Government of INDIA
Circular No.1/2019 was issued by the Central Board of Direct Taxes on 1 January 2019. 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.
The annual circular on deduction of tax from salaries under section 192 for financial year 2018-19, on the Finance Act, 2018 rates, taking over from Circular No. 29/2017 dated 5 December 2017 which had covered financial year 2017-18. The normal rate table is nil up to Rs. 2,50,000, 5 per cent of the excess over Rs. 2,50,000 where total income is up to Rs. 5,00,000, Rs. 12,500 plus 20 per cent of the excess over Rs. 5,00,000 where it is up to Rs. 10,00,000, and Rs. 1,12,500 plus 30 per cent of the excess over Rs. 10,00,000 beyond that, with separate tables for senior citizens, plus surcharge and health and education cess. Its index carries the rest: the method of computation under section 192, tax on non-monetary perquisites borne by the employer, salary from more than one employer, relief for arrears or advance salary, other income and house property income, adjustment for excess or short deduction, the duties of the person responsible under section 204, deposit and due dates, interest, fee, penalty and prosecution, the certificate under section 203, quoting of permanent account number and tax deduction account number, section 206AA, quarterly statements under section 200(3), pension and non-residents, then computation of salary income, exemptions, section 16 deductions, Chapter VI-A, the section 87A rebate of Rs. 2,500 for total income up to Rs. 3.5 lakh, tax deduction on accumulated provident fund and superannuation balances, and the drawing and disbursing officer's duty to satisfy himself of the genuineness of a claim. Annexures carry illustrations, Form No. 12BA, Form No. 12BB, the quarterly statement and Form No. 24G procedures and Form No. 10BA.
The Board's yearly intimation of the rates of deduction from salary, with its explanation of the related provisions of the Act and the Income-tax Rules, 1962.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF DIRECT TAXES
DEDUCTION OF TAX AT SOURCEINCOME-TAX DEDUCTION FROM SALARIES
UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961
DURING THE FINANCIAL YEAR 2018-19
CIRCULAR NO 01 /2019
NEW DELHI, the 1st January, 2019
Index
Para No. Page No.
1. General 1
2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2018 1
2.1 Rates of tax 1
2.2 Surcharge of Income tax 2
2.3.1 Health and Education Cess 3
3 BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM
SALARIES
3
3.1 Method of Tax Calculation 3
3.2 Payment of Tax on Non monetary Perquisites by Employer 3
3.2.1 Computation of Average Income Tax 3
3.3 Salary From More Than One Employer 4
3.4 Relief When Salary Paid in Arrear or Advance 4
3.5 Information regarding Income under any Other head 4
3.6 Computation of Income under the head ― Income from house
property‖
5
3..7 Adjustment for Excess or Shortfall of Deduction 6
3.8 Salary Paid in Foreign Currency 6
4 PERSONS RESPONSIBLE FOR DEDUCTION OF TAX AND
THEIR DUTIES
6
4.1 Stipulation of section 204 of the Act 6
4.2 Tax determined to be deducted from Salary u/s 192 7
4.3 Deduction of Tax at Lower Rate 7
4.4 Deposit of Tax Deducted 7
4.4.1 Due dates for payment of TDS 7
4.4.2 Mode of payment of TDS 7
4.5 Interest, Fee, Penalty& Prosecution for Failure to Deposit Tax
Deducted
8
4.6 Furnishing of Certificate for Tax Deducted (Section 203) 9
4.7Mandatory Quoting of PAN and TAN 12
4.8 Compulsory Requirement to furnish PAN by employee (Section
206AA)
12
4.9 Statement of Deduction of tax under of section 200 (3) [Quarterly
Statement of TDS]
13
4.10 TDS on Income from Pension 14
4.11 Matters pertaining to the TDS made in case of Non Resident 15
5 COMPUTATION OF INCOME UNDER THE HEAD ―SALARIES‖ 15
5.1 Income chargeable under the head ―Salaries‖: 15
5.2 Definition of ―Salary‖, ―perquisite‖ and ―profit in lieu of salary‖
(Section 17)
15
5.3 Income not included under the Head ―Salaries‖ (Exemptions) 24
5.4 Deduction u/s 16 of the Act form the Income from Salaries 29
5.5 Deductions under Chapter VI-A of the Act 30
6 REBATE OF RS. 2500 FOR INDIVIDUAL HAVING TOTAL 42
INCOME UPTO RS. 3.5 LAKH (SECTON 87A)
7 TDS ON PAYMENT OF ACCUMULATD BALANCE UNDER
RECOGNISED PROVIDENT FUND AND CONTIBUTION FROM
APPROVED SUPERANNUATION FUND.
