POWER GRID CORPORATION OF INDIA LTD.
(Corporate Centre - Gurgaon)
F&A Deptt. : Estt. Section
Ref. : F&A/Estt./IT/2009-2010
12 October , 2009
INCOME TAX CIRCULAR
Sub: Deduction of Income-tax at Source on Income from Salaries for the Financial Year
2009-2010 (Assessment year 2010-2011)
The relevant provisions of the Income Tax Act 1961 as applicable for computation of the
income under the head salary and the computation of tax liability thereon are given below for
information of all the employees.
All the employees are requested to please note the provisions and submit the details of
proposed savings in the prescribed format before 28th October ,2009. For final savings information
along with photocopies of their savings certificates in the prescribed enclosed format are to be
submitted before 08thFeb,2010. ( TDS deducted from the salary of Feb’10 will be based on actual
savings submitted by the employee). Employees are advised to program the savings well in advance
in order to avoid excess or under deduction of TDS from salary.
A
TAX RATES : FOR INDIVIDUAL (RESIDENT MEN WHO IS BELOW 65 YRS.)
For the Financial year 2009-2010 (Assessment Year 2010-2011) the tax rates are as follows :TAXABLE INCOME
TAX LIABILITY
-
Upto Rs.1,60,000/-
NIL
-
Rs.1,60,001/- to Rs.3,00,000/-
10% of the amount by
which the total income
exceeds Rs.1,60,000/-
-
Rs. 3,00,001/- to Rs.5,00,000/-
Rs. 14,000/- plus 20% of the
amount by which the total
income exceeds Rs.3,00,000/-
-
Above Rs. 5,00,000/-
Rs.54,000/- plus 30% of the
amount by which the total
income exceeds Rs.5,00,000/-
1
B
TAX RATES : FOR INDIVIDUAL (RESIDENT WOMEN WHO IS BELOW 65 YRS.)
For the Financial year 2009-2010 (Assessment Year 2010-2011) the tax rates are as follows :TAXABLE INCOME
TAX LIABILITY
-
Upto Rs.1,90,000/-
NIL
-
Rs.1,90,001/- to Rs.3,00,000/-
10% of the amount by
which the total income
exceeds Rs.1,90,000/-
-
Rs. 3,00,001/- to Rs.5,00,000/-
Rs. 11,000/- plus 20% of the
amount by which the total
income exceeds Rs.3,00,000/-
-
Above Rs. 5,00,000/-
Rs.51,000/- plus 30% of the
amount by which the total
income exceeds Rs.5,00,000/-
C.
SURCHARGE: For the Financial Year 2009-2010 Surcharge is NIL
D.
EDUCATION CESS: Education cess @2% shall be levied on the total tax payable by the
assessee.
E.
SECONDARY AND HIGHER EDUCATION CESS: Secondary and Higher Education cess
@1% shall be levied on the total tax payabl) by the assessee. This is in addition to the
Education Cess of 2% . Effectively the total Cess works out to 3% on the total tax payable by
the assessee.
2
Rule 3 of the Income Tax Rules is yet to be amended and following are the valuations of
perquisites as applicable as on the date of issue of this circular.
A. VALUATION OF PERQUISITES
1.
Medical Reimbursement
Medical reimbursement to an employee for the treatment of employee and his family
members in excess of Rs.15,000/- is taxable as perquisite in the hands of employee.
The reimbursement by the employer of expenditure incurred by the employee on his medical
treatment or treatment of any member of his family in any hospital maintained by the
Government, Local authority or in a Hospital approved by the Government for its employees
shall not be treated as perquisite.
Payment made by the employer directly (or reimbursement of the expenditure to the
employee) to a Hospital which is approved by the Chief Commissioner having regard to
prescribed guidelines in connection with the medical treatment of the employee or any
member of his family for treatment of prescribed diseases or ailments subject to condition
that employee shall attach with his return of income a certificate from the approved hospital
specifying the prescribed diseases or ailments for which hospitalization was required and the
receipt of the amount paid to the hospital shall not the treated as perquisite
Medical treatment of parents-in-law of the employee is taxable in full without any basic
exemption because family as per explanation to section 10(5) does not include parentsin-law.
2.
LTC
As per Section 10(5), subject to rule 2B, of the IT Act, Leave Travel Concession paid for
proceeding on LTC to any place in India, amount over and above the amount exempted as
given below is taxable as perquisites in the hands of employee.
Different situations
Where the journey is performed by air
Amount exempted
Amount of air economy fare of the National
Carrier by the shortest route or the amount
spent, whichever is less
where the journey is performed by rail
Amount of air-conditioned First class rail fare
by the shortest route or the amount spent,
whichever is less
Where the places of origin of journey Amount of air-conditioned First class rail fare
and destination are connected by rail by the shortest route or the amount spent,
and journey is performed by any other whichever is less
mode of transport
Where the places of origin of journey
and destination (or part thereof) are not
connected by rail.
i)
where a recognised
transport exists
public First class or deluxe class fare by the shortest
route by a recognised Public Transport system
3
or the amount spent whichever is less.
ii)
where no recognized
transport exists
public
Air-conditioned first class rail fare by the
shortest route (as if the journey has been
performed by rail) or the amount spent,
whichever is less.
Exemption is available in respect of two journeys performed in a block of four calendar years
commencing from 1986. The different blocks are:
2002-2005(i.e. 01.01.2002 to 31.12.2005)
2006-2009(i.e. 01.01.2006 to 31.12.2009)
If an assessee has not availed LTC during any of the specified four years block period on one
of the two permitted occasions(or on both occasions), exemption can be claimed in the first
calendar year of the next block(but in respect of only one journey).
3.
Valuation of Residential Accommodation ( i.e. private sector or other than Central and
State Government Employees)
The value of residential accommodation provided by the employer during the previous year shall be
determined on the basis provided in the Table below:
[Table I]
Sl.
