Income-Tax Deduction from Salaries During FY 2018-19

CIRCULAR NO: 01/2019

F.No. 275/192/2018-IT(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

******

North Block, New Delhi

Dated the 1st January, 2019

SUBJECT: INCOME - TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2018-19 UNDER SECTION 192 OF THE INCOME- TAX ACT, 1961.

Reference is invited to Circular No. 29/2017 dated 05.12.2017 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 2017-18, 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 2018 -19 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.

2. RATES OF INCOME -TAX AS PER FINANCE ACT, 2018:

As per the Finance Act, 2018, income- tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2018 - 19 (i.e. Assessment Year 2019 - 20) at the following rates:

2.1 Rates of tax

A. Normal Rates of tax:

Sl N.	Total Income	Rate of tax
1.	Where the total income does not exceed Rs. 2,50,000/-	Nill-
2.	Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-	5 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. 12,500/-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.1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/

B. 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:

Sl N.	Total Income	Rate of tax
1.	Where the total income does not exceed Rs. 3,00,000/-	Nill-
2.	Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-	5 per cent of the amount by which the total income exceeds Rs. 3,00,000/-
3.	Where the total income exceeds Rs. 5,00,000/-but does not exceed Rs. 10,00,000/-	Rs. 10,000/-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.1,10,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/

2.2 Surcharge on Income tax:

The amount of income - tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Act, shall be increased by a surcharge for the purpose 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 Act,-

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten percent of such income-tax and

(b) having a total income exceeding one crore rupees, at the rate of fifteen percent of such income-tax:

Provided 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, 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 one crore rupees by more than the amount of income that exceeds one crore rupees

2.3.1 Health and Education Cess

Education Cess on income- tax and Secondary and Higher Education Cess on income-tax shall be discontinued. However, a new cess, by the name “Health and Education Cess” 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.

3. TDS from Salaries – IT Circular 1/2019 [BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM SALARIES]

3.1 Method of Tax Calculation - TDS from Salaries – IT Circular 1/2019
3.2.1 Computation of Average Income Tax - TDS from Salaries – IT Circular 1/2019
3.3 Salary From More Than One Employer - TDS from Salaries – IT Circular 1/2019
3.4 Relief When Salary Paid in Arrear or Advance - TDS from Salaries – IT Circular 1/2019
3.5 Information regarding Income under any Other head - TDS from Salaries – IT Circular 1/2019
3.6 Computation of Income under the head ― Income from house property - TDS from Salaries – IT Circular 1/2019
3.7 Adjustment for Excess or Shortfall of Deduction - TDS from Salaries – IT Circular 1/2019

4. PERSONS RESPONSIBLE FOR DEDUCTION OF TAX AND THEIR DUTIES – IT Circular 1/2019

4.3 Deduction of Tax at Lower Rate
4.4.1 Due dates for 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)
4.8 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

5. COMPUTATION OF INCOME UNDER THE HEAD ―SALARIES – IT Circular 1/2019

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 Deduction u/s 16 of the Act form the Income from Salaries
5.5 Deductions under Chapter VI-A of the Act

6. REBATE OF RS. 2500 FOR INDIVIDUAL HAVING TOTAL INCOME UPTO RS. 3.5 LAKH (SECTON 87A)

7. TDS ON PAYMENT OF ACCUMULATD BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTIBUTION FROM APPROVED SUPERANNUATION FUND.

8. DDOS TO SATISFY THEMSELVES OF THE GENUINENESS OF CLAIM

9. CALCULATION OF INCOME -TAX TO BE DEDUCTED

10. MISCELLANEOUS

10.1 These instructions are not exhaustive and are issued only with a view to guide the employers to understand the various provisions relating to deduction of tax from salaries. Wherever there is any doubt, reference may be made to the provisions of the Income-tax Act, 1961, the Income-tax Rules, 1962, the Finance Act 2018, the relevant circulars / notifications, etc.

10.2 In case any assistance is required, the Assessing Officer/the Local Public Relation Officer of the Income-tax Department may be contacted.