42
8 DDOS TO SATISFY THEMSELVES OF THE GENUINENESS OF
CLAIM
44
9 CALCULATION OF INCOME-TAX TO BE DEDUCTED 44
10 MISCELLANEOUS 45
ANNEXURE
1 SOME ISSUTRATIONS 47-59
II FORM NO 12BA 60-61
IIa FORM NO 12BB 62-63
III REVISED PROCEDURE FOR FURNISHING QTLY E-TDS/TCS
STATEMENT BY DEDUCTORS/COLLECTORS
64-65
IV THE PROCEDURE OF FURNISHING FORM 24G 66-72
V PERSON RESPONSIBLE FOR FILING FORM 24G IN CASE OF
STATE GOVT DEPARTMENTS/CENTRAL GOVT
DEPARTMENTS
73
VI PROCEDURE OF PREPARATION OF QUARTERLY
STATEMENT OF DEDUCTION OF TAX u/s 200 (3)
74-76
VII DEPTT. OF ECO. AFFAIRS NOTIFICATION DATED 22.12.2013 77
VIII BOARD'S NOTIFICATION DATED 24.11.2000 78-79
IX BOARD'S NOTIFICATION DATED 29.01.2001 80
X FORM NO. 10 BA 81
1
CIRCULAR NO : 01 /2019
F.No. 275/192/2018-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
******
North Block, New Delhi
Dated the 1st January, 2019
SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE
FINANCIAL YEAR 2018-19 UNDER SECTION 192 OF THE
INCOME-TAX ACT, 1961.
*****
Reference is invited to Circular No. 29/2017 dated 05.12.2017 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
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
(hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at
the website of the Income Tax Department- www.incometaxindia.gov.in.
2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2018:As per the Finance Act, 2018, income-tax is required to be deducted under Section 192 of
the Act from income chargeable under the head "Salaries" for the financial year 2018-19
(i.e. Assessment Year 2019-20) at the following rates:
2.1 Rates of tax
A. Normal Rates of tax:Sl
N
o
Total Income Rate of tax
1 Where the total income does not
exceed Rs. 2,50,000/-.
Nil
2 Where the total income exceeds
Rs. 2,50,000/- but does not
exceed Rs. 5,00,000/-.
5 per cent of the amount by which the total income
exceeds Rs. 2,50,000/-
3 Where the total income exceeds
Rs. 5,00,000/- but does not
exceed Rs. 10,00,000/-.
Rs. 12,500/- plus 20 per cent of the amount by which the
total income exceeds Rs. 5,00,000/-.
4 Where the total income exceeds
Rs. 10,00,000/-.
Rs. 1,12,500/- plus 30 per cent of the amount by which
the total income exceeds Rs. 10,00,000/-
2
B. Rates of tax for every individual, resident in India, who is of the age of sixty years or
more but less than eighty years at any time during the financial year:Sl
No
Total Income Rate of tax
1 Where the total income does not
exceed Rs. 3,00,000/-
Nil
2 Where the total income exceeds
Rs. 3,00,000 but does not exceed
Rs. 5,00,000/-
5 per cent of the amount by which the total
income exceeds Rs. 3,00,000/-
3 Where the total income exceeds
Rs. 5,00,000/- but does not
exceed Rs. 10,00,000/-
Rs. 10,000/- plus 20 per cent of the amount by which the
total income exceeds Rs. 5,00,000/-.