No.
Circumstances
Where accommodation is
unfurnished
Where accommodation is
furnished
(1)
(2)
(3)
(4)
(1)
Where the accommodation
is provided by any other
employer and—
(a) where
the
accommodation
is
owned
by
the
employer, or
(b) where
(i) 15% of salary in cities
having
population
exceeding 25 lakhs as
per 2001 census;
(ii) 10% of salary in cities
having
population
exceeding 10 lakhs but
not exceeding 25 lakhs
as per 2001 census;
(iii) 7.50% of salary other
cities,
in respect of the period
during which the said
accommodation
was
occupied
by
the
employee during the
previous
year
as
reduced by the rent, if
any, actually paid by
the employee.
the Actual amount of lease
4
The value of perquisite as
determined under column (3)
and increased by 10% per
annum of the cost of furniture
(including television sets, radio
sets, refrigerators, other
household appliances, airconditioning plant or equipment
or other similar appliances or
gadgets) or if such furniture is
hired from a third party, by the
actual hire charges payable for
the same as reduced by any
charges paid or payable for the
same by the employee during the
previous year.
The value of perquisite as
accommodation
is rental paid or payable by the
taken on lease or rent employer or 15% of salary
whichever is lower as
by the employer.
reduced by the rent, if any,
actually paid by the
employee.
(3)
Where the accommodation
is provided by the employer
specified in serial number
(1) or (2) above in a hotel
(except where the employee
is provided such
accommodation for a period
not exceeding in aggregate
15 days on his transfer from
one place to another)
Not applicable.
determined under column (3)
and increased by 10% per
annum of the cost of furniture
(including television sets, radio
sets, refrigerators, other
household appliances, airconditioning plant or equipment
or other similar appliances or
gadgets) or if such furniture is
hired from a third party, by the
actual hire charges payable for
the same as reduced by any
charges paid or payable for the
same by the employee during the
previous year.
24% of salary paid or payable
for the previous year or the
actual charges paid or pay- able
to such hotel, which is lower, for
the period during which such
accommodation is provided as
reduced by the rent, if any,
actually paid or payable by the
employee :]
Provided that nothing contained in this sub-rule shall apply to any accommodation provided to an
employee working at a mining site or an on-shore oil exploration site or a project execution site, or a
dam site or a power generation site or an off-shore site which,—
(i) being of a temporary nature and having plinth area not exceeding 800 square feet, is located not
less than eight kilometers away from the local limits of any municipality or a cantonment board;
or
(ii) is located in a remote area, “remote area”, for purposes of proviso to this sub-rule means an area
that is located at least 40 kilometres away from a town having a population not exceeding
20,000 based on latest published all-India census;
Provided further that, where on account of transfer from one place to another, the employee is
provided with accommodation at the new place of posting while retaining the accommodation at the
other place, the value of perquisite shall be determined with reference to only one such
accommodation which has the lower value with reference to the Table above for a period not
exceeding 90 days and thereafter the value of perquisite shall be charged for both such
accommodations in accordance with the Table.
Salary definition
Includes the Basic salary, DA, if terms of employment so provide, allowances, bonus or commission
payable monthly or otherwise, fees or other taxable allowances (excluding amount not taxable) or
any monetary payment (by whatever name called) from one or more employers as the case may be ,
but does not include
5
(a) D.A. or Dearness Pay unless it enters into the computation of superannuation or retirement
benefits of the employee concerned
(b)Employers contribution to the P.F. Account of the employee
( c )Allowance which are exempt from payment of tax and
(d)The value of perquisites specified in sub-section (2) of section 17 of I.T. Act
(e)Any payment or expenditure specifically excluded under provision to sub-clause (III) of clause (2)
or provision to clause (2) of section 17.
4.
Interest free or concessional loan
The value of the benefit to the assessee resulting to the provision of interest free or concessional loan
made available to the employee or any member of his household during the relevant previous year by
the employer or any person on his behalf shall be determined as the sum equal to the interest
computed at the rate charged per annum by the SBI as on 1st day of relevant previous year in respect
of loans for the same purpose advanced by it on a maximum outstanding monthly balance as
reduced by the interest if any , actually paid by him or any such member of his household.
For the financial year 2009-10 the rate of interest of SBI are as follows.
Housing Loan
Car Loan
Upto 5 years
Above 5 years but upto 10 years
Above 10 years but upto 15 years
Above 15 years but upto 20years
Upto 3 years(Rs.7.5 lacs & above)
Upto 3 years(below Rs.7.5 lacs)
Above 3 Years but upto 5 years
Above 5 Years but upto 7 years
Two
Wheeler
Loan
Personal/Other
Loans
As on April 1, 2009
for the assessment
year 2010-2011
9.75%#, 10.25% *
10.00%# , 10.50%*
10.00%# , 10.50%*
10.25%# , 10.75%*
11.50%
11.75%
11.75%
12.00%
16.25%
16.50%
# Upto Rs. 30 lacs,
* Above Rs. 30 lacs
However, no value would be charged if such loans are made available for medical treatment in
respect of diseases specified in rule 3 (A) of IT rules or where the amount of loans are petty not
exceeding in aggregate Rs. 20,000/-.
Provided that where the benefit relates to the loans made available for medical treatment referred to
above the exemption so provided shall not apply to so much of the loan as has been reimbursed to
the employee under any medical insurance scheme
6
5.
Use of any movable asset
The value of any benefit to the employee resulting from the use by the employee or any member of
his household of any moveable asset (other than assets already specified in this rule and other than
laptops and computers) belonging to the employer or hired by him shall be determined at 10% p.a. of
the actual cost of such asset or the amount of rent or charge paid or payable by the employer, as the
case may be , as reduced by the amount, if any, paid or recovered from the employee for such use.
6.
