Income Tax TDS on Salary Rate & Provisions A.Y.

2012-13
TDS on Salary Rate & Provisions A.Y. 2012-13
on!ay" A#ril 30" 2012" $%&$
Income Tax
'eat(re!" )oti*ication
TDS on Salary Provisions Applicable for A.Y. 2012-13 !inancial Year 2011-12 alon"
#it$ for%at of !or%s an& 'n&erta(in"s
Re*erence is invite! to +irc(lar )o.0$,2010 !ate! 13.12.2010 -.ere/y t.e rates o* !e!(ction
o* income-tax *rom t.e #ayment o* income (n!er t.e .ea! 0Salaries1 (n!er Section 122 o*
t.e Income-tax Act" 12314.ereina*ter 5t.e Act67" !(rin8 t.e *inancial year 2010-2011" -ere
intimate!. T.e #resent +irc(lar contains t.e rates o* !e!(ction o* income-tax *rom t.e
#ayment o* income c.ar8ea/le (n!er t.e .ea! 0Salaries1 !(rin8 t.e *inancial year 2011-2012
an! ex#lains certain relate! #rovisions o* t.e Income-tax Act.
2. !)*A*+, A+T-2011
As #er t.e 'inance Act" 2011" income-tax is re9(ire! to /e !e!(cte! (n!er Section 122 o* t.e
Income-tax Act 1231 *rom income c.ar8ea/le (n!er t.e .ea! 0Salaries1 *or t.e *inancial
year 2011-2012 4i.e. Assessment Year 2012-20137 at t.e *ollo-in8 rates%
RAT,S .! )*+./,-TA0
A. *or%al Rates of ta12
1. :.ere t.e total income !oes
not excee! Rs. 1"$0"000,-.
Nil
2. :.ere t.e total income excee!s
Rs. 1"$0"000 /(t !oes not excee! Rs.
&"00"000,-
10 #er cent o* t.e amo(nt /y -.ic.
t.e total income excee!s Rs.
1"$0"000,-
3. :.ere t.e total income excee!s
Rs. &"00"000,- /(t !oes not excee!
Rs. $"00"000,-.
Rs. 32"000,- #l(s 20 #er cent o* t.e
amo(nt /y -.ic. t.e total income
excee!s Rs. &"00"000,-.
;. :.ere t.e total income excee!s
Rs. $"00"000,-.
Rs. 22"000,- #l(s 30 #er cent o* t.e
amo(nt /y -.ic. t.e total income
excee!s Rs. $"00"000,-.
3. Rates of ta1 for a #o%an- resi&ent in )n&ia an& belo# si1ty years of a"e at any ti%e
&4rin" t$e financial year2
1. :.ere t.e total income !oes
not excee! Rs. 1"20"000,-.
Nil
2. :.ere t.e total income
excee!s Rs. 1"20"000 /(t !oes not
excee! Rs. &"00"000,-.
10 #er cent" o* t.e amo(nt /y -.ic.
t.e total income excee!s Rs.
1"20"000,-
3. :.ere t.e total income
excee!s Rs. &"00"000,- /(t !oes
not excee! Rs. $"00"000,-.
Rs. 31"000,- plus 20 #er cent o* t.e
amo(nt /y -.ic. t.e total income
excee!s Rs. &"00"000,-.
;. :.ere t.e total income
excee!s Rs. $"00"000,-.
Rs. 21"000,- plus 30 #er cent o* t.e
amo(nt /y -.ic. t.e total income
excee!s Rs. $"00"000,-.

+. Rates of ta1 for an in&ivi&4al- resi&ent in )n&ia an& of t$e a"e of si1ty years or %ore
b4t less t$an ei"$ty years at any ti%e &4rin" t$e financial year2

1. :.ere t.e total income !oes
not excee! Rs. 2"&0"000,-.
Nil
2. :.ere t.e total income
excee!s Rs. 2"&0"000 /(t !oes not
excee! Rs. &"00"000,-.
10 #er cent" o* t.e amo(nt /y -.ic.
t.e total income excee!s Rs.
2"&0"000,-
3. :.ere t.e total income
excee!s Rs. &"00"000,- /(t !oes
not excee! Rs. $"00"000,-.
Rs. 2&"000,- plus 20 #er cent o* t.e
amo(nt /y -.ic. t.e total income
excee!s Rs. &"00"000,-.
;. :.ere t.e total income
excee!s Rs. $"00"000,-.
Rs. $&"000,- plus 30 #er cent o* t.e
amo(nt /y -.ic. t.e total income
excee!s Rs. $"00"000,-.

D. )n case of every in&ivi&4al bein" a resi&ent in )n&ia- #$o is of t$e a"e of ei"$ty years
or %ore at any ti%e &4rin" t$e financial year2

1. :.ere t.e total income !oes
not excee! Rs. &"00"000,-
Nil
2. :.ere t.e total income
excee!s Rs. &"00"000,- /(t !oes
not excee! Rs. $"00"000,-
20 #er cent o* t.e amo(nt /y -.ic.
t.e total income excee!s Rs.
&"00"000,-
3. :.ere t.e total income
excee!s Rs. $"00"000,-
Rs. 30"000,- plus 30 #er cent o* t.e
amo(nt /y -.ic. t.e total income
excee!s Rs. $"00"000,-

S4rc$ar"e on )nco%e ta12
T.ere -ill /e no s4rc$ar"e on income tax #ayments /y in!ivi!(al tax#ayers !(rin8 'Y
2011-12 4AY 2012-137.
,&4cation +ess on )nco%e ta12
T.e amo(nt o* income-tax s.all /e increase! /y <!(cation +ess on Income Tax at t.e rate o*
t#o percent o* t.e income-tax.
A&&itional s4rc$ar"e on )nco%e Ta1 5Secon&ary an& 6i"$er ,&4cation +ess on
)nco%e-ta172
'rom 'inancial Year 200=-0$ on-ar!s" an a!!itional s(rc.ar8e is c.ar8ea/le at t.e rate o*
one percent o* income-tax 4not incl(!in8 t.e <!(cation +ess on income tax7.
<!(cation +ess" an! Secon!ary an! >i8.er <!(cation +ess are #aya/le /y /ot. resi!ent an!
non-resi!ent assessees.
3.S,+T).* 182 .! T6, )*+./,-TA0 A+T-18912 3R.AD S+6,/, .! TA0
D,D'+T).* AT S.'R+, !R./ :SA;AR),S<.
/et$o& of Ta1 +alc4lation2
3.1 <very #erson -.o is res#onsi/le *or #ayin8 any income c.ar8ea/le (n!er t.e .ea!
0Salaries1 s.all !e!(ct income-tax on t.e estimate! income o* t.e assessee (n!er t.e .ea!
0Salaries1 *or t.e *inancial year 2011-2012. T.e income-tax is re9(ire! to /e calc(late! on
t.e /asis o* t.e rates 8iven a/ove s(/?ect to #rovisions o* sec 203AA o* t.e Income-tax Act
an! s.all /e !e!(cte! at t.e time o* eac. #ayment. )o tax -ill" .o-ever" /e re9(ire! to /e
!e!(cte! at so(rce in any case (nless t.e estimate! salary income incl(!in8 t.e val(e o*
#er9(isites" *or t.e *inancial year excee!s Rs. 1"$0"000,- or Rs.1"20"000,- or Rs. 2"&0"000,-
or Rs. &"00"000,-" as t.e case may /e" !e#en!in8 (#on t.e 8en!er an! a8e o* t.e em#loyee.
4Some ty#ical exam#les o* com#(tation o* tax are 8iven at Anne14re-)7.
Pay%ent of Ta1 on *on-%onetary Per=4isites by ,%ployer2
3.2 An o#tion .as /een 8iven to t.e em#loyer to #ay t.e tax on non-monetary #er9(isites
8iven to an em#loyee. T.e em#loyer may" at .is o#tion" ma@e #ayment o* t.e tax on s(c.
#er9(isites .imsel* -it.o(t ma@in8 any TDS *rom t.e salary o* t.e em#loyee. T.e em#loyer
-ill .ave to #ay s(c. tax at t.e time -.en s(c. tax -as ot.er-ise !e!(cti/le i.e. at t.e time
o* #ayment o* income c.ar8ea/le (n!er t.e .ea! 0salaries1 to t.e em#loyee.
+o%p4tation of Avera"e )nco%e Ta12
3.3 'or t.e #(r#ose o* ma@in8 t.e #ayment o* tax mentione! in #ara 3.2 a/ove" tax is to /e
!etermine! at t.e avera8e o* income tax com#(te! on t.e /asis o* rate in *orce *or t.e
*inancial year" on t.e income c.ar8ea/le (n!er t.e .ea! 0salaries1" incl(!in8 t.e val(e o*
#er9(isites *or -.ic. tax .as /een #ai! /y t.e em#loyer .imsel*.
);;'STRAT).*2
S(##ose t.at t.e income c.ar8ea/le (n!er t.e .ea! 0salaries1 o* a male em#loyee /elo-
sixty years o* a8e *or t.e year incl(sive o* all #er9(isites is Rs.;"&0"000,-" o(t o* -.ic."
Rs.&0"000,- is on acco(nt o* non-monetary #er9(isites an! t.e em#loyer o#ts to #ay t.e tax
on s(c. #er9(isites as #er t.e #rovisions !isc(sse! in #ara 3.2 a/ove.
ST,PS2

Income +.ar8ea/le (n!er t.e .ea! 0Salaries1 incl(sive o*
all #er9(isites%
Rs. ;"&0"000
Tax on Total Salaries4incl(!in8 +ess7% Rs. 2="$10
Avera8e Rate o* Tax A42="$10,;"&0"0007 B 100C% 3.1$D
Tax #aya/le on Rs.&0"000 E 43.1$D o* &0"0007% Rs. 3"020
Amo(nt re9(ire! to /e !e#osite! eac. mont.% Rs.
23042&=.&7
43020,127

T$e ta1 so pai& by t$e e%ployer s$all be &ee%e& to be TDS %a&e fro% t$e salary of t$e
e%ployee.
Salary !ro% /ore T$an .ne ,%ployer2
3.; S(/- section 427 o* section 122 !eals -it. sit(ations -.ere an in!ivi!(al is -or@in8
(n!er more t.an one em#loyer or .as c.an8e! *rom one em#loyer to anot.er. It #rovi!es *or
!e!(ction o* tax at so(rce /y s(c. em#loyer 4as t.e tax #ayer may c.oose7 *rom t.e
a88re8ate salary o* t.e em#loyee -.o is or .as /een in recei#t o* salary *rom more t.an one
em#loyer. T.e em#loyee is no- re9(ire! to *(rnis. to t.e #resent,c.osen em#loyer !etails o*
t.e income (n!er t.e .ea! 0Salaries1 !(e or receive! *rom t.e *ormer,ot.er em#loyer an!
also tax !e!(cte! at so(rce t.ere *rom" in -ritin8 an! !(ly veri*ie! /y .im an! /y t.e
*ormer,ot.er em#loyer. T.e #resent, c.osen em#loyer -ill /e re9(ire! to !e!(ct tax at
so(rce on t.e a88re8ate amo(nt o* salary 4incl(!in8 salary receive! *rom t.e *ormer or ot.er
em#loyer7.
Relief >$en Salary Pai& in Arrear or A&vance2
3.& Fn!er s(/-section 42A7o* section 122 -.ere t.e assessee" /ein8 a Government servant or
an em#loyee in a com#any" co-o#erative society" local a(t.ority" (niversity" instit(tion"
association or /o!y is entitle! to t.e relie* (n!er S(/-section 417 o* Section ?8" .e may
*(rnis. to t.e #erson res#onsi/le *or ma@in8 t.e #ayment re*erre! to in Para 43.17" s(c.
#artic(lars in 'orm )o. 10< !(ly veri*ie! /y .im" an! t.ere(#on t.e #erson res#onsi/le as
a*oresai! s.all com#(te t.e relie* on t.e /asis o* s(c. #artic(lars an! ta@e t.e same into
acco(nt in ma@in8 t.e !e!(ction (n!er Para43.17 a/ove.
Explanation :- For this purpose University means a University established or
incorporated by or under a Central, State or Provincial Act, and includes an institution
declared under section o! the University "rants Commission Act, #$%&' o! #$%&(, to be
University !or the purposes o! the Act.
:it. e**ect *rom 1,0;,2010 4AY 2010-117" no such relie! shall be )ranted in respect o! any
amount received or receivable by an assessee on his voluntary retirement or termination o!
his service, in accordance *ith any scheme or schemes o! voluntary retirement or in the case
o! a public sector company re!erred to in sub-clause 'i( o! clause '10+( o! section #+ 'read
*ith ,ule -.A(, a scheme o! voluntary separation, i! an e/emption in respect o! any amount
received or receivable on such voluntary retirement or termination o! his service or
voluntary separation has been claimed by the assessee under clause '10+( o! section #+ in
respect o! such, or any other, assessment year
3.3 4i7 S(/-section 42H7 o* section 122 ena/les a tax#ayer to *(rnis. #artic(lars o* income
(n!er any .ea! ot.er t.an 0Salaries1 4not /ein8 a loss (n!er any s(c. .ea! ot.er t.an t.e
loss (n!er t.e .ea! 1 income *rom .o(se #ro#erty17 receive! /y t.e assesse *or t.e same
*inancial year an! o* any tax !e!(cte! at so(rce t.ereon. 'orm no. 12+" -.ic. -as earlier
#rescri/e! *or *(rnis.in8 s(c. #artic(lars- .as since /een omitte! *rom t.e Income Tax R(les
/y t.e IT 42;
t.
amen!ment7 R(les" 2003" -.e.*. 01.10.2003. >o-ever" t.e #artic(lars may
no- /e *(rnis.e! in a si%ple state%ent" -.ic. is #ro#erly veri*ie! /y t.e tax#ayer in t.e
manner as #rescri/e! (n!er R(le 23H427 o* t.e Income Tax R(les"1232 an! s.all /e annexe!
to t.e sim#le statement. T.e *orm o* veri*ication is re#ro!(ce! as (n!er
!.R/ .! @,R)!)+AT).*
)- AAAAAAA. 5na%e of t$e assesse7- &o &eclare t$at #$at is state& above is tr4e to
t$e best of %y infor%ation an& belief.
4ii7 S(c. income s.o(l! not /e a loss (n!er any s(c. .ea! ot.er t.an t.e loss (n!er t.e .ea!
0Income *rom >o(se Pro#erty1 *or t.e same *inancial year. T.e #erson res#onsi/le *or
ma@in8 #ayment 4DDI7 s.all ta@e s(c. ot.er income an! tax !e!(cte! at so(rce" i* any" on
s(c. income an! t.e loss" i* any" (n!er t.e .ea! 0Income *rom >o(se Pro#erty1 into acco(nt
*or t.e #(r#ose o* com#(tin8 tax !e!(cti/le in terms o* section 12242H7 o* t.e Income-tax
Act. >o-ever" t.is s(/-section s.all not in any case .ave t.e e**ect o* re!(cin8 t.e tax
!e!(cti/le 4exce#t -.ere t.e loss (n!er t.e .ea! 0Income *rom >o(se Pro#erty1 .as /een
ta@en into acco(nt7 *rom income (n!er t.e .ea! 0Salaries1 /elo- t.e amo(nt t.at -o(l! /e
so !e!(cti/le i* t.e ot.er income an! t.e tax !e!(cte! t.ereon .a! not /een ta@en into
acco(nt6. In ot.er -or!s" t$e DD. can ta(e into acco4nt any loss 5ne"ative inco%e7 only
4n&er t$e $ea& :inco%e fro% 6o4se Property< an& no ot$er $ea& for #or(in" o4t t$e
a%o4nt of total ta1 to be &e&4cte&.B :.ile ta@in8 into acco(nt t.e loss *rom >o(se
Pro#erty" t.e DDI s.all ens(re t.at t.e assessee *iles t.e !eclaration re*erre! to a/ove an!
encloses t.ere-it. a com#(tation o* s(c. loss *rom >o(se Pro#erty. 'ollo-in8 !etails s.all
/e o/taine! an! @e#t /y t.e em#loyer in res#ect o* loss claime! (n!er t.e .ea! 1 income
*rom .o(se #ro#erty1 se#arately *or eac. .o(se #ro#erty%
4A7 +om#(tation o* income (n!er t.e .ea! 1 income *rom .o(se #ro#erty1 s#eci*yin8
4a7 Gross ann(al rent,val(e
4/7 (nici#al Taxes #ai!" i* any
4c7 De!(ction claime! *or interest #ai!" i* any
4!7 It.er !e!(ctions claime!
4H7 A!!ress o* t.e #ro#erty
4+7 Amo(nt o* loan" i* anyJ an!
4D7 )ame an! a!!ress o* t.e len!er 4loan #rovi!er7
4iii7 S(/-section 42+7 lays !o-n t.at a #erson res#onsi/le *or #ayin8 any income c.ar8ea/le
(n!er t.e .ea! 0salaries1 s.all *(rnis. to t.e #erson to -.om s(c. #ayment is ma!e a
statement 8ivin8 correct an! com#lete #artic(lars o* #er9(isites or #ro*its in lie( o* salary
#rovi!e! to .im an! t.e val(e t.ereo* in *orm no. 12HA 4Annex(re-II7. 'orm no. 12HA
alon8-it. *orm no. 13" as iss(e! /y t.e em#loyer" are re9(ire! to /e #ro!(ce! on !eman!
/e*ore t.e Assessin8 I**icer in terms o* Section 132+ o* t.e Income Tax Act.
+on&itions for +lai% of De&4ction of )nterest on 3orro#e& +apital for +o%p4tation of
)nco%e !ro% 6o4se Property
3.=4i7 'or t.e #(r#ose o* com#(tin8 income , loss (n!er t.e .ea! 5Income *rom >o(se
Pro#erty6 in respect of a self-occ4pie& resi&ential $o4se" a normal !e!(ction o*
Rs.30"000,- is allo-a/le in res#ect o* interest on /orro-e! ca#ital. >o-ever" a !e!(ction on
acco(nt o* interest (# to a maxim(m limit o* Rs.1"&0"000,- is availa/le i* s(c. loan .as /een
ta@en on or a*ter 1.;.1222 *or constr(ctin8 or ac9(irin8 t.e resi!ential .o(se an! t.e
constr(ction or ac9(isition o* t.e resi!ential (nit o(t o* s(c. loan .as /een com#lete! -it.in
t.ree years *rom t.e en! o* t.e *inancial year in -.ic. ca#ital -as /orro-e!. S(c. .i8.er
!e!(ction is not allo-a/le in res#ect o* interest on ca#ital /orro-e! *or t.e #(r#oses o*
re#airs or renovation o* an existin8 resi!ential .o(se. To claim t.e .i8.er !e!(ction in
res#ect o* interest (#to Rs.1"&0"000,-"t.e em#loyee s.o(l! *(rnis. a certi*icate *rom t.e
#erson to -.om any interest is #aya/le on t.e ca#ital /orro-e!" s#eci*yin8 t.e amo(nt o*
interest #aya/le /y s(c. em#loyee *or t.e #(r#ose o* constr(ction or ac9(isition o* t.e
resi!ential .o(se or *or conversion o* a #art or -.ole o* t.e ca#ital /orro-e!" -.ic. remains
to /e re#ai! as a ne- loan.
3.=4ii7T.e essential con!itions *or availin8 .i8.er !e!(ction o* interest o* Rs.1"&0"000,- in
respect of a self-occ4pie& resi&ential $o4se are t.at t.e amo(nt o* ca#ital m(st .ave /een
/orro-e! on or a*ter 01.;.1222 an! t.e ac9(isition or constr(ction o* resi!ential .o(se m(st
.ave /een com#lete! -it.in t.ree years *rom t.e en! o* t.e *inancial year in -.ic. ca#ital
-as /orro-e!. T.ere is no sti#(lation re8ar!in8 t.e !ate o* commencement o* constr(ction.
+onse9(ently" t.e constr(ction o* t.e resi!ential .o(se co(l! .ave commence! /e*ore
01.;.1222 /(t" as lon8 as its constr(ction, ac9(isition is com#lete! -it.in t.ree years" *rom
t.e en! o* t.e *inancial year in -.ic. ca#ital -as /orro-e! t.e .i8.er !e!(ction -o(l! /e
availa/le in res#ect o* t.e ca#ital /orro-e! a*ter 1.;.1222. It may also /e note! t.at t.ere is
no sti#(lation re8ar!in8 t.e constr(ction, ac9(isition o* t.e resi!ential (nit /ein8 entirely
*inance! /y ca#ital /orro-e! on or a*ter 01.;.1222.T.e loan ta@en #rior to 01.;.1222 -ill
carry !e!(ction o* interest (# to Rs.30"000, only. >o-ever" in any case t.e total amo(nt o*
!e!(ction o* interest on /orro-e! ca#ital -ill not excee! Rs.1"&0"000,- in a year.
A&C4st%ent for ,1cess or S$ortfall of De&4ction2
3.$ T.e #rovisions o* s(/-section 437 o* Section 122 allo- t.e !e!(ctor to ma@e a!?(stments
*or any excess or s.ort*all in t.e !e!(ction o* tax alrea!y ma!e !(rin8 t.e *inancial year" in
s(/se9(ent !e!(ctions *or t.at em#loyee -it.in t.at *inancial year itsel*.
TDS on Pay%ent of Acc4%4late& 3alance 'n&er Reco"nise& Provi&ent !4n& an&
contrib4tion fro% Approve& S4perann4ation !4n&2
3.2 T.e tr(stees o* a Reco8niKe! Provi!ent '(n!" or any #erson a(t.oriKe! /y t.e
re8(lations o* t.e '(n! to ma@e #ayment o* acc(m(late! /alances !(e to em#loyees" s.all"
in cases -.ere s(/-r(le417 o* r(le 2 o* Part A o* t.e 'o(rt. Sc.e!(le to t.e Act a##lies" at t.e
time -.en t.e acc(m(late! /alance !(e to an em#loyee is #ai!" ma@e t.ere *rom t.e
!e!(ction s#eci*ie! in r(le 10 o* Part A o* t.e 'o(rt. Sc.e!(le to t.e Act.
3.10 :.ere any contri/(tion ma!e /y an em#loyer" incl(!in8 interest on s(c. contri/(tions"
i* any" in an a##rove! S(#erann(ation '(n! is #ai! to t.e em#loyee" tax on t.e amo(nt so
#ai! s.all /e !e!(cte! /y t.e tr(stees o* t.e '(n! to t.e extent #rovi!e! in r(le 3 o* Part H o*
t.e 'o(rt. Sc.e!(le to t.e Act.
Salary Pai& in !orei"n +4rrency2
3.11 'or t.e #(r#oses o* !e!(ction o* tax on salary #aya/le in *orei8n c(rrency" t.e val(e in
r(#ees o* s(c. salary s.all /e calc(late! at t.e #rescri/e! rate o* exc.an8e.
D.P,RS.*S R,SP.*S)3;, !.R D,D'+T)*E TA0 A*D T6,)R D'T),S2
;.1. Fn!er cla(se 4i7 o* Section 20; o* t.e Act t.e 0#ersons res#onsi/le *or #ayin81 *or t.e
#(r#ose o* Section 122 means t.e em#loyer .imsel* or i* t.e em#loyer is a +om#any" t.e
+om#any itsel* incl(!in8 t.e Princi#al I**icer t.ereo*.
;.2. T.e tax !etermine! as #er #ara 3 s.o(l! /e !e!(cte! *rom t.e salary (,s 122 o* t.e Act.
De&4ction of Ta1 at ;o#er Rate2
;.3. Section 12= ena/les t.e tax-#ayer to ma@e an a##lication in *orm )o.13 to t.e Assessin8
I**icer4TDS7" an!" i* t.e Assessin8 I**icer4TDS7 is satis*ie! t.at t.e total income o* t.e tax-
#ayer ?(sti*ies t.e !e!(ction o* income-tax at any lo-er rate or no !e!(ction o* income tax"
.e may iss(e an a##ro#riate certi*icate to t.at e**ect -.ic. s.o(l! /e ta@en into acco(nt /y
t.e Dra-in8 an! Dis/(rsin8 I**icer -.ile !e!(ctin8 tax at so(rce. In t.e a/sence o* s(c. a
certi*icate *(rnis.e! /y t.e em#loyee" t.e em#loyer s.o(l! !e!(ct income tax on t.e salary
#aya/le at t.e normal rates% 5+irc4lar *o. 1DF &ate& 2?.10.18FD.7
Deposit of Ta1 De&4cte&2
;.;. R(le 30 o* Income Tax R(les" 1232" as amen!e! /y S.I. 12314<7" )oti*ication !ate!
31.0&.2010" #rescri/es mo!e o* #ayment o* tax !e!(cte! to t.e acco(nt o* +entral
Government as !etaile! /elo-%
;.;.1.
4a7 T.e Tax !e!(cte! at so(rce in accor!ance -it. t.e #rovisions o* +.a#ter LMII-H o* t.e
Income tax Act" 1231 /y an o**ice o* t.e Government s.all /e #ai! to t.e cre!it o* t.e
+entral Government -
4i7 on t.e same !ay -.ere t.e tax is #ai! -it.o(t #ro!(ction o* an income tax c.allanJ an!
4ii7 on or /e*ore seven !ays *rom t.e en! o* t.e mont. in -.ic. t.e !e!(ction is ma!e or
income-tax is !(e (n!er s(/-section 41A7 o* section 122" -.ere tax is #ai! accom#anie! /y
an income-tax c.allan.
4/7. T.e Tax !e!(cte! at so(rce in accor!ance -it. t.e #rovisions o* +.a#ter LMII-H o* t.e
Income tax Act" 1231 /y !e!(ctors ot.er t.an an o**ice o* t.e Government s.all /e #ai! to
t.e cre!it o* t.e +entral Government -
4i7 on or /e*ore 30t. !ay o* A#ril -.ere t.e income or amo(nt is cre!ite! or #ai! in t.e
mont. o* arc.J an!
4ii7 in any ot.er case" on or /e*ore seven !ays *rom t.e en! o* t.e mont. in -.ic. t.e
!e!(ction is ma!eJ or income-tax is !(e (n!er s(/-section 41A7 o* section 122.
4c7 )ot-it.stan!in8 anyt.in8 containe! in 4/7 a/ove" in s#ecial cases" t.e Assessin8 I**icer
may" -it. t.e #rior a##roval o* t.e Noint +ommissioner" #ermit 9(arterly #ayment o* t.e tax
!e!(cte! (n!er section 122 or section 12;A or section 12;D or section 12;> *or t.e 9(arters
o* t.e *inancial year s#eci*ie! to in col(mn 427 o* t.e Ta/le /elo- /y t.e !ate re*erre! to in
col(mn 437 o* t.e sai! Ta/le%-
TAHO<