4 Where the total income exceeds
Rs. 10,00,000/-
Rs. 1,10,000/- plus 30 per cent of the amount by which
the total income exceeds Rs. 10,00,000/-C. 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:
Sl
No
Total Income Rate of tax
1 Where the total income does not
exceed Rs. 5,00,000/-
Nil
2 Where the total income exceeds
Rs. 5,00,000 but does not exceed
Rs. 10,00,000/-
20 per cent of the amount by which the total
income exceeds Rs. 5,00,000/-
4 Where the total income exceeds
Rs. 10,00,000/-
Rs. 1,00,000/- plus 30 per cent of the amount by which
the total income exceeds Rs. 10,00,000/-
2.2 Surcharge on Income tax:
The amount of income-tax computed in accordance with the preceding provisions of this
Paragraph, or the provisions of section 111A or section 112 or section 112A of the Act, shall
be increased by a surcharge for the purpose of the Union, calculated, in the case of every
individual or Hindu undivided family or association of persons or body of individuals,
whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii)
of clause (31) of section 2 of the Act,-
(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees,
at the rate of ten percent of such income-tax and
(b) having a total income exceeding one crore rupees, at the rate of fifteen percent of
such income-tax:
Provided that in the case of persons mentioned above having total income exceeding;-
(a) Fifty lakh rupees but not exceeding one crore rupees, the total amount payable as
income-tax and surcharge on such income shall not exceed the total amount payable
as income-tax on a total income of fifty lakh rupees by more than the amount of
income that exceeds fifty lakh rupees;
(b) one crore rupees, the total amount payable as income-tax and surcharge on such
income shall not exceed the total amount payable as income-tax on a total income of
one crore rupees by more than the amount of income that exceeds one crore rupees.
3
2.31 Health and Education Cess
Education Cess on income-tax and Secondary and Higher Education Cess on income-tax
shall be discontinued. However, a new cess, by the name "Health and Education Cess"
shall be levied at the rate of four percent of income tax including surcharge wherever
applicable, No marginal relief shall be available in respect of such cess.
3. SECTION 192 OF THE INCOME-TAX ACT, 1961: BROAD SCHEME OF TAX
DEDUCTION AT SOURCE FROM "SALARIES":3.1 Method of Tax Calculation:
Every person who is responsible for paying any income chargeable under the head
"Salaries" shall deduct income-tax on the estimated income of the assessee under the head
"Salaries" for the financial year 2018-19. The income-tax is required to be calculated on the
basis of the rates given above, subject to the provisions related to requirement to furnish
PAN as per sec 206AA of the Act, and shall be deducted at the time of each payment. No
tax, however, will be required to be deducted at source in a case unless the estimated
salary income including the value of perquisites, for the financial year exceeds Rs.
2,50,000/- or Rs.3,00,000/- or Rs. 5,00,000/-, as the case may be, depending upon the age of
the employee.(Some typical illustrations of computation of tax are given at Annexure-I).
3.2 Payment of Tax on Perquisites by Employer:
An option has been given to the employer to pay the tax on non-monetary perquisites given
to an employee. The employer may, at its option, make payment of the tax on such
perquisites himself without making any TDS from the salary of the employee. However,
the employer will have to pay the tax at the time when such tax was otherwise deductible
i.e. at the time of payment of income chargeable under the head ―salaries‖ to the employee.3.2.1 Computation of Average Income Tax:
For the purpose of making the payment of tax mentioned in para 3.2 above, tax is to be
determined at the average of income tax computed on the basis of rate in force for the
financial year, on the income chargeable under the head "salaries", including the value
of perquisites for which tax has been paid by the employer himself.
3.2.2 Illustration:
The income chargeable under the head ―salaries‖ of an employee below sixty years of age
for the year inclusive of all perquisites is Rs. 4,50,000/-, out of which, Rs. 50,000/- is on
account of non-monetary perquisites and the employer opts to pay the tax on such
perquisites as per the provisions discussed in para 3.2 above.
STEPS:
Income Chargeable under the head ―Salaries‖
inclusive of all perquisites
Rs. 4,50,000/-
4
Tax on Total Salary (including Cess) Rs. 10,400/-
Average Rate of Tax [(10, 400/4,50,000) X
100]
2.31/%
Tax payable on Rs.50,000/= (2. 31% of 50,000) Rs. 1155
Amount required to be deposited each month Rs. 96( Rs 96.25)= 1155/12
The tax so paid by the employer shall be deemed to be TDS made from the salary of the
employee.