Transfer of any movable asset
The value of benefit to the employee arising from the transfer of any moveable asset belonging to
the employer directly or indirectly to the employee or any member of his household shall be
determined to be the amount representing the actual cost of such asset to the employer as reduced by
the cost of normal wear and tear calculated @ of 10% of such cost for each completed year during
which such asset was put to use by the employer and as further reduced by the amount , if any, paid
or recovered from employee being the consideration for such transfer.
Provided that in case of computers and electronic items the normal wear and tear would be
calculated @ 50% and in case of motor parts @ 20% by the reducing balances methods.
7.
Valuation of Perquisite in respect of a Sweeper, a Gardener, a Watchman or a Personal
Attendant
The value of benefit to the employee or any member of his household resulting from the provision by
the employer of services of a sweeper , a gardener , a watchman or a personal attendant shall be the
actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or
payable by the employer or any other person on his behalf for such services as reduced by any
amount paid by the employee for such services.
8.
The value of the benefit to the employee resulting from the supply of Gas Electric
Energy or Water
The value of the benefit to the employee resulting from the supply of gas , electric energy or water
for his household consumption shall be determined as a sum equal to the amount paid on that
account by the employer to the agency supplying the gas, electric energy or water. Where such
supply is made from resources owned by the employer , without purchasing them from any other
outside agency the value of the perquisite would be the manufacturing cost per unit incurred by the
employer. Where the employee is paying any amount in respect of such services the amount so paid
shall be deducted from the value so arrived at.
9.
Valuation of Perquisites in respect of free education
The value of benefit of the employee resulting from the provision of free or concessional
educational facilities for any member of his household shall be determined as the sum equal to the
amount of expenditure incurred by the employer in that behalf or where the educational institution is
itself maintained and owned by the employer or where free education facilities for such member of
employees household are allowed in any other educational institution by reason of his being in
employment of that employer, the value of the perquisite to the employees shall be determined with
reference to the cost of such education in a similar institution in or near the locality. Where any
amount is paid or recovered from the employee on that account, the value of benefit shall be reduced
by the amount so paid or recovered.
7
Provided that where the educational institution itself is maintained and owned by the employer and
free educational facilities are provided to the children of the employee or where such free educational
facilities are provided in any institution by reason of his being in employment of that employer,
nothing contained in this sub-rule shall apply if the cost of such education or the value of such
benefit per child does not exceed Rs. 1000/- p.m.
10.
Amendment of section 17(2)
Fringe Benefit Tax will not be applicable from the A.Y. 2010-11. Consequently, section 17(2) has
been amended from A.Y. 2010-11 to restore the taxation of Fringe Benefits as perquisites in the
hands of the employees. Detailed guidelines on the subject will be issued after the same are being
notified by the IT department . However, it may be noted that as per newly inserted Sub-clause (vii)
of Section 17(2) , any contribution to an approved superannuation fund by the employer in respect of
an employee to the extent it exceeds Rs. 1 Lakh will be treated as perquisites in the hands of the
employees.
F.
EXTERNAL INCOME/SALARY INCOME:
1)
2)
Any employee who is in receipt of salary income from any other employer in the
Financial Year 2009-2010 may also furnish the details of salary income and tax
deducted thereon in Form No.12B of IT Rule 1969 (Ref. Section 192(2) and rule
26A)
As per Section 192(2b), if any employee, in addition to salary has received any
income chargeable under any other head of income not being a loss under that head
(except loss in case of income from house property), may furnish the particulars of
that income and tax deducted at source on such income in a simple statement which
should be properly verified by the tax payers in the following form as per rule 26B.
FORM OF VERERIFICATION
I, ___________________(name of assessee), do declare that what is stated above is true to
the best of my information and belief.
G.
INCOME FROM HOUSE PROPERTY
Let out property : Employee having income / Loss under the above head must furnish the
following documents duly filled up
A simple statement which should be properly verified by the tax payers in the same
manner as prescribed by rule 26B as above.
Computation sheet of House property along with the following certificates / Receipts.
a ) Taxes paid to Local authority during the financial year.
b) Certificate of interest on borrowed capital separately each for construction
period ( if claimed ) and for current year.
Self Occupied : Employee has to furnish the following documents duly filled up
A simple statement which should be properly verified by the tax payers in the same
manner as prescribed by rule 26B as above.
Computation sheet of House property along with the following certificates.
8
a) Certificate of interest on borrowed capital separately each for construction
period ( if claimed ) and for current year. It is to be noted that for the loans
taken prior to 01/04/99 the deduction of interest is limited to Rs. 30,000/- only
and the loans on or after 01/04/99 will carry deduction of Rs. 1,50,000/only subject to the condition that acquisition or construction is completed
within 3 years from the end of the financial year in which the capital was
borrowed.
When an employee occupies more than one house, only one house as per
his choice is treated as Self Occupied and all other houses will be treated
as Let Out or Deemed to be Let Out.
Joint Ownership : Where residential property is owned by two or more persons and their respective
shares are definite and ascertainable , the shares of each such person in the Income from the
House Property as computed in accordance with section 22 to 26 of the income tax act shall
be included in his total income . As such it is for the employee to declare the definite share in
the property in case of joint ownership.
Deduction on account of Interest on borrowed capital and Municipal Taxes will be
allowed in the same proportion as that of definite and ascertainable share in the House
Property.
4.
Interest on a fresh loan taken to repay the original loan :
Interest on a fresh loan taken to repay the original loan is allowed as deduction under Section
24 (i) (iv) of IT Act, if the second borrowing has really been used merely to repay the original
loan and this fact is proved to the satisfaction of ITO. In this regard, employee has to
produce documentary evidence for replacement of existing loan (principal amount only) by a
fresh loan.
H.