Sl.
)o.
P(arter o* t.e *inancial year en!e! on Date *or 9(arterly #ayment
417 427 437
1 30
t.
N(ne =
t.
N(ly
2 30
t.
Se#tem/er =
t.
Icto/er
3 31
st
Decem/er =
t.
Nan(ary
; 31
st
arc. 30
t.
A#ril

/o&e of Pay%ent of TDS
;.;.2. In t.e case o* an o**ice o* t.e Government" -.ere tax .as /een #ai! to t.e cre!it o* t.e
+entral Government -it.o(t t.e #ro!(ction o* a c.allan" t.e Pay an! Acco(nts I**icer or t.e
Treas(ry I**icer or t.e +.e9(e Dra-in8 an! Dis/(rsin8 I**icer or any ot.er #erson /y
-.atever name calle! to -.om t.e !e!(ctor re#orts t.e tax so !e!(cte! an! -.o is
res#onsi/le *or cre!itin8 s(c. s(m to t.e cre!it o* t.e +entral Government" s.all-
4a7 s(/mit a statement in !or% *o. 2DE -it.in ten !ays *rom t.e en! o* t.e mont. to t.e
a8ency a(t.orise! /y t.e Director General o* Income-tax 4Systems7 in res#ect o* tax
!e!(cte! /y t.e !e!(ctors an! re#orte! to .im *or t.at mont.J an!
4/7 intimate t.e n(m/er 4.ereina*ter re*erre! to as t.e 3oo( )&entification *4%ber or
3)* 8enerate! /y t.e a8ency to eac. o* t.e !e!(ctors in res#ect o* -.om t.e s(m !e!(cte!
.as /een cre!ite!. HI) consist o* recei#t n(m/er o* 'orm 2;G" DDI se9(ence n(m/er an!
!ate on -.ic. tax is !e#osite!.
'or t.e #(r#ose o* t.e a/ove" t.e Director General o* Income-tax 4Systems7 s.all s#eci*y t.e
#roce!(res" *ormats an! stan!ar!s *or ens(rin8 sec(re ca#t(re an! transmission o* !ata" an!
s.all also /e res#onsi/le *or t.e !ay-to-!ay a!ministration in relation to *(rnis.in8 t.e
in*ormation in t.e manner so s#eci*ie!.
;.;.3. 4i7 :.ere tax .as /een !e#osite! accom#anie! /y an income-tax c.allan" t.e amo(nt
o* tax so !e!(cte! or collecte! s.all /e !e#osite! to t.e cre!it o* t.e +entral Government /y
remittin8 it -it.in t.e time s#eci*ie! a/ove into any /ranc. o* t.e Reserve Han@ o* In!ia or
o* t.e State Han@ o* In!ia or o* any a(t.orise! /an@J
4ii7 In case o* a com#any an! a #erson 4ot.er t.an a com#any7" to -.om #rovisions o*
section ;;AH are a##lica/le" t.e amo(nt !e!(cte! s.all /e electronically remitte! into t.e
Reserve Han@ o* In!ia or t.e State Han@ o* In!ia or any a(t.orise! /an@ accom#anie! /y an
electronic income-tax c.allan.
'or t.e #(r#ose o* t.is r(le" t.e amo(nt s.all /e constr(e! as electronically remitte! to t.e
Reserve Han@ o* In!ia or to t.e State Han@ o* In!ia or to any a(t.orise! /an@" i* t.e amo(nt
is remitte! /y -ay o*%
4a7 internet /an@in8 *acility o* t.e Reserve Han@ o* In!ia or o* t.e State Han@ o* In!ia or o*
any a(t.orise! /an@J or
4/7 !e/it car!.
)nterest" Penalty & Prosec4tion for !ail4re to Deposit Ta1 De&4cte&2
;.& I* a #erson *ails to !e!(ct t.e -.ole or any #art o* t.e tax at so(rce" or" a*ter !e!(ctin8"
*ails to #ay t.e -.ole or any #art o* t.e tax to t.e cre!it o* t.e +entral Government -it.in
t.e #rescri/e! time" .e s.all /e lia/le to action in accor!ance -it. t.e #rovisions o* section
201. S(/-section 41A7 o* section 201 lays !o-n t.at s(c. #erson s.all /e lia/le to #ay
si%ple interest 4i7 at one #ercent *or every mont. or #art o* t.e mont. on t.e amo(nt o*
s(c. tax *rom t.e !ate on -.ic. s(c. tax -as !e!(cti/le to t.e !ate on -.ic. s(c. tax is
!e!(cte! an! 4ii7 at one an! one-.al* #ercent *or every mont. or #art o* a mont. on t.e
amo(nt o* s(c. tax *rom t.e !ate on -.ic. s(c. tax -as !e!(cte! to t.e !ate on -.ic. s(c.
tax is act(ally #ai!. S(c. interest" i* c.ar8ea/le" .as to /e #ai! /e*ore *(rnis.in8 o* 9(arterly
statement o* TDS *or eac. 9(arter. Section 2=1+ lays !o-n t.at i* any #erson *ails to !e!(ct
-.ole or any #art o* tax at so(rce or *ails to #ay t.e -.ole or #art o* tax !e!(cte!" .e s.all
/e lia/le to #ay" /y -ay o* penalty " a s(m e9(al to t.e amo(nt o* tax not !e!(cte! or #ai!
/y .im. '(rt.er" section 2=3H lays !o-n t.at i* a #erson *ails to #ay to t.e cre!it o* t.e
+entral Government -it.in t.e #rescri/e! time t.e tax !e!(cte! at so(rce /y .im" .e s.all
/e p4nis$able #it$ ri"oro4s i%prison%ent for a ter% #$ic$ s$all be bet#een 3 %ont$s
an& F years- alon" fine.
!4rnis$in" of +ertificate for Ta1 De&4cte&2
;.3.1 Accor!in8 to t.e #rovisions o* section 203" every #erson res#onsi/le *or !e!(ctin8 tax
at so(rce is re9(ire! to *(rnis. a certi*icate in 'orm 13 to t.e #ayee to t.e e**ect t.at tax .as
/een !e!(cte! an! to s#eci*y t.erein t.e amo(nt !e!(cte! an! certain ot.er #artic(lars. T.e
certi*icates in 'orms 13 s#eci*ie! a/ove s.all /e *(rnis.e! to t.e em#loyee /y 31st !ay o*
ay o* t.e *inancial year imme!iately *ollo-in8 t.e *inancial year in -.ic. t.e income -as
#ai! an! tax !e!(cte!. D(e care s.o(l! /e ta@en in!icatin8 correct +I), HI) in TDS
certi*icate. <ven t.e /an@s !e!(ctin8 tax at t.e time o* #ayment o* #ension are re9(ire! to
iss(e s(c. certi*icates. T.e 'orm13 .as /een revise! an! TDS certi*icate! only !etermine
tax #aya/le on total income an! tax !e!(cte! is to /e re#orte! in annex(re 5A6 an! 5H6 o* t.e
'orm 13 5revise& !or% 19 anne1e& to *otification &ate& 31.0G.2010 is enclose&7. T.e
certi*icate in 'orm 13 s.all s#eci*y
4a7 vali! #ermanent acco(nt n(m/er 4PA)7 o* t.e !e!(cteeJ
4/7 vali! tax !e!(ction an! collection acco(nt n(m/er 4TA)7 o* t.e !e!(ctorJ
4c7 4i7 /oo@ i!enti*ication n(m/er or n(m/ers -.ere !e#osit o* tax !e!(cte! is -it.o(t
#ro!(ction o* c.allan in case o* an o**ice o* t.e GovernmentJ
4ii7 c.allan i!enti*ication n(m/er or n(m/ers in case o* #ayment t.ro(8. /an@.
4!7 recei#t n(m/ers o* all t.e relevant 9(arterly statements in case t.e statement re*erre! to
in cla(se 4i7 is *or tax !e!(cte! at so(rce *rom income c.ar8ea/le (n!er t.e .ea! 0Salaries1.
T.e recei#t n(m/er o* t.e 9(arterly statement is o* $ !i8it.
)t %ay be note& t$at 4n&er t$e ne# TDS proce&4re- t$e acc4racy an& availability of
TA*- PA* an& receipt n4%ber of TDS state%ent file& by t$e &e&4ctor #ill be 4ni=4e
i&entifier for "rantin" online cre&it for TDS. 6ence &4e care s$o4l& be ta(en in fillin"
t$ese partic4lars.
It is" .o-ever" clari*ie! t.at t.ere is no o/li8ation to iss(e t.e TDS certi*icate in case tax at
so(rce is not !e!(cti/le,!e!(cte! /y virt(e o* claims o* exem#tions an! !e!(ctions.
;.3.2. I* an assessee is em#loye! /y more t.an one em#loyer !(rin8 t.e year" eac. o* t.e
em#loyers s.all iss(e Part A o* t.e certi*icate in 'orm )o. 13 #ertainin8 to t.e #erio! *or
-.ic. s(c. assessee -as em#loye! -it. eac. o* t.e em#loyers an! Part H may /e iss(e! /y
eac. o* t.e em#loyers or t.e last em#loyer at t.e o#tion o* t.e assessee.
;.3.3. T.e em#loyer may iss(e a !(#licate certi*icate in 'orm )o. 13 i* t.e !e!(ctee .as lost
t.e ori8inal certi*icate so iss(e! an! ma@es a re9(est *or iss(ance o* a !(#licate certi*icate
an! s(c. !(#licate certi*icate is certi*ie! as !(#licate /y t.e !e!(ctor.
;.3.;. 4i7 :.ere a certi*icate is to /e *(rnis.e! in 'orm )o. 13" t.e !e!(ctor may" at .is
o#tion" (se &i"ital si"nat4res to a(t.enticate s(c. certi*icates.
4ii7 In case o* certi*icates iss(e! (n!er cla(se 4i7" t.e !e!(ctor s.all ens(re t.at
4a7 t.e con!itions #rescri/e! in #ara ;.3.1 a/ove are com#lie! -it.J
4/7 once t.e certi*icate is !i8itally si8ne!" t.e contents o* t.e certi*icates are not amena/le
to c.an8eJ an!
4c7 t.e certi*icates .ave a control n(m/er an! a lo8 o* s(c. certi*icates is maintaine! /y t.e
!e!(ctor.
T.e !i8ital si8nat(re are /ein8 (se! to a(t.enticate most o* t.e e-transactions on t.e internet
as transmission o* in*ormation (sin8 !i8ital si8nat(re is *ailsa*e. It saves time s#ecially in
or8anisations .avin8 lar8e n(m/er o* em#loyees -.ere iss(ance o* certi*icate o* !e!(ction
o* tax -it. man(al si8nat(re is time cons(min8 4circ(lar no 2 o* 200= !ate! 21-&-200=7
0/planation. For the purpose o! this rule, challan identi!ication number 'C1N( means the
number comprisin) the .asic Statistical ,eturns '.S,( Code o! the .an2 branch *here the
ta/ has been deposited, the date on *hich the ta/ has been deposited and challan serial
number )iven by the ban2.
;.3.&. As #er section 122" t.e res#onsi/ility o* #rovi!in8 correct an! com#lete #artic(lars o*
#er9(isites or #ro*its in lie( o* salary 8iven to an em#loyee is #lace! on t.e #erson
res#onsi/le *or #ayin8 s(c. income i.e." t.e #erson res#onsi/le *or !e!(ctin8 tax at so(rce.
T.e *orm an! manner o* s(c. #artic(lars are #rescri/e! in R(le 23A" 'orm 12HA an! 'orm
13 o* t.e Income-tax R(les . In*ormation relatin8 to t.e nat(re an! val(e o* #er9(isites is to
/e #rovi!e! /y t.e em#loyer in 'orm no. 12HA in case o* salary #ai! or #aya/le is a/ove
Rs.1"$0"000,-. In ot.er cases" t.e in*ormation -o(l! .ave to /e #rovi!e! /y t.e em#loyer in
'orm 13 itsel*.
;.3.3. An em#loyer" -.o .as #ai! t.e tax on #er9(isites on /e.al* o* t.e em#loyee as #er t.e
#rovisions !isc(sse! in #aras 3.2 an! 3.3 o* t.is circ(lar" s.all *(rnis. to t.e em#loyee
concerne! a certi*icate to t.e e**ect t.at tax .as /een #ai! to t.e +entral Government an!
s#eci*y t.e amo(nt so #ai!" t.e rate at -.ic. tax .as /een #ai! an! certain ot.er #artic(lars
in t.e amen!e! 'orm 13.
;.3.=. T.e o/li8ation cast on t.e em#loyer (n!er Section 12242+7 *or *(rnis.in8 a statement
s.o-in8 t.e val(e o* #er9(isites #rovi!e! to t.e em#loyee is a serio(s res#onsi/ility o* t.e
em#loyer" -.ic. is ex#ecte! to /e !isc.ar8e! in accor!ance -it. la- an! r(les o* val(ation
*rame! t.ere (n!er. Any *alse in*ormation" *a/ricate! !oc(mentation or s(##ression o*
re9(isite in*ormation -ill entail conse9(ences t.ereo* #rovi!e! (n!er t.e la-. T.e
certi*icates in 'orms 13 s#eci*ie! a/ove s.all /e *(rnis.e! to t.e em#loyee /y 31st !ay o*
ay o* t.e *inancial year imme!iately *ollo-in8 t.e *inancial year in -.ic. t.e income -as
#ai! an! tax !e!(cte!. I* .e *ails to iss(e t.ese certi*icates to t.e #erson concerne!" as
re9(ire! /y section 203" .e -ill /e lia/le to #ay" /y -ay o* #enalty" (n!er section 2=2A" a
s(m -.ic. s.all /e Rs.100,- *or every !ay !(rin8 -.ic. t.e *ail(re contin(es.
/an&atory H4otin" of PA* an& TA*2
;.=.1 Accor!in8 to t.e #rovisions o* section 203A o* t.e Income-tax Act" it is o/li8atory *or
all #ersons res#onsi/le *or !e!(ctin8 tax at so(rce to o/tain an! 9(ote t.e Tax-!e!(ction
Acco(nt )o. 4TA)7 in t.e c.allans" TDS-certi*icates" statements an! ot.er !oc(ments.
Detaile! instr(ctions in t.is re8ar! are availa/le in t.is De#artment6s +irc(lar )o.;2=
4'.)o.2=&,11$, $=-IT4H7 !ate! 2.10.12$=7. I* a #erson *ails to com#ly -it. t.e #rovisions o*
section 203A" .e -ill /e lia/le to #ay" /y -ay o* #enalty" (n!er section 2=2HH" a s(m o* ten
t.o(san! r(#ees. Similarly" as #er Section 132A4&H7" it is o/li8atory *or #ersons !e!(ctin8
tax at so(rce to 9(ote PA) o* t.e #ersons *rom -.ose income tax .as /een !e!(cte! in t.e
statement *(rnis.e! (,s 12242+7" certi*icates *(rnis.e! (,s 203 an! all ret(rns #re#are! an!
!elivere! as #er t.e #rovisions o* section 200437 o* t.e Income Tax Act" 1231.
;.=.2 All tax !e!(ctors,collectors are re9(ire! to *ile t.e TDS ret(rns in 'orm )o.2;P 4*or
tax !e!(cte! *rom salaries7. As t.e re9(irement o* *ilin8 TDS,T+S certi*icates .as /een !one
a-ay -it." t.e lac@ o* PA) o* !e!(ctees is creatin8 !i**ic(lties in 8ivin8 cre!it *or t.e tax
!e!(cte!. Tax !e!(ctors an! tax collectors are" t.ere*ore" a!vise! to 9(ote correct PA)
!etails o* all !e!(ctees in t.e TDS ret(rns *or salaries in 'orm 2;P. Tax#ayers lia/le to TDS
are also a!vise! to *(rnis. t.eir correct PA) -it. t.eir !e!(ctors" It may /e note! t.at non-
*(rnis.in8 o* PA) /y t.e !e!(ctee 4em#loyee7 to t.e !e!(ctor 4em#loyer7 -ill res(lt in
!e!(ction o* TDS at .i8.er rates (,s 203AA o* t.e Income-tax Act"1231 mentione! in #ara
;.2 /elo-.
D.? Section 209AA.
;.$.1 'inance Act 4)o. 27 2002" -.e.*. 01,0;,2010 .as inserte! sec. 203AA in t.e Income-tax
Act -.ic. ma@es *(rnis.in8 o* PA) /y t.e em#loyee com#(lsory in case o* #ayments lia/le
to TDS. )f e%ployee 5&e&4ctee7 fails to f4rnis$ $is$er PA* to t.e !e!(ctor " t.e !e!(ctor
s.all ma@e TDS at a .i8.er o* t.e *ollo-in8 rates
i. at t.e rate s#eci*ie! in t.e relevant #rovision o* t.is ActJ or
ii. at t.e rate or rates in *orceJ or
iii. at t.e rate o* t-enty #er cent.
;.$.2 T.e !e!(ctor .as to !etermine t.e tax amo(nt in all t.e t.ree con!itions an! a##ly t.e
.i8.er rate o* TDS . T.is section a##lies to any #erson entitle! to receive any s(m or income
or amo(nt" on #$ic$ ta1 is &e&4ctible (n!er +.a#ter LMII-H o* Income Tax Act. As
c.a#ter LMII-H covers all Pay%ents incl4&in" Salaries" Salaries are also covere! /y
Section 203AA. In case o* salaries t.ere can /e *ollo-in8 sit(ations
4a7 :.ere t.e income o* t.e em#loyee com#(te! *or TDS (,s 122 is /elo- taxa/le limit.
4/7 :.ere t.e income o* t.e em#loyee com#(te! *or TDS (,s 122 is a/ove taxa/le limit.
In *irst sit(ation" as t.e tax is not liable to be &e&4cte& no tax -ill /e !e!(cte!. In t.e
secon! case" i* PA) is not *(rnis.e! /y t.e em#loyee" t.e !e!(ctor -ill calc(late t.e
avera"e rate of inco%e-ta1 base& on rates in force as provi&e& in sec 182. I* t.e tax so
calc(late! is /elo- 20D" !e!(ction o* tax -ill /e ma!e at t.e rate o* 20D an! in case t.e
avera8e rate excee!s 20D" tax is to !e!(cte! at t.e avera8e rate. ,&4cation cessI 2J an&
Secon&ary an& 6i"$er ,&4cation +essI 1J is not to be &e&4cte&- in case t$e TDS is
&e&4cte& at 20J 4s 209AA of t$e )nco%e-ta1 Act.
H4arterly State%ent of TDS2
D.8. State%ent of &e&4ction of ta1 4n&er s4bsection 537 of section 200.
;.2.1. T.e #erson !e!(ctin8 t.e tax 4em#loyer in case o* salary income7" is re9(ire! to *ile
P(arterly Statements o* TDS in 'orm 2;P *or t.e #erio!s en!in8 on 30
t.
N(ne" 30
t.

