NEW CIRCULAR ON TDS ON SALARY

Section 192 of the Income-tax Act, 1961 – Deduction of tax at source – Salary – Income-tax deduction from salaries during the financial year 2009-10 – Corrigendum to Circular No. 1/2010, dated 11-1-2010


Notification F. No. 275/192/2009-IT(B), dated 20-1-2010

The undersigned is to draw the attention on the Board’s Circular No. 1/2010 dated 11th Jan. 2010 on the subject cited above. The following errata has been noticed which is rectified are as under :-

(a) Circular No. mentioned in first page of the circular under General Category which is read as Circular No. 08/2007 dated 5-12-2007 may be read as Circualr No. 09/2008 dated 29-09-2008.

(b) Under Section 80DD, the amount specified for a severe disability which is read as an amount of seventy five thousand may be read as one hundred thousand where such dependent is a person with severe disability.

(c) In Example–I, in the case of male employee having Gross Salary Income of Rs. 5,00,000-: The amount under the title of ‘Tax thereon’ may be read as Rs. 44,000 in place of Rs. 41,000 and the amount calculated under the head Education Cess @ 2% & Secondary and Higher Education Cess @ 1% may be read as Rs. 880 & Rs. 440 in place of Rs. 820 & 410 respectively. Accordingly, the total tax payable may be read as Rs. 45,320 in place of Rs. 42,230.

Similarly, In the case of a male employee having Gross Salary Income of Rs. 10,00,000 – The amount under the title of ‘Tax thereon’ may be read as Rs. 1,74,000 in place of Rs. 1,71,000 and the amount calculated under the head Education Cess@1% & Secondary and Higher Education Cess@ 1% may be read as Rs. 3480 and & Rs. 1740 in place of Rs. 3420 & Rs. 1710 respectively. Accordingly, the total Income tax payable may be read as Rs. 1,79,220 in place of Rs. 1,76,310.

(d) In Example –5. The amount falls under Tax Payable Category may be reads as Rs. 1,67,580 in place of Rs. 1,64,580 and the amount calculated under the head Education Cess@ 2% & Secondary and Higher Education Cess@ 1% may be read as Rs. 3351.6 & Rs. 1675.8 in place of Rs. 3291.6 & Rs. 1645.8 respectively. Accordingly, the total income tax payable may be read as Rs. 1,72,607.4 in place of Rs. 1,60,517.4, rounded off to Rs. 1,72,610 in place of 1,69,520.



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