Friday, December 12

CBDT latest Circular on Calculation for TDS on salary

CBDT has released a latest circular to explain all the rules related to TDS on Salary for the Financial year 2014-15, Assessment Year 2015-16 under section 192 of the income tax Act 1961. This circular generally issued in the month of September, October but this year the circular has been issued in the month of December as the new govt has passed the Finance Bill in second quarter of the Fy 2014-15.
·         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
·         Circular helps employer to correctly deduct TDS on Salary of its employees for Financial year 2014-15 or Assessment Year 2015-16 and it also held Salaried Assessee to Correctly calculate his/her tax liability.
·         Circular explain Provision related to all component of Salary and their Taxability- which includes allowances, perquisites, retirement benefits and other benefits.

Download complete circular no 17/2014 with illustration and examples from MATTERS.