Se#tem/er" 31
st
Decem/er an! 31
st
arc. o* eac. *inancial year" !(ly veri*ie!" to t.e
Director General o* Income Tax 4Systems7" ARA centre" N.an!e-alan <xtn" )e- Del.i or
,s )ational Sec(rities De#ository Ot! 4)SDO7. T.ese statements are re9(ire! to /e *ile! on
or /e*ore t.e 1&
t.
N(ly" t.e 1&
t.
Icto/er" t.e 1&
t.
Nan(ary in res#ect o* t.e *irst t.ree 9(arters
o* t.e *inancial year an! on or /e*ore t.e 1&
t.
ay *ollo-in8 t.e last 9(arter o* t.e *inancial
year. T.e re9(irement o* *ilin8 an ann(al ret(rn o* TDS .as /een !one a-ay -it. -.e.*.
1.;.2003. T.e 9(arterly statement *or t.e last 9(arter *ile! in 'orm 2;P 4as amen!e! /y
)oti*ication )o. S.I.=0;4<7 !ate! 12.&.20037 s.all /e treate! as t.e ann(al ret(rn o* TDS.
;.2.2. T.e statements re*erre! a/ove may /e *(rnis.e! in #a#er *orm or electronically in
accor!ance -it. t.e #roce!(res" *ormats an! stan!ar!s s#eci*ie! /y t.e Director General o*
Income-tax 4Systems7 alon8 -it. t.e veri*ication o* t.e statement in 'orm 2=A.
;.2.3. )t is no# %an&atory for all Eovt. &e&4ctors or co%panies or ot$er &e&4ctors #$o
are re=4ire& to "et t$eir acco4nts a4&ite& 4n&er section DDA3 of t$e )nco%e Ta1 Act or
#$ere t$e n4%ber of &e&4cteeKs recor&s in a state%ent for any =4arter of t$e financial
year are t#enty or %ore to file- =4arterly state%ents of TDS on co%p4ter %e&ia only in
accor&ance #it$ t$e :,lectronic !ilin" of Ret4rns of Ta1 De&4cte& at So4rce Sc$e%e-
2003L as notifie& vi&e *otification *o. S... 8FD 5,7 &ate& 29.?.2003 rea& #it$
*otification *o. S. 12915,7 &ate& 31.0G.2010. T$e =4arterly state%ents are to be file&
by s4c$ &e&4ctors in electronic for%at #it$ t$e e-TDS )nter%e&iary at any of t$e T)*
!acilitation +entres- partic4lars of #$ic$ are available at ###.inco%eta1in&ia."ov.in
an& at $ttp2tin-ns&l.co%. I* a #erson *ails to *(rnis. t.e 9(arterly statements in !(e time"
.e s.all /e lia/le to #ay /y -ay o* #enalty (n!er section 2=2A4274@7" a s(m -.ic. s.all /e
Rs.100,- *or every !ay !(rin8 -.ic. t.e *ail(re contin(es. >o-ever" t.is s(m s.all not
excee! t.e amo(nt o* tax -.ic. -as !e!(cti/le at so(rce.
;.2.;. At t.e time o* #re#arin8 statements o* tax !e!(cte!" t.e !e!(ctor is re9(ire! to 9(ote
4i7 .is tax !e!(ction an! collection acco(nt n(m/er 4TA)7 in t.e statementJ
4ii7 9(ote .is #ermanent acco(nt n(m/er 4PA)7 in t.e statement exce#t in t.e case -.ere
t.e !e!(ctor is an o**ice o* t.e Government4incl(!in8 state Govt7. In case o* Government
!e!(ctors 0PA))ITR<PD1 to /e 9(ote! in t.e eTDS statement.
4iii7 9(ote t.e #ermanent acco(nt n(m/er o* all !e!(cteesJ
4iv7 *(rnis. #artic(lars o* t.e tax #ai! to t.e +entral Government incl(!in8 /oo@
i!enti*ication n(m/er or c.allan i!enti*ication n(m/er" as t.e case may /e.
;.10. A ret(rn *ile! on t.e #rescri/e! com#(ter rea!a/le me!ia s.all /e !eeme! to /e a ret(rn
*or t.e #(r#oses o* section 200437 an! t.e R(les ma!e t.ere (n!er" an! s.all /e a!missi/le in
any #rocee!in8 t.ere (n!er" -it.o(t *(rt.er #roo* o* #ro!(ction o* t.e ori8inal" as evi!ence
o* any contents o* t.e ori8inal.
TDS on )nco%e fro% Pension2
;.11. In t.e case o* #ensioners -.o receive t.eir #ension *rom a nationaliKe! /an@" t.e
instr(ctions containe! in t.is circ(lar s.all a##ly in t.e same manner as t.ey a##ly to salary-
income. T.e !e!(ctions *rom t.e amo(nt o* #ension (n!er section $0+ on acco(nt o*
contri/(tion to Oi*e Ins(rance" Provi!ent '(n!" )S+ etc." i* t.e #ensioner *(rnis.es t.e
relevant !etails to t.e /an@s" may /e allo-e!. )ecessary instr(ctions in t.is re8ar! -ere
iss(e! /y t.e Reserve Han@ o* In!ia to t.e State Han@ o* In!ia an! ot.er nationaliKe! Han@s
vi!e RHI6s Pension +irc(lar4+entral Series7 )o.=,+.D.R.,1222 4Re*. +I% DGHA% GA 4)HS7
)o.30,GA.3;411+MO7-,227 !ate! t.e 2=t. A#ril" 1222" an!" t.ese instr(ctions s.o(l! /e
*ollo-e! /y all t.e /ranc.es o* t.e Han@s" -.ic. .ave /een entr(ste! -it. t.e tas@ o*
#ayment o* #ensions. '(rt.er all /ranc.es o* t.e /an@s are /o(n! (,s 203 to iss(e certi*icate
o* tax !e!(cte! in 'orm 13 to t.e #ensioners also vi!e +HDT circ4lar no. F91 &ate&
13.1.8?.
D.12 *e# Pension Sc$e%e
T.e )e- Pension Sc.eme4)PS7 .as /ecome o#erational since 1
st
Nan" 200; an! is
man!atory *or all ne- recr(its to t.e +entral Government Services *rom 1
st
Nan(ary" 200;.
Since t.en it .as /een o#ene! to em#loyees o* State Governments" Private Sector an! Self
,%ploye&. T.e income receive! /y t.e )PS tr(st is exem#t. T.e )PS tr(st is exem#te!
*rom t.e Divi!en! Distri/(tion Tax an! is also exem#te! *rom t.e Sec(rities Transaction Tax
on all #(rc.ases an! sales o* e9(ities an! !erivatives. T.e )PS tr(st -ill also receive income
-it.o(t tax !e!(ction at so(rce. T.e a/ove amen!ments are retros#ectively e**ective *rom
1,;,02 4AY 2002-107 on-ar!s
;.13. :.ere )on-Resi!ents are !e#(te! to -or@ in In!ia an! taxes are /orne /y t.e
em#loyer" i* any re*(n! /ecomes !(e to t.e em#loyee a*ter .e .as alrea!y le*t In!ia an! .as
no /an@ acco(nt in In!ia /y t.e time t.e assessment or!ers are #asse!" t.e re*(n! can /e
iss(e! to t.e em#loyer as t.e tax .as /een /orne /y it2 +irc4lar *o. F0F &ate& 11.F.188G.
;.1; In res#ect o* non-resi!ents" t.e salary #ai! *or services ren!ere! in In!ia s.all /e
re8ar!e! as income earne! in In!ia. It .as /een s#eci*ically #rovi!e! in t.e Act t.at any
salary #aya/le *or rest #erio! or leave #erio! -.ic. is /ot. #rece!e! or s(ccee!e! /y service
in In!ia an! *orms #art o* t.e service contract o* em#loyment -ill also /e re8ar!e! as
income earne! in In!ia.
G. +./P'TAT).* .! )*+./, '*D,R T6, 6,AD :SA;AR),S<
G.1 )nco%e c$ar"eable 4n&er t$e $ea& :Salaries<.
417 T.e *ollo-in8 income s.all /e c.ar8ea/le to income-tax (n!er t.e .ea! 0Salaries1 %
4a7 any salary !(e *rom an em#loyer or a *ormer em#loyer to an assessee in t.e #revio(s
year" -.et.er #ai! or notJ
4/7 any salary #ai! or allo-e! to .im in t.e #revio(s year /y or on /e.al* o* an em#loyer or
a *ormer em#loyer t.o(8. not !(e or /e*ore it /ecame !(e to .im.
4c7 any arrears o* salary #ai! or allo-e! to .im in t.e #revio(s year /y or on /e.al* o* an
em#loyer or a *ormer em#loyer" i* not c.ar8e! to income-tax *or any earlier #revio(s year.
427 'or t.e removal o* !o(/ts" it is clari*ie! t.at -.ere any salary #ai! in a!vance is incl(!e!
in t.e total income o* any #erson *or any #revio(s year it s.all not /e incl(!e! a8ain in t.e
total income o* t.e #erson -.en t.e salary /ecomes !(e. Any salary" /on(s" commission or
rem(neration" /y -.atever name calle!" !(e to" or receive! /y" a #artner o* a *irm *rom t.e
*irm s.all not /e re8ar!e! as 0Salary1.
Definition of Salary2
4371Salary1 incl(!es -a8es" *ees" commissions" #er9(isites" #ro*its in lie( o*" or" in a!!ition
to salary" a!vance o* salary" ann(ity or #ension" 8rat(ity" #ayments in res#ect o* encas.ment
o* leave etc. It also incl(!es t.e ann(al accretion to t.e em#loyee6s acco(nt in a reco8niKe!
#rovi!ent *(n! to t.e extent it is c.ar8ea/le to tax (n!er r(le 3 o* Part A o* t.e 'o(rt.
Sc.e!(le o* t.e Income-tax Act. +ontri/(tions ma!e /y t.e em#loyer to t.e acco(nt o* t.e
em#loyee in a reco8niKe! #rovi!ent *(n! in excess o* 12D o* t.e salary o* t.e em#loyee"
alon8 -it. interest a##lica/le" s.all /e incl(!e! in t.e income o* t.e assessee *or t.e
#revio(s year. Any contrib4tion %a&e by t$e +entral Eovern%ent or any ot$er
e%ployer to t$e acco4nt of t$e e%ployee 4n&er t$e *e# Pension Sc$e%e as notifie&
vi&e *otification *o. !.*. GF2003- ,+3&PR &ate& 22.12.20035enclose& as Anne14re-
)@A7 referre& to in section ?0++D 5para G.D5+7 of t$is +irc4lar7 s$all also be incl4&e&
in t$e salary inco%e. It.er items incl(!e! in salary" #ro*its in lie( o* salary an! #er9(isites
are !escri/e! in Section 1= o* t.e Income-tax Act. It may /e note! t.at" since salary incl(!es
#ensions" tax at so(rce -o(l! .ave to /e !e!(cte! *rom #ension also" i* ot.er-ise calle! *or.
>o-ever" no tax is re9(ire! to /e !e!(cte! *rom t.e comm(te! #ortion o* #ension -.ic. is
exem#t" as ex#laine! in cla(se 437 o* #ara &.2 o* t.is +irc(lar.
4;7 Section 1= !e*ines t.e terms 0salary1" 0#er9(isite1 an! 0#ro*its in lie( o* salary1.
Per9(isite incl(!es%
I. T.e val(e o* rent *ree accommo!ation #rovi!e! to t.e em#loyee /y .is em#loyerJ
II. T.e val(e o* any concession in t.e matter o* rent in res#ect o* any accommo!ation
#rovi!e! to t.e em#loyee /y .is em#loyerJ
III. T.e val(e o* any /ene*it or amenity 8rante! or #rovi!e! *ree o* cost or at concessional
rate in any o* t.e *ollo-in8 cases%
4i7 Hy a com#any to an em#loyee -.o is a !irector o* s(c. com#anyJ
4ii7 Hy a com#any to an em#loyee -.o .as a s(/stantial interest in t.e com#anyJ
4iii7 Hy an em#loyer 4incl(!in8 a com#any7to an em#loyee" -.o is not covere! /y 4i7 or 4ii7
a/ove an! -.ose income (n!er t.e .ea! Salaries 4-.et.er !(e *rom or #ai! or allo-e! /y
one or more em#loyers7" excl(sive o* t.e val(e o* all /ene*its an! amenities not #rovi!e! /y
-ay o* monetary #ayment" excee!s Rs.&0"000,-.
:.at constit(te concession in t.e matter o* rent .ave /een #rescri/e! in <x#lanation 1
to ; /elo- 1=4274ii7 o* t.e Income Tax Act" 1231.
IM. Any s(m #ai! /y t.e em#loyer in res#ect o* any o/li8ation -.ic. -o(l! .ave /een #ai!
/y t.e assessee.
M. Any s(m #aya/le /y t.e em#loyer" -.et.er !irectly or t.ro(8. a *(n!" ot.er t.an a
reco8niKe! #rovi!ent *(n! or an a##rove! s(#erann(ation *(n! or ot.er s#eci*ie! *(n!s (,s
1=" to e**ect an ass(rance on t.e li*e o* an assessee or to e**ect a contract *or an ann(ity.
31. With effect from 1/04/2010 (AY 2010-11) it is further clarified that the value of an
specified securit or s!eat e"uit shares allotted or transferred# directl or indirectl# $
the emploer# or former emploer# free of cost or at concessional rate to the assessee# shall
constitute a per"uisite in the hand of emploees%
0/planation.4For the purposes o! this sub-clause,4
'a( 5speci!ied security5 means the securities as de!ined in clause 'h( o! section - o! the
Securities Contracts ',e)ulation( Act, #$%& '6- o! #$%&( and, *here employees7 stoc2 option
has been )ranted under any plan or scheme there!ore, includes the securities o!!ered under
such plan or scheme8
'b( 5s*eat e9uity shares5 means e9uity shares issued by a company to its employees or
directors at a discount or !or consideration other than cash !or providin) 2no*-ho* or
ma2in) available ri)hts in the nature o! intellectual property ri)hts or value additions, by
*hatever name called8
'c( the value o! any speci!ied security or s*eat e9uity shares shall be the !air mar2et value
o! the speci!ied security or s*eat e9uity shares, as the case may be, on the date on *hich the
option is e/ercised by the assessee as reduced by the amount actually paid by, or recovered
!rom the assessee in respect o! such security or shares8
'd( 5!air mar2et value5 means the value determined in accordance *ith the method as may
be prescribed8
'e( 5option5 means a ri)ht but not an obli)ation )ranted to an employee to apply !or the
speci!ied security or s*eat e9uity shares at a predetermined price8
311. :he amount o! any contribution to an approved superannuation !und by the employer in
respect o! the assessee, to the e/tent it e/ceeds one la2h rupees8 and
3111. :he value o! any other !rin)e bene!it or amenity as may be prescribed.
It is *(rt.er #rovi!e! t.at &profits in lieu of salar' s.all incl(!e amo(nts receive! in l(m#
s(m or ot.er-ise" #rior to em#loyment or a*ter cessation o* em#loyment *or t.e #(r#oses o*
taxation.
T.e r(les *or val(ation o* #er9(isite are as (n!er % -
). Acco%%o&ation %- 'or #(r#ose o* val(ation o* t.e #er9(isite o* (n*(rnis.e!
accommo!ation" all em#loyees are !ivi!e! into t-o cate8ories% 4i7+entral Govt. & State
Govt. em#loyeesJ an! 4ii7It.ers.
'or em#loyees o* t.e +entral an! State 8overnments t.e val(e o* #er9(isite s.all /e e9(al to
t.e licence *ee c.ar8e! *or s(c. accommo!ation as re!(ce! /y t.e rent act(ally #ai! /y t.e
em#loyee.
'or all ot.ers" i.e." t.ose salarie! tax#ayers not in em#loyment o* t.e +entral 8overnment
an! t.e State 8overnment" t.e val(ation o* #er9(isite in res#ect o* accommo!ation -o(l! /e
at #rescri/e! rates" as !isc(sse! /elo-%
1. :.ere t.e accommo!ation #rovi!e! to t.e em#loyee is o#ne& by t$e e%ployer" t.e
rate is 1&D o* 5salary6 in cities .avin8 #o#(lation excee!in8 2& la@. as #er t.e 2001 cens(s.
T.e rate is 10D o* salary in cities .avin8 #o#(lation excee!in8 10 la@.s /(t not excee!in8
2& la@.s as #er 2001 +ens(s. 'or ot.er #laces" t.e #er9(isite val(e -o(l! /e =.& D o* t.e
salary.
2. :.ere t.e accommo!ation so #rovi!e! is ta(en on lease rent by t$e e%ployer" t.e
#rescri/e! rate is 1&D o* t.e salary or t.e act(al amo(nt o* lease rental #aya/le /y t.e
em#loyer" -.ic.ever is lo-er" as re!(ce! /y any amo(nt o* rent #ai! /y t.e em#loyee.
'or f4rnis$e& acco%%o&ation" t.e val(e o* #er9(isite as !etermine! /y t.e a/ove met.o!
s.all /e increase! /y-
4i7 10D o* t.e cost o* *(rnit(re" a##liances an! e9(i#ments" or
4ii7 -.ere t.e *(rnit(re" a##liances an! e9(i#ments .ave /een ta@en on .ire" /y t.e amo(nt
o* act(al .ire c.ar8es #aya/le.
- as re!(ce! /y any c.ar8es #ai! /y t.e em#loyee .imsel*.
<x#lanation% 'or t.e #(r#ose o* t.is r(le" -.ere t.e accommo!ation is #rovi!e! /y t.e
+entral Government or any State Government to an em#loyee -.o is servin8 on !e#(tation
-it. any /o!y or (n!erta@in8 (n!er t.e control o* s(c. Government"-
4i7. t.e em#loyer o* s(c. an em#loyee s.all /e !eeme! to /e t.at /o!y or (n!erta@in8
-.ere t.e em#loyee is servin8 on !e#(tationJ an!
4ii7. t.e val(e o* #er9(isite o* s(c. an accommo!ation s.all /e t.e amo(nt calc(late! in
accor!ance -it. Sl. )o.4274a7 o* Ta/le I" as i* t.e accommo!ation is o-ne! /y t.e em#loyer.
0Accommo!ation1 incl(!es a .o(se" *lat" *arm .o(se" .otel accommo!ation" motel" service
a#artment" 8(est .o(se" a caravan" mo/ile .ome" s.i# etc. >o-ever" t.e val(e o* any
accommo!ation #rovi!e! to an em#loyee -or@in8 at a minin8 site or an on-s.ore oil
ex#loration site or a #ro?ect exec(tion site or a !am site or a #o-er 8eneration site or an o**-
s.ore site -ill not /e treate! as a #er9(isite. >o-ever" *or not /ein8 treate! as #er9(isite"
s(c. accommo!ation s.o(l! eit.er /e locate! in a 0remote area1 or -.ere it is not locate! in
a 0remote area1" t.e accommo!ation s.o(l! /e o* a tem#orary nat(re .avin8 #lint. area o*
not more t.an $00 s9(are *eet an! s.o(l! not /e locate! -it.in $ @ilometers o* t.e local
limits o* any m(nici#ality or cantonment /oar!. A #ro?ect exec(tion site *or t.e #(r#oses o*
t.is s(/-r(le means a site o* #ro?ect (# to t.e sta8e o* its commissionin8. A 0remote area1
means an area locate! at least ;0 @ilometers a-ay *rom a to-n .avin8 a #o#(lation not
excee!in8 20"000 as #er t.e latest #(/lis.e! all-In!ia cens(s.
I* an accommo!ation is #rovi!e! /y an em#loyer in a .otel t.e val(e o* t.e /ene*it in s(c. a
case s.all /e 2;D o* t.e ann(al salary or t.e act(al c.ar8es #ai! or #aya/le to s(c. .otel"
-.ic.ever is lo-er" *or t.e #erio! !(rin8 -.ic. s(c. accommo!ation is #rovi!e! as re!(ce!
/y any rent act(ally #ai! or #aya/le /y t.e em#loyee. >o-ever" -.ere in cases t.e em#loyee
is #rovi!e! s(c. accommo!ation *or a #erio! not excee!in8 in a88re8ate *i*teen !ays on
trans*er *rom one #lace to anot.er" no #er9(isite val(e *or s(c. accommo!ation #rovi!e! in a
.otel s.all /e c.ar8e!. It may /e clari*ie! t.at -.ile services #rovi!e! as an inte8ral #art o*
t.e accommo!ation" nee! not /e val(e! se#arately as #er9(isite" any ot.er services over an!
a/ove t.at *or -.ic. t.e em#loyer ma@es #ayment or reim/(rses t.e em#loyee s.all /e
val(e! as a #er9(isite as #er t.e resi!(al cla(se. In ot.er -or!s" com#osite tari** *or
accommo!ation -ill /e val(e! as #er t.ese R(les an! any ot.er c.ar8es *or ot.er *acilities
#rovi!e! /y t.e .otel -ill /e se#arately val(e! (n!er t.e resi!(al cla(se. Also" i* on acco(nt
o* an em#loyee6s trans*er *rom one #lace to anot.er" t.e em#loyee is #rovi!e! -it.
accommo!ation at t.e ne- #lace o* #ostin8 -.ile retainin8 t.e accommo!ation at t.e ot.er
#lace" t.e val(e o* #er9(isite s.all /e !etermine! -it. re*erence to only one s(c.
accommo!ation -.ic. .as t.e lo-er val(e as #er t.e ta/le #rescri/e! in R(le 3 o* t.e
Income Tax R(les" *or a #erio! (# to 20 !ays. >o-ever" a*ter t.at t.e val(e o* #er9(isite
s.all /e c.ar8e! *or /ot. accommo!ations as #rescri/e!.
)) Personal atten&ants etc.2 T.e val(e o* *ree service o* all #ersonal atten!ants incl(!in8 a
s-ee#er" 8ar!ener an! a -atc.man is to /e ta@en at act(al cost to t.e em#loyer. :.ere t.e
atten!ant is #rovi!e! at t.e resi!ence o* t.e em#loyee" *(ll cost -ill /e taxe! as #er9(isite in
t.e .an!s o* t.e em#loyee irres#ective o* t.e !e8ree o* #ersonal service ren!ere! to .im.
Any amo(nt #ai! /y t.e em#loyee *or s(c. *acilities or services s.all /e re!(ce! *rom t.e
a/ove amo(nt.
))) Eas- electricity & #ater2 'or *ree s(##ly o* 8as" electricity an! -ater *or .o(se.ol!
cons(m#tion" t.e r(les #rovi!e t.at t.e amo(nt #ai! /y t.e em#loyer to t.e a8ency
s(##lyin8 t.e amenity s.all /e t.e val(e o* #er9(isite. :.ere t.e s(##ly is ma!e *rom t.e
em#loyer6s o-n reso(rces" t.e man(*act(rin8 cost #er (nit inc(rre! /y t.e em#loyer -o(l!
/e ta@en *or t.e val(ation o* #er9(isite. Any amo(nt #ai! /y t.e em#loyee *or s(c. *acilities
or services s.all /e re!(ce! *rom t.e a/ove amo(nt.
)@ !ree or concessional e&4cation2 Per9(isite on acco(nt o* *ree or concessional e!(cation
s.all /e val(e! in a manner ass(min8 t.at s(c. ex#enses are /orne /y t.e em#loyee" an!
-o(l! cover cases -.ere an em#loyer is r(nnin8" maintainin8 or !irectly or in!irectly
*inancin8 t.e e!(cational instit(tion. Any amo(nt #ai! /y t.e em#loyee *or s(c. *acilities or
services s.all /e re!(ce! *rom t.e a/ove amo(nt. >o-ever" -.ere s(c. e!(cational
instit(tion itsel* is maintaine! an! o-ne! /y t.e em#loyer or -.ere s(c. *ree e!(cational
*acilities are #rovi!e! in any instit(tion /y reason o* .is /ein8 in em#loyment o* t.at
em#loyer" t.e val(e o* t.e #er9(isite to t.e em#loyee s.all /e !etermine! -it. re*erence to
t.e cost o* s(c. e!(cation in a similar instit(tion in or near t.e locality i* t.e cost o* s(c.
e!(cation or s(c. /ene*it #er c.il! excee!s Rs.1000,- #.m.
@ )nterest free or concessional loans It is common #ractice" #artic(larly in *inancial
instit(tions" to #rovi!e interest *ree or concessional loans to em#loyees or any mem/er o* .is
.o(se.ol!. T.e val(e o* #er9(isite arisin8 *rom s(c. loans -o(l! /e t.e excess o* interest
#aya/le at #rescri/e! interest rate over interest" i* any" act(ally #ai! /y t.e em#loyee or any
mem/er o* .is .o(se.ol!. T.e #rescri/e! interest rate -o(l! no- /e t.e rate c.ar8e! #er
ann(m /y t.e State Han@ o* In!ia as on t.e 1
st
!ay o* t.e relevant *inancial year in res#ect o*
loans o* same ty#e an! *or t.e same #(r#ose a!vance! /y it to t.e 8eneral #(/lic. Per9(isite
val(e -o(l! /e calc(late! on t.e /asis o* t.e maxim(m o(tstan!in8 mont.ly /alance
met.o!. 'or val(in8 #er9(isites (n!er t.is r(le" any ot.er met.o! o* calc(lation an!
a!?(stment ot.er-ise a!o#te! /y t.e em#loyer s.all not /e relevant.
>o-ever" small loans (# to Rs. 20"000,- in t.e a88re8ate are exem#t. Ooans *or me!ical
treatment s#eci*ie! in R(le 3A are also exem#t" #rovi!e! t.e amo(nt o* loan *or me!ical
reim/(rsement is not reim/(rse! (n!er any me!ical ins(rance sc.eme. :.ere any me!ical
ins(rance reim/(rsement is receive!" t.e #er9(isite val(e at t.e #rescri/e! rate s.all /e
c.ar8e! *rom t.e !ate o* reim/(rsement on t.e amo(nt reim/(rse!" /(t not re#ai! a8ainst
t.e o(tstan!in8 loan ta@en s#eci*ically *or t.is #(r#ose.