DEDUCTIONS FROM GROSS SALARY
(1)
House Rent allowance (Section 10(13A) received by the employee will not be exempt
from tax, in case the residential accommodation occupied by the employee is owned by him, or the
employee has not actually incurred expenditure on payment of rent.
Exemption in respect of house rent allowance is regulated by Rule 2A. The LEAST of the
following is exempted from tax, for the employees, who are in receipt of HRA against production of
the rent receipt in proof of actual payment.
I)
An amount equal to 50% of salary, if residential house is situated at Bombay,
Calcutta, Delhi or Madras and an amount equal to 40% of salary if residential
house is situated at any other place;
ii)
HRA received by the employee in respect of the period during which
residential accommodations occupied by the employee during the previous
year; or
iii)
The excess of rent paid over 10% of salary.
Salary for the purpose of computation of exemption of HRA means basis pay + DA + Spl.Pay. For
getting HRA exemption Rent Receipt regarding rent paid is to be submitted otherwise whole HRA
will be taxable.
The amount computed under the provisions mentioned above shall be reduced from gross salary
9
DEDUCTION FROM GROSS TOTAL INCOME
1.
Section 80 C :
The Provisions are given below:Deduction from Gross total income – Under section 80 C deduction would be available
from gross total income.
Individual/HUF – only an individual or a Hindu undivided family can claim deduction
under Section 80C.
Qualifying investment – The investments eligible for deduction under Section 80C are
life insurance premium, contribution to provident fund, payment in respect of
schemes for non-commutable deferred annuity, Contibution towards 15 year Public
Provident Fund, Subscription to National Savings Certificates VIII issue, Contribution
to unit linked insurance plan, purchase of infrastructure bonds, payment of tuition
fees, repayment of principal amount of housing loans, amount deposited in a fixed
deposit for 5 years or more with a scheduled bank in accordance with a scheme
framed and notified by the central Govt. , Subscription to any notified bonds of
NABARD etc. However, in order to minimize distortions, there are no sectoral caps
in the new section and assessee is free to invest in any one or more of the eligible
instruments within the overall ceiling specified.
With effect from the F.Y.2008-09 the following investments made by the assessee,
during the previous year, shall also be eligible for deduction under section 80 C
within the overall ceiling of Rs. 1 Lac :
a) 5 year time deposit in an account under Post Office Time Deposit Rules, 1981.
b) Deposit in an account under Senior Citizens Saving Scheme Rules, 2004.
Further it is provided that where an amount is withdrawn by the assessee from such
account before the expiry of 5 years from the date of deposit, the amount so
withdrawn shall be deemed to be income of the assessee of the previous year in
which the amount is withdrawn and is liable to be taxed.
Investment out of chargeable income not necessary – Amount invested in these
investments would be allowed as deduction regardless of the fact whether (or not)
these investable are made out of income chargeable to tax. However, the aggregate
deduction under Sections 80C to 80U cannot exceed gross total income.
Amount deductible under Section 80C – Amount deductible under section 80C is equal
to (a) 100 per cent of the “qualifying investement” or (b) Rs.1 lakh whichever is
lower.
Interest accrued in respect of NSC VIII-Issue – Accrued interest of first 5 years in
respect of NSC VIII issue will be part of gross qualifying amount under Section 80C.
Interest of NSCs VIII issues which is deemed investment, calculated at the following
rates:-
10
AMOUNT OF INTEREST (Rs.) ACCURING ON CERTIFICATE OF Rs.100 DENOMINATION
The year for If
NSC(VIIIwhich
interest Issue)
is
accrues
purchased
after
28th Feb,2001 but
before
March
01,2002
First Year
Second Yr.
Third Year
Fourth Year
Fifth Year
Sixth Year
9.72
10.67
11.71
12.85
14.10
15.47
If
NSC(VIIIIssue)
is
purchased on or
after
March
01,2002
but
before
March
01,2003
9.20
10.05
10.97
11.98
13.09
14.29
If NSC(VIII-Issue)
is purchased on or
after March
01,2003
8.16
8.83
9.55
10.33
11.17
12.08
(2)
U/s 80 CCC a deduction is allowed to an employee for any amount deposited by him
in an annuity plan of LIC of India or an Insurer other than LIC for receiving pension. The
deduction is restricted to Rs.1,00,000/-. Deduction under Section 80 C, 80CCC and 80 CCD cannot
exceed Rs.1,00,000/-.
(3)
U/s 80 CCD – deduction in respect of contribution to pension scheme notified or as
may be notified by the Central Government. Section 80 CCD is applicable to the following
conditions are satisfied:a.
b.
c.
d.
The tax payer an individual
He is employed by the Central Govt. or any other employer, on or after January 1,
2004.
He has in the previous year paid or deposited any amount in his account under a
pension scheme notified by the Central Government.
The deduction against employee contribution is restricted to 10% of salary of the
employee.
Deduction under Section 80 C, 80CCC and 80 CCD cannot exceed Rs.1,00,000/-.
(4)
Under Section 80 D – An individual is allowed the deduction upto Rs.15,000/against the insurance premium for medi claim policy taken on the health of self,
spouse, dependent, parents or dependent children paid out of the income chargeable to
tax with the scheme framed in this behalf by the General Insurance Corporation of
India or any other insurer and approved by the Insurance Regulatory & Development
Authority. Insurance premium paid in relation to senior citizen are eligible for
deduction of Rs. 20,000/-. However, the payment of premium made by any mode
other than cash shall be eligible for deduction under this section.
Additionally, from F.Y. 2008-09 a deduction of upto Rs. 15,000 is allowed to an
assessee on any payment made to effect or keep in force an insurance on the health
of his parents whether dependent on him or not. If the parents are Senior citizen
than the amount of deduction allowed is upto RS. 20,000.The deduction is in
11
addition to existing deduction available to the assessee on medical insurance for
himself, his spouse and dependent children.