3.3 Salary From More Than One Employer:
Section 192(2) deals with situations where an individual is working under more than one
employer or has changed from one employer to another. It provides for deduction of tax at
source by such employer (as the tax payer may choose) from the aggregate salary of the
employee, who is or has been in receipt of salary from more than one employer. The
employee is now required to furnish to the present/chosen employer details of the income
under the head "Salaries" due or received from the former/other employer and also tax
deducted at source therefrom, in writing and duly verified by him and by the
former/other employer. The present/chosen employer will be required to deduct tax at
source on the aggregate amount of salary (including salary received from the former or other
employer).
3.4 Relief When Salary Paid in Arrear or Advance:
3.4.1 Under section 192(2A) where the assessee, being a Government servant or an
employee in a company, co-operative society, local authority, university, institution,
association or body is entitled to the relief under Section 89 he may furnish to the person
responsible for making the payment referred to in Para (3.1), such particulars in Form No.
10E duly verified by him, and thereupon the person responsible, as aforesaid, shall
compute the relief on the basis of such particulars and take the same into account in
making the deduction under Para(3.1) above.
Here ―university‖ means a university established or incorporated by or under a Central, State
or Provincial Act, and includes an institution declared under Section 3 of the University
Grants Commission Act, 1956 to be a university for the purpose of that Act.
3.4.2 With effect from 1/04/2010 (AY 2010-11), no such relief shall be granted in respect
of any amount received or receivable by an assessee on his voluntary retirement or
termination of his service, in accordance with any scheme or schemes of voluntary
retirement or in the case of a public sector company referred to in section 10(10C)(i) (read
with Rule 2BA), a scheme of voluntary separation, if an exemption in respect of any amount
received or receivable on such voluntary retirement or termination of his service or
voluntary separation has been claimed by the assessee under section 10(10C) in respect of
such, or any other, assessment year.
3.5 Information regarding Income under any other head:
(i) Section 192(2B) enables a taxpayer to furnish particulars of income under any head
other than "Salaries" ( not being a loss under any such head other than the loss under the
head ― Income from house property‖) received by the taxpayer for the same financial year
and of any tax deducted at source thereon. The particulars may now be furnished in a simple
statement, which is properly signed and verified by the taxpayer in the manner as
5
prescribed under Rule 26B(2) of the Rules and shall be annexed to the simple statement. The
form of verification is reproduced as under:
I, …………………. (name of the assessee), do declare that what is stated
above is true to the best of my information and belief.
It is reiterated that the DDO can take into account any loss only under the head ―Income
from house property‖. Loss under any other head cannot be considered by the DDO for
calculating the amount of tax to be deducted.
It may be noted that loss under the head "Income from house property" can be set off
only up to Rs. 2.00 lakh with the income under any other head of income in view of the
amendment to section 71 of the Act vide Finance Act, 2017. Hence, loss under the head
"Income from house property" in excess of Rs. 2.00 lakh is to be ignored for calculating
the amount of tax deduction.
3.6 Computation of income under the head " Income from house property‖:
While taking into account the loss from House Property, the DDO shall ensure that the
employee files the declaration referred to above and encloses therewith a computation of
such loss from house property. Following details shall be obtained and kept by the employer
in respect of loss claimed under the head ― Income from house property‖ separately for each
house property:
a) Gross annual rent/value
b) Municipal Taxes paid, if any
c) Deduction claimed for interest paid, if any
d) Other deductions claimed
e) Address of the property
The DDO shall also ensure furnishing of the evidence or particulars in Form No. 12BB
in respect of deduction of interest as specified in Rule 26C read with section 192 (2D).
3.6.1 Conditions for Claim of Deduction of Interest on Borrowed Capital for
Computation of Income From House Property [Section 24(b)]:
Section 24(b) of the Act allows deduction from income from houses property on interest on
borrowed capital as under:-
(i) the deduction is allowed only in case of house property which is owned and is in
the occupation of the employee for his own residence. However, if it is actually not
occupied by the employee in view of his place of the employment being at other
place, his residence in that other place should not be in a building belonging to him.