@) 'se of assets2 It is common #ractice *or an asset o-ne! /y t.e em#loyer to /e (se! /y
t.e em#loyee or any mem/er o* .is .o(se.ol!. T.is #er9(isite is to /e c.ar8e! at t.e rate o*
10D o* t.e ori8inal cost o* t.e asset as re!(ce! /y any c.ar8es recovere! *rom t.e em#loyee
*or s(c. (se. >o-ever" t.e (se o* +om#(ters an! Oa#to#s -o(l! not 8ive rise to any
#er9(isite.
@)) Transfer of assets2 I*ten an em#loyee or mem/er o* .is .o(se.ol! /ene*its *rom t.e
trans*er o* mova/le asset 4not /ein8 s.ares or sec(rities7 at no cost or at a cost less t.an its
mar@et val(e *rom t.e em#loyer. T.e !i**erence /et-een t.e ori8inal cost o* t.e mova/le
asset4not /ein8 s.ares or sec(rities7 an! t.e s(m" i* any" #ai! /y t.e em#loyee" s.all /e ta@en
as t.e val(e o* #er9(isite. In case o* a mova/le asset" -.ic. .as alrea!y /een #(t to (se" t.e
ori8inal cost s.all /e re!(ce! /y a s(m o* 10D o* s(c. ori8inal cost *or every com#lete!
year o* (se o* t.e asset. I-in8 to a .i8.er !e8ree o* o/solescence" in case o* com#(ters an!
electronic 8a!8ets" .o-ever" t.e val(e o* #er9(isite s.all /e -or@e! o(t /y re!(cin8 &0D o*
t.e act(al cost /y t.e re!(cin8 /alance met.o! *or eac. com#lete! year o* (se. <lectronic
8a!8ets in t.is case means !ata stora8e an! .an!lin8 !evices li@e com#(ter" !i8ital !iaries
an! #rinters. T.ey !o not incl(!e .o(se.ol! a##liance 4i.e. -.ite 8oo!s7 li@e -as.in8
mac.ines" micro-ave ovens" mixers" .ot #lates" ovens etc. Similarly" in case o* cars" t.e
val(e o* #er9(isite s.all /e -or@e! o(t /y re!(cin8 20D o* its act(al cost /y t.e re!(cin8
/alance met.o! *or eac. com#lete! year o* (se.
@))) /e&ical Rei%b4rse%ent by t$e e%ployer e1cee&in" Rs. 1G-000- p.a. 4s. 1F5275v7
is to be ta(en as per=4isites.
)t is f4rt$er clarifie& t$at t$e r4le position re"ar&in" val4ation of per=4isites are "iven
at Section 1F527 of )nco%e Ta1 Act- 1891 an& at R4le 3 of )nco%e Ta1 R4les- 1892. T$e
&e&4ctors %ay loo( into t$e above provisions caref4lly before t$ey &eter%ine t$e
per=4isite val4e for &e&4ction p4rposes.
It is #ertinent to mention t.at /ene*its s#eci*ically exem#t (,s 10413A7" 104&7" 1041;7" 1= etc.
-o(l! contin(e to /e exem#t. T.ese incl(!e /ene*its li@e travel on to(r an! trans*er" leave
travel" !aily allo-ance to meet to(r ex#enses as #rescri/e!" me!ical *acilities s(/?ect to
con!itions.
G.2 )nco%es not incl4&e& 4n&er t$e 6ea& :Salaries<5,1e%ptions7
Any income *allin8 -it.in any o* t.e *ollo-in8 cla(ses s.all not /e incl(!e! in com#(tin8
t.e income *rom salaries *or t.e #(r#ose o* Section 122 o* t.e Act %-
417 T.e val(e o* any travel concession or assistance receive! /y or !(e to an em#loyee
*rom .is em#loyer or *ormer em#loyer *or .imsel* an! .is *amily" in connection -it. .is
#rocee!in8 4a7 on leave to any #lace in In!ia or 4/7 on retirement *rom service" or" a*ter
termination o* service to any #lace in In!ia is exem#t (n!er cla(se 4&7 o* Section 10 s(/?ect"
.o-ever" to t.e con!itions #rescri/e! in r(le 2H o* t.e Income-tax R(les"1232.
'or t.e #(r#ose o* t.is cla(se" 0*amily1 in relation to an in!ivi!(al means %
4i7 T.e s#o(se an! c.il!ren o* t.e in!ivi!(alJ an!
4ii7 t.e #arents" /rot.ers an! sisters o* t.e in!ivi!(al or any o* t.em" -.olly or mainly
!e#en!ent on t.e in!ivi!(al.
It may also /e note! t.at t.e amo(nt exem#t (n!er t.is cla(se s.all in no case excee! t.e
amo(nt o* ex#enses act(ally inc(rre! *or t.e #(r#ose o* s(c. travel.
427 Deat$-c4%-retire%ent "rat4ity or any ot.er 8rat(ity -.ic. is exem#t to t.e extent
s#eci*ie! *rom incl(sion in com#(tin8 t.e total income (n!er cla(se 4107 o* Section 10. Any
!eat.-cum-retirement 8rat(ity receive! (n!er t.e revise! Pension R(les o* t.e +entral
Government or" as t.e case may /e" t.e +entral +ivil Services 4Pension7 R(les" 12=2" or
(n!er any similar sc.eme a##lica/le to t.e mem/ers o* t.e civil services o* t.e Fnion or
.ol!ers o* #osts connecte! -it. !e*ence or o* civil #osts (n!er t.e Fnion 4s(c. mem/ers or
.ol!ers /ein8 #ersons not 8overne! /y t.e sai! R(les7 or to t.e mem/ers o* t.e all-In!ia
services or to t.e mem/ers o* t.e civil services o* a State or .ol!ers o* civil #osts (n!er a
State or to t.e em#loyees o* a local a(t.ority or any #ayment o* retirin8 8rat(ity receive!
(n!er t.e Pension +o!e or Re8(lations a##lica/le to t.e mem/ers o* t.e !e*ence service.
Grat(ity receive! in cases ot.er t.an a/ove on retirement" termination etc is exem#t (# to t.e
limit as #rescri/e! /y t.e Hoar!. Presently t.e limit is Rs ten la@. -.e.*. 2;.0&.2010 in vie-
o* noti*ication n(m/er ;3,2010 S.I. 1;1;4<7 iss(e! (n!er '.). 200,33,2002-ITA-1.
437 Any #ayment in co%%4tation of pension receive! (n!er t.e +ivil
Pension4+omm(tation7 R(les o* t.e +entral Government or (n!er any similar sc.eme
a##lica/le to t.e mem/ers o* t.e civil services o* t.e Fnion" or .ol!ers o* civil #osts,#osts
connecte! -it. !e*ence" (n!er t.e Fnion"or civil #osts (n!er a State" or to t.e mem/ers o*
t.e All In!ia Services,De*ence Services" or" to t.e em#loyees o* a local a(t.ority or a
cor#oration esta/lis.e! /y a +entral"State or Provincial Act" is exem#t (n!er s(/-cla(se 4i7
o* cla(se 410A7 o* Section 10. As re8ar!s #ayments in comm(tation o* #ension receive!
(n!er any sc.eme o* any ot.er em#loyer" exem#tion -ill /e 8overne! /y t.e #rovisions o*
s(/-cla(se 4ii7 o* cla(se 410A7 o* section 10. Also" any #ayment in comm(tation o* #ension
receive! *rom a Re8imental '(n! or )on-P(/lic '(n! esta/lis.e! /y t.e Arme! 'orces o*
t.e Fnion re*erre! to in Section 10423AAH7 is exem#t (n!er s(/-cla(se 4iii7 o* cla(se 410A7
o* Section 10.
4;7 Any #ayment receive! /y an em#loyee o* t.e +entral Government or a State
Government" as cas$-e=4ivalent of t$e leave salary in res#ect o* t.e #erio! o* earne! leave
at .is cre!it at t.e time o* .is retirement" -.et.er on s(#erann(ation or ot.er-ise" is exem#t
(n!er s(/-cla(se4i7 o* cla(se 10AA7 o* Section 10. In t.e case o* ot.er em#loyees" t.is
exem#tion -ill /e !etermine! -it. re*erence to t.e leave to t.eir cre!it at t.e time o*
retirement on s(#erann(ation" or ot.er-ise" s(/?ect to a maxim(m o* ten mont.s6 leave.T.is
exem#tion -ill /e *(rt.er limite! to t.e maxim(m amo(nt s#eci*ie! /y t.e Government o*
In!ia )oti*ication )o.S.I.&$$4<7 !ate! 31.0&.2002 at Rs. 3"00"000,- in relation to s(c.
em#loyees -.o retire" -.et.er on s(#erann(ation or ot.er-ise" a*ter 1.;.122$.
4&7 Fn!er Section 10410H7" t.e retrenc$%ent co%pensation receive! /y a -or@man is
exem#t *rom income-tax s(/?ect to certain limits. T.e maxim(m amo(nt o* retrenc.ment
com#ensation exem#t is t.e s(m calc(late! on t.e /asis #rovi!e! in section 2&'4/7 o* t.e
In!(strial Dis#(tes Act" 12;= or any amo(nt not less t.an Rs.&0"000,- as t.e +entral
Government may /y noti*ication s#eci*y in t.e o**icial 8aKette" -.ic.ever is less. T.ese
limits s.all not a##ly in t.e case -.ere t.e com#ensation is #ai! (n!er any sc.eme -.ic. is
a##rove! in t.is /e.al* /y t.e +entral Government" .avin8 re8ar! to t.e nee! *or exten!in8
s#ecial #rotection to t.e -or@men in t.e (n!erta@in8 to -.ic. t.e sc.eme a##lies an! ot.er
relevant circ(mstances. T.e maxim(m limit o* s(c. #ayment is Rs. &"00"000 -.ere
retrenc.ment is on or a*ter 1.1.122=.
437 Fn!er Section 10410+7" any #ayment receive! or receiva/le 4even i* receive! in
installments7 /y an em#loyee o* t.e *ollo-in8 /o!ies at t.e time o* .is vol(ntary retirement
or termination o* .is service" in accor!ance -it. any sc.eme or sc$e%es of vol4ntary
retire%ent or in t.e case o* #(/lic sector com#any " a sc.eme o* vol(ntary se#aration" is
exem#te! *rom income-tax to t.e extent t.at s(c. amo(nt !oes not excee! *ive la@. r(#ees%
4a7 A #(/lic sector com#anyJ
4/7 Any ot.er com#anyJ
4c7 An A(t.ority esta/lis.e! (n!er a +entral" State or Provincial ActJ
4!7 A Oocal A(t.orityJ
4e7 A +oo#erative SocietyJ
4*7 A (niversity esta/lis.e! or incor#orate! or (n!er a +entral" State or Provincial Act" or"
an Instit(tion !eclare! to /e a Fniversity (n!er section 3 o* t.e Fniversity Grants
+ommission Act" 12&3J
487 Any In!ian Instit(te o* Tec.nolo8y -it.in t.e meanin8 o* +la(se 487 o* Section 3 o* t.e
Instit(te o* Tec.nolo8y Act" 1231J
4.7 S(c. Instit(te o* ana8ement as t.e +entral Government may /y noti*ication in t.e
I**icial GaKette" s#eci*y in t.is /e.al*.
T.e exem#tion o* amo(nt receive! (n!er MRS .as /een exten!e! to em#loyees o* t.e
+entral Government an! State Government an! em#loyees o* noti*ie! instit(tions .avin8
im#ortance t.ro(8.o(t In!ia or any State or States. It may also /e note! t.at -.ere t.is
exem#tion .as /een allo-e! to any em#loyee *or any assessment year" it s.all not /e allo-e!
to .im *or any ot.er assessment year.
4=7 Any s4% receive& 4n&er a ;ife )ns4rance Policy" incl(!in8 t.e s(m allocate! /y -ay
o* /on(s on s(c. #olicy ot.er t.an%
4i7 any s(m receive! (n!er s(/-section 437 o* section $0DD or s(/-section 437 o* section
$0DDA or"
4ii7 any s(m receive! (n!er Qeyman ins(rance #olicy or"
4iii7 any s(m receive! (n!er an ins(rance #olicy iss(e! on or a*ter 1.;.2003 in res#ect o*
-.ic. t.e #remi(m #aya/le *or any o* t.e years !(rin8 t.e term o* t.e #olicy excee!s 20
#ercent o* t.e act(al ca#ital s(m ass(re!. >o-ever" any s(m receive! (n!er s(c. #olicy on
t.e !eat. o* a #erson -o(l! still /e exem#t.
4$7 any pay%ent fro% a Provi&ent !4n& to -.ic. t.e Provi!ent '(n!s Act" 122& 412 o*
122&7" a##lies or *rom any ot.er #rovi!ent *(n! set (# /y t.e +entral Government an!
noti*ie! /y it in t.is /e.al* in t.e I**icial GaKette.
427 Fn!er Section 10513A7 o* t.e Income-tax Act" 1231"any s#ecial allo-ance s#eci*ically
8rante! to an assessee /y .is em#loyer to meet e1pen&it4re inc4rre& on pay%ent of rent
4/y -.atever name calle!7 in res#ect o* resi!ential accommo!ation occ(#ie! /y t.e assessee
is exem#t *rom Income-tax to t.e extent as may /e #rescri/e!" .avin8 re8ar! to t.e area or
#lace in -.ic. s(c. accommo!ation is sit(ate! an! ot.er relevant consi!erations. Accor!in8
to r(le 2A o* t.e Income-tax R(les" 1232" t.e 9(ant(m o* exem#tion allo-a/le on acco(nt o*
8rant o* s#ecial allo-ance to meet ex#en!it(re on #ayment o* rent s.all /e%
4a7 T.e act(al amo(nt o* s(c. allo-ance receive! /y t.e assessee in res#ect o* t.e relevant
#erio!J or
4/7 T.e act(al ex#en!it(re inc(rre! in #ayment o* rent in excess o* 1,10 o* t.e salary !(e
*or t.e relevant #erio!J or
4c7 :.ere s(c. accommo!ation is sit(ate! in Hom/ay" +alc(tta" Del.i or a!ras" &0D o*
t.e salary !(e to t.e em#loyee *or t.e relevant #erio!J or
4!7 :.ere s(c. accommo!ation is sit(ate! in any ot.er #laces" ;0D o* t.e salary !(e to t.e
em#loyee *or t.e relevant #erio!"
-.ic.ever is t.e least.
'or t.is #(r#ose" 0Salary1 incl(!es !earness allo-ance" i* t.e terms o* em#loyment so
#rovi!e" /(t excl(!es all ot.er allo-ances an! #er9(isites.
It .as to /e note! t.at only t.e ex#en!it(re act(ally inc(rre! on #ayment o* rent in res#ect o*
resi!ential accommo!ation occ(#ie! /y t.e assessee s(/?ect to t.e limits lai! !o-n in R(le
2A" 9(ali*ies *or exem#tion *rom income-tax. T.(s" .o(se rent allo-ance 8rante! to an
em#loyee -.o is resi!in8 in a .o(se,*lat o-ne! /y .im is not exem#t *rom income-tax. T.e
!is/(rsin8 a(t.orities s.o(l! satis*y t.emselves in t.is re8ar! /y insistin8 on #ro!(ction o*
evi!ence o* act(al #ayment o* rent /e*ore excl(!in8 t.e >o(se Rent Allo-ance or any
#ortion t.ereo* *rom t.e total income o* t.e em#loyee.
T.o(8. inc(rrin8 act(al ex#en!it(re on #ayment o* rent is a #re-re9(isite *or claimin8
!e!(ction (n!er section 10413A7" it .as /een !eci!e! as an a!ministrative meas(re t.at
salarie! em#loyees !ra-in8 .o(se rent allo-ance (#to Rs.3000,- #er mont. -ill /e
exem#te! *rom #ro!(ction o* rent recei#t. It may" .o-ever" /e note! t.at t.is concession is
only *or t.e #(r#ose o* tax-!e!(ction at so(rce" an!" in t.e re8(lar assessment o* t.e
em#loyee" t.e Assessin8 I**icer -ill /e *ree to ma@e s(c. en9(iry as .e !eems *it *or t.e
#(r#ose o* satis*yin8 .imsel* t.at t.e em#loyee .as inc(rre! act(al ex#en!it(re on #ayment
o* rent.
'(rt.er i* ann(al rent #ai! /y t.e em#loyee excee!s Rs 1"$0"000 #er ann(m" it is man!atory
*or t.e em#loyee to re#ort PA) o* t.e lan!lor! to t.e em#loyer. In case t.e lan!lor! !oes not
.ave a PA)" a !eclaration to t.is e**ect *rom t.e lan!lor! alon8 -it. t.e name an! a!!ress o*
t.e lan!lor! s.o(l! /e *ile! /y t.e em#loyee.
4107 +la(se 41;7 o* section 10 #rovi!es *or exem#tion o* t.e *ollo-in8 allo-ances %-
4i7 Any s#ecial allo-ance or /ene*it 8rante! to an em#loyee to meet t.e e1penses inc4rre&
in t$e perfor%ance of $is &4ties as #rescri/e! (n!er R(le 2HH s(/?ect to t.e extent to
-.ic. s(c. ex#enses are act(ally inc(rre! *or t.at #(r#ose.
4ii7 Any allo-ance 8rante! to an em#loyee eit.er to meet .is #ersonal ex#enses at t.e #lace
o* .is #ostin8 or at t.e #lace .e or!inarily resi!es or to co%pensate $i% for t$e increase&
cost of livin"" -.ic. may /e #rescri/e! an! to t.e extent as may /e #rescri/e!.
>o-ever" t.e allo-ance re*erre! to in 4ii7 a/ove s.o(l! not /e in t.e nat(re o* a #ersonal
allo-ance 8rante! to t.e assessee to rem(nerate or com#ensate .im *or #er*ormin8 !(ties o*
a s#ecial nat(re relatin8 to .is o**ice or em#loyment (nless s(c. allo-ance is relate! to .is
#lace o* #ostin8 or resi!ence.
T.e +HDT .as #rescri/e! 8(i!elines *or t.e #(r#ose o* cla(ses 4i7 an! 4ii7 o* Section 1041;7
vi!e noti*ication )o.SI31=4<7 !ate! =t. N(ly" 122& 4'.)o.1;2,2,2&-TPO7-.ic. .as /een
amen!e! vi!e noti*ication SI )o.;034<7 !t 2;.;.2000 4'.)o.1;2,3;,22-TPO7. T.e trans#ort
allo-ance 8rante! to an em#loyee to meet .is ex#en!it(re *or t.e #(r#ose o* comm(tin8
/et-een t.e #lace o* .is resi!ence an! t.e #lace o* !(ty is exem#t to t.e extent o* Rs.$00 #er
mont. vi!e noti*ication S.I.)o. 32&4<7 !ate! 13.&.2$.
4117 Fn!er Section 1041&74iv74i7 o* t.e Income-tax Act" interest #aya/le /y t.e Government
on !e#osits ma!e /y an em#loyee o* t.e +entral Government or a State Government or a
#(/lic sector com#any o(t o* .is retirement /ene*its" in accor!ance -it. s(c. sc.eme *rame!
in t.is /e.al* /y t.e +entral Government an! noti*ie! in t.e I**icial GaKette is exem#t *rom
income-tax. Hy noti*ication )o.'.2,1;,$2-)S-II !ate! =.3.$2" as amen!e! /y noti*ication
)o.'.2,1;,$2-)S-II !ate! 12.10.$2" t.e +entral Government .as noti*ie! a sc.eme calle!
Deposit Sc$e%e for Retirin" Eovern%ent ,%ployees- 18?8 *or t.e #(r#ose o* t.e sai!
cla(se.
4127 Any sc.olars.i# 8rante! to meet t.e cost o* e!(cation is not to /e incl(!e! in total
income as #er s(/section 4137 o* section 10 o* Income Tax Act.
4137 +la(se 41$7 o* Section 10 #rovi!es *or exem#tion o* any income /y -ay o* #ension
receive! /y an in!ivi!(al -.o .as /een in t.e service o* t.e +entral Government or State
Government an! .as /een a-ar!e! 0Param Mir +.a@ra1 or 0a.a Mir +.a@ra1 or 0Mir
+.a@ra1 or s(c. ot.er 8allantry a-ar! as may /e s#eci*ically noti*ie! /y t.e +entral
Government or *amily #ension receive! /y any mem/er o* t.e *amily o* s(c. in!ivi!(al.
0'amily1 *or t.is #(r#ose s.all .ave t.e meanin8 assi8ne! to it in Section 104&7 o* t.e Act.
S(c. noti*ication .as /een ma!e vi!e )oti*ications )o.S.I.12;$4<7 !ate! 2;.11.2000 an!
$14<7 !ate! 22.1.2001" -.ic. are enclose! as #er Anne14re @A & @3.
41;7 Fn!er Section 1= o* t.e Act" exem#tion *rom tax -ill also /e availa/le in res#ect o*%-
4a7 t.e val(e o* any %e&ical treat%ent #rovi!e! to an em#loyee or any mem/er o* .is
*amily" in any .os#ital maintaine! /y t.e em#loyerJ
4/7 any s(m #ai! /y t.e em#loyer in res#ect o* any ex#en!it(re act(ally inc(rre! /y t.e
em#loyee on .is me!ical treatment or o* any mem/er o* .is *amily%
4i7 in any .os#ital maintaine! /y t.e Government or any local a(t.ority or any ot.er
.os#ital a##rove! /y t.e Government *or t.e #(r#oses o* me!ical treatment o* its
em#loyeesJ
4ii7 in res#ect o* t.e #rescri/e! !iseases or ailments as #rovi!e! in R(le 3A427 o* I.T. R(les
1232" in any .os#ital a##rove! /y t.e +.ie* +ommissioner .avin8 re8ar! to t.e #rescri/e!
8(i!elines as #rovi!e! in R(le 34A7417o* I.T. R(le" 1232 %
4c7 #remi(m #ai! /y t.e em#loyer in res#ect o* me!ical ins(rance ta@en *or .is em#loyees
4(n!er any sc.eme a##rove! /y t.e +entral Government or Ins(rance Re8(latory an!
Develo#ment A(t.ority7 or reim/(rsement o* ins(rance #remi(m to t.e em#loyees -.o ta@e
me!ical ins(rance *or t.emselves or *or t.eir *amily mem/ers 4(n!er any sc.eme a##rove!
/y t.e +entral Government or Ins(rance Re8(latory an! Develo#ment A(t.ority7J
4!7 reim/(rsement" /y t.e em#loyer" o* t.e amo(nt s#ent /y an em#loyee in o/tainin8
me!ical treatment *or .imsel* or any mem/er o* .is *amily *rom any !octor" not excee!in8 in
t.e a88re8ate Rs.1&"000,- in an year.
4e7 As re8ar!s me!ical treatment a/roa!" t.e act(al ex#en!it(re on stay an! treatment
a/roa! o* t.e em#loyee or any mem/er o* .is *amily" or" on stay a/roa! o* one atten!ant -.o
accom#anies t.e #atient" in connection -it. s(c. treatment" -ill /e excl(!e! *rom
#er9(isites to t.e extent #ermitte! /y t.e Reserve Han@ o* In!ia. It may /e note! t.at t.e
ex#en!it(re inc(rre! on travel a/roa! /y t.e #atient,atten!ant" s.all /e excl(!e! *rom
#er9(isites only i* t.e em#loyee6s 8ross total income" as com#(te! /e*ore incl(!in8 t.e sai!
ex#en!it(re" !oes not excee! Rs.2 la@.s.
'or t.e #(r#ose o* availin8 exem#tion on ex#en!it(re inc(rre! on me!ical treatment"
0.os#ital1 incl(!es a !is#ensary or clinic or n(rsin8 .ome" an! 0*amily1 in relation to an
in!ivi!(al means t.e s#o(se an! c.il!ren o* t.e in!ivi!(al. 'amily also incl(!es #arents"
/rot.ers an! sisters o* t.e in!ivi!(al i* t.ey are -.olly or mainly !e#en!ent on t.e
in!ivi!(al.
G.3 De&4ctions fro% inco%e fro% Salaries 4s 19 of t$e Act
,ntertain%ent Allo#ance2
A !e!(ction is also allo-e! (n!er cla(se 4ii7 o* section 13 in res#ect o* any allo-ance in t.e
nat(re o* an entertainment allo-ance s#eci*ically 8rante! /y an em#loyer to t.e assessee"
-.o is in recei#t o* a salary *rom t.e Government" a s(m e9(al to one-*i*t. o* .is
salary4excl(sive o* any allo-ance" /ene*it or ot.er #er9(isite7 or *ive t.o(san! r(#ees
-.ic.ever is less. )o !e!(ction on acco(nt o* entertainment allo-ance is availa/le to non-
8overnment em#loyees.
Ta1 .n ,%ploy%ent2
T.e tax on em#loyment 4Pro*essional Tax7 -it.in t.e meanin8 o* cla(se 427 o* Article 2=3 o*
t.e +onstit(tion o* In!ia" levia/le /y or (n!er any la-" s.all also /e allo-e! as a !e!(ction
in com#(tin8 t.e income (n!er t.e .ea! 0Salaries1.
)t %ay be clarifie& t$at :Stan&ar& De&4ction< fro% "ross salary inco%e- #$ic$ #as
bein" allo#e& 4p to financial year 200D-0G is not allo#able fro% financial year 200G-09
on#ar&s.
G.D De&4ctions 4n&er +$apter @)-A of t$e Act
In com#(tin8 t.e taxa/le income o* t.e em#loyee" t.e *ollo-in8 !e!(ctions (n!er +.a#ter
MI-A o* t.e Act are to /e allo-e! *rom .is 8ross total income%
A. As #er section ?0+" an em#loyee -ill /e entitle! to !e!(ctions *or t.e -.ole o* amo(nts
#ai! or !e#osite! in t.e c(rrent *inancial year in t.e *ollo-in8 sc.emes" s4bCect to a li%it of
Rs.1-00-000-%
417 Payment o* ins4rance pre%i4% to e**ect or to @ee# in *orce an ins(rance on t.e li*e o*
t.e in!ivi!(al" t.e s#o(se or any c.il! o* t.e in!ivi!(al.
427 Any #ayment ma!e to e**ect or to @ee# in *orce a contract *or a &eferre& ann4ity" not
/ein8 an ann(ity #lan as is re*erre! to in item 4=7 .erein /elo- on t.e li*e o* t.e in!ivi!(al"
t.e s#o(se or any c.il! o* t.e in!ivi!(al" #rovi!e! t.at s(c. contract !oes not contain a
#rovision *or t.e exercise /y t.e ins(re! o* an o#tion to receive a cas. #ayment in lie( o* t.e
#ayment o* t.e ann(ityJ
437 Any s(m !e!(cte! *rom t.e salary #aya/le /y" or" on /e.al* o* t.e Government to any