(5)
Under section 80 DD deduction of a sum upto Rs.50,000/- shall be allowed (a)for the
expenditure incurred by the employee on medical treatment (including nursing),
training and rehabilitation of a handicapped dependent or (b) amount paid or
deposited under the approved scheme of LIC or UTI or any other Insurer which is
approved by the Insurance Regulatory & Development Authority for the maintenance
of a handicapped dependent suffering from a permanent physical disability or
mental retardation which is to be certified by a physician, surgeon, occultist or
psychiatrist of a Government Hospital .Where such dependant is a person with severe
disability , the deduction is allowed up to Rs. 1,00,000/- “ person with severe
disability”(increased from Rs. 75,000/- till F.Y. 2008-09) means a person with eighty
per cent or more of one or more disabilities, as referred to in sub-section (4) of section
56 of the Persons with Disabilities (Equal Opportunities , Protection of Rights and
Full Participation) Act, 1995 (1 of 1996 )
(6)
Section 80 DDB provides for a separate deduction to a resident assessee being an
individual or a HUF for expenditure actually incurred for the medical treatment for an
individual himself or wholly/mainly dependent husband/wife, children, parents,
brothers and sisters of the tax payers in respect of diseases or ailments which may be
specified in the rule the deduction shall be allowed for the amount actually paid or
Rs.40000/- whichever is less . The assessee has to submit a certificate in the
prescribed form from a prescribed authority (i.e. any doctor registered with the Indian
Medical Association with post graduate qualification working in a govt. hospital).
Where the expenditure is in respect of the assessee or his dependent relative or any
member of HUF of the assessee and who is senior citizen (i.e. atleast 65 years of age
at any time during the previous year), then a fixed deduction of Rs.60,000/- or actual
expenditure whichever is lower will be available. If any amount is received from an
insurer for the treatment for the person mentioned above, then the amount so received
shall be deducted from the deduction otherwise available.
(7)
Deduction under Section 80 E – An individual assessee is allowed deduction in
respect of amount paid by him out of his income chargeable to tax by way of interest
on loan taken from any financial institutions for the purpose of pursuing higher
education (full time studies) for himself or for his “relatives”. “Relatives” has been
defined so as to mean spouse and children of the of the individual. Children may be
dependent or independent. The deduction is available for a maximum period of 8
years. From the current F.Y.2009-10, scope of section 80 (E) has been amended to
cover all fields of studies (including vocational studies) pursed after passing the
Senior Secondary Examination or it’s equivalent. The scope of the expression
“relative” has also been extended to cover the student for whom the taxpayer is he
legal guardian.
(8)
Deduction Under Section 80 G is available to any taxpayer for Donation made to any
of the institution/fund recognised by Income Tax authority for this purpose. Certain
donations are eligible for Deduction @ 100% of net qualifying amount e.g. Donation
to PM Relief Fund.
(9)
Under section 80 GG a deduction in respect of expenditure towards payment of rent
for the accommodation occupied by him for the purpose of his own residence,
provided the following conditions are satisfied (Employees eligible for deduction
12
(i)
(ii)
(a)
(b)
(c)
(10)
under this section may collect declaration form from Estt. Section).
He should not be in receipt of HRA at any time during the previous year.
He or his spouse, or minor child or the HUF of which he is a member should not own
any residential accommodation at the place he resides, performs the duties of his
office or he owns any residential accommodation at any other place and the
concession in respect of self-occupied house property is not claimed by him in respect
of such accommodation. The amount deductible under this section is the least of the
following amounts.
Rs.2000/- per month.
25% of total income arrived at, before making any deduction for any expenditure
under this section.
The excess of actual rent paid over 10% of total income(before making any deduction
under this section.)
Under Section 80 U: Deduction upto Rs.50,000/- is available to an employee who (at
the end of previous year) is suffering from a permanent physical disability(including
blindness) or is subject to mental retardation, being a permanent physical disability
or mental retardation specified in the rules made in this behalf, which has the effect
of reducing considerably such employee's capacity for normal work. Where such
person is with severe disability, the deduction is allowed up to Rs. 1,00,000/(increased from Rs. 75,000/- till F.Y. 2008-09) “ person with severe disability”
means a person with eighty per cent or more of one or more disabilities, as referred to
in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities ,
Protection of Rights and Full Participation) Act, 1995 (1 of 1996 ). The employee
who is claiming for the first time, shall be required o claim this deduction from the
assessing officer in the first year.
Relief under Section 89 where salary includes arrears or advance of salary
Where salary includes arrears of salary, relief under Section 89(1) can be claimed for apportionment
of arrears in the respective earlier years. This can be claimed by providing necessary information in
Form 10E along with copy of Income tax return and Form 16 for respective years. Income tax rates
and standard deduction applicable for financial year 1999-2000 to Financial Year 2008-09 are also
enclosed for ready reference.
Duty of Person deducting tax and to furnish prescribed returns to Income Tax authorities
As per Provisions Section 200 (3) any person deducting any sum on or after the first day of April,
2005, after paying the tax deducting to the credit of Central Government within the prescribed time,
prepare quarterly statements in Form No.24Q & submit to the prescribed Income Tax Authority.
Quarters ending
Due date
30th June
15th July
30th September
31st December
15th October
15th January
31st March
15th June
13
In view of the above, employees are requested to submit tax saving details in time so that correct tax
is deducted and deposited with income tax authorities and in case of refund the employees have to
approach income tax authorities since TDS in respect of salary of each employee is finalized
quarterly.
For any clarification, please contact Chief Manager (Fin-Estt)) / Mgr.(Fin-Estt).
( S BHATNAGAR )
CHIEF MANAGER(FIN-ESTT.)
Distribution :
All Employees of Corporate Centre
14
Pl. Submit before 28 October, 2009
POWER GRID CORPORATION OF INDIA LTD.
