Circular No. 5/2011

Government of INDIA

What this is

Circular No. 5/2011 was issued by the Central Board of Direct Taxes on 16 August 2011. Its subject is Government of INDIA.

This is the Board’s annual salary-TDS circular. It restates the law on deduction from salary for one financial year, with the year’s rates and the year’s forms. Use the circular for the year in question, never a later one.

What it does

The annual circular on deduction of tax from salaries under section 192 for financial year 2011-12, on the Finance Act, 2011 rates, taking over from Circular No. 8/2010 dated 13 December 2010. This year still had four separate rate tables. For an ordinary individual: nil up to Rs. 1,80,000, 10 per cent of the excess over that up to Rs. 5,00,000, Rs. 32,000 plus 20 per cent of the excess over Rs. 5,00,000 up to Rs. 8,00,000, and Rs. 92,000 plus 30 per cent of the excess over Rs. 8,00,000. For a resident woman below sixty the exemption is Rs. 1,90,000, with Rs. 31,000 plus 20 per cent above Rs. 5,00,000 and Rs. 91,000 plus 30 per cent above Rs. 8,00,000. For a resident aged sixty or more but under eighty the exemption is Rs. 2,50,000, with Rs. 25,000 plus 20 per cent above Rs. 5,00,000 and Rs. 85,000 plus 30 per cent above Rs. 8,00,000. A resident aged eighty or more pays nothing up to Rs. 5,00,000 and then 20 per cent. The circular goes on, as its index shows, to section 192 itself, the duties of the persons responsible for deducting, the estimation of salary income, exempt items, deductions under section 16 and Chapter VI-A, the computation of tax to be deducted, and annexures carrying examples, Form No. 12BA, the quarterly statement and Form No. 24G procedures, Form No. 10BA and the notifications on infrastructure bonds and gratuity.

Why it was issued

The Board's yearly intimation of the salary deduction rates and its explanation of the related provisions of the Income-tax Act.

Who it reaches

Employers deducting tax from salary in financial year 2011-12
Resident women employees below sixty, who then had a separate higher exemption
Senior citizens aged sixty and above and very senior citizens aged eighty and above
Employees claiming the infrastructure bond deduction of that year

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.192	s.392, s.402

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it. The reading also stopped short of the end of the document: what is below is the opening, not the whole of it.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
DEDUCTION OF TAX AT SOURCE —
INCOME–TAX DEDUCTION FROM SALARIES
UNDER SECTION 192 OF THE
INCOME–TAX ACT, 1961
DURING THE FINANCIAL YEAR 2011-2012
CIRCULAR NO. 05/2011

NEW DELHI, dated 16.08.2011

INDEX
Para No.
Page Nos.
1. General 3
2. Finance Act, 2011 3
3. Section 192 of Income-tax Act 1961 5
4. Persons responsible for deducting tax and their duties 8
5. Estimation of income under the head "Salaries" 15
5.1 Income chargeable under the head "Salaries" 15
5.2 Incomes not included in the head "Salaries" (Exemptions) 20
5.3 Deductions u/s 16 of the Act (Standard Deduction) 25
5.4 Deductions under Chapter VI-A of the Act 25
6. Calculation of Income-tax to be deducted 34
7. Miscellaneous 35

Annexures
I. Examples 39
II. Form No. 12BA (as amended) 45
III. Revised procedure for furnishing qtly e-TDS/TCS
statement by deductors/collectors 47
IV. Person responcible for filling Form 24G in case
Of State Govt Departments/Central Govt Departments 49
V. Deptt. of Eco. Affairs Notification dated 22.12.2003 51
VI. Board's Notification dated 24.11.2000 52
VII. Board's Notification dated 29.1.2001 53
VIII. Form No. 10 B A 54
IX Board Notification dated 9.9.2010(Infrastructure Bond) 55
X. Board Notification dated 11.06.2010(Gratuity) 57
X. Board notification dated 31.05.2010 58

CIRCULAR NO : 05 /2011
F.No. 275/192/2011-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, dated the

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE
FINANCIAL YEAR 2011-2012 UNDER SECTION 192 OF THE
INCOME-TAX ACT, 1961.

Reference is invited to Circular No.08/2010 dated 13.12.2010 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(hereinafter 'the Act'),
during the financial year 2010-2011, 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 2011-2012 and
explains certain related provisions of the Income-tax Act. The relevant Acts, Rules,
Forms and Notifications are available at the website of the Income Tax Departmentwww.incometaxindia.gov.in.