in!ivi!(al" /ein8 a s(m !e!(cte! in accor!ance -it. t.e con!itions o* .is service *or t.e
#(r#ose o* sec(rin8 to .im a &eferre& ann4ity or ma@in8 #rovision *or .is s#o(se or
c.il!ren" in so *ar as t.e s(m !e!(cte! !oes not excee! 1,&t. o* t.e salaryJ
4;7 Any contri/(tion ma!e %
4a7 /y an in!ivi!(al to any Provi&ent !4n& to -.ic. t.e Provi!ent '(n! Act" 122& a##liesJ
4/7 to any #rovi!ent *(n! set (# /y t.e +entral Government" an! noti*ie! /y it in t.is /e.al*
in t.e I**icial GaKette" -.ere s(c. contri/(tion is to an acco(nt stan!in8 in t.e name o* an
in!ivi!(al" or s#o(se or c.il!ren J
;:he Central "overnment has since noti!ied Public Provident Fund vide Noti!ication
S.<. No. #%%$'0( dated .##.+%.
4c7 /y an em#loyee to a Reco8niKe! Provi!ent '(n!J
4!7 /y an em#loyee to an a##rove! s4perann4ation f4n&J
It may /e note! t.at Rcontri/(tionR to any '(n! s.all not incl(!e any s(ms in
re#ayment o* loanJ
4&7 Any s(/scri#tion %-
4a7 to any s(c. sec4rity of t$e +entral Eovern%ent or any s(c. &eposit sc$e%e as t.e
+entral Government may" /y noti*ication in t.e I**icial GaKette" s#eci*y in t.is /e.al*J
4/7 to any s(c. savin" certificates as !e*ine! (n!er section 24c7 o* t.e Government Savin8
+erti*icate Act" 12&2 as t.e Government may" /y noti*ication in t.e I**icial GaKette" s#eci*y
in t.is /e.al*.
;:he Central "overnment has since noti!ied National Savin) Certi!icate '3111
th
1ssue(
vide Noti!ication S.<. No. #%&+'0( dated .##.+%.=
437 Any s(m #ai! as contri/(tion in t.e case o* an in!ivi!(al" *or .imsel*" s#o(se or any
c.il!"
a. *or #artici#ation in t.e 'nit ;in(e& )ns4rance Plan- 18F1 o* t.e Fnit Tr(st o* In!iaJ
/. *or #artici#ation in any 4nit-lin(e& ins4rance plan of t$e ;)+ /4t4al !4n& re*erre!
to in cla(se 423D7 o* section 10 an! as noti*ie! /y t.e +entral Government.
;:he Central "overnment has since noti!ied Unit >in2ed 1nsurance Plan '!ormerly
2no*n as ?hanra2sha, #$@$( o! >1C Autual Fund vide Noti!ication S.<. No. #%&#'0( dated
.##.+%.=
4=7 Any s(/scri#tion ma!e to e**ect or @ee# in *orce a contract *or s(c. ann4ity plan of t$e
;ife )ns4rance +orporation or any ot.er ins(rer as t.e +entral Government may" /y
noti*ication in t.e I**icial GaKette" s#eci*yJ
;:he Central "overnment has since noti!ied Ne* Beevan ?hara, Ne* Beevan ?hara-1,
Ne* Beevan A2shay, Ne* Beevan A2shay-1 and Ne* Beevan A2shay-11 vide Noti!ication S.<.
No. #%&-'0( dated .##.+% and Beevan A2shay-111 vide Noti!ication S.<. No. @6C'0( dated
#.&.-++& =
4$7 Any s(/scri#tion ma!e to any 4nits of any /4t4al !4n&" re*erre! to in cla(se423D7 o*
section 10" or *rom t.e A!ministrator or t.e s#eci*ie! com#any re*erre! to in Fnit Tr(st o*
In!ia 4Trans*er o* Fn!erta@in8 & Re#eal7 Act" 2002 (n!er any #lan *orm(late! in
accor!ance -it. any sc.eme as t.e +entral Government" may" /y noti*ication in t.e I**icial
GaKette" s#eci*y in t.is /e.al*J
;:he Central "overnment has since noti!ied the 09uity >in2ed Savin) Scheme, -++% !or
this purpose vide Noti!ication S.<. No. #%&'0( dated .##.-++%=
T.e investments ma!e a*ter 1.;.2003 in #lans *orm(late! in accor!ance -it. <9(ity
Oin@e! Savin8 Sc.eme" 1222 or <9(ity Oin@e! Savin8 Sc.eme" 122$ s.all also 9(ali*y *or
!e!(ction (n!er section $0+.
427 Any contri/(tion ma!e /y an in!ivi!(al to any pension f4n& set 4p by any /4t4al
!4n& re*erre! to in cla(se 423D7 o* section 10" or" /y t.e A!ministrator or t.e s#eci*ie!
com#any re*erre! to in Fnit Tr(st o* In!ia 4Trans*er o* Fn!erta@in8 & Re#eal7 Act" 2002" as
t.e +entral Government may" /y noti*ication in t.e I**icial GaKette" s#eci*y in t.is /e.al*J
;:he Central "overnment has since noti!ied U:1-,etirement .ene!it Pension Fund vide
Noti!ication S.<. No. #%&6'0( dated .##.+%.=
4107 Any s(/scri#tion ma!e to any s(c. !e#osit sc.eme o*" or" any contri/(tion ma!e to any
s(c. #ension *(n! set (# /y" t.e *ational 6o4sin" 3an(" as t.e +entral Government may"
/y noti*ication in t.e I**icial GaKette" s#eci*y in t.is /e.al*J
4117 Any s(/scri#tion ma!e to any s(c. !e#osit sc.eme" as t.e +entral Government may" /y
noti*ication in t.e I**icial GaKette" s#eci*y *or t.e #(r#ose o* /ein8 *loate! /y 4a7 p4blic
sector co%panies en8a8e! in #rovi!in8 lon8-term *inance *or constr(ction or #(rc.ase o*
.o(ses in In!ia *or resi!ential #(r#oses" or" 4/7 any a(t.ority constit(te! in In!ia /y" or"
(n!er any la-" enacte! eit.er *or t.e #(r#ose o* !ealin8 -it. an! satis*yin8 t.e nee! *or
.o(sin8 accommo!ation or *or t.e #(r#ose o* #lannin8" !evelo#ment or im#rovement o*
cities" to-ns an! villa8es" or *or /ot..
;:he Central "overnment has since noti!ied the Public ?eposit Scheme o! DU?C<
vide Noti!ication S.<. No.C'0(, dated ##.+#.-++C, !or the purposes o! Section @+C'-('/vi(
'a(=.
4127 Any s(ms #ai! /y an assessee *or t.e #(r#ose o* p4rc$ase or constr4ction of a
resi&ential $o4se property- t.e income *rom -.ic. is c.ar8ea/le to tax (n!er t.e .ea!
0Income *rom .o(se #ro#erty1 4or -.ic. -o(l!" i* it .as not /een (se! *or assessee6s o-n
resi!ence" .ave /een c.ar8ea/le to tax (n!er t.at .ea!7 -.ere s(c. #ayments are ma!e
to-ar!s or /y -ay o* any instalment or #art #ayment o* t.e amo(nt !(e (n!er any sel*-
*inancin8 or ot.er sc.eme o* any Develo#ment A(t.ority" >o(sin8 Hoar! etc.
T.e !e!(ction -ill also /e allo-a/le in res#ect o* re-#ayment o* loans /orro-e! /y an
assessee *rom t.e Government" or any /an@ or Oi*e Ins(rance +or#oration" or )ational
>o(sin8 Han@" or certain ot.er cate8ories o* instit(tions en8a8e! in t.e /(siness o*
#rovi!in8 lon8 term *inance *or constr(ction or #(rc.ase o* .o(ses in In!ia. Any re#ayment
o* loan /orro-e! *rom t.e em#loyer -ill also /e covere!" i* t.e em#loyer .a##ens to /e a
#(/lic com#any" or a #(/lic sector com#any" or a (niversity esta/lis.e! /y la-" or a colle8e
a**iliate! to s(c. (niversity" or a local a(t.ority" or a coo#erative society" or an a(t.ority" or a
/oar!" or a cor#oration" or any ot.er /o!y esta/lis.e! (n!er a +entral or State Act.
T.e stam# !(ty" re8istration *ee an! ot.er ex#enses inc(rre! *or t.e #(r#ose o* trans*er
s.all also /e covere!. Payment to-ar!s t.e cost o* .o(se #ro#erty" .o-ever" -ill not incl(!e"
a!mission *ee or cost o* s.are or initial !e#osit or t.e cost o* any a!!ition or alteration to" or"
renovation or re#air o* t.e .o(se #ro#erty -.ic. is carrie! o(t a*ter t.e iss(e o* t.e
com#letion certi*icate /y com#etent a(t.ority" or a*ter t.e occ(#ation o* t.e .o(se /y t.e
assessee or a*ter it .as /een let o(t. Payments to-ar!s any ex#en!it(re in res#ect o* -.ic.
t.e !e!(ction is allo-a/le (n!er t.e #rovisions o* section 2; o* t.e Income-tax Act -ill also
not /e incl(!e! in #ayments to-ar!s t.e cost o* #(rc.ase or constr(ction o* a .o(se
#ro#erty.
:.ere t.e .o(se #ro#erty in res#ect o* -.ic. !e!(ction .as /een allo-e! (n!er t.ese
#rovisions is trans*erre! /y t.e tax-#ayer at any time /e*ore t.e ex#iry o* *ive years *rom t.e
en! o* t.e *inancial year in -.ic. #ossession o* s(c. #ro#erty is o/taine! /y .im or .e
receives /ac@" /y -ay o* re*(n! or ot.er-ise" any s(m s#eci*ie! in section $0+4274xviii7" no
!e!(ction (n!er t.ese #rovisions s.all /e allo-e! in res#ect o* s(c. s(ms #ai! in s(c.
#revio(s year in -.ic. t.e trans*er is ma!e an! t.e a88re8ate amo(nt o* !e!(ctions o*
income so allo-e! in t.e earlier years s.all /e a!!e! to t.e total income o* t.e assessee o*
s(c. #revio(s year an! s.all /e lia/le to tax accor!in8ly.
4137 T4ition fees" -.et.er at t.e time o* a!mission or t.erea*ter" #ai! to any (niversity"
colle8e" sc.ool or ot.er e!(cational instit(tion sit(ate! in In!ia" *or t.e #(r#ose o* *(ll-time
e!(cation o* any t-o c.il!ren o* t.e em#loyee.
!4ll-ti%e e&4cation incl4&es any e&4cational co4rse offere& by any 4niversity-
colle"e- sc$ool or ot$er e&4cational instit4tion to a st4&ent #$o is enrolle& f4ll-ti%e for
t$e sai& co4rse. )t is also clarifie& t$at f4ll-ti%e e&4cation incl4&es play-sc$ool
activities- pre-n4rsery an& n4rsery classes.
1t is clari!ied that the amount allo*able as tuition !ees shall include any payment o! !ee
to any university, colle)e, school or other educational institution in 1ndia e/cept the amount
representin) payment in the nature o! development !ees or donation or capitation !ees or
payment o! similar nature.
41;7 S(/scri#tion to e=4ity s$ares or &ebent4res for%in" part of any eli"ible iss4e of
capital ma!e /y a #(/lic com#any" -.ic. is a##rove! /y t.e Hoar! or /y any #(/lic *inance
instit(tion.
41&7 S(/scri#tion to any 4nits of any %4t4al f4n& re*erre! to in cla(se 423D7 o* Section 10
an! a##rove! /y t.e Hoar!" i* t.e amo(nt o* s(/scri#tion to s(c. (nits is s(/scri/e! only in
eli8i/le iss(e o* ca#ital o* any com#any.
4137 Investment as a ter% &eposit for a fi1e& perio& o* not less t.an *ive years -it. a
sc.e!(le! /an@" -.ic. is in accor!ance -it. a sc.eme *rame! an! noti*ie! /y t.e +entral
Government" in t.e I**icial GaKette *or t.ese #(r#oses.
;:he Central "overnment has since noti!ied the .an2 :erm ?eposit Scheme, -++& !or
this purpose vide Noti!ication S.<. No. #--+'0( dated -@.C.-++&=
41=7 S(/scri#tion to s(c. /on!s iss(e! /y t.e )ational Han@ *or A8ric(lt(re an! R(ral
Develo#ment" as t.e +entral Government may" /y s(c. noti*ication in t.e I**icial GaKette"
s#eci*y in t.is /e.al*.
41$7 Any investment in an acco(nt (n!er t.e Senior +itiKens Savin8s Sc.eme R(les" 200;.
4127 Any investment as *ive year time !e#osit in an acco(nt (n!er t.e Post I**ice Time
De#osit R(les" 12$1.
It may /e clari*ie! t.at t.e amo(nt o* #remi(m or ot.er #ayment ma!e on an ins(rance
#olicy Aot.er t.an a contract *or !e*erre! ann(ity mentione! in s(/-#ara 427C s.all /e eli8i/le
*or !e!(ction only to t.e extent o* 20 #ercent o* t.e act(al ca#ital s(m ass(re!. In
calc(latin8 any s(c. act(al ca#ital s(m" t.e *ollo-in8 s.all not /e ta@en into acco(nt%
4i7 t.e val(e o* any #remi(ms a8ree! to /e ret(rne!" or
4ii7 any /ene*it /y -ay o* /on(s or ot.er-ise over an! a/ove t.e s(m act(ally ass(re!
-.ic. may /e receive! (n!er t.e #olicy.
H. As #er section ?0+++" -.ere an assessee /ein8 an in!ivi!(al .as in t.e #revio(s year
#ai! or !e#osite! any amo(nt o(t o* .is income c.ar8ea/le to tax to e**ect or @ee# in *orce a
contract *or any ann4ity plan of ;ife )ns4rance +orporation of )n&ia or any ot$er
ins4rer for receivin" pension *rom t.e '(n! re*erre! to in cla(se 423AAH7 o* section 10" .e
s.all" in accor!ance -it." an! s(/?ect to t.e #rovisions o* t.is section" /e allo-e! a
!e!(ction in t.e com#(tation o* .is total income" o* t.e -.ole o* t.e amo(nt #ai! or
!e#osite! 4excl(!in8 interest or /on(s accr(e! or cre!ite! to t.e assessee6s acco(nt" i* any7
as &oes not e1cee& t$e a%o4nt of one la($ r4pees in t$e previo4s year.
:.ere any amo(nt #ai! or !e#osite! /y t.e assessee .as /een ta@en into acco(nt *or t.e
#(r#oses o* t.is section" a re/ate, !e!(ction -it. re*erence to s(c. amo(nt s.all not /e
allo-e! (n!er section $$ (# to assessment year 200&-03 an! (n!er section $0+ *rom
assessment year 2003-0= on-ar!s.
+. As #er t.e #rovisions o* section ?0++D" -.ere an assessee" /ein8 an in&ivi&4al
e%ploye& by t$e +entral Eovern%ent on or a*ter t.e 1st !ay o* Nan(ary" 200;" .as in t.e
#revio(s year pai& or &eposite& any a%o4nt in $is acco4nt 4n&er a pension sc$e%e as
noti*ie! vi&e *otification *o. !.*. GF2003- ,+3&PR &ate& 22.12.2003" .e s.all /e
allo-e! a !e!(ction in t.e com#(tation o* .is total income" o* t.e -.ole o* t.e amo(nt so
#ai! or !e#osite! as !oes not excee! ten #er cent o* .is salary in t.e #revio(s year.
T.e /ene*it o* ne- #ension sc.eme .as /een exten!e! to any ot.er em#loyees 4also sel*
em#loye! #erson7 -.r.e.* 1,0;,02 an! !e!(ction is allo-e! to em#loyees (#to 10D o* salary
in t.e #revio(s year an! in ot.er cases (#to 10D o* .is 8ross total income in t.e #revio(s
year. '(rt.er it .as /een s#eci*ie! t.at -.r.e.* 1,0;,02 any amo(nt receive! /y t.e assessee
*rom t.e ne- #ension sc.eme s.all /e !eeme! not to .ave receive! in t.e #revio(s year i*
s(c. amo(nt is (se! *or #(rc.asin8 an ann(ity #lan in t.e #revio(s year.
(t ma $e noted that the contri$ution made $ the )entral *overnment or an other
emploer# to!ards a pension scheme notified for section +0 )),# shall $e allo!ed as
deduction in the computation of total income of the emploee to the extent that it does not
exceed ten percent of emploee's salar% W%e%f% 01%04%2011 (-Y 2011-12)# the amount of
deduction so allo!ed shall $e outside the overall limit of .s one la/h under section
+0))E of the (ncome 0ax Act# 1121% (t is therefore# clarified that contri$ution made $ an
emploee alone !ill $e eli3i$le to deduction limit of upto .s%one la/h% 0he contri$ution
made $ the )entral *overnment or an other emploee to a pension scheme u/s
+0)),(2) shall $e excluded from the limit of one la/h rupees provided under 4ection
+0))E%
:.ere any amo(nt stan!in8 to t.e cre!it o* t.e assessee in .is acco(nt (n!er s(c. #ension
sc.eme" in res#ect o* -.ic. a !e!(ction .as /een allo-e! as #er t.e #rovisions !isc(sse!
a/ove" to8et.er -it. t.e amo(nt accr(e! t.ereon" i* any" is receive! /y t.e assessee or .is
nominee" in -.ole or in #art" in any *inancial year"S
4a7 on acco(nt o* clos(re or .is o#tin8 o(t o* s(c. #ension sc.emeJ or
4/7 as #ension receive! *rom t.e ann(ity #lan #(rc.ase! or ta@en on s(c. clos(re or o#tin8
o(t"
t.e -.ole o* t.e amo(nt re*erre! to in cla(se 4a7 or cla(se 4/7 a/ove s.all /e !eeme! to /e
t.e income o* t.e assessee or .is nominee" as t.e case may /e" in t.e *inancial year in -.ic.
s(c. amo(nt is receive!" an! s.all accor!in8ly /e c.ar8e! to tax as income o* t.at *inancial
year.
'or t.e #(r#oses o* !e!(ction (n!er section $0++D" 0salary1 incl(!es !earness allo-ance" i*
t.e terms o* em#loyment so #rovi!e" /(t excl(!es all ot.er allo-ances an! #er9(isites.
T$e a""re"ate a%o4nt of &e&4ction 4n&er sections ?0+- ?0+++ an& s4b section 517 of
Section ?0++D s$all not e1cee& Rs.1-00-000- 5Section ?0++,7
D. A ne- section $0++' .as /een inserte! /y t.e 'inance Act" 2010" -e* 01.0;.2011. T.e
section $0++' #rovi!es *or !e!(ction availa/le to an in!ivi!(al or a >F'" t.e -.ole o* t.e
amo(nt" to t.e extent s(c. amo(nt !oes not excee! Rs 20"000" #ai! or !e#osite! !(rin8
*inancial year 2010-11" as s(/scri#tion to lon8-term in*rastr(ct(re /on!s as noti*ie! /y t.e
+entral Govt *or t.e #(r#ose o* t.is section.4Hoar! )oti*ication no ;$,2010 !ate!
02.02.20107
De&4ction 4n&er t$is section can not e1cee& Rs 20-000 an& are available only for
c4rrent financial year 2011-12. T$e &e&4ction 4n&er t$is section #ill be in a&&ition to
overall li%it of &e&4ction of 4pto Rs one la($ 4n&er section ?0+- ?0+++ an& s4b
section 517 of Section ?0 ++D.
<. Section $0D #rovi!es *or !e!(ction availa/le *or .ealt. #remia #ai! etc. In com#(tin8 t.e
total income o* an assessee" /ein8 an in!ivi!(al or a >in!( (n!ivi!e! *amily" t.ere s.all /e
!e!(cte! s(c. s(m" as s#eci*ie! /elo- #ayment o* -.ic. is ma!e /y any mo!e" ot.er t.an
cas." in t.e #revio(s year o(t o* .is income c.ar8ea/le to tax.
:.ere t.e assessee is an in&ivi&4al" t.e s(m re*erre! to s.all /e t.e a88re8ate o* t.e
*ollo-in8" namely%S
4a7 t.e -.ole o* t.e amo(nt #ai! to e**ect or to @ee# in *orce an ins(rance on t.e .ealt. o*
t.e assessee or .is *amily or any contri/(tion ma!e to t.e +G>S as !oes not excee! in t.e
a88re8ate fifteen t$o4san& r4peesJ an!
4/7 t.e -.ole o* t.e amo(nt #ai! to e**ect or to @ee# in *orce an ins(rance on t.e .ealt. o*
t.e #arent or #arents o* t.e assessee as !oes not excee! in t.e a88re8ate fifteen t$o4san&
r4pees.
<x#lanation.S'or t.e #(r#oses o* cla(se 4a7" 0*amily1 means t.e s#o(se an! !e#en!ent
c.il!ren o* t.e assessee.
:.ere t.e assessee is a 6in&4 4n&ivi&e& fa%ily" t.e s(m re*erre! to s.all /e t.e -.ole o*
t.e amo(nt #ai! to e**ect or to @ee# in *orce an ins(rance on t.e .ealt. o* any mem/er o*
t.at >in!( (n!ivi!e! *amily as !oes not excee! in t.e a88re8ate fifteen t$o4san& r4pees.
:.ere t.e s(m s#eci*ie! a/ove is #ai! to e**ect or @ee# in *orce an ins(rance on t.e .ealt. o*
any #erson s#eci*ie! t.erein" an! -.o is a senior citiMen" t.e !e!(ction availa/le is 0t#enty
t$o4san& r4pees1 rat.er t.an *i*teen t.o(san! as s#eci*ie! a/ove.
<x#lanation.S'or t.e a/ove 0senior citiMen1 means an in!ivi!(al resi!ent in In!ia -.o is
o* t.e a8e o* si1ty years or more at any time !(rin8 t.e relevant #revio(s year.
T.e ins(rance re*erre! to a/ove s.all /e in accor!ance -it. a sc.eme ma!e in t.is /e.al* /y
S
4a7 t.e General Ins(rance +or#oration o* In!ia *orme! (n!er section 2 o* t.e General
Ins(rance H(siness 4)ationalisation7 Act" 12=2 4&= o* 12=27 an! a##rove! /y t.e +entral
Government in t.is /e.al*J or
4/7 any ot.er ins(rer an! a##rove! /y t.e Ins(rance Re8(latory an! Develo#ment A(t.ority
esta/lis.e! (n!er s(/-section 417 o* section 3 o* t.e Ins(rance Re8(latory an! Develo#ment
A(t.ority Act" 1222 4;1 o* 12227.C
'. Fn!er section ?0DD" -.ere an assessee" -.o is a resi!ent in In!ia" .as" !(rin8 t.e
#revio(s year"-
4a7 inc(rre! any e1pen&it4re for t$e %e&ical treat%ent 5incl4&in" n4rsin"7- trainin"
an& re$abilitation of a &epen&ant- bein" a person #it$ &isabilityJ or
4/7 #ai! or !e#osite! any amo(nt (n!er a sc.eme *rame! in t.is /e.al* /y t.e Oi*e
Ins(rance +or#oration or any ot.er ins(rer or t.e A!ministrator or t.e s#eci*ie! com#any
s(/?ect to t.e con!itions s#eci*ie! in t.is re8ar! an! a##rove! /y t.e Hoar! in t.is /e.al* *or
t.e maintenance o* a !e#en!ant" /ein8 a #erson -it. !isa/ility"
t.e assessee s.all /e allo-e! a !e!(ction o* a s(m o* fift t.o(san! r(#ees *rom .is
8ross total income o* t.at year.
>o-ever" -.ere s(c. !e#en!ant is a #erson -it. severe !isa/ility" an amo(nt o* one
.(n!re! t.o(san! r(#ees s.all /e allo-e! as !e!(ction s(/?ect to t.e s#eci*ie! con!itions.
T.e !e!(ction (n!er cla(se 4/7 o* s(/-section 417 s.all /e allo-e! only i* t.e *ollo-in8
con!itions are *(l*ille!%-
A.4i7 t.e sc.eme re*erre! to in cla(se 4/7 a/ove #rovi!es *or #ayment o* ann(ity or
l(m# s(m amo(nt *or t.e /ene*it o* a !e#en!ant" /ein8 a #erson -it. !isa/ility" in t.e event
o* t.e !eat. o* t.e in!ivi!(al in -.ose name s(/scri#tion to t.e sc.eme .as /een ma!eJ
4ii7 t.e assessee nominates eit.er t.e !e#en!ant" /ein8 a #erson -it. !isa/ility" or any
ot.er #erson or a tr(st to receive t.e #ayment on .is /e.al*" *or t.e /ene*it o* t.e !e#en!ant"
/ein8 a #erson -it. !isa/ility.
>o-ever" i* t.e !e#en!ant" /ein8 a #erson -it. !isa/ility" #re!eceases t.e assessee" an
amo(nt e9(al to t.e amo(nt #ai! or !e#osite! (n!er s(/-#ara4/7 a/ove s.all /e !eeme! to /e
t.e income o* t.e assessee o* t.e #revio(s year in -.ic. s(c. amo(nt is receive! /y t.e
assessee an! s.all accor!in8ly /e c.ar8ea/le to tax as t.e income o* t.at #revio(s year.
H. T.e assessee" claimin8 a !e!(ction (n!er t.is section" s.all *(rnis. a co#y o* t.e
certi*icate iss(e! /y t.e me!ical a(t.ority in t.e #rescri/e! *orm an! manner" alon8 -it. t.e
ret(rn o* income (n!er section 132" in res#ect o* t.e assessment year *or -.ic. t.e
!e!(ction is claime!%
In cases -.ere t.e con!ition o* !isa/ility re9(ires reassessment o* its extent a*ter a
#erio! sti#(late! in t.e a*oresai! certi*icate" no !e!(ction (n!er t.is section s.all /e allo-e!
*or any s(/se9(ent #erio! (nless a ne- certi*icate is o/taine! *rom t.e me!ical a(t.ority in
t.e #rescri/e! *orm an! manner an! a co#y t.ereo* is *(rnis.e! alon8 -it. t.e ret(rn o*
income.
'or t.e #(r#oses o* section $0DD"S
4a7 1A!ministrator1 means t.e A!ministrator as re*erre! to in cla(se 4a7 o* section 2 o* t.e
Fnit Tr(st o* In!ia 4Trans*er o* Fn!erta@in8 an! Re#eal7 Act" 2002 4&$ o* 20027

