CIRCULAR
NO : 17/2014
F.No. 275/192/2014-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North
Block, New Delhi
Dated 10th
December, 2014
SUBJECT:
INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2014-15 UNDER
SECTION 192 OF THE INCOME-TAX ACT, 1961.
Reference is invited to Circular
No.08/2013 dated 25.10.2013 whereby the rates of deduction of income-tax from
the payment of income under the head “Salaries” under Section 192 of
the Income-tax Act, 1961 (hereinafter ?the Act‘), during the financial year 2013-14,
were intimated. The present Circular contains the rates of deduction of
income-tax from the payment of income chargeable under the head
“Salaries” during the financial year 2014-15 and explains certain
related provisions of the Act and Income-tax Rules, 1962 (hereinafter the
Rules). The relevant Acts, Rules, Forms and Notifications are available at the
website of the Income Tax Department- www.incometaxindia.gov.in.
2. RATES OF INCOME-TAX AS PER FINANCE
(No. 2) ACT, 2014:
As per the Finance (No. 2) Act, 2014, income-tax is
required to be deducted under Section 192 of the Act from income chargeable
under the head “Salaries” for the financial year 2014-15 (i.e.
Assessment Year 2015-16) at the following rates:
2.1 Rates of tax
A.
Normal Rates of tax:
|
Sl |
Total Income |
Rate of tax |
|
No |
|
|
|
1 |
Where the total |
Nil |
|
|
2,50,000/-. |
|
|
2 |
Where |
10 per cent of the |
|
|
but does not exceed Rs. 5,00,000/-. |
total income exceeds Rs. 2,50,000/- |
|
3 |
Where |
Rs. 25,000/- plus 20 |
|
|
5,00,000/- but does not exceed |
amount by which the total income |
|
|
. |
exceeds Rs. 5,00,000/-. |
|
4 |
Where |
Rs. 1,25,000/- plus 30 |
|
|
10,00,000/-. |
amount |
|
|
|
exceeds Rs. 10,00,000/- |
B. Rates of tax for every individual, resident in
India, who is of the age of sixty years or more but less than eighty years at
any time during the financial year:
|
Sr. |
Total |
Rate |
|
No |
|
|
|
1 |
Where the total |
Nil |
|
|
3,00,000/- |
|
|
2 |
Where the total |
10 |
|
|
but does not exceed |
total income exceeds |
|
3 |
Where the total income exceeds Rs. |
Rs. 20,000/- plus 20 per cent of the |
|
|
but does not exceed |
amount |
|
|
|
exceeds |
|
4 |
Where the total |
Rs. |
|
|
|
amount by which the total income |
|
|
|
exceeds |
C.
In case of every individual being a resident in India, who is of the age of
eighty years or more at any time during the financial year:
|
Sr. |
Total Income |
|
Rate of tax |
|
No |
|
|
|
|
1 |
Where the total |
Nil |
|
|
|
5,00,000/- |
|
|
|
2 |
Where the total |
Rs. |
20 |
|
|
but |
total |
|
|
3 |
Where the total |
Rs. 10,00,000/- |
Rs. 1,00,000/- plus |
|
|
|
|
amount by which the total income |
|
|
|
|
exceeds Rs. |
2.2
Surcharge on Income tax:
The amount of income-tax shall be increased by a
surcharge @10% of the income-tax on payments to an individual taxpayer, if
the total income of the individual exceeds Rs 1 crore during FY 2014-15
(AY 2015-16). However the amount of Surcharge shall
not exceed the amount by which the individual‘s total income exceeds Rs 1 crore
and if surcharge so arrived at, exceeds such amount (assessee‘s total income
minus one crore) then it will be restricted to the amount of total income minus
Rupees one crore.
2.3.1
Education Cess on Income tax:
The
amount of income-tax including the surcharge if any, shall be increased by
Education Cess on Income Tax at the rate of two percent of the
income-tax.
2.3.2
Secondary and Higher
Education Cess on Income-tax:
An
additional education cess is chargeable at the rate of one percent of
income-tax including the surcharge if any, but not including the education cess
on income-tax as in 2.3.1.
