CBDT releases Circular prescribing TDS from Salaries for the year 2017-18 [Read Circular]

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With a few months left for the filing income tax return, the Central Board of Direct Taxes (CBDT) issued circular on tax deduction at Source applicable to Salaried class for the year 2017-18.

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 2017-18 and explains certain related provisions of the Act and Income-tax Rules, 1962.

Currently, no tax is payable on income below 2.5 lakhs. 5 percent of the amount by which the total income exceeds Rs. 2,50,000/-. When the income is between 5 lakhs and 10 lakhs, 20 percent tax is payable. 30 percent tax is payable when the total income exceeds Rs. 10,00,000/-.

The claim for deductions must be verified by Drawing and Disbursing Officers. They should satisfy themselves about the actual deposits/ subscriptions/payments made by the employees, by calling for such particulars/ information as they deem necessary before allowing the aforesaid deductions.

In case the DDO is not satisfied with the genuineness of the employee’s claim regarding any deposit/ subscription/ payment made by the employee, he should not allow the same, and the employee would be free to claim the deduction/ rebate on such amount by filing his return of income and furnishing the necessary proof etc., therewith, to the satisfaction of the Assessing Officer.

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