PROPOSED SAVINGS FOR INCOME – TAX COMPUTATION FINANCIAL YEAR 2009-10(ASSESSMENT YEAR 2010-2011)
Following are the details of my proposed savings other than PF/VPF/Pension/LIC being deducted through salary for
financial year 2009-2010.
PARTICULARS OF SAVING
(A)
Amount in Rs.
Savings u/s80 C
1) LIC
___________
2) NSC (VIII-Issue)
___________
3) NSC INTEREST
___________
4) PPF
___________
5) ULIP
___________
6) Equity linked Saving Schemes
___________
7) Repayment of HBA – Principal
(completion of the House should be before 31/03/2009)
___________
8)
Tuition Fee ( Amount paid less Amount reimbursed)
( Maximum up to two children)
___________
Any other Savings u/s 80 C (Please specify)
___________
Infrastructure Bonds/Shares
____________
Pension Scheme of LIC or other Insurer eligible for deduction
U/S 80 CCC
____________
(C)
Any other deduction/savings other than above (please specify section)
____________
(D)
EMPLOYEES DRAWING HRA ( Furnish Actual Rent Receipt with declaration for HRA rebate)
(E)
Income from other sources
_____________
(F)
Income / Loss from house property (in case of loss attached
computation sheet as per format enclosed)
_____________
9)
10)
(B )
Employees joined at Corporate Centre after 01.04.2009 are requested to fill in the following details
pertaining to the Financial Year 2009-2010 starting from 01.04.2009.
1.
2.
3.
4.
5.
Salary Income (from previous employer/place of posting
PF/VPF
Contribution to Contributory Pension Scheme
IT paid
Medical Reimbursement
____________________
____________________
_____________________
_____________________
_____________________
I hereby declare that proofs for actual savings shall be submitted to Finance Establishment Section by 08.02.2010. The above may be
considered for computation of Tax.
Date :
Place:
P&T/Rax NO. ______________________
Signature_________________
Name____________________
Emp.No._____________________
Designation /Dept._____________
PAN No.
_______________
15
Form for sending particulars of Income under section 192(2B) for the year ending 31st
March, 2010.
1.
2.
3.
4.
Name & Address of the Employee
Permanent Account No.
Residential Status
Particulars of income under any head of income other than “Salaries” (not being a loss under any such head
other than the loss under the head “Income from house property”) received in the financial year.
(Rs.)
i)
ii)
iii)
Income from House Property
_______________________
(in case of loss, enclosed computation thereof)
Profits and gains of Business & Profession
_______________________
Income from other sources (Rs.)
a) Dividends
________________
b) Interest
________________
c) Other Income (specify)
________________
Total
5.
6.
Rs.
Aggregate of sub item(I) to (iv) of item 4
(in figures and words)
_______________________
______________________
Tax deducted at source (enclose certificates
issued u/s 203)
_______________________
(SIGNATURE OF EMPLOYEE)
Date:
Place:
VERIFICATION
I, ___________________________,do hereby verify that what is stated above is true to the best
of my knowledge and belief.
Verified today, the __________ day of ______________
( SIGNATURE OF THE EMPLOYEE)
Date:
Place:
P&T/RAX No.
Emp.No.
Designation/Deptt.
16
COMPUTATION OF INCOME FROM HOUSE PROPERTY
Name of Assessee :
Name of the owner :
Percentage of definite share of owner ( In case of Joint Owner )
Address of Property
Type of Property ( Tick for which is claimed)
Let Out
Self Occupied
Deemed to be Let Out
Amount
1.
Annual Value
( In case of Let out Property take 100 % Value as
reduced by the vacant period )
( In case of Self Occupied property Annual Value
will be NIL
2.
Less :
3.
Municipal Taxes as levied by Local authority and paid for
the above property
Net Annual Value
4.
Less : Standard Deduction @ 30% of net annual value
5.
Less : Interest on Borrowed capital *
Please specify if interest is being claimed
Date of Completion /Possession ___________
Date of Loan and Amount taken before 31/03/99 __________
Date of Loan and amount taken after 31/03/99 ___________
6. Income/Loss from House property
This is to certify that the particulars furnished above has been based on documentary evidence and are correct. It is also certified
that the loan is taken for construction/purchase of the property to the extent of the definite share( as declared above) and is
being repaid by me on which the interest is being claimed . In case of any error I shall be responsible for any wrong
calculation /deduction of Income Tax for the Financial Year 2009-2010.
Signature
Name
Employee No.
DesignationDeptt.
P&T/Rax No.
Note : 1. Please enclosed all the relevant documents in support of Annual Value,
Taxes, and Interest on Borrowed capital.
2.Executives availing Self lease must also furnish this format.
3. In case of more than one House Property, separate computation to be submitted for each house
* In case of Joint Ownership, deduction on account of Interest on borrowed capital and
Municipal Taxes will be allowed in the same proportion as that of definite and ascertainable
share in the House Property.
17
Pl. Submit before 08th Feb., 2010
POWER GRID CORPORATION OF INDIA LIMITED
CORPORATE FINANCE ESTABLISHMENT
DETAILS OF SAVINGS FOR INCOME TAX CALCULATIONS FOR THE FINANCIAL YEAR
2009-2010
NAME ____________________________
EMP.NO.______________________
DESIGNATION _____________________
DEPTT._______________________
RAX/PHONE NO.____________________
PAN_No.______________________
RESIDENTIAL ADDRESS______________________________________________
1.
LIC PREMIUM
(other than salary deduction)
Policy No.
Sum Assured
Premium Amount
1.
______________
______________
___________________
2.
______________
______________
___________________
3.
______________
______________
___________________
4.
______________
_______________ ___________________
Total
2.
PUBLIC PROVIDENT FUND
_
1.
Account No.
______________
Amount
__________________
2.
______________
___________________
3.