J
4/7 1!e#en!ant1 meansS
4i7 in t.e case o* an in!ivi!(al" t.e s#o(se" c.il!ren" #arents" /rot.ers an! sisters o* t.e
in!ivi!(al or any o* t.emJ
4ii7 in t.e case o* a >in!( (n!ivi!e! *amily" a mem/er o* t.e >in!( (n!ivi!e!
*amily"!e#en!ant -.olly or mainly on s(c. in!ivi!(al or >in!( (n!ivi!e! *amily *or .is
s(##ort an! maintenance" an! -.o .as not claime! any !e!(ction (n!er section $0F in
com#(tin8 .is total income *or t.e assessment year relatin8 to t.e #revio(s yearJ
4c7 1!isa/ility1 s.all .ave t.e meanin8 assi8ne! to it in cla(se 4i7 o* section 2 o* t.e Persons
-it. Disa/ilities 4<9(al I##ort(nities" Protection o* Ri8.ts an! '(ll Partici#ation7 Act" 122&
41 o* 12237an! incl(!es 0a(tism1" 0cere/ral #alsy1 an! 0m(lti#le !isa/ility1 re*erre! to in
cla(ses 4a7" 4c7 an! 4.7 o* section 2 o* t.e )ational Tr(st *or :el*are o* Persons -it. A(tism"
+ere/ral Palsy" ental Retar!ation an! (lti#le Disa/ilities Act" 1222 4;; o* 12227J
4!7 1Oi*e Ins(rance +or#oration1 s.all .ave t.e same meanin8 as in cla(se 4iii7 o* s(/-
section 4$7 o* section $$J
4e7 1me!ical a(t.ority1 means t.e me!ical a(t.ority as re*erre! to in cla(se 4#7 o* section 2
o* t.e Persons -it. Disa/ilities 4<9(al I##ort(nities" Protection o* Ri8.ts an! '(ll
Partici#ation7 Act" 122& 41 o* 12237or s(c. ot.er me!ical a(t.ority as may" /y noti*ication"
/e s#eci*ie! /y t.e +entral Government *or certi*yin8 0a(tism1" 0cere/ral #alsy1" 0m(lti#le
!isa/ilities1" 0#erson -it. !isa/ility1 an! 0severe !isa/ility1 re*erre! to in cla(ses 4a7" 4c7"
4.7" 4?7 an! 4o7 o* section 2 o* t.e )ational Tr(st *or :el*are o* Persons -it. A(tism"
+ere/ral Palsy" ental Retar!ation an! (lti#le Disa/ilities Act" 1222 4;; o* 12227J
4*7 1#erson -it. !isa/ility1 means a #erson as re*erre! to in cla(se 4t7 o* section 2 o* t.e
Persons -it. Disa/ilities 4<9(al I##ort(nities" Protection o* Ri8.ts an! '(ll Partici#ation7
Act" 122& 41 o* 12237 or cla(se 4?7 o* section 2 o* t.e )ational Tr(st *or :el*are o* Persons
-it. A(tism" +ere/ral Palsy" ental Retar!ation an! (lti#le Disa/ilities Act" 1222 4;; o*
12227J
487 1#erson -it. severe !isa/ility1 meansS
4i7 a #erson -it. ei8.ty #er cent or more o* one or more !isa/ilities" as re*erre! to in s(/-
section 4;7 o* section &3 o* t.e Persons -it. Disa/ilities 4<9(al I##ort(nities" Protection o*
Ri8.ts an! '(ll Partici#ation7 Act" 122& 41 o* 12237J or
4ii7 a #erson -it. severe !isa/ility re*erre! to in cla(se 4o7 o* section 2 o* t.e )ational Tr(st
*or :el*are o* Persons -it. A(tism" +ere/ral Palsy" ental Retar!ation an! (lti#le
Disa/ilities Act" 1222 4;; o* 12227J
4.7 1s#eci*ie! com#any1 means a com#any as re*erre! to in cla(se 4.7 o* section 2 o* t.e
Fnit Tr(st o* In!ia 4Trans*er o* Fn!erta@in8 an! Re#eal7 Act" 2002 4&$ o* 20027.C
G. Fn!er Section ?0, o* t.e Act a !e!(ction -ill /e allo-e! in res#ect o* repay%ent of
interest on loan ta(en for $i"$er e&4cation" s(/?ect to t.e *ollo-in8 con!itions%
4i7 In com#(tin8 t.e total income o* an assessee" /ein8 an in!ivi!(al" t.ere s.all /e
!e!(cte!" in accor!ance -it. an! s(/?ect to t.e #rovisions o* t.is section" any amo(nt #ai!
/y .im in t.e #revio(s year" o(t o* .is income c.ar8ea/le to tax" /y -ay o* interest on loan"
ta@en /y .im *rom any *inancial instit(tion or any a##rove! c.arita/le instit(tion *or t.e
#(r#ose o* #(rs(in8 .is .i8.er e!(cation or *or t.e #(r#ose o* .i8.er e!(cation o* .is s#o(se
or c.il!ren.
4ii7 T.e !e!(ction s#eci*ie! a/ove s.all /e allo-e! in com#(tin8 t.e total income in res#ect
o* t.e initial assessment year an! seven assessment years imme!iately s(ccee!in8 t.e initial
assessment year or (ntil t.e interest re*erre! to a/ove is #ai! in *(ll /y t.e assessee "
-.ic.ever is earlier.
'or t.is #(r#ose -
4a7 1a##rove! c.arita/le instit(tion1 means an instit(tion esta/lis.e! *or c.arita/le
#(r#oses an! a##rove! /y t.e #rescri/e! a(t.ority (n!er cla(se 42+7 o* section 10" or" an
instit(tion re*erre! to in cla(se 4a7 o* s(/-section 427 o* Section $0G.
4/7 1*inancial instit(tion1 means a /an@in8 com#any to -.ic. t.e Han@in8 Re8(lation Act"
12;2 410 o* 12;27 a##lies 4incl(!in8 any /an@ or /an@in8 instit(tion re*erre! to in section &1
o* t.at Act7J or any ot.er *inancial instit(tion -.ic. t.e +entral Government may" /y
noti*ication in t.e I**icial GaKette" s#eci*y in t.is /e.al*J
4c7 1$i"$er e&4cation< %eans any co4rse of st4&y p4rs4e& after passin" t$e Senior
Secon&ary ,1a%ination or its e=4ivalent fro% any sc$ool- boar& or 4niversity
reco"nise& by t$e +entral Eovern%ent or State Eovern%ent or local a4t$ority or by
any ot$er a4t$ority a4t$orise& by t$e +entral Eovern%ent or State Eovern%ent or
local a4t$ority to &o soJ
4!7 1initial assessment year1 means t.e assessment year relevant to t.e #revio(s year" in
-.ic. t.e assessee starts #ayin8 t.e interest on t.e loan.
4e7 relative<- in relation to an in&ivi&4al- %eans t$e spo4se an& c$il&ren of t$at
in&ivi&4al or t$e st4&ent for #$o% t$e in&ivi&4al is t$e le"al "4ar&ian
>. Section ?0E #rovi!es *or !e!(ctions on acco(nt o* !onation ma!e to vario(s *(n!s "
c.arita/le or8aniKations etc. Eenerally no &e&4ction s$o4l& be allo#e& by t$e D.D...
fro% t$e salary inco%e in respect of any &onations %a&e for c$aritable p4rposes. T.e
tax relie* on s(c. !onations as a!missi/le (n!er section $0G o* t.e Act" -ill .ave to /e
claime! /y t.e tax #ayer in t.e ret(rn o* income. >o-ever in cases !here emploees ma/e
donations to the 5rime 6inister's 7ational .elief -und# the )hief 6inister's .elief -und
or the 8ieutenant *overnor's .elief -und throu3h their respective emploers# it is not
possi$le for such funds to issue separate certificate to ever such emploee in respect of
donations made to such funds as contri$utions made to these funds are in the form of a
consolidated che"ue% An emploee !ho ma/es donations to!ards these funds is eli3i$le to
claim deduction under section +0*% (t is# here$# clarified that the claim in respect of such
donations as indicated a$ove !ill $e admissi$le under section +0* on the $asis of the
certificate issued $ the ,ra!in3 and ,is$ursin3 9fficer (,,9)/Emploer in this $ehalf :
)ircular 7o% 2/200;# dated 12-1-200;%
I. Fn!er Section ?0EE o* t.e Act an assessee is entitle! to a !e!(ction in res#ect o* $o4se
rent pai& by $i% for $is o#n resi&ence. S(c. !e!(ction is #ermissi/le s(/?ect to t.e
*ollo-in8 con!itions %-
4a7 t.e assessee .as not /een in recei#t o* any >o(se Rent Allo-ance s#eci*ically 8rante! to
.im -.ic. 9(ali*ies *or exem#tion (n!er section 10413A7 o* t.e ActJ
4/7 t.e assessee *iles t.e !eclaration in 'orm )o.10HA. 5Anne14re-@)7
4c7 >e -ill /e entitle! to a !e!(ction in res#ect o* .o(se rent #ai! /y .im in excess o* 10
#er cent o* .is total income" s(/?ect to a ceilin8 o* 2& #er cent t.ereo* or Rs. 2"000,- #er
mont." -.ic.ever is less. T.e total income *or -or@in8 o(t t.ese #ercenta8es -ill /e
com#(te! /e*ore ma@in8 any !e!(ction (n!er section $0GG.
4!7 T.e assessee !oes not o-n%
4i7 any resi!ential accommo!ation .imsel* or /y .is s#o(se or minor c.il! or -.ere s(c.
assessee is a mem/er o* a >in!( Fn!ivi!e! 'amily" /y s(c. *amily" at t.e #lace -.ere .e
or!inarily resi!es or #er*orms !(ties o* .is o**ice or carries on .is /(siness or #ro*essionJ or
4ii7 at any ot.er #lace" any resi!ential accommo!ation /ein8 accommo!ation in t.e
occ(#ation o* t.e assessee" t.e val(e o* -.ic. is to /e !etermine! (n!er cla(se 4a7 o* s(/
section 427 or" as t.e case may /e" cla(se 4a7 o* s(/-section 4;7 o* section 23%
T.e Dra-in8 an! Dis/(rsin8 A(t.orities s.o(l! satis*y t.emselves t.at all t.e
con!itions mentione! a/ove are satis*ie! /e*ore s(c. !e!(ction is allo-e! /y t.em to t.e
assessee. T.ey s.o(l! also satis*y t.emselves in t.is re8ar! /y insistin8 on #ro!(ction o*
evi!ence o* act(al #ayment o* rent.
N. Fn!er section ?0'" in com#(tin8 t.e total income o* an in!ivi!(al" /ein8 a resi!ent" -.o"
at any time !(rin8 t.e #revio(s year" is certi*ie! /y t.e me!ical a(t.ority to /e a person #it$
&isability" t.ere s.all /e allo-e! a !e!(ction o* a s(m o* *i*ty t.o(san! r(#ees. >o-ever"
-.ere s(c. in!ivi!(al is a #erson -it. severe !isa/ility" a .i8.er !e!(ction o* one la/h
rupees s.all /e allo-a/le.
<very in!ivi!(al claimin8 a !e!(ction (n!er t.is section s.all *(rnis. a co#y o* t.e
certi*icate iss(e! /y t.e me!ical a(t.ority in t.e #rescri/e! *orm an! manner alon8 -it. t.e
ret(rn o* income" in res#ect o* t.e assessment year *or -.ic. t.e !e!(ction is claime!.
In cases -.ere t.e con!ition o* !isa/ility re9(ires reassessment o* its extent a*ter a #erio!
sti#(late! in t.e a*oresai! certi*icate" no !e!(ction (n!er t.is section s.all /e allo-e! *or
any s(/se9(ent #erio! (nless a ne- certi*icate is o/taine! *rom t.e me!ical a(t.ority in t.e
#rescri/e! *orm an! manner an! a co#y t.ereo* is *(rnis.e! alon8 -it. t.e ret(rn o* income.
'or t.e #(r#oses o* t.is section" t.e ex#ressions 0!isa/ility1" 0me!ical a(t.ority1" 0#erson
-it. !isa/ility1 an! 0#erson -it. severe !isa/ility1 s.all .ave t.e same meanin8 as 8iven in
section $0DD 4s(/-#ara < o* #ara &.; o* t.is +irc(lar7.
DD.s to satisfy t$e%selves of t$e "en4ineness of clai%2
T.e Dra-in8 an! Dis/(rsin8 I**icers s.o(l! satis*y t.emselves a/o(t t.e act(al !e#osits,
s(/scri#tions , #ayments ma!e /y t.e em#loyees" /y callin8 *or s(c. #artic(lars, in*ormation
as t.ey !eem necessary /e*ore allo-in8 t.e a*oresai! !e!(ctions. In case t.e DDI is not
satis*ie! a/o(t t.e 8en(ineness o* t.e em#loyee6s claim re8ar!in8 any
!e#osit,s(/scri#tion,#ayment ma!e /y t.e em#loyee" .e s.o(l! not allo- t.e same" an! t.e
em#loyee -o(l! /e *ree to claim t.e !e!(ction, re/ate on s(c. amo(nt /y *ilin8 .is ret(rn o*
income an! *(rnis.in8 t.e necessary #roo* etc." t.ere-it." to t.e satis*action o* t.e Assessin8
I**icer.
9. +A;+';AT).* .! )*+./,-TA0 T. 3, D,D'+T,D2
2%1 4alar income for the purpose of 4ection 112 shall $e computed as follo!<-
(a) -irst compute the 3ross salar as mentioned in para ;%1 excludin3 all the incomes
mentioned in para ;%2=
($) Allo! deductions mentioned in para ;%> from the fi3ure arrived at (a) a$ove and
compute the amount%
(c) Allo! deductions mentioned in para ;%4 from the fi3ure arrived at ($) a$ove ensurin3
that the relevant conditions are satisfied% 0he a33re3ate of the deductions su$?ect to the
threshold limits mentioned in para ;%4 shall not exceed the amount at ($) a$ove and if it
exceeds# it should $e restricted to that amount%
0his !ill $e the amount of income from salaries on !hich income tax !ould $e re"uired
to $e deducted% 0his income should $e rounded off to the nearest multiple of ten rupees%
2%2 (ncome-tax on such income shall $e calculated at the rates 3iven in para 2 of this
)ircular /eepin3 in vie! the a3e and 3ender of the emploee# su$?ect to the provisions of
sec% 202AA# as discussed in para 4%1%
2%> 0he amount of tax paa$le so arrived at shall $e increased $ educational cess as
applica$le (2@ for primar and 1@ for secondar education) to arrive at the total tax
paa$le%
2%4 0he amount of tax as arrived at para 2%> should $e deducted ever month in e"ual
installments% An excess or deficit arisin3 out of an previous deduction can $e ad?usted
$ increasin3 or decreasin3 the amount of su$se"uent deductions durin3 the same
financial ear%
DDIs, PAIs -.o *ail to com#ly -it. t.e #rovisions o* Sec 122 o* t.e Income-tax Act"
1231" -o(l! /e lia/le to #ay interest (,s 201 41A7 o* t.e Income-tax Act alon8 -it. #enal
conse9(ences.
F. /)S+,;;A*,.'S2
=.1 T.ese instr(ctions are not ex.a(stive an! are iss(e! only -it. a vie- to .el# t.e
em#loyers to (n!erstan! t.e vario(s #rovisions relatin8 to !e!(ction o* tax *rom salaries.
:.erever t.ere is any !o(/t" re*erence may /e ma!e to t.e #rovisions o* t.e Income-tax Act"
1231" t.e Income-tax R(les" 1232" t.e 'inance Act 2011 an! t.e relevant circ(lars ,
noti*ications.
=.2 In case any assistance is re9(ire!" t.e Assessin8 I**icer,t.e local P(/lic Relation I**icer
o* t.e Income-tax De#artment may /e contacte!.
=.3 T.ese instr(ctions may /e /ro(8.t to t.e notice o* all Dis/(rsin8 I**icers an!
Fn!erta@in8s incl(!in8 t.ose (n!er t.e control o* t.e +entral, State Governments.
=.; +o#ies o* t.is +irc(lar are availa/le -it. t.e Director o* Income-tax4Researc." Statistics
& P(/lications an! P(/lic Relations7" 3t. 'loor" ay(r H.avan" +onna(8.t Place" )e-
Del.i-110 001 an! at t.e *ollo-in8 -e/sites%
---.*inmin.nic.in
---.incometaxin!ia.8ov.in
A**,0'R,-)
,1a%ple 1
'or Assessment Year 2012-2013
5A7 +alc4lation of )nco%e ta1 in t$e case of a %ale e%ployee belo# t$e a"e of si1ty
years an& $avin" "ross salary inco%e of2
4i7 Rs.1"&0"000,-"
4ii7 Rs.2"00"000,- "
4iii7 Rs.&"00"000,- "
4iv7 Rs.10"00"000,- an!
4v7 Rs.20"00"000,-.
4H7 :.at -ill /e t.e amo(nt o* TDS in case o* a/ove em#loyees" i* PA) is not s(/mitte! /y
t.em to t.eir DDIs,I**ices%

