The Central Board of Direct Taxes ( CBDT ) has issued a circular on the applicability of Tax Deduction at Source (TDS) from salaries.
The Board had issued a Circular on 5th December 20 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, during the financial year 2017-18, 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 2018-19 and explains certain related provisions of the Act and Income-tax Rules, 1962. The relevant Acts, Rules, Forms, and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.
According to the circular, where the total income does not exceed Rs. 2,50,000/-, the nil tax rate is applicable. For income from 2,50,000/- to Rs. 5,00,000/-, 5% tax rate would be payable. If the income from 5,00,000/- to Rs. 10,00,000/-, the rate would be Rs. 12,500/- plus 20 percent of the amount by which the total income exceeds Rs. 5,00,000/-. For income exceeding 10 lakhs, Rs. 1,12,500/- plus 30 percent of the amount by which the total income exceeds Rs. 10,00,000/- is payable.To Read the full text of the Circular CLICK HERE