and

1

Responsibilities of Employers for Deduction and
deposit of TDS

• and
• Personal Tax Management

2
Persons Responsible for TDS their Duties It is
the duty of the employer to deduct tax in
accordance with section 192 of the I.Tax act.
D.D.O. Time Limit for Deposit of Tax (sec 200)
Tax deducted by Govt. should be paid to Central
Govt. on the day of the Tax Deduction itself. For
other than Govt. payment has to be made within
one week of last date of the month. Method of
Payment Through Book adjustment. Penalty for
late payment (Sec 201 (1A) Interest _at_ 1 Per
Month or part of the month. Penalty for T.D.S.
not deducted or short deducted (Sec 271C) A sum
equal to the amount of Tax not deducted. Penalty
for non deposit of TDS recovered (Sec. 276B)
Punishable with rigorous imprisonment from 3
months to 7 years.
3
Filing of Quarterly e-tds Statement.
These statement require mandatory quoting of TAN
of employer PAN- of employees (sec 203A).
Min. 95 of employees Otherwise credit of Tax
deducted can not be given. Penalty (sec 272BB)
for wrong quoting of PAN- Rs 10000/- Failure to
file e-tds return penalty Rs 100 per Day.
4
Furnishing of TDS Certificates.
Time limit- within 30 days from the end of F.Y.
Penalty (sec. 272A) for non furnishing of TDS
cert. Rs. 100/- for every day

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• Tax Rates Applicable to Male Resident for
• A.Y. 2008-09

Nil 10 x ( TI Rs. 1,10,000) 4000 20 ( TI-
Rs 1,50,000) 24,00030( TI- Rs.2,50,000)
Up to Rs. 1,10,000. Rs 1,10,000 to
1,50,000 Rs.1,50,001 to 2,50,000 Rs. 2,50,001
and above
A.Y. 2009-10
Up to Rs.1,50,000. Rs 1,50,001 to
3,00,000 Rs.3,00,001 to 5,00,000 Rs. 5,00,001
and above
Nil 10 x ( TI Rs. 1,50,000) 15,000 20 ( TI-
Rs 3,00,000) 55,000 30 ( TI- Rs.5,00,000)
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Tax Rates Applicable to Women for A.Y. 2008-09
For Resident woman Up to Rs.1,45,000. Rs 1,45,001
to 1,50,000 Rs.1,50,001 to 2,50,000 Rs.
2,50,001 and above
Nil 10 x ( TI Rs. 1,45,000) 500 20 ( TI- Rs
1,50,000) 20,50030(TI- Rs.2,50,000)
A.Y. 2009-10
For Resident woman Up to Rs.1,80,000. Rs 1,80,001
to 3,00,000 Rs.3,00,001 to 5,00,000 Rs.
5,00,001 and above
Nil 10 x ( TI Rs. 1,80,000) 12,000 20 ( TI-
Rs 3,00,000) 52,00030(TI- Rs.5,00,000)
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Tax Rates Applicable to Senior Citizens A.Y.
2008-09
Up to Rs.1,95,000. Rs 1,95,001 to 2,50,000 Rs.
2,50,001 and above
Nil 20 x ( TI Rs. 1,95,000) 11,000 30 ( TI-
Rs 2,50,000)
A.Y. 2009-10
Up to Rs.2,25,000. Rs 2,25,001 to 3,00,000 Rs.
3,00,001 to 5,00,000 Rs.5,00,001 and above
Nil 10 x ( TI Rs. 2,25,000) 75,00 20 ( TI-
Rs 3,00,000) 47,500 30(TI- Rs.5,00,000)
Education Cess _at_ 2 Higher Education Cess _at_ 1
Surcharge _at_ 10 is applicable to Total Income
above Rs. 10 lacs
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Comparative Chart of Tax Due between A.Y. 2008-09
2009-10
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(No Transcript)
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Example For Assessment year 2009-2010 Male

• Particulars (Rs.) (Rs.) (Rs.)
• Gross Salary Income 2,00,000
  5,00,000 10,00,000
• (including Allowances)
• Contribution to GPF 20,000
  50,000 1,00,000
• Gross Salary 2,00,000
  5,00,000 10,00,000
• Less Deduction
• U/s 80C 20,000
  50,000 1,00,000
• Taxable Income 1,80,000
  4,50,000 9,50,000
• Tax thereon 3,000
  45,000 1,75,000
• Add Surcharge NIL NIL
  NIL
• Education Cess _at_2 60
  900 3,500
• Secondary Higher
• Education Cess _at_1 30
  450 1,750
• Total Tax Payable 3,090
  46,350 1,80,250

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REVISED PAY COMMISSION AT GLANCE
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HOW TO COMPUTE TAX UNDER THE HEAD SALARY ( A.Y.
2009-10)
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Taxability of various allowances for A.Y. 2009-10
1) Basic Pay Fully Taxable 2) D.P. Fully
Taxable ( D.P. is not payable according to the
Pay Commission) 3) D.A. Fully
Taxable 4) C.C.A. Fully Taxable ( C.C.A. is
not payable according to the Pay
Commission) 5) N.P.A.( News Paper Allowance)
Fully Taxable 6) H.R.A. ( House Rent Allowance).
Least of the following is exempt u/s 10(13A) of
Income Tax Act. a) Actual HRA Received b) Rent
Paid less 10 of Basic Salary D.A. c) 50
of Salary for Delhi, Mumbai, Calcutta Chennai
or 40 in case of other cities. 7) Transport
Allowance Exemption of Rs 800/- P.M, balance is
taxable
NOTE (Section 10(14A) 70 of an allowance or Rs
6000 P.M. whichever is lower, is exempt for an
employee working in any transport system, to meet
his personal expenditure during his duty
performed in the course of running of such
transport from one place to another place
provided such employee is not in receipt of daily
allowance.
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Medical Reimbursements to employees
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ARREARS OF SALARY RECEIVED
As per the clarification issued by Ministry of
Finance vide its office order F.No 1/1/200/-IC
dated 30th August, 2008 Tax is payable on Arrears
on receipt basis i.e. 40 of the aggregate
arrears is taxable in A.Y. 2009-10.
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Loss/ income under the head House Property