(ii) the quantum of deduction allowed as per table below:
Sl
No
Purpose of borrowing capital Date of borrowing
capital
Maximum Deduction
allowable
1 Repair or renewal or reconstruction of the
house
Any time Rs. 30,000/-
2 Acquisition or construction of the house Before 01.04.1999 Rs. 30,000/-
3 Acquisition or construction of the house On or after
01.04.1999
Rs. 1,50,000/-
(upto AY 2014-15)
Rs. 2,00,000/-
(w. e. f. AY 2015-16)
6
In case of Serial No. 3 above
(a) The acquisition or construction of the house should be completed within 5 years
from the end of the FY in which the capital was borrowed. Hence, it is necessary
for the DDO to have the completion certificate of the house property against
which deduction is claimed either from the builder or through self-declaration
from the employee.
(b) Further any prior period interest for the FYs upto the FY in which the property
was acquired or constructed (as reduced by any part of interest allowed as
deduction under any other section of the Act) shall be deducted in equal
installments for the FY in question and subsequent four FYs.
(c) The employee has to furnish before the DDO a certificate from the person to
whom any interest is payable on the borrowed capital specifying the amount of
interest payable. In case a new loan is taken to repay the earlier loan, then the
certificate should also show the details of Principal and Interest of the loan so
repaid.
As discussed in para 4.6.5 section 192(2D) read with rule 26C makes it mandatory
for the DDO to obtain following details/evidences in respect of Interest deductible.
(i) Interest payable or paid
(ii)Name of the lender
(iii) Address of the lender
(iv) PAN of the lender
PAN of the lender being financial institution or employer, is mandatory if it is
available with the employee however in case of other lender obtaining of PAN is
mandatory by the DDO.
3.7 Adjustment for Excess or Shortfall of Deduction:
The provisions of Section 192(3) allow the deductor to make adjustments for any excess or
shortfall in the deduction of tax already made during the financial year, in subsequent
deductions for that employee within that financial year itself.
3.8 Salary Paid in Foreign Currency:
For the purposes of deduction of tax on salary payable in foreign currency, the value in
rupees of such salary shall be calculated at the "Telegraphic transfer buying rate" of
such currency as on the date on which tax is required to be deducted at source ( see Rule 26).4. PERSONS RESPONSIBLE FOR DEDUCTING TAX AND THEIR DUTIES:
4.1. As per section 204(i) of the Act, in the context of payments other than payments by the
Central Government or the State Government the "person responsible for paying" for the
purpose of Section 192 means the employer himself or if the employer is a Company, the
Company itself including the Principal Officer thereof. Further, as per Section 204(iv), in
case the credit, or as the case may be, the payment is made by or on behalf of Central
Government or State Government, the DDO or any other person by whatever name called,
responsible for crediting, or as the case may be, paying such sum is the "person responsible
for paying" for the purpose of Section 192.
4.2. The tax determined as per para 9 should be deducted from the salary u/s 192 of the Act.
4.3. Deduction of Tax at Lower Rate:
If the jurisdictional TDS officer of the employer issues a certificate of No Deduction or
Lower Deduction of Tax under section 197 of the Act, in response to the application filed
before him in Form No 13 by the employee; then the DDO should take into account such
certificate and deduct tax on the salary payable at the rates mentioned therein.(see Rule
28AA). The Unique Identification Number of the certificate is required to be reported in
Quarterly Statement of TDS (Form 24Q).
4.4. Deposit of Tax Deducted:
Rule 30 prescribes time and mode of payment of tax deducted at source to the account of
Central Government.
4.4.1. Due dates for payment of TDS:
Prescribed time of payment/deposit of TDS to the credit of Central Government account is
as under:
a) In case of an Office of Government:
Sl No. Description Time up to which to be deposited.
1 Tax deposited without Challan [Book Entry] SAME DAY
2 Tax deposited with Challan 7
TH DAY NEXT MONTH
3 Tax on perquisites opted to be deposited by the employer. 7
TH DAY NEXT MONTH
b) In any case other than an Office of Government
Sl No. Description Time up to which to be deposited.