10.3 These instructions may be brought to the notice of all Disbursing Officers and Undertakings including those under the control of the Central/ State Governments.

10.4 Copies of this Circular are available at the following websites: www.finmin.nic.in & www.incometaxindia.gov.in

Sandeep Singh

Under Secretary to the Govt. of Indi

Important Illustration Must Read

ANNEXURE-I

SOME ILLUSTRATIONS

Example 1

For Assessment Year 2019-20

(A) Calculation of Income tax in the case of an employee (Male or Female) below the age of sixty years and having gross salary income of:

i) Rs.2,50,000/-
ii) Rs.4,00,000/-
iii) Rs.10,00,000/-
iv) Rs.55,00,000/- and
v) Rs. 1,10,00,000/-

(B) What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:

Particulars	Rupees(i)	Rupees(ii)	Rupees(iii)	Rupees(iv)	Rupees(v)
Gross Salary Income (including allowances)	2,50,000	4,00,000	10,00,000	55,00,000	1,10,00,000
Contribution of G.P.F.	45,000	50,000	1,00,000	1,00,000	1,00,000

Computation of Total Income and tax payable thereon

Particulars	Rupees(i)	Rupees(ii)	Rupees(iii)	Rupees(iv)	Rupees(v)
Gross Salary	2,50,000	4,00,000	10,00,000	55,00,000	1,10,00,000
Less: Deduction U/s 80C	45,000	50,000	1,00,000	1,00,000	1,00,000
Taxable Income	2,05,000	3,50,000	9,00,000	54,00,000	1,09,00,000
(A) Tax thereon	Nil	2,500*	92,500	14,32,500	30,82,500
Surcharge				1,43,250	4,62,375
Add: Health & Education Cess @ 4%	Nil	100	3700	63,030	1,41,795
Total tax payable	Nill	2600	96,200	16,38,780	36,86,670

* After rebate of Rs 2500 u/s 87A
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Example 2

For Assessment Year 2019-20

Calculation of Income Tax in the case of an employee below the age of sixty years having a handicapped dependent (With valid PAN furnished to employer).

S. No	Particulars	Rupees
1	Gross Salary	4,20,000
2	Amount spent on treatment of a dependant, being person with disability (but not severe disability)	7000
3	Amount paid to LIC with regard to annuity for the maintenance of a dependant, being person with disability(but not severe disability)	60,000
4	GPF Contribution	25,000
5	LIP Paid	10,000
6	Interest Income on Savings Account	12,000

Computation of Tax

S. No	Particulars	Rupees
1	Gross Salary	4,20,000
2	Add: Income from Other Sources Interest Income on Savings Account	Rs 12,000
3	Gross Total Income	4,32,000
4	Less: Deduction U/s 80DD (Restricted to Rs. 75,000/-only)	60,000
5	Less: Deduction U/s 80C (i) GPF Rs.25,000/- + (ii) LIP Rs.10,000/- = Rs.35,000/-	35,000
6	Less: Deduction u/s 80TTA on Interest Income on savings account (restricted to Rs 10000/-)	10,000
7	Total Income	2,97,000
8	Income Tax thereon/payable (includes Rebate of Rs 2500 as per Section 87A	Nill
9	Add: Health & Education Cess @ 4%.Nil	Nill
10	Total Income Tax payable	Nil
11	Rounded off to	Nil

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Example 3

For Assessment Year 2019-20

Calculation of Income Tax in the case of an employee below age of sixty years where medical treatment expenditure was borne by the employer (With valid PAN furnished to employer).

