DEDUCTION
FROM
SALARIES
DURING
THE FINANCIAL
YEAR
2016-17
UNDER SECTION
192
OF
THE
INCOME-TAX
ACT,
1961
275/192/2016-IT(B)
SUBJECT:
INCOME-TAX
DEDUCTION
FROM
SALARIES
DURING
THE FINANCIAL
YEAR
2016-17
UNDER SECTION
192
OF
THE
INCOME-TAX
ACT,
1961.
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 2015-16, 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 2016-17 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.
RATES OF INCOME-TAX AS PER FINANCE ACT, 2016:
Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2016-17 (i.e. Assessment Year
2017-18) at the following rates:
2.1
Rates of tax
A.
Normal
Rates
of
tax:
| Sl N o |
Total Income |
Rate of tax |
| 1 | Where the total income does not exceed Rs. 2,50,000/-. |
Nil |
| 2 | Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. |
10 per cent of the amount by which the total income exceeds Rs. 2,50,000/- |
| 3 | Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. |
Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-. |
| 4 | Where the total income exceeds Rs. 10,00,000/-. | Rs. 1,25,000/- plus 30 per cent of the amount by which the total income 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:
| Sl No |
Total Income |
Rate of tax |
| 1 | Where the total income does not exceed Rs. 3,00,000/- |
Nil |
| 2 | Where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000/- |
10 per cent of the amount by which the total income exceeds Rs. 3,00,000/- |
| 3 | Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- |
Rs. 20,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-. |
| 4 | Where the total income exceeds Rs. 10,00,000/- |
Rs. 1,20,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/- |
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:
| Sl No |
Total Income |
Rate of tax |
| 1 | Where the total income does not exceed Rs. 5,00,000/- |
Nil |
| 2 | Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000/- |
20 per cent of the amount by which the total income exceeds Rs. 5,00,000/- |
| 4 | Where the total income exceeds Rs. 10,00,000/- |
Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/- |
Surcharge
on
Income
tax:
provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every
individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every
artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, having a total income
exceeding one crore rupees, be increased by a surcharge for the purpose of the Union calculated at the rate of fifteen per cent of such
income-tax:
exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount
payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
Education
Cess
on
Income
tax:
by Education Cess on Income Tax at the rate of two percent
of the income-tax.
Secondary
and
Higher
Education
Cess
on
Income-tax:
income-tax including the surcharge if any, but not including the Education Cess on income tax as in 2.3.1.
COMMENTS