1 Tax deducted in March 30th APRIL NEXT FINANCIAL YEAR
2 Tax deducted in any other month 7
TH DAY NEXT MONTH
3 Tax on perquisites opted to be deposited by the employer 7
TH DAY NEXT MONTH
However, if a DDO applies before the jurisdictional Additional/Joint Commissioner
of Income Tax to permit quarterly payments of TDS under section 192, the Rule 30(3)
allows for payments on quarterly basis and as per time given in Table below:
Sl. No. Quarter of the financial year ended on Date for quarterly payment
1 30th June 7
th July
2 30th September 7
th October
3 31st December 7
th January
4 31st March 30th April next Financial Year
4.4.2 Mode of Payment of TDS
4.4.2.1 Compulsory filing of Statement by PAO, Treasury Officer, etc in case of
payment of TDS by Book Entry u/ s 200 (2A):
In the case of an office of the Government, where tax has been paid to the credit of the
Central Government without the production of a challan [Book Entry], the Pay and
Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or
any other person by whatever name called to whom the deductor reports about the tax
deducted and who is responsible for crediting such sum to the credit of the Central
Government, shall‐
(a) submit a statement in Form No. 24G under section 200 (2A) on or before the
30th day of April where statement relates to the month of March; and in any other
case, on or before 15 days from the end of relevant month to the agency authorized
by the Director General of Income‐tax (Systems) [TIN Facilitation Centres currently
managed by M/s National Securities Depository Ltd] in respect of tax deducted by
the deductors and reported to him for that month; and
(b) intimate the number (hereinafter referred to as the Book Identification Number or
BIN) generated by the agency to each of the deductors in respect of whom the sum
deducted has been credited. BIN consist of receipt number of Form 24G, DDO
sequence number in Form No. 24G and date on which tax is deposited.
If the PAO/CDDO/TO etc, as stated above, fails to deliver the statement as required u/s
200(2A), he will be liable to pay, by way of penalty, under section 272A(2)(m), a sum
which shall be Rs.100/- for every day during which the failure continues. However, the
amount of such penalty shall not exceed the amount of tax which is deductable at
source.
The procedure of furnishing Form 24G is detailed in Annexure III. PAOs/DDOs should go
through the FAQs in Annexure IV to understand the correct process to be followed. The
ZAO / PAO of Central Government Ministries is responsible for filing of Form No. 24G on
monthly basis. The person responsible for filing Form No. 24G in case of State Govt.
Departments is shown at Annexure V.
The procedure of furnishing Form 24G is detailed in Annexure IV. PAOs/DDOs should go
through the FAQs therein to understand the correct process to be followed.
4.4.2.2 Payment by an Income Tax Challan:
(i) In case the payment is made by an income-tax challan, the amount of tax so deducted
shall be deposited to the credit of the Central Government by remitting it, within the time
specified in Table in para 4.4.1 above, into any office of the Reserve Bank of India or
branches of the State Bank of India or of any authorized bank;
(ii) In case of a company and a person (other than a company), to whom provisions of
section 44AB are applicable, the amount deducted shall be electronically remitted into the
Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an
electronic income-tax challan (Rule125).
The amount shall be construed as electronically remitted to the Reserve Bank of India or to
the State Bank of India or to any authorized bank, if the amount is remitted by way of:
(a) internet banking facility of the Reserve Bank of India or of the State
Bank of India or of any authorized bank; or
(b) debit card. {Rule 30(7)}
In a section 201 proceeding on short deduction from salary for financial year 2018-19, in TRACES default and late-fee notices for that year's statements, and when reconciling Form No. 16 with a return for assessment year 2019-20.
An employee with total income of Rs. 8,00,000 for financial year 2018-19 pays Rs. 12,500 on the first Rs. 5,00,000 and 20 per cent on the remaining Rs. 3,00,000, that is Rs. 60,000 — Rs. 72,500 before cess. The employer deducts that in roughly equal monthly amounts over the year under section 192.
Forms it names. Form No. 10, Form No. 10E, Form No. 12BA, Form No. 12BB, Form No. 13, Form No. 24G
Rules it names. Rule 26, 26B, 26C, 28AA, 2BA, 30 of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
It mentions. Circular No. 01/2019, Circular No. 29/2017
Source: the Income Tax Department’s own published text — its page for this instrument.
