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    Jan 25, 2017

    TDS u/s 192 on salary Corrigendum of Circular 1/2017

    CBDT issued corrigendum of circular no. 1/2017 dated 2 January 2017. There are few changes in the rule which may read as follows.

    OLD
    Conditions for Claim of Deduction of Interest on Borrowed Capital for Computation of Income From House Property [Section 24(b)]:

    Acquisition or construction of the house  On or after 01.04.1999       Rs. 150000 (Upto AY 2014-15)
                                                                                                                   Rs. 200000 (w,e,f AY 2015-16)

    The acquisition or construction of the house should be completed within3 years from the end of the FY in which the capital was borrowed. Hence, it is necessary for the DDO to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee.

    NEW
    The acquisition or construction of the house should be completed within 5 years from the end of the FY in which the capital was borrowed. Hence, it is necessary for the DDO to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee.

    2- 
    OLD
     TABLE: Dates of filing Quarterly Statements E-TDS Return 24Q
    Return for Quarter ending
    Due date for Government Offices
    Due date for Other Deductors
    30 June
    31 July
    15 July
    30 September
    31 October
    15 October
    31 December
    31 January
    15 January
    31 March
    15 May
    15 May

    New
    Return for Quarter ending
    Due date
    30 June
    31 July of the financial year
    31 September
    31 October of the financial year
    31 December
    31 January of the financial year
    31 March
    31 May of the financial year immediately following the financial year in which the deduction is made.

    TDS u/s 192 on salary Corrigendum of Circular 1/2017 

    3-
    OLD
     Deductions is respect of rents paid (Section 80GG):
    Section 80GG allows the employee to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions :-

    (a) the employee has not been in receipt of any House Rent Allowance specifically granted to him which qualifies for exemption under section 10(13A) of the Act;

    (b) the employee files the declaration in Form No.10BA. (Annexure X)
    (c) The employee does not own:
    (i) any residential accommodation himself or by his spouse or minor child or where such employee is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or
    performs duties of his office or carries on his business or profession; or

    (ii) at any other place, any residential accommodation which is in the occupation of the employee, the
    value of which is to be determined under section 23(2)(a) or section 23(4)(a), as the case may be.

    (d) He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income. The deduction shall be equal to 25% of total income or Rs. 2,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG.

    NEW
     Deductions is respect of rents paid (Section 80GG):
    Section 80GG allows the employee to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions :-

    (a) the employee has not been in receipt of any House Rent Allowance specifically granted to him which qualifies for exemption under section 10(13A) of the Act;

    (b) the employee files the declaration in Form No.10BA. (Annexure X)
    (c) The employee does not own:
    (i) any residential accommodation himself or by his spouse or minor child or where such employee is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or
    performs duties of his office or carries on his business or profession; or

    (ii) at any other place, any residential accommodation which is in the occupation of the employee, the
    value of which is to be determined under section 23(2)(a) or section 23(4)(a), as the case may be.

    (d) He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income. The deduction shall be equal to 25% of total income or Rs. 5,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG.

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