now on plain paper) giving the details of the losses under the head ‘Income from House Property’ to the person responsible for making the payment who shall taking into account such loss for the purposes of computing the tax deductible from salaries, which may be reduced in such a case. 
  • Only where the loss under the head “Income from House Property” has been taken into account TDS deductible from the head salaries may be reduceddue to such loss taken into account. 
  • For this purpose the salary shall be computed  as under the head ‘Salaries’.
  • From such salary the following deductions shall be made: 
    • (a) amount deductible Sections 80C, 80CCC ,80D, 80DD and 80E
    • (b) deduction under Section 80G, in respect of donations made to the National Defence Fund, Jawahar Lal Nehru Memorial Fund, the Prime Minister’s Drought Relief Fund etc. subject to conditions laid down under Section 80G
    • (c) deduction under Section 80GG in respect of rent paid;
    • (d) deduction under Section 80RRA in respect of remuneration received in foreign currency;
    • (e) deduction under Section 80U on production of a certificate by the employee from the Assessing Officer authorising such deduction.
(ii) The employer may, at the time of making any deduction, increase or reduce the amount to be deducted for the purpose of adjusting any excess or deficiency arising out of any previous deductions or failure to deduct during the financial year. 


(iii) The trustees of a recognised provident fund or an approved superannuation fund shall deduct the tax at the time of the accumulated balance due to an employee is paid provided it is not exempted. 

(iv) Where the salary is payable to an assessee outside India in foreign currency its value in rupees shall be the telegraphic transfer buying rate of such currency as on the date on which the tax is required to be deducted at source. ‘Telegraphic transfer buying rate’ means the rate of exchange adopted by the State Bank of India for buying such currency as made available to the bank through a telegraphic transfer. 

(V) The tax deducted at source must be paid to the credit of the Central Government through the prescribed Challan within 7 days from the end of the month in which tax is deductible.

Tax rates at a Glance.

Limit
Female/ Male/ Other
Sr Citzen
Very sr Citizen
Exemption
200000
250000
500000
10% Slab
200000-500000
250000-500000
0
20% slab
500000-1000000
500000-1000000
500000-1000000
30% slab
above 1000000
above 1000000
above 1000000




RATES OF INCOME-TAX after Budget 2012 presented on 16.03.2012

A. Normal Rates of tax:

   1.  Where the total income does not exceed Rs. 2,00,000/-.
Nil
   2.  Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/-
10 per cent of the amount by which the total income exceeds Rs.2,00,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 30,000/- 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. 130,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.
B. Rates of tax for a woman, resident in India and below sixty years of age at any time during the financial year:

   1.  Where the total income does not exceed Rs.2,00,000/-.
Nil
   2.  Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/-.
10 per cent, of the amount by which the total income exceeds Rs. 2,00,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 30,000/- 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. 130,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty years or more but less than eighty years at any time during the financial year:

   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. 125,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.
D. 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:

   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/-

1. Surcharge on Income tax: There will be no surcharge on income tax payments by individual taxpayers during FY 2012-13 (AY 2013-14).

2. Cess :3 %

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  1. 1) I have an FDR on which TDS @ 10% have been deducted during the financial yr 2011-2012. Form 16A received. May I know that Which ITR I have to be filled for refund of this money.

    2) I also received a commission of Rs 10,000/ from a financial company for deposited policies. TDS @ 10% have been deducted by the company and issued the Form 16A.

    Can both of these amount refunded in one ITR & which ITR will be filled .

    ReplyDelete
    Replies
    1. You should file ITR-1 and show both these income under income from other source .

      Technically ITR-4 is required but that is very lengthy

      Delete