2. FINANCE ACT,2011

As per the Finance Act, 2011, income-tax is required to be deducted under
Section 192 of the Income-tax Act 1961 from income chargeable under the head
"Salaries" for the financial year 2011-2012 (i.e. Assessment Year 2012-2013) at
the following rates:

RATES OF INCOME-TAX

A. Normal Rates of tax:

1. Where the total income does not Nil
exceed Rs. 1,80,000/-.
2. Where the total income exceeds 10 per cent of the
Rs. 1,80,000 but does not exceed amount by which the
Rs. 5,00,000/-. total income exceeds
Rs. 1,80,000/-
3. Where the total income exceeds Rs. 32,000/- plus 20
Rs. 5,00,000/- but does not exceed per cent of the amount
Rs. 8,00,000/-. by which the total
income exceeds
Rs. 5,00,000/-.
4. Where the total income exceeds Rs. 92,000/- plus 30
Rs. 8,00,000/-. per cent of the amount
by which the total income
exceeds Rs. 8,00,000/-.

B. Rates of tax for a woman, resident in India and below sixty years of
age at any time during the financial year:

1. Where the total income does not Nil
exceed Rs. 1,90,000/-.
2. Where the total income exceeds 10 per cent, of the
Rs. 1,90,000 but does not exceed amount by which the
Rs. 5,00,000/-. total income exceeds
Rs. 1,90,000/-
3. Where the total income exceeds Rs. 31,000/- plus 20
Rs. 5,00,000/- but does not per cent of the
exceed Rs. 8,00,000/-. amount by which the
total income exceeds
Rs. 5,00,000/-.
4. Where the total income exceeds Rs. 91,000/- plus 30
Rs. 8,00,000/-. per cent of the
amount by which the
total income exceeds
Rs. 8,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty
years or more but less than eighty years at any time during the
financial year:

1. Where the total income does not Nil
exceed Rs. 2,50,000/-.
2. Where the total income exceeds 10 per cent, of the
Rs. 2,50,000 but does not exceed amount by which the
Rs. 5,00,000/-. total income exceeds
Rs. 2,50,000/-

3. Where the total income exceeds Rs. 25,000/- plus 20
Rs. 5,00,000/- but does not per cent of the
exceed Rs. 8,00,000/-. amount by which the
total income exceeds
Rs. 5,00,000/-.

4. Where the total income exceeds Rs. 85,000/- plus 30
Rs. 8,00,000/-. per cent of the amount
By which the total income
exceeds Rs. 8,00,000/-.

D. 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:

1. Where the total income does Nil
not exceed Rs. 5,00,000/-
2. Where the total income exceeds 20 per cent of the amount by
Rs. 5,00,000/- but does not which the total income exceeds
exceed Rs. 8,00,000/- Rs. 5,00,000/-
3. Where the total income exceeds Rs. 60,000/- plus 30 per cent of the
Rs. 8,00,000/- amount by which the total income
exceeds Rs. 8,00,000/-

What to watch

Four separate tables applied in this year, including a distinct one for resident women below sixty — an arrangement that has since gone, and one that is easily missed when reopening an old year.
The thirty per cent slab begins at Rs. 8,00,000 in this year, not Rs. 10,00,000.
The senior citizen table applies from age sixty, and the very senior citizen table from eighty, tested at any time during the year.
The text available here breaks off in the fourth rate table, so the rest of the circular — the deductor's duties, exemptions, Chapter VI-A and the annexed examples — is not in the extract.

Where you meet it

In a section 201 proceeding on short deduction from salary for financial year 2011-12, and when reconciling an old Form No. 16 with the return for assessment year 2012-13.

What it names

Forms it names. Form No. 10, Form No. 12BA

It mentions. Circular No. 05/2011, Circular No. 08/2010

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 02 /2023 — Procedure format and standards for filling an application for grant of certificate under sub rule 4 and its proviso of r 27 September 2023
Circular No. 4/2023 — Clarification regarding deduction of TDS under section 192 read with sub-section (1A) of section 115BAC of the Income-ta 5 April 2023
Circular No. 24/2022 — Government of INDIA 7 December 2022
Circular No. 10/2022 — Circular regarding use of functionality under section 206AB and 206CCA of the income tax act 1961 17 May 2022
Circular No. 4/2022 — Government of INDiA 15 March 2022
Circular No. 11/2021 — Circular regarding use of functionality under Section 206AB and 206CCA of the Income-tax Act, 1961 21 June 2021

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.