S. No	Particulars	Rupees
1	Gross Salary	5,20,000
2	Medical Reimbursement by employer on the treatment of self and dependent family member	35,000
3	Contribution of GPF	20,000
4	LIC Premium	20,000
5	Repayment of House Building Advance	25,000
6	Tuition fees for two children	60,000
7	Investment in Unit-Linked Insurance Plan	30,000
8	Interest Income on Savings Account	8,000
9	Interest Income on Time Deposit	15,000

Computation of Tax

S. No	Particulars	Rupees
1	Gross Salary	5,20,000
2	Add: Perquisite in respect of reimbursement of Medical Expenses In excess of Rs.15,000/- in view of Section 17(2)(v)	20,000
3	Income from Other Sources i) Interest Income on Savings Account Rs 8,000 ii) Interest Income on Time Deposit Rs 15,000	23,000
4	Gross Total Income	5,63,000
5	a. Less: Deduction U/s 80C (i) GPF Rs.20,000/- (ii) LIC Rs.20,000/- (iii) Repayment of House Building Advance Rs.25,000/- (iv) Tuition fees for two children Rs.60,000/- (v) Investment in Unit-Linked Insurance Plan Rs.30,000/- Total =Rs.1,55,000/- Restricted to Rs.1,50,000/- b. Less: Deduction u/s 80TTA on Interest Income on savings account (restricted to Rs 10,000/- available only on Savings account interest) Rs 8000 Total deduction available Rs 1,58,000/-	1,58,000
6	Total Income	4,05,000
7	Income Tax thereon/payable 7,750	Nill
8	Add: Health & Education Cess @ 4%.Nil	310
9	Total Income Tax payable	8060

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Example 4

For Assessment Year 2019-20

Calculation of Income Tax in the case of an employee below age of sixty years where medical treatment expenditure was borne by the employer (With valid PAN furnished to employer).

S. No	Particulars	Rupees
1	Salary	3,50,000
2	Dearness Allowance	2,00,000
3	House Rent Allowance	1,40,000
4	House Rent Paid	1,44,000
5	General Provident Fund	36,000
6	Life Insurance Premium	4,000
7	Subscription to Unit-Linked Insurance Plan	50,000

Computation of total income and tax payable thereon

S. No	Particulars	Rupees
1	Salary+Dearness Allowance+House Rent Allowance 3,50,000+2,00,000+1,40,000=6,90,000	6,90,000
2	Total Salary Income	6,90,000
3	Less: House Rent allowance exempt U/s 10(13A): Least of: (a). Actual amount of HRA received = 1,40,000 (b). Expenditure of rent in excess of 10% of salary (including D.A. presuming that D.A. is taken for retirement benefit) (1,44,000-55,000) = 89,000 (c). 50% of Salary(Basic+ DA) = 2,75,000 [Bombay/Kolkata/Delhi/Chennai] or 40% of salary (Basic + DA) in case of other cities	89,000
	Gross Total Income	6,01,000
	Less: (i) GPF = Rs. 36000/- (ii) LIC = Rs. 4000/- (iii) Investment in Unit Linked Insurance Plan = Rs. 50,000/- Total = Rs. 90,000/-	90,000
	Total Income	5,11,000
	Tax Payble	14700
	Add: Health & EducationCess @ 4%	588
	Total Income Tax payable	15288
	Rounded off to	15290

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Example 5

For Assessment Year 2019-20

Illustrating valuation of perquisite and calculation of tax in the case of an employee below age of sixty years of a private company in Mumbai who was provided accommodation in a flat at concessional rate for ten months and in a hotel for two months ( With valid PAN furnished to employer).

S. No	Particulars	Rupees
1	Salary	7,00,000
2	Bonus	1,40,000
3	Free gas, electricity, water etc. (Actual bills paid by company)	40,000
4(a)	Flat at concessional rate (for ten month). @ Rs.36000/- month	3,60, 000
4(b	Hotel rent paid by employer (for two month)	1,00,000
4(c)	Rent recovered from employee.	60,000
4(d)	Cost of furniture.	2,00,000
5	Subscription to Unit Linked Insurance Plan	50,000
6	Life Insurance Premium	10,000
7	Contribution to recognized P.F.	42,000