• If a person have taken any Loan for construction/
  purchase of residential house, he can claim the
  rebate on the amount of repayment of loan, as
  under
• For Principal Portion Rebate u/s 80C up to
  maximum of Rs 1,00,000/- is available
• b) For Interest Portion A normal deduction of
  Rs. 30,000/- is allowed in respect of interest on
  borrowed capital .
• Rs. 1,50,000/- is available if such loan has
  been taken on or after 1.4.1999 for construction
  or acquiring the residential house and the
  construction acquisition of the residential unit
  out of such loan has been completed with in three
  years from the end of the financial year in which
  capital was borrowed.

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IMPORTANT POINTS TO REMEMBER

• Normally, an employee can take the benefit of
  either H.R.A. (u/s 10 (13A) Least of the
  following is exempt
• a) Actual HRA Received
• b) Rent Paid less 10 of Basic Salary
  D.A.
• c) 50 of Salary for Delhi, Mumbai, Calcutta
  Chennai or 40 in case of other cities.)
• or
• Relief of interest on housing loan on self
  occupied house.
• An employee can take the benefit of both
  exemptions if the self occupied house is far from
  his work place.
• If the house purchased by the assessee is given
  on Rent, then (Rent received- 30 of Rent
  Received) is chargeable as tax under the head,
  Income from House Property and interest paid on
  borrowed capital is fully claimed as expenses
  irrespective of amount.

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REBATE U/S 80 C

• An employee is entitled to deduction for the
  whole of the amount paid or deposited in the
  current Financial Year in the following schemes,
  Subject to a limit of Rs 1,00,000/-.
• Insurance Premium
• Provident Fund, GIS, PPF, VPF.
• Purchase of NSC and Interest accrued on previous
  NSC purchased.
• Units of any Mutual Fund.
• Principle portion of repayment of Housing Loan.
• Tuition Fee.
• Term Deposit for a fixed period of not less than
  five years.

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Rebate u/s 80CCC Annuity Plan pension plan
An employee paid or deposited any amount for any
annuity plan of Life Insurance Corporation of
India or any other insurer for receiving
pension. Maximum amount is Rs 1,00,000/-
Rebate u/s 80CCD
Where an assessee employed by the Central Govt.
on or after 01/01/2004, has in the previous year
paid any amount in his account under schemes as
notified by the Govt., he shall be allowed a
deduction of the whole of the amount so paid
subject to a ceiling of 10 of his Salary in the
Previous Year. Same applies to Govt contribution.
Total becomes 20.
NOTE The aggregate amount of deduction u/s 80C,
80CCC and 80CCD shall not exceed Rs 1,00,000/-.
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Deduction u/s 80D Mediclaim Policy (over Rs. 1
lakh)
The deduction is allowed for making the payment
to effect or keep in force an insurance on
- The health of the assessee or on the health
of wife or husband, dependant parents or
dependent children of the assessee. Maximum
amount of Deduction is Rs15,000/- or Rs 20,000/-
if the payment is made for insurance of Senior
Citizen.
21
Deduction u/s 80DD Relief to Handicapped Dependent

• Where an assessee, has, during the previous year
• Incurred any expenditure for the medical
  treatment ( including Nursing) training and
  rehabilitation of a dependant, being a person
  with disability or
• Paid or deposit any amount under a scheme framed
  in this behalf by the life insurance corporation
  or any other insurer or Administrator or the
  specified Company for the maintenance of a
  dependant, being a person with disability.
• The assessee shall be allowed a deduction
  of a sum of Rs 50,000/- from his gross total
  income.
• The amount of deduction is a fixed
  deduction of RS 50,000/-, irrespective of the
  amount incurred or deposited under the scheme.
• However, where such dependent is a person
  with severe disability (80 or more), an amount
  of Rs.75000 shall be allowed as deduction subject
  to the fulfilled.

22
Deduction u/s 80GG Those in Occupation of
GOVT. QTRS

• The assessee is entitled to deduction in respect
  of House Rent Paid by him for his own residence
  subject to following conditions
• The assessee has not been in receipt of any HRA.
• The assessee does not own any residential
  accomodation himself, his spouse or minor child
  or where assessee is member if HUF, by such
  family at the place where he ordinarily resides
  or perform duties of his office.
• The assessee files the declaration in Form-10BA.

Amount of deduction u/s 80GG is least of the
following 1) Rent paid less 10 of his total
Income. 2) 25 of Total Income. 3) Rs 2,000/-
Per Month.
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Deduction under section 80U For handicapped
employee
In computation the total income of an individual
, being a resident, who, at any time during the
previous year , is certified by the medical
authority to be a person with disability, three
shall be allowed a deduction of a sum of fifty
thousand rupees.
However, where such individual is a person with
severe disability (80 or more), a higher
deduction of seventy-five thousand rupees shall
be allowed.
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Relief under section 89 (1) Tax on arrears
If an individual receives any portion of his
salary in arrears or in advance , he can claim
relief in terms of section 89 read with rule 21A
. The idea for this relief is to compensate the
individual to pay tax at higher rates.
25
Manner of computation of relief
Note If additional salary / family pension
relates to more than one previous year, salary
should be spread over the previous years to which
it pertains in the manner explained above.
26
Thank You