______________
___________________
4.
______________
___________________
Total
3.
_
805
806
UNIT LINKED INSURANCE
PREMIUM
Policy No.
Amount
1.
______________
__________________
2.
______________
___________________
3.
______________
___________________
Total
18
807
4.
NSC VIII issue
1.
Certificate No.
______________
Issue Date
_____________
Amount
__________________
2.
______________
_____________
___________________
3.
______________
______________
___________________
4.
______________
______________
___________________
Total
5.
INTEREST ON NSC VIII Issue
Certificate No.
Purchased
Date
Totall NSC’s Accrues Intt.
per Rs.1000/-
______________
2. ___________ ________ __________ __________
______________
3. ___________ ________ __________ __________
______________
4. ___________ ________ __________ __________
______________
809
EQUITY LINKED SAVING SCHEME/
MUTUAL FUND
Deposit date
Bank/Instt.
1.
______________
_____________
__________________
2.
______________
_____________
___________________
3.
______________
______________
___________________
4.
______________
______________
___________________
Total
7.
Total Interest
1. ___________ ________ __________ __________
Total
6.
808
TUITION FEES
Amount Paid
Amount
811
Amount Reimbursed
Net Amount
1.
Child Name
______________
_____________
___________________
2
Child Name
______________
_____________
___________________
( Maximum for two Children)
Total
8.
(JEEVAN DHARA,Jeevan Akshay)
1.
Account No.
______________
Sum assured
_____________
Amount
___________________
2.
______________
_____________
___________________
Total
9.
819
814
DEPOSIT UNDER NHB SCHEME
Account No.
Deposit Date
Amount
1.
______________
_____________
___________________
2.
______________
_____________
___________________
19
Total
10.
Payment made for purchase/
Purchase/Completion
construction of house
Construction Date
(In case of completion of construction of House is before 31.3.2009)
Total
11.
Amount invested in eligible shares/
Debentures (Infrastructure bonds of
IDBI, ICICI etc.)
Amount deposited under Annuity Plan
for Pension
(80 CCC)
Amount
__________________
________________________
__________________
________________________
14.
15(a).
(b)
(c).
16.
813
Deposit Date
A/c No.
Amount
______________
__________
_________________
__________________
13.
803
No. and Date
Total
12.
815
________________________
Total
812
Total
820
Total
821
Total
703
Total
704
Payment for Medi Claim (80 D)
Payment of interest on education loan (80 E)
Amount withdrawn from NSS
IT Deducted on NSS
Any other Details (e.g. U/S 80DD,80DDA, 80GG, 80U
(Attach separate sheet if necessary)
____________________________________________
Income/Loss from House Property
Income
712
Loss
712(-)
(Please attach Computation)
20
Employees joined at CC on Transfer/Fresh after 01.04.2009 are requested to fill in the following details for the period before joining
Corporate Centre pertaining to the Financial Year 2009-2010 starting from 01.04.2009
Name of the employee
(for those whose joined after 01/04/2006 at CC )
1.
2.
3.
4.
5.
_____________________________
Salary Income
(From previous employer/place of posting)
Total
701
Total
818
Total
801
Total
704
Total
753
PF & VPF
Contribution to Contributory Pension Scheme
IT Paid
Total Medical Reimbursement
This is to certify that:No one else has claimed deduction in respect of savings shown above which have been made in names other than myself.
Where the payment for savings mentioned above has been made by cheque my bank account has been debited for that.
The house against which the rebate is being claimed was completed on ____________as per the completion/possession certificate.
I have availed an amount of Rs.________________ as LTC for 3rd child born after 01.10.1998 and that journey was performed after 1.04.08.
The particulars furnished in this form are true and correct and in case of any error, I shall be responsible for any wrong calculation/deduction of
Income Tax for Financial Year 2009-2010.
SIGNATURE :____________________________________
PLACE:
DATE:
NAME__________________________________________
(BLOCK LETTER)
21
To,
Ch. Manager (Finance)
Finance Establishment Section
Power Grid Corporation of India Limited
Gurgaon
Dear Sir,
I
__________________________________________________
_________________________ hereby declare that :-
employed
as
I am in receipt of House Rent Allowance during April, 2009 to March, 2010.
I have paid rent @ Rs.______/- p.m. for the period from ____________ to ___________
and shall be paying the same till March, 2010 in respect of House
No.______________________________________________
______________________________ occupied by me and the same house is not owned
to me or my spouse / dependent.
I may be allowed house rent rebate for the period from April, 2008 to March, 2009 under
the Income Tax Act.
Signature
Name
Employee No.
Designation / Deptt.
P&T/Rax No.
Date:
This is to certify that the particulars furnished above has been based on documentary evidence
and are correct. In case of any error I shall be responsible for any wrong calculation /deduction
of Income Tax for the Financial Year 2009-2010.
Signature:____________________
Name_______________________
Date:
Emp.No._____________________
Designation____________________
Deptt._______________________
P&T &Rax No.________________
PAN No.
_________________
Note : 1. Please enclose the Rent Receipts
22
FORM NO.10E
(See rule 21 AA)
Form for Furnishing Particulars of Income under Section 192(2A) for the year ending 31 st March, 2010 for claiming relief
under Section 89(I) by a Government servant or an employee in a Public Sector Undertaking
Name & Address for the Employee……………………………………………………………………
…………………………………………………………………………………………………………….
Permanent Account Number …………………………………………………………………………..
…………………………………………………………………………………………………………….
Residential status………………………………………………………………………………………..
Particulars of Income referred to in rule 21A of the Income Tax Rules, 1962 during the previous year relevant to Assessment
year…………………..
