Amendment of the Income-tax Rules under section 10 of the Income-tax Act, 1961
Notification No. 119 was published on 12 May 2006. Its subject is Amendment of the Income-tax Rules under section 10 of the Income-tax Act, 1961.
This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.
By the Income-tax (4th Amendment) Rules, 2006, made under section 295 read with sub-section (3) of section 200 of the Income-tax Act, 1961, the Central Board of Direct Taxes amends Form No. 24Q in Appendix II to the Income-tax Rules, 1962. Serial number 5 and its entry are substituted so that the details of salary paid and tax deducted from employees are given by enclosing Annexure I with each quarterly statement, containing the details for the relevant quarter, and Annexure II with the last quarterly statement, that is the quarter ending 31 March, containing the details for the whole financial year. Note (4) at the end of the Form is substituted with an enlarged definition of salary, which now includes wages, annuity, pension, gratuity other than that exempt under clause (10) of section 10, fees, commission, bonus, repayment of amounts deposited under the Additional Emoluments (Compulsory Deposit) Act, 1974, perquisites including the value of any other fringe benefit or amenity not covered under Chapter XII-H, profits in lieu of or in addition to salary including payments on termination of employment, advance of salary, payment for leave not availed other than that exempt under clause (10AA) of section 10, the annual accretion to the balance in a recognised provident fund chargeable under rule 6 of Part A of the Fourth Schedule, sums deemed to be received under sub-rule (4) of rule 11 of Part A of that Schedule, any contribution made by the Central Government to the employee's account under a pension scheme referred to in section 80CCD, and any other sums chargeable under the head "Salaries". A new Note (5A) provides that the details at serial number 4 of the Form and in Annexure I are to carry the figures of salary paid and tax deducted for the relevant quarter. Annexure II and Annexure III are substituted, the new Annexure II calling for the year's salary and net tax payable employee by employee, including deductions under section 16(ii) and 16(iii), income offered for deduction under sub-section (2B) of section 192, the aggregate of deductions under sections 80C, 80CCC and 80CCD limited to the amount specified in section 80CCE, other Chapter VI-A deductions, income-tax, surcharge and education cess, relief under section 89, the total tax deducted for the year and the resulting shortfall or excess.
NOTIFICATION NO. 119, DATED 12-5-2006
S.O. 704(E) -In exercise of the powers conferred under section 295 read with sub-section (3) of section 200 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (4th Amendment) Rules, 2006.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962, in Appendix II, in Form No.24Q,-
for serial number 5 and the entry relating thereto, the following shall be substituted, namely:-
"5. Details of salary4 paid and tax deducted thereon from the employees [(i) Enclose Annexure I along with each quarterly statement having details for the relevant quarter; (ii) Enclose Annexure II along with the last quarterly statement i.e., for the quarter ending 31st March, having the details for the whole Financial Year]";
(ii) in the Notes at the end of the Form and before Annexure I,
for Note (4), the following Note shall be substituted, namely:-
"(4) Salary includes wages, annuity, pension, gratuity [other than exempted under section 10(10)], fees, commission, bonus, repayment of amount deposited under the Additional Emoluments (Compulsory Deposit) Act, 1974, perquisites (including value of any other fringe benefit or amenity not covered under Chapter XII-H of the Income-tax Act, 1961), profits in lieu of or in addition to any salary or wages including payments made at or in connection with termination of employment, advance of salary, any payment received in respect of any period of leave not availed[other than exempted under section 10(10AA)], any annual accretion to the balance of the account in a recognised provident fund chargeable to tax in accordance with rule 6 of Part A of the Fourth Schedule of the Income tax Act, 1961, any sums deemed to be income received by the employee in accordance with sub-rule (4) of rule 11 of Part A of the Fourth Schedule of the Income tax Act, 1961, any contribution made by the Central Government to the account of the employee under a pension scheme referred to in section 80CCD or any other sums chargeable to income-tax under the head ‘Salaries’.";
(b) after Note (5), the following Note shall be inserted, namely:-
"(5A) Details to be furnished at serial number 4 of the Form and Annexure I shall contain the figures of salary paid and TDS thereon for the relevant quarter.";
(iii) for ANNEXURE II and ANNEXURE III, the following shall be substituted, namely:-
"ANNEXURE II
Details of salary paid/credited during the Financial Year ………….. and net tax payable
Serial Number
Permanent Account Number (PAN) of the employee
Name of the Employee
Write ‘W’ for woman, ‘S’ for senior citizen and ‘G’ for others
Date from Date from which employed
Date To with current employer
Total amount of salary (See note 4 appearing at the end of the main Form)
Total deduction under section 16(ii) and 16(iii) (specify each deduction separately)
Income chargeable under the head "Salaries" (Column 332 minus 333)
Income (including loss from house property) under any head other than the head "Salaries" offered for TDS [section 192(2B)]
Gross total income (Total of columns 334 and 335)
Aggregate amount of deductions under sections 80C, 80CCC and 80CCD (Total to be limited to amount specified in section 80CCE)
Amount deductible under any other provision(s) of Chapter VI-A
Total Amount deductible under Chapter VI-A (Total of columns 337 and 338)
Total taxable income (Columns 336 minus column 339)
Total tax – (i) income-tax on total income
(ii) surcharge
(iii) education cess
Income tax Relief under section 89, when salary etc., is paid in arrear or in advance
Net tax payable(columns 341+342+343-344)
Total amount of tax deducted at source for the whole year [aggregate of the amount in column 322 of Annexure I for all the four quarters in respect of each employee]
Shortfall in tax deduction(+)/Excess tax deduction(-)
[column 345 minus column 346]
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
Forms it touches. Form No. 24Q
the date of publication in the Official Gazette.
In preparing and filing the quarterly statement in Form No. 24Q, and in the annual salary particulars that feed the employee's Form No. 16.
Forms it names. Form No. 24Q
Rules it names. Rule 11, 6 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.
Source: the Income Tax Department’s own published text — its page for this instrument.