Partic4lars R4pees
5i7
R4pees
5ii7
R4pees
5iii7
R4pees
5iv7
R4pees 5i7
Gross Salary
Income 4incl(!in8
allo-ances7
1"&0"000 2"00"000 &"00"000 10"00"000 20"00"000
+ontri/(tion o*
G.P.'.
10"000 ;&"000 &0"000 1"00"000 1"00"000

+o%p4tation of Total )nco%e an& ta1 payable t$ereon

Partic4lars R4pees 5i7 R4pees
5ii7
R4pees
5iii7
R4pees 5iv7 R4pees 5v7
Gross Salary 1"&0"000 2"00"000 &"00"000 10"00"000 20"00"000
Oess%
De!(ction
F,s $0+
10"000 ;&"000 &0"000 1"00"000 1"00"000
Taxa/le
Income
1";0"000 1"&&"000 ;"&0"000 2"00"000 12"00"000
5A7 Ta1
t$ereon
*il *il 2F-000 1-22-000 D-22-000
A!!%
4i7 <!(cation
+ess T 2D.
*il )il &;0 2;;0 $;;0
4ii7
Secon!ary
an! >i8.er
*il )il 2=0 1220 ;220
<!(cation
+ess T1D
Total ta1
payable
*il *il 2F-?10 1-2G-990 D-3D-990
537 TDS
4n&er sec.
209AA in
case #$ere
PA* is not
f4rnis$e&
by t$e
e%ployee
*il *il 80-000 1-?0-000 D-39-F20

,1a%ple 2
'or Assessment Year 2012-2013
+alc4lation of )nco%e Ta1 in t$e case of a %ale e%ployee belo# t$e a"e of si1ty years
$avin" a $an&icappe& &epen&ent 5>it$ vali& PA* f4rnis$e& to e%ployer7.

S.*o. Partic4lars R4pees
1 Gross Salary 3"20"000
2 Amo(nt s#ent on treatment o* a !e#en!ant" /ein8
#erson -it. !isa/ility 4/(t not severe !isa/ility7
=000
3 Amo(nt #ai! to OI+ -it. re8ar! to ann(ity *or t.e
maintenance o* a !e#en!ant" /ein8 #erson -it.
!isa/ility 4/(t not severe !isa/ility7
&0"000
; GP' +ontri/(tion 2&"000
& OIP Pai! 10"000

+o%p4tation of Ta1

S.*o. Partic4lars R4pees
1 Gross Salary 3"20"000
;ess2 De!(ction F,s $0DD 4Restricte! to Rs.&0"000,-
only7
4-7
&0"000
2 Ta1able inco%e 2-F0-000
;ess2 De!(ction F,s $0+ 4i7 GP' Rs.2&"000,-
4ii7 OIP Rs.10"000,- E Rs.3&"000,- 4-73&"000
3 Total )nco%e 2-3G-000
; )nco%e Ta1 t$ereonpayable G-G00
A&&2
4i7. <!(cation +ess T2D
4ii7. Secon!ary an! >i8.er <!(cation +ess T1D
110
GG
& Total )nco%e Ta1 payable G-99G
3 Ro4n&e& off to G-9F0

,1a%ple 3
'or Assessment Year 2012-2013
+alc4lation of )nco%e Ta1 in t$e case of a %ale e%ployee belo# a"e of si1ty years
#$ere %e&ical treat%ent e1pen&it4re #as borne by t$e e%ployer 5>it$ vali& PA*
f4rnis$e& to e%ployer7.

S.*o. Partic4lars R4pees
1 Gross Salary 3"00"000
2 e!ical Reim/(rsement /y em#loyer on t.e treatment
o* sel* an! !e#en!ent *amily mem/er
30"000
3 +ontri/(tion o* GP' 20"000
; OI+ Premi(m 20"000
& Re#ayment o* >o(se H(il!in8 A!vance 2&"000
3 T(ition *ees *or t-o c.il!ren 30"000
= Investment in Fnit-Oin@e! Ins(rance Plan 20"000

+o%p4tation of Ta1

S.*o. Partic4lars R4pees
1 Gross Salary 3"00"000
A&&2 Per9(isite in res#ect o* reim/(rsement o* e!ical
<x#enses
In excess o* Rs.1&"000,- in vie- o* Section 1=4274v7
4U7 1&"000
2 Ta1able inco%e 3-1G-000
;ess 2 De!(ction F,s $0+
4i7 GP' Rs.20"000,-
4ii7 OI+ Rs.20"000,-
4iii7 Re#ayment o* >o(se
H(il!in8 A!vance
Rs.2&"000,-
4iv7 T(ition *ees *or t-o
c.il!ren
Rs.30"000,-
4v7 Investment in Fnit-Oin@e!
Ins(rance Plan
Rs.20"000,-
Total NRs.1-DG-000-
Restricte& to Rs. 1"00"000,- 5-71-00-000
3 Total )nco%e 2-1G-000
; )nco%e Ta1 t$ereonpayable 3-G00
A&&2
4i7. <!(cation +ess T2D
4ii7. Secon!ary an! >i8.er <!(cation +ess T1D
F0
3G
& Total )nco%e Ta1 payable 3-90G
3 Ro4n&e& off to 3-910

,1a%ple D
'or Assessment Year 2012-2013
)ll4strative calc4lation of 6o4se Rent Allo#ance 's 10 513A7 in respect of resi&ential
acco%%o&ation sit4ate& in Del$i in case of a fe%ale e%ployee belo# t$e a"e of si1ty
years 5>it$ vali& PA* f4rnis$e& to e%ployer7.

S.*o. Partic4lars R4pees
1 Salary 2"&0"000
2 Dearness Allo-ance 1"00"000
3 >o(se Rent Allo-ance 1";0"000
; >o(se rent #ai! 1";;"000
& General Provi!ent '(n! 33"000
3 Oi*e Ins(rance Premi(m ;"000
= S(/scri#tion to Fnit-Oin@e! Ins(rance
Plan
&0"000

+o%p4tation of total inco%e an& ta1 payable t$ereon

S.*o. Partic4lars R4pees
1 Salary U Dearness Allo-ance U >o(se Rent Allo-ance
2"&0"000U1"00"000U1";0"000 E ;"20"000
;"20"000
2 Total Salary )nco%e D-80-000
3 ;ess2 >o(se Rent allo-ance exem#t F,s 10413A7%
;east of2
4a7 Act(al amo(nt o* >RA
receive!E
1";0"000
4/7 <x#en!it(re o* rent in excess
o* 10D o* salary
4incl(!in8 D.A. #res(min8
t.at D.A. is ta@en
*or retirement /ene*it7
41";;"000-3&"0007 E
1-08-000
4c7 &0D o* Salary4HasicU DA7 E 1"=&"000 4-71"02"00
0
Eross Total )nco%e 3-?1-000
;ess2 De!(ction F,s $0+
4i7 GP' Rs.33"000,-
4ii7 OI+ Rs. ;"000,-
4iii7 Investment in Fnit-Oin@e!
Ins(rance Plan
Rs.&0"000,-
Total N Rs.80-000- 4-720"000
3 Total )nco%e 2-81-000
Ta1 payable on total inco%e 11-100
A&&2
4i7. <!(cation +ess T2D
4ii7. Secon!ary an! >i8.er <!(cation +ess T1D
222
111
Total )nco%e Ta1 payable 11-D33
Ro4n&e& off to 11-D30

,1a%ple G
'or Assessment Year 2012-2013
)ll4stratin" val4ation of per=4isite an& calc4lation of ta1 in t$e case of a %ale e%ployee
belo# a"e of si1ty years of a private co%pany in /4%bai #$o #as provi&e&
acco%%o&ation in a flat at concessional rate for ten %ont$s an& in a $otel for t#o
%ont$s 5>it$ vali& PA* f4rnis$e& to e%ployer7.

S.*o. Partic4lars R4pees
1 Salary ="00"000
2 Hon(s 1";0"000
3 'ree 8as" electricity" -ater etc. 4Act(al /ills #ai! /y
com#any7
;0"000
;4a7 'lat at concessional rate 4*or ten mont.s7. E Rs.3"30"00 3"30"000
;4/7 >otel rent #ai! /y em#loyer 4*or t-o mont.s7 1"00"000
;4c7 Rent recovere! *rom em#loyee. 30"000
;4!7 +ost o* *(rnit(re. 2"00"000
& S(/scri#tion to Fnit Oin@e! Ins(rance Plan &0"000
3 Oi*e Ins(rance Premi(m 10"000
= +ontri/(tion to reco8niKe! P.'. ;2"000
$ Investment in lon8 term in*rastr(ct(re /on!s 4$0++'7 20"000

+./P'TAT).* .! T.TA; )*+./, A*D TA0 PA)D T6,R,.*2

S.*o. Partic4lars R4pees
1 Salary ="00"000
2 Hon(s 1";0"000
3 Total Salary *or Mal(ation o* 41U27%
Per9(isites i.e. Rs.=0"000 #er mont..
$";0"000
@al4ation of per=4isites
;4a7 Per9. *or *lat%Oo-er o* 41&D o*
salary *or ten mont.s
ERs.1"0&"000,-7 an! 4act(al rent
#ai!E3"30"0007 1"0&"000
;4/7 Per9(isites *or .otel % Oo-er o* 42;D
o* salary o* 2 mt.sE33"3007 an!
4act(al #aymentE1"00"0007
33"300
;4c7 Per9(isites *or
*(rnit(re4Rs.2"00"0007 T 10D o*
cost
20"000
;4c74i7 Total of OD5a7P5b7P5c7Q 41"0&"000U
33"300U 20"0007
;ess2 rent recovere& N
Rs.1&$"300
4-7Rs. 30"000
Rs. 2$"300
;4!7 A!! #er9. *or *ree 8as" electricity"
-ater etc. Rs.;0"000 4U7 2$"300
A;4c74i7C E
Rs 1-3?-900
1"3$"300
Total #er9(isites
& Gross Total Income 4Rs.$";0"000 U
1"3$"3007
2"=$"300
3 Eross Total )nco%e 8-F?-900
= ;ess2 De&4ction 's ?0+ &
?0++!2
4i7. Provi!ent '(n! 4$0+7
4ii7. OI+ 4$0+7
4iii7. S(/scri#tion to Fnit Oin@e!
Ins(rance Plan 4$0+7
4iv7. Investment in In*rastr(ct(re
Hon! 4$0++'7
Total
Restricte& to Rs 1-00-000 4s ?0+
an& Rs 20-000 4s ?0++!
%;2"000
%10"000
%&0"000,-
%20"000
N 1-22-000
5-71-20-000
$ Total )nco%e ?-G?-900
2 Tax Paya/le 1-08-G?0
10 A&&2
4i7. S(rc.ar8e )il
4ii7. <!(cation +ess T2D
4iii7. Secon!ary an! >i8.er
<!(cation +ess T1D
*il
*il
2-182
1-089
11 Total )nco%e Ta1 payable 1-12-?9?
12 Ro4n&e& off to 1-12-?F0

,1a%ple 9
'or Assessment Year 2012-2013
)ll4stratin" @al4ation of per=4isite an& calc4lation of ta1 in t$e case of a fe%ale
e%ployee belo# t$e a"e of 90 years of a Private +o%pany poste& at Del$i an& repayin"
6o4se 34il&in" ;oan 5>it$ vali& PA* f4rnis$e& to e%ployer7.

S.*o. Partic4lars R4pees
1 Salary 3"00"000
2 Dearness Allo-ance 1"00"000
3 >o(se Rent Allo-ance 1"$0"000
; S#ecial D(ties Allo-ance 12"000
& Provi!ent '(n! 30"000
3 OIP 10"000
= De#osit in )S+ MIII iss(e 30"000
$ Rent Pai! /y t.e em#loyee *or .o(se .ire! /y .er 1"20"000
2 Re#ayment o* >o(se H(il!in8 Ooan 4Princi#al7 30"000
10 T(ition 'ees *or t.ree c.il!ren 4Rs.10"000 #er c.il!7 30"000

+o%p4tation of total inco%e an& ta1 payable t$ereon

S.*o. Partic4lars R4pees
1 Gross Salary 4HasicUDAU>RAUSDA7 &"22"000
;ess% >o(se rent allo-ance exem#t F,s
10 413A7
Oeast o*%
4a7. Act(al amo(nt o* >RA receive!. %Rs.1"$0"000
4/7. <x#en!it(re on rent in excess o*
10D o* salary 4Incl(!in8 D.A.7
ass(min8 D.A. is incl(!in8 *or
retirement /ene*its 41"20"000- ;0"0007
%Rs. ?0-000
4c7. &0D o* salary 4incl(!in8 D.A7 % Rs.
2"00"000
4-7 $0"000
2 Eross Total Ta1able )nco%e G-12-000
;ess2 De!(ction F,s $0+
4i7. Provi!ent '(n! % 30"000
4ii7. OIP % 10"000
4iii7. )S+ MIII Iss(e % 30"000
4iv7. Re#ayment o* >HA % 30"000
4v7. T(ition 'ees 4Restricte! to t-o
c.il!ren7
% 20"000
Total % 1"$0"000
Restricte& to 1-00-000 4-71"00"000
Total )nco%e D-12-000
)nco%e Ta1 t$ereonpayable 22-200
A&&2
4i7. <!(cation +ess T2D DDD
4ii7. Secon!ary an! >i8.er <!(cation
+ess T1D
222
Total )nco%e Ta1 payable 22?99
Ro4n&e& off to 22?F0

A**,0'R,-))
!.R/ *..123A
RSee r4le 29A5275b7S
State%ent s$o#in" partic4lars of per=4isites- ot$er frin"e benefits or a%enities an&
profits in lie4 of salary #it$ val4e t$ereof
417 )ame an! a!!ress o* em#loyer %
427 TA)
437 TDS Assessment Ran8e o* t.e em#loyer %
4;7 )ame" !esi8nation an! PA) o* em#loyee %
4&7 Is t.e em#loyee a !irector or a #erson -it. %
s(/stantial interest in t.e com#any
4-.ere t.e em#loyer is a com#any7
437 Income (n!er t.e .ea! 0Salaries1 o* t.e em#loyee %
4ot.er t.an *rom #er9(isites7
4=7 'inancial Year %
4$7 Mal(ation o* Per9(isites

S.)o. )at(re o* #er9(isite 4see r(le 37 Mal(e o*
#er9(isite
as #er
r(les
4Rs.7
Amo(nt"
i* any
recovere!
*rom t.e
em#loyee
4Rs.7
Amo(nt o*
#er9(isite
c.ar8ea/le
to tax +ol.
437 +ol.
4;7 4Rs.7
417 427 437 4;7 4&7
1 Accommo!ation
2 +ars,It.er a(tomotive
3 S-ee#er" 8ar!ener" -atc.man or
#ersonal atten!ant
; Gas" electricity" -ater
& Interest *ree or concessional
loans
3 >oli!ay ex#enses
= 'ree or concessional travel
$ 'ree meals
2 'ree <!(cation
10 Gi*ts" vo(c.ers etc.
11 +re!it car! ex#enses
12 +l(/ ex#enses
13 Fse o* mova/le assets /y
em#loyees
1; Trans*er o* assets to em#loyees
1& Mal(e o* any ot.er
/ene*it,amenity,service,#rivile8e
13 Stoc@ o#tions 4non-9(ali*ie!
o#tions7
1= It.er /ene*its or amenities
1$ Total val(e o* #er9(isites
12 Total val(e o* Pro*its in lie( o*
salary as #er 1=437

2. Details o* tax" -
4a7 Tax !e!(cte! *rom salary o* t.e em#loyee (,s 122417 VVV
4/7 Tax #ai! /y em#loyer on /e.al* o* t.e em#loyee (,s 12241A7 VVV
4c7 Total tax #ai! VVV
4!7 Date o* #ayment into Government treas(ry VVV
D,+;ARAT).* 3Y ,/P;.Y,R
I VVVVVV. s,o VVVVVVV. -or@in8 as VVVVVVVVVVV4!esi8nation7
!o .ere/y !eclare on /e.al* o* VVVVV..V.. 4name o* t.e em#loyer7 t.at t.e in*ormation
8iven a/ove is /ase! on t.e /oo@s o* acco(nt" !oc(ments an! ot.er relevant recor!s or
in*ormation availa/le -it. (s an! t.e !etails o* val(e o* eac. s(c. #er9(isite are in
accor!ance -it. section 1= an! r(les *rame! t.ere(n!er an! t.at s(c. in*ormation is tr(e an!
correct.