Computation of total income and tax payable thereon

S. No	Particulars	Rupees
1	Salary	7,00,000
2	Bonus	1,40,000
3	Total Salary(1+2) for Valuation of Perquisites	8,40,000
	Valuation of perquisites
4(a)	Perquisite for flat (Cities having population>25 lakh as per 2000 census) Lower of (15% of salary for 10 months = Rs.1,05,000/-) and (actual rent paid= Rs 3,60,000) i.e. Rs. 1,05,000	1,38,600
4(b)	Perquisite for hotel: Lower of (24% of salary of 2 months = Rs 33,600) and (actual payment= Rs 1,00,000) i.e. Rs 33,600
4(c)	Perquisites for furniture @ 10% of cost (10% of Rs. 2,00,000) Rs. 20,000
4(c)(i)	Total of [4(a)+(b)+(c)] (1,05,000+ 33,600+ 20,000)Rs.158,600 Less: rent recovered (-) Rs.60,000 = Rs. 98,600
4(d)	Add Perquisite for free gas, electricity, water etc. Rs.40,000(+) Rs 98,600 [4(c)(i)] = Rs 1,38,600 Total perquisites
5	Gross Total Income (Rs.8,40,000+ 1,38,600)	9,78,600
6	Gross Total Income 9,78,600	9,78,600
7	Less: Deduction U/s 80C: (i). Provident Fund (80C): 42,000 (ii). LIC (80C) :10,000 (iii). Subscription to Unit Linked Insurance Plan(80C) :50,000/- Total = 1,02,000 Restricted to Rs 1,02,000 u/s 80C	1,02,000
8	Total Income	8,76,600
9	Tax Payable	87,820
10	Add: Health & Education Cess @ 4%.	3513
11	Total Income Tax payable	91,333
12	Rounded off to	91,330

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Example 6

For Assessment Year 2019-20

Illustrating Valuation of perquisite and calculation of tax in the case of an employee below the age of 60 years of a Private Company posted at Delhi and repaying House Building Loan ( With valid PAN furnished to employer).

S. No	Particulars	Rupees
1	Salary	4,00,000
2	Dearness Allowance	1,00,000
3	House Rent Allowance	1,80,000
4	Special Duties Allowance	12, 000
5	Provident Fund	60,000
6	LIP	10,000
7	Deposit in NSC VIII issue	30,000
8	Rent Paid for house hired by employee 1,20,000	1,20,000
9	Repayment of House Building Loan (Principal)	60,000
10	Tuition Fees for three children (Rs.10,000 per child)	30,000

Computation of total income and tax payable thereon

S. No	Particulars	Rupees
1	Salary(Basic+DA+HRA+SDA)	6.92,000
	Less: House rent allowance exempt U/s 10 (13A) Least of: (a). Actual amount of HRA received. :Rs.1,80,000 (b). Expenditure on rent in excess of 10% of salary (Including D.A.)assuming D.A. is included for retirement benefits (1,20,000- 50,000) :Rs. 70,000 (c). 50% of salary (including D.A) : Rs. 2,50,000	70,000
2	Gross Total Income Taxable	6,22,000
	Less: Deduction U/s 80C (i). Provident Fund : 60,000 (ii). LIP: 10,000 (iii). NSC VIII Issue: 30,000 (iv). Repayment of HBA : 60,000 (v). Tuition Fees (Restricted to two children): 20,000 Total: 1,80,000 Restricted to 1,50,000	1,50,000
	Total Income	4,72,000
	Income Tax thereon/payble	11,100
10	Add: Health & Education Cess @ 4%.	444
11	Total Income Tax payable	11,544
12	Rounded off to	11,540

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Example 7

For Assessment Year 2019-20

A. Calculation of Income tax in the case of a retired employee above the age of sixty years but below the age of 80 years and having gross pension of:

iv) Rs.4,50,000/-
v)Rs.8,00,000/-
vi) Rs. 12,50,000/-.

B. What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:

Particulars

Rupees(i)

Rupees(ii)

Rupees(iii)

Gross Pension

4,50,000

8,00,000

12,50,000

Contribution of P.P.F.

