Income-Tax Deduction from Salaries during the Financial Year 2018-19 under Section 192 of the Income-tax Act, 1961
F.No. 275/192/2018-IT (B) was issued by the Central Board of Direct Taxes on 8 February 2019. Its subject is Income-Tax Deduction from Salaries during the Financial Year 2018-19 under Section 192 of the Income-tax Act, 1961.
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.
Corrects paragraph 5.5.12 of the Board's salary deduction circular of 1 January 2019 for financial year 2018-19, where the deduction under section 80TTB had not been explained correctly. Section 80TTB, introduced by the Finance Act, 2018, allows a resident senior citizen a deduction from gross total income for interest on deposits with a banking company to which the Banking Regulation Act, 1949 applies, a co-operative society carrying on the business of banking, or a Post Office. The deduction is the whole of the income where it does not exceed fifty thousand rupees in the aggregate, and fifty thousand rupees in any other case. It is denied to a partner of a firm, a member of an association or an individual of a body where the interest comes from a deposit held by or on behalf of that firm, association or body, and anyone claiming it cannot also claim section 80TTA. The earlier corrigendum dated 1 February 2019 is withdrawn and cancelled.
The section 80TTB position was inadvertently stated wrongly in the original salary circular, and the Board put the correct position on record.
F.No. 275/19212018-IT (8) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North Block, New Delhi 8th February, 2019 CORRIGENDUM TO CIRCULAR NO.1 OF 2019 DATED 01.01.2019 Sub: Income-Tax Deduction from Salaries during the Financial Year 2018-19 under Section 192 of the Income-tax Act, 1961-regarding. In Circular NO.1/2019 dated 1st January, 2019 on the above-mentioned subject, the provisions of section 80TTB were inadvertently not correctly explained in para 5.5.12 of the circular. The correct position of the admissibility of deduction under section 80TTB is provided as under: "Section 80TTB introduced by Finance Act, 2018, w.e.f 01.04.2019, allows deduction to a senior citizen from his gross total income in respect of income by way of interest on deposits with- (a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); (b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898), The amount of deduction in respect of above interest on deposit is as under: - (i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and (ii) in any other case, fifty thousand rupees. However, no deduction is allowed under section 80TTB to any partner of the firm or any member of the association or any individual of the body if said interest is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals. For this purpose, "senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year. However, taxpayers claiming deduction under section 80TTB shall not be eligible for deduction under section 80TTA". 2. In view of above, Circular NO.1/2019 may accordingly be treated as modified to this extent. The earlier corrigendum dated.01.02.2019 stands withdrawn and cancelled. Under Secretary t
When an employer computes deduction at source from salary for a senior citizen employee, and in the deductions allowed in an intimation under section 143(1) where both section 80TTA and section 80TTB were claimed.
A resident aged sixty-eight has bank fixed deposit interest of Rs. 62,000 and post office interest of Rs. 9,000 in the year. The aggregate exceeds fifty thousand rupees, so the deduction is capped at Rs. 50,000, and no separate claim under section 80TTA is open on the savings interest.
It mentions. Circular No. 1/2019
Source: the Income Tax Department’s own published text — its page for this instrument.