Si8nat(re o* t.e #erson
res#onsi/le
*or !e!(ction o* tax
PlaceV
DateV '(ll )ame VVVVVVVV
Desi8nation VVVVVVV.
0J

A***,0'R,-)))
'.)o. S:,TDS,TI),1,2010-DIT4S7-II
Directorate o* Income-tax 4System7 )e- Del.i
R,@)S,D PR.+,D'R,
!4rnis$in" of H4arterly e-TDST+S State%ents by &e&4ctorscollectors
1.1 H'ART,R;Y ,;,+TR.*)+ STAT,/,*TS !'R*)S6,D T6R.'E6 T)*-!+2
After preparin" an& vali&atin" t$e =4arterly e-TDST+S- t$e &e&4ctorcollector s$all
f4rnis$ t$e sa%e at any T)*-!+ %ana"e& by *SD;. De&4ctorcollector s$all ens4re
t$at2
1.1.1 <ac. 9(arterly e-TDS,T+S statement 4'orm 2;P" 23P" 2=P an! 2=<P7 is in a se#arate
com#(ter me!ia.
1.1.2 +om#(ter me!ia to /e (se! *or *(rnis.in8 e-TDS,T+S statements -ill /e as !e*ine! /y
e-TDS Interme!iary -it. a##roval o* e-*ilin8 A!ministrator.
1.1.3 <ac. 9(arterly e-TDS,T+S statement is accom#anie! /y a !(ly *ille! an! si8ne! 4/y an
a(t.oriKe! si8natory7 'orm 2=A in #.ysical *orm.
1.1.; <ac. 9(arterly e-TDS,T+S statement is in one com#(ter me!ia" it s.o(l! not s#an
across m(lti#le com#(ter me!ia.
1.1.& P(arterly e-TDS,T+S statement s.o(l! /e com#resse!" i* re9(ire!" only /y (sin8
license! version o* :inKi# $.1 or Wi#It'ast 3.0 4or .i8.er version7 com#ression (tility to
ens(re 9(ic@ an! smoot. acce#tance o* t.e *ile.
1.1.3 T.ere is no over-ritin8,stri@in8 on 'orm 2=A. I* t.ere is any" t.en t.e same s.o(l! /e
rati*ie! /y an a(t.oriKe! si8natory.
1.1.= )o /an@ c.allan or co#y o* TDS,T+S certi*icate or #.ysical co#ies o* certi*icates or
no,lo- !e!(ction o* TDS is re9(ire! to /e *(rnis.e! alon8 -it. t.e statements.
1.1.$ TA) o* !e!(ctor is man!atory to /e mentione! in t.e statement. Statement s.all not /e
acce#te! i* TA) is not 9(ote!.
1.1.2 TA) !etails 4name" a!!ress" etc."7 o* t.e !e!(ctor as #rovi!e! in t.e 9(arterly e-
TDS,T+S statement s.o(l! /e same as in t.e TA) !ata/ase maintaine! /y ITD 4t.ese !etails
can /e veri*ie! -it. t.e TI)-'+ or t.e ITD -e/-site ---.incometaxin!ia.8ov.in7. I* t.ey
are !i**erent t.e !e!(ctor s.all s(/mit a TA) c.an8e re9(est a##lication to (#!ate t.e ITD
TA) !ata/ase or a co#y o* t.e ac@no-le!8ment o* TA) c.an8e re9(est alrea!y s(/mitte!.
1.1.10 <ac. /ranc. or Dra-in8 an! Dis/(rsement I**icer 4DDI7 o* a !e!(ctor,collector
*(rnis.in8 se#arate 9(arterly e-TDS,T+S statement s.o(l! *(rnis. t.e 9(arterly e-TDS,T+S
statement 9(otin8 se#arate TA) iss(e! to eac. /ranc.,DDI res#ectively.
1.1.11 P(arterly e-TDS,T+S statement #ertains to t.e #erio! *or -.ic. t.ey are allo-e! to
*(rnis..
1.1.12 T.e 9(arterly e-TDS,T+S statement .as /een s(ccess*(lly vali!ate! t.ro(8. t.e latest
version o* t.e 'MF.
1.1.13 +ontrol totals" TA) an! name mentione! in t.e 9(arterly e-TDS,T+S statement
matc. -it. t.ose mentione! on 'orm 2=A.
1.1.1; +om#(ter me!ia is vir(s *ree.
Acceptance of H4arterly e-TDST+S State%ents by e-TDS )nter%e&iary 5*SD; an&
T)*-!+ branc$es7
2.1 A++,PTA*+, .! H'ART,R;Y ,-TDST+S STAT,/,*T 3Y T)*-!+2 After
&e&4ctorcollector f4rnis$es t$e =4arterly e-TDST+S state%ent to T)*-!+ in t$e
%anner prescribe&- T)*-!+ #ill carry o4t for%at level vali&ations an& ot$er c$ec(s to
vali&ate t$e =4arterly e-TDST+S state%ent.
2.1.1 Acce#tance
2.1.1.1 In case 9(arterly e-TDS,T+S statement is vali! TI)-'+ -ill iss(e a Provisional
Recei#t to t.e !e!(ctor,collector. T.e Provisional Recei#t iss(e! /y TI)-'+ to
!e!(ctor,collector is !eeme! to /e t.e #roo* o* 9(arterly e-TDS,T+S statements *(rnis.e!
/y t.e !e!(ctor,collector.
2.1.1.2 De!(ctor,collector -ill #ay (#loa! *ee alon8 -it. service tax 4as a##lica/le
10.20D at #resent7 /y !eman! !ra*t or cas. to t.e TI)-'+ *or every acce#te! 9(arterly e-
TDS,T+S statement.
/a1i%4% c$ar"es payable per =4arterly e-TDSe-T+S state%ent accepte&2

*o. of De&4ctee Recor&s in e-
TDST+S State%ent
'ploa& +$ar"es 'ploa& +$ar"es
incl4sive of service
ta1
F#to 100 !e!(ctee recor!s 5 2=.&0,- 5 30,-
101 to 1000 !e!(ctee recor!s 5 13&,- 5 1$2,-
ore t.an 1000 !e!(ctee
recor!s
5 &&0,- 5 303,-

2.1.1.3 TI)-'+ -ill ret(rn t.e com#(ter me!ia containin8 t.e e-TDS,T+S statement to t.e
!e!(ctor,collector
2.1.1.; TI)-'+ -ill retain #.ysical 'orm 2=A alon8 -it. ot.er !oc(ments" i* any" *(rnis.e!
/y t.e !e!(ctor,collector. T.e retaine! #.ysical 'orm 2=A alon8 -it. !oc(ments" i* any"
s.all /e store! /y t.e TI)-'+ *or a #erio! o* one year *rom !ate o* recei#t o* t.e statement.
2.1.2 )I)-A++<PTA)+< % TI)-'+ -ill not acce#t t.e 9(arterly e-TDS,T+S statement
*(rnis.e! /y !e!(ctor,collector i*%
2.1.2.1 eac. 9(arterly e-TDS,T+S statement 4'orm 2;P" 23P" 2=P or 2=<P7 is not
*(rnis.e! in a se#arate com#(ter me!ia alon8 -it. !(ly *ille! an! si8ne! 'orm 2=A in
#.ysical *ormJ
2.1.2.2 se#arate 'orm 2=A is not *(rnis.e! *or eac. 9(arterly e-TDS,T+S statementJ
2.1.2.3 stri@in8 an! over-ritin8" i* any" on 'orm 2=A are not !(ly rati*ie! /y t.e #erson -.o
.as si8ne! 'orm 2=AJ
2.1.2.; more t.an one 9(arterly e-TDS,T+S statement is *(rnis.e! in one com#(ter me!iaJ
2.1.2.& more t.an one com#(ter me!ia is (se! *or *(rnis.in8 one 9(arterly e-TDS,T+S
statementJ
2.1.2.3 9(arterly e-TDS,T+S statement is com#resse! (sin8 a com#ression (tility ot.er t.an
-inKi# $.1 or Wi#It'ast 3.0 4or .i8.er version7 com#ression (tilityJ
2.1.2.= 9(arterly e-TDS,T+S statement is not in con*ormity -it. t.e *ile *ormats #rescri/e!
/y ITDJ
2.1.2.$ TA) state! in 9(arterly e-TDS,T+S statement is not #resent in TA) aster !ata/ase
an! !e!(ctor,collector !oes not s(/mit any #roo* o* TA) state! in t.e statementJ
2.1.2.2 !e!(ctor,collector !oes not .ave a TA)J
2.1.2.10 name,a!!ress o* !e!(ctor,collector !is#laye! on TA) aster !ata/ase !oes not
matc. -it. name,a!!ress state! on 'orm 2=A an! !e!(ctor,collector !oes not #rovi!e TA)
c.an8e re9(estJ
2.1.2.11 mismatc. o* control totals as #er -it. 'orm 2=A an! as #er e-*ileJ
2.1.2.12 t.e 9(arterly statement .as not /een s(ccess*(lly #asse! t.ro(8. t.e latest version
o* 'MFJ
2.1.2.13 P(arterly e-TDS,T+S statements !o not #ertain to t.e #erio! *or -.ic.
!e!(ctors,collectors are allo-e! to s(/mit t.eir statements.
2.1.2.1; +om#(ter me!ia is not vir(s *ree.
In s(c. cases" TI)-'+ s.all iss(e a #re-#rinte! )on Acce#tance emo citin8 reasons *or
non acce#tance to t.e !e!(ctor,collector to carry o(t necessary corrections.
In case o* non-acce#tance" TI)-'+ s.all ret(rn t.e com#(ter me!ia as -ell as any ot.er
!oc(ments *(rnis.e! an! #.ysical 'orm 2=A to t.e !e!(ctor,collector.
)o *ee -ill /e c.ar8e! *or t.e e-TDS,e-T+S statement t.at is not acce#te!.
A**,0'R, )@
:Person Responsible for filin" !or% *o. 2DE in case of State Eovt. Depart%ents<

Type of Reportin" of 3oo(
,ntry
Person Responsible 5A)* $ol&er7 for
filin" 2DE.
A PAI , DTI
H PAI , DTI
+ PAI , DTI
D PAI , DTI
< +DDI
' STI

AE Acco(ntant General
PA. Pay & Acco(nts I**icer
DT. District Treas(ry I**ice
ST. S(/ Treas(ry I**ice
DD. Dra-in8 & Dis/(rsin8 I**icer
+DD. +.e9(e Dra-in8 & Dis/(rsin8
I**icer

:Person Responsible for filin" !or% *o. 2DE in case of +entral Eovt. Depart%ents<
TA. PA. of +entral Eovern%ent /inistries is responsible for filin" of !or% *o. 2DE
on %ont$ly basis
A**,0'R,-@
*.T)!)+AT).* !.*.. GF2003-,+3 &PR- DAT,D 22-12-2003
T.e 8overnment a##rove! on 23
r!
A(8(st" 2003 t.e #ro#osal to im#lement t.e /(!8et
anno(ncement o* 2003-0; relatin8 to intro!(cin8 a ne- restr(ct(re! !e*ine! contri/(tion
#ension system *or ne- entrants to +entral Government service" exce#t to Arme! 'orces" in
t.e *irst sta8e" re#lacin8 t.e existin8 system o* !e*ine! /ene*it #ension system.
4i7 T.e system -o(l! /e man!atory *or all ne- recr(its to t.e +entral Government service
*rom 1
st
o* Nan(ary 200; 4exce#t t.e arme! *orces in t.e *irst sta8e7. T.e mont.ly
contri/(tion -o(l! /e 10 #ercent o* t.e salary an! DA to /e #ai! /y t.e em#loyee an!
matc.e! /y t.e +entral 8overnment. >o-ever" t.ere -ill /e no contri/(tion *orm t.e
Government in res#ect o* in!ivi!(als -.o are not Government em#loyees. T.e contri/(tion
an! investment ret(rns -o(l! /e !e#osite! in a non--it.!ra-a/le #ension tier-I acco(nt.
T.e existin8 #rovisions o* !e*ine! /ene*it #ension an! GP' -o(l! not /e availa/le to t.e
ne- recr(its in t.e +entral Government service.
4ii7 In a!!ition to t.e a/ove #ension acco(nt" eac. in!ivi!(al may also .ave a vol(ntary
tier-II -it.!ra-a/le acco(nt at .is o#tion. T.is o#tion is 8iven as GP' -ill /e -it.!ra-n *or
ne- recr(its in +entral 8overnment service. Government -ill ma@e no contri/(tion into t.is
acco(nt. T.ese assets -o(l! /e mana8e! t.ro(8. exactly t.e a/ove #roce!(res. >o-ever"
t.e em#loyee -o(l! /e *ree to -it.!ra- #art or all o* t.e 5secon! tier6 o* .is money anytime.
T.is -it.!ra-a/le acco(nt !oes not constit(te #ension investment" an! -o(l! attract no
s#ecial tax treatment.
4iii7 In!ivi!(als can normally exit at or a*ter a8e 30 years *or tier-I o* t.e #ension system. At
t.e exit t.e in!ivi!(al -o(l! /e man!atorily re9(ire! to invest ;0 #ercent o* #ension -ealt.
to #(rc.ase an ann(ity 4*rom an IRDA- re8(late! li*e ins(rance com#any7. In case o*
Government em#loyees t.e ann(ity s.o(l! #rovi!e *or #ension *or t.e li*etime o* t.e
em#loyee an! .is !e#en!ent #arents an! .is s#o(se at t.e time o* retirment. T.e in!ivi!(al
-o(l! receive! a l(m#-s(m o* t.e remainin8 #ension -ealt." -.ic. .e -o(l! /e *ree to
(tiliKe in any manner. In!ivi!(als -o(l! .ave t.e *lexi/ility to leave t.e #ension system
#rior to a8e 30. >o-ever" in t.is case" t.e man!atory ann(itisation -o(l! /e $0D o* t.e
#ension -ealt..
Arc$itect4re of t$e ne# Pension Syste%
4iv7 It -ill .ave a central recor! @ee#in8 an! acco(ntin8 4+RA7 in*rastr(ct(re" several
#ension *(n! mana8ers 4P's7 to o**er t.ree cate8ories o* sc.emes viK. o#tion A" H an! +.
4v7 T.e #artici#atin8 entities 4P's an! +RA7 -o(l! 8ive o(t easily (n!erstoo!
in*ormation a/o(t #ast #er*ormance" so t.at t.e in!ivi!(al -o(l! /e a/le to ma@e in*orme!
c.oices a/o(t -.ic. sc.eme to c.oose.
2. T.e e**ective !ate *or o#erationaliKation o* t.e ne- #ension system s.all /e *orm 1
st
o*
Nan(ary" 200;.
A**,0'R,-@)
*.T)!)+AT).* S...10D? 5,711G9!.*.. 1D22888-TP;- DAT,D 2D-11-2000
In exercise o* t.e #o-ers con*erre! /y s(/-cla(se 4i7 o* cla(se 41$7 o* Section 10 o* t.e
Income-tax Act" 1231 4;3 o* 12317" t.e +entral Government" .ere/y s#eci*ies t.e 8allantry
a-ar!s *or t.e #(r#oses o* t.e sai! Section" mentione! in col(mn 2 o* t.e ta/le /elo-
a-ar!e! in t.e circ(mstances as mentione! in corres#on!in8 col(mn 3 t.ereo*%-
Table
Sl.
)o.
)ame o* 8allantry a-ar! +irc(mstances *or eli8i/ility
417 427 437
1. As.o@ +.a@ra :.en a-ar!e! to +ivilians *or 8allantry
2. Qirti +.a@ra !o -
3. S.a(rya +.a@ra !o -
;. Sarvottan Neevan Ra@s.a
Pa!a@
:.en a-ar!e! to +ivilians *or /ravery
!is#laye! /y t.em in li*e savin8 acts.
&. Fttam Neevan Ra@s.a
e!al
!o -
3. Neevan Ra@s.a Pa!a@ !o -
=. Presi!ent6s Police e!al
*or 8allantry
:.en a-ar!e! *or acts o* exce#tional
co(ra8e !is#laye! /y mem/ers o* #olice
*orces" +entral #olice or sec(rity *orces
an! certi*ie! to t.is e**ect /y t.e .ea! o*
t.e !e#artment concerne!.
$. Police e!al *or Gallantry !o -
2. Sena e!al :.en a-ar!e! *or acts o* co(ra8e or
cons#icio(s 8allantry an! s(##orte! /y
certi*icate iss(e! to t.is e**ect /y
relevant service .ea!9(arters.
10. )ao Sena e!al !o -
11. May( Sena e!al !o
12. 'ire Secrvices e!al *or
Gallantry
:.en a-ar!e! *or acts o* co(ra8e or
cons#ic(o(s 8allantry an! s(##orte! /y
certi*icate iss(e! to t.is e**ect /y t.e
last >ea! o* De#artment.
13. Presi!ent6s Police & 'ire
Services e!al *or
Gallantry
-!o-
1;. Presi!ent6s 'ire Services
e!al *or Gallantry
-!o-
1&. Presi!ent6s >ome G(ar!s
an! +ivil De*ence e!al
*or Gallantry
-!o-
13. >ome G(ar! an! +ivil
De*ence e!al *or
Gallantry
-!o-

A**,0'R, @))
*.T)!)+AT).* *.. S...?15,722!.*..1D22888-TP;- DAT,D 28-1-2001
In exercise o* t.e #o-ers con*erre! /y s(/-cla(se 4i7 o* cla(se 41$7 o* Section 10 o* t.e
Income tax Act" 1231 4;3 o* 123177" t.e +entral Government" .ere/y s#eci*ies t.e 8allanty
a-ar!s *or t.e #(r#oses o* t.e sai! Section an! *or t.at #(r#ose ma@es t.e *ollo-in8
amen!ment in t.e noti*ication o* t.e Government o* In!ia in t.e inistry o* 'inance"
De#artment o* Reven(e 4+entral Hoar! o* Direct Taxes7 n(m/er S.I.10;$4<7" !ate! t.e 2;
t.

)ovem/er 2000" namely%-
In t.e sai! noti*ication" in t.e Ta/le" a8ainst serial n(m/ers 1"2 an! 3 (n!er clo(mn 437
relatin8 to 0+irc(mstances *or eli8i/ility1 t$e #or&s 0to civilians1 s.all /e omitte!.
A**,0'R,-@)))
!.R/ *.. 103A
5See r4le 1137
D,+;ARAT).* T. 3, !);,D 3Y T6, ASS,SS,,
+;A)/)*E D,D'+T).* 'S ?0 EE
I,:eVVVVVVVVVVVVVVVVVVVVVVVV
4)ame o* t.e assessee -it. #ermanent acco(nt n(m/er7
!o .ere/y certi*y t.at !(rin8 t.e #revio(s YearVVVV.I,:e .a! occ(#ie! t.e
#remiseVVVVVVVVVV.4*(ll a!!ress o* t.e #remise7 *or t.e #(r#ose o* my,o(r o-n
resi!ence *or a #erio! o*VVVVVVV..mont.s an! .ave #ai! Rs. VVVVVV. In
cas.,t.ro(8. crosse! c.e9(e" /an@ !ra*t to-ar!s #ayment o* rent to
S.ri,s,,sVVVVVVVVV.4name an! com#lete a!!ress o* t.e lan!lor!7.
It is *(rt.er certi*ie! t.at no ot.er resi!ential accommo!ation is o-ne! /y
4a7 me,my s#o(se,my minor c.il!,o(r *amily 4in case t.e assessee is >F'7" at
VVVVVVV.-.ere I,-e or!inarily resi!e,#er*orm !(ties o* o**icer or em#loyment or
carry on /(siness or #ro*ession" or
4a7 me,(s at any ot.er #lace" /ein8 accommo!ation in my occ(#ation" t.e val(e o* -.ic. is
to /e !etermine! (,s 234274a74i7 o* (,s 234274/7.
So(rce- +)R+';AR *.. 0G2011 O!.*.. 2FG1822011-)T537Q- DAT,D 19-?-2011