70,000

1,00,000

1,50,000

Computation of total income and tax payable thereon

Particulars	Rupees(i)	Rupees(ii)	Rupees(iii)
Gross Pension	4,50,000	8,00,000	12,50,000
Less: Deduction U/s 80C	70,000	1,00,000	1,50,000
Taxable Income	3,80,000	7,00,000	11,00,000
Tax thereon	4,000	50,000	1,40,000
Add: Health & Education Cess @ 4%.	160	2000	5600
Total tax payable	4,160	52,000	1,45,600

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Example 8

For Assessment Year 2019-20

A. Calculation of Income tax in the case of a retired employee above the age of 80 years and having gross pension of:

iv) Rs.5,00,000/-
v)Rs.8,00,000/-
vi) Rs. 12,50,000/-.

B What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:

Particulars	Rupees(i)	Rupees(ii)	Rupees(iii)
Gross Pension	5,00,000	8,00,000	12,50,000
Contribution of P.P.F.	80,000	1,12,000	1,50,000

Computation of total income and tax payable thereon

Particulars	Rupees(i)	Rupees(ii)	Rupees(iii)
Gross Pension	5,00,000	8,00,000	12,50,000
Less: Deduction U/s 80C	80,000	1,20,000	1,50,000
Taxable Income	4,20,000	6,80,000	11,00,000
Tax thereon	Nill	36,000	1,30,000
Add: Health & Education Cess @ 4%.	Nill	1,440	5,200
Total tax payable	Nill	37,440	1,35,200

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Example 9

For Assessment Year 2019-20

1.Mr. A, employed with XYZ Ltd. Up to 31.10.2016, received following emoluments :

S. No	Particulars	Rupees
1	Basic pay p.m.	13,000
2	Bonus for the year received in July, 2015	7,200
3	Club facility (for private use only) Expenditure by employer p.m.	700
4	House Rent Allowance p.m.2,800	2800
5	Employer‘s contribution to URPF p.m. (Mr. A also made equal contribution)1,000	1000
	W.e.f. 01.11.2015, Mr. A joined PQR Ltd., with following pay package :
1	Basic pay p.m.18,000	18,000
2	House Rent Allowance p.m.1,600.	1,600
3	Club Facility (for private use only) Expenditure by employer p.m.	1,100
4	Use of car for journey between office and residence – Employer‘s expenditure p.m.	600
5	Employer‘s contribution to RPF p.m. (Mr. A also made equal contribution)	2000
	Other particulars of Mr. A are as under :
1	1. Mr. A resides at Amritsar paying a monthly rent of	3,500
2	2 Mr. A‘s income from other sources	95,000
3	Mr. A contributed to LIC/PPR/NSC etc.	20,000
Compute Mr. A‘s taxable income and tax liability for A.Y. 2017-18.

Computation of total income and tax payable thereon

S. No	Particulars	Rupees
1	Income from Salary
	a) From XYZ Ltd.	4,89,600
	Basic pay (Rs.13,000 x 7)	91,000
	Bonus	7,200
	Club facility (Rs.700 x 7) Rupees	4,900
	H.R.A. (Rs.2,800 x 7) = 19,600
	Less : Exempt u/s 10(13A) = 15,400	4,200
	Employer‘s Contribution to U.R.P.F.	1,07,300
	(b) From PQR Ltd. \| Rupees Basic pay (Rs.18,000 x 5) = 90,000 H.R.A. (Rs.1,600 x 5) = 8,000 Less : Exempt u/s 10(13A) = 8,000 Club Facility (Rs.1,100 x 5) = 5,500 Facility of Car (not taxable as perquisite) = 15,400
	Employer‘s Contribution to R.P.F.	95,500
	Gross Salary	2,02,800
	Less Deduction	-----
	Net Salary	2,02,800
2	Income from Others Sources	95,000
	Gross Total Income	2,97,800
	Less : Deduction u/s 80C : Contribution to LIC/PPF/NSC = Rs. 20,000 : Contribution to RPF ( Rs.2000 x 5) = Rs. 10,000	30,000
	Total Income	2,67,800
	Computation of Tax Liability
	Tax payable on Rs.2,67,800	8,90
	Less : Rebate u/s 87A	8,90
	Net Income-tax payable	Nil
	Add : Surcharge	Nil
	Add : Health & Education Cess @ 4%.	------------
	Total Tax Payable	Nil