1
(a)
Salary received in arrears or in advance in
accordance with the provision of sub-rule
(2) of rule 21-A
(b)
Payment in the nature of gratuity in respect
of past services, extending over a period of
not less than 5 years in accordance with the
provisions of sub-rule(3) of rule 21A
(c) Payment in the nature of compensation
from the employer or former employer
at or in connection with termination of
employment after continuous service of
not less than 3 years in accordance
with the provisions of sub-rule (4) of
rule 21A.
(d) Payment in commutation of pension in
accordance with the provisions of
Sub-rule (5) of rule 21A
2. Detailed particulars of payments referred
to above may be given in Annexure I,II, IIA
III or IV as the case may be.
……………………………………………..
Signature of the employee
VERTIFICATION
I ……………………………….do hereby declare that what is stated above is true to the best of my knowledge and
belief.
Verified today the ………………… day of …………………..
……………………………………………..
Signature of the employee
Place……………..
Date……………..
23
ANNEXURE-I
(See rule 2 of Form No.10E)
ARREARS OR ADVANCE SALARY
Total income (excluding salary received
in arrears or advance salary)
Salary received in arrears or advance
Total income (as increased by salary
received in arrears or advance)
(Add item 1 and item 2)
Tax on total income (as per item 3)
Tax on total income ( as per item 1)
Tax on salary received in arrears or advance
(difference of item no.4 and item no.5)
Tax computed in accordance with table “A”
(brought from Column 7 of Table “A”)
Relief under Section 89
(indicate the difference between the amounts
mentioned against items 6 & 7)
TABLE “A”
(see item 7 of Annexure-I)
Previous
year(s)
1
Total income of
the relevant
previous year
(Rs.)
Salary received
in arrears or
advance
relating to the
relevant
previous year
as mentioned
in column (1)
(Rs.)
Total income
(as increased
by salary
received in
arrears or
advance of the
relevant
previous year
mentioned in
column 1[Add
column (2) and
(3)]
(Rs.)
Tax on total
income (as per
column 2)
(Rs.)
Tax on total
income (as per
column 4)
(Rs.)
Difference in
tax (Amount
under column 6
minus amount
under column
(5)
(Rs.)
2
3
4
5
6
7
24
Financial Year
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
Income Tax Rate
0-50000
Nil
50001-60000
10%
60001-150000
1000+20%
150001 & above 19000+30%
Surchage on tax payable
Taxable income upto 60000
Taxable income above 60000
0-50000
Nil
50001-60000
10%
60001-150000
1000+20%
150001 & above 19000+30%
Surchage on tax payable
Taxable income upto 60000
Taxable income above 60000
0-50000
Nil
50001-60000
10%
60001-150000
1000+20%
150001 & above 19000+30%
Surchage on tax payable
Taxable income upto 850000
Taxable income above 850000
Standard Deduction
For gross income 150000 or less
rate
Nil
2%
Gross income 150001 to 300000
Gross income 300001 to 500000
Gross income above Rs.500000
For gross income 150000 or less
rate
Nil
5%
Gross income 150001 to 300000
Gross income 300001 to 500000
Gross income above Rs.500000
1/3rd of Gross salary or
Rs.30000 whichever is less
Rs.25000
Rs.20000
Nil
1/3rd of Gross salary or
Rs.30000 whichever is less
Rs.25000
Rs.20000
Nil
For gross income 500000 or less
40% of Gross salary or
Rs.30000 whichever is less
Gross income above 500000
Rs.20000
rate
Nil
10%
0-50000
Nil
50001-60000
10%
60001-150000
1000+20%
150001 & above 19000+30%
Surchage on tax payable
rate
Taxable income upto 850000
Nil
Taxable income above 850000
10%
Education cess @2% on total tax
payable (including surcharge if any) is
applicable
0-100000
Nil
100001-150000
10%
150001-250000 5000+20%
250001 & above 25000+30%
Surchage on tax payable
rate
Taxable income upto 10,00,000
Nil
Taxable income above10,00,000
10%
Education cess @2% on total tax
payable (including surcharge if any) is
Applicable
For gross income 500000 or less
40% of Gross salary or
Rs.30000 whichever is less
Gross income above 500000
Rs.20000
No Standard Deduction for the FY 2005-06
Tax rate for Women is as follows
0-135000
Nil
135001-150000
10%
150001-250000
3500+20%
250001 & above
23500+30%
25
2006-2007
2007-08
2008-09
0-100000
Nil
100001-150000
10%
150001-250000 5000+20%
250001 & above 25000+30%
Surchage on tax payable
rate
Taxable income upto 10,00,000
Nil
Taxable income above10,00,000
10%
Education cess @2% on total tax
payable (including surcharge if any) is
Applicable
0-110000
Nil
110001-150000
10%
150001-250000 4000+20%
250001 -1000000 24000+30%
Above 1000000 249000+30%
Surchage on tax payable
rate
Taxable income upto 10,00,000
Nil
Taxable income above10,00,000
10%
Education cess @3% on total tax
payable (including surcharge if any) is
Applicable
0-150000
Nil
150001-300000
10%
300001-500000 15000+20%
500001 -1000000 55000+30%
Above 1000000 205000+30%
Surchage on tax payable
rate
Taxable income upto 10,00,000
Nil
Taxable income above10,00,000
10%
Education cess @3% on total tax payable
(including surcharge if any) is
Applicable
No Standard Deduction for the FY 2006-07
Tax rate for Women is as follows
0-135000
Nil
135001-150000
10%
150001-250000
3500+20%
250001 & above
23500+30%
No Standard Deduction for the FY 2007-08
Tax rate for Women is as follows
0-145000
Nil
145001-150000
10%
150001-250000
500+20%
250001 -1000000 20500+30%
Above 1000000 245500+30%
No Standard Deduction for the FY 2008-09
Tax rate for Women is as follows
0-180000
Nil
180001-300000
10%
300001-500000
12000+20%
500001 -1000000 52000+30%
Above 1000000 202000+30%
26
27