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Example 10

For Assessment Year 2019-20

2. One Computation of Taxable Salary and allowances, Deduction for Interest on Housing Loan and Deduction u/s 80C.Mr. X, a Central Govt. Officers in Delhi, is receiving Basic Pay Rs. 40,000, DA at prescribed rates, transport allowances @ Rs.3600+DA thereon, and HRA (existing-from 1st July 2017 @24% of basic pay (though living in his own house). His date of increment is Ist July. The following are other particulars of his income. Compute his taxable income and tax payable, for A.Y.2019 -20.

S. No	Particulars	Rupees
1	Honorarium for valuation of answer books of a departmental examination	3,000
2	Fee for work done for a private body (1/3rd of fees has been retained by Govt.)	6,000
3	Contributions to G.P.F. p.m.	4,700
4	Postal Life Insurance Premium financed from G.P.F. p.m.	280
5	Contribution to Central Govt. Employees Group Insurance Scheme p.m.	500
6	Life Insurance Premium (being a Life Insurance Policy of Rs.1,00,000 taken in name of his wife before 1.04.2012)	10,500.
7	Contribution to Public Provident Fund	10,000
8	Repayment of HDFC loan borrowed after 1.04.1999 EMI Rs.25,000 (Towards loan Rs.95,000, towards interest Rs.2,05,000)	3,00,000

Computation of total income and tax payable thereon

S. No	Particulars	Rupees
1	Income from Salary Basic Pay @ Rs 40,000 p.m
	(March to June ‘18) = 1,60,000 @ Rs 41,200 p.m * (July 2017 to Feb 2018) = 3,29,600	4,89,600
	Dearness Allowance 1.3.2018 to 30.06.2018 @ 7% i.e., Rs 40,000 p.m = 11,200 1.7.2018 to 31.12.2018 @ 9% i.e. Rs 41,200 p.m = 22,248 1.1.2019 to 28.02.2019 @ 11% (assumed) i.e.,Rs. 41,200 p.m =9,064	5,32,112
	House Rent Allowance = 1,17,504	6,49,616
	Transport Allowance 1.3.2018 to 30.6.2018 @ Rs 3200 p.m = 12,800 1.7.2018 to 31.12.2018 @ Rs 3780 p.m = 22,680 1.1.2019 to 28.2.2019 @ Rs 3852 p.m = 7704	43,184
	Less: Exempt u/s 10(14) @ 800 p.m = 19200	23984
		6,73,600
	Honorarium	3,000
	Fees (2/3 retained by him)	4,000
	Total Salary	6,80,600
	Less: Standard Deduction	-
	Net Salary	6,80,600
2	Income from House Property
	Self-occupied u/s 23(2)(a) where property is acquired/constructed with borrowed capital on or after 1.4.1999 and such acquisition/construction computed within five years from the end of FY in which capital was borrowed.	Nil
	Less: Interest on HDFC Loan (upto Rs. 2,00,000) 2,00,000(-)	2,00,000
	Gross Total Income	4,80,600
	Less:Deduction u/s 80 C-
	GPF @ Rs 4,700/-p.m = 56,400-
	CGEGIS @ Rs 500/-p.m = 6,000-
	Life Insurance Premium = 10, 500-
	Repayment of HDFC Loan = 95,000-
	Deposit in Public Provident Fund = 10,000
	1,77,900
		1,50,000
	Restricted to a maximum of Taxable Income	3,30,600
	Computation of Tax Liability	4030
	Tax payable
	Add: Surcharge -
	Add: Health & Education Cess @4%	161
	Total Tax Liability	1691*

*After rebate of Rs 2500 u/s 87A

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Bharat Pensioners Samaj

Income-Tax Deduction from Salaries During FY 2018-19 - IT Circular 1/2019

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