Notification No. 50

What this is

Notification No. 50 was published on 9 March 2006. Its subject is Amendment of the Income-tax Rules under section 80C 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.

What it does

The Central Board of Direct Taxes, in exercise of the powers conferred by section 295 of the Income-tax Act, 1961, makes the Income-tax (First Amendment) Rules, 2006, amending Form No. 16 in Appendix II to the Income-tax Rules, 1962. In item 4, clause (a) is omitted and clauses (b) and (c) are relettered as (a) and (b); in item 5, "and (b)" is substituted for "to (c)". Item 9 is substituted by a fresh table of deductions under Chapter VI-A, showing gross and deductible amounts separately for section 80C in six lines, for section 80CCC and for section 80CCD, with notes that the aggregate deductible under section 80C shall not exceed one lakh rupees and that the aggregate deductible under sections 80C, 80CCC and 80CCD together shall not exceed one lakh rupees; and a second part for other sections of Chapter VI-A, such as sections 80E and 80G, with columns for gross amount, qualifying amount and deductible amount. Items 13 to 15A are replaced by item 13 for surcharge on the tax computed at serial number 12, item 14 for education cess on that tax and surcharge, and item 15 for tax payable being the total of items 12, 13 and 14; and item 17 is substituted to read tax payable as item 15 less item 16.

Who it reaches

• employers issuing Form No. 16 to their employees
• salaried employees claiming deductions under Chapter VI-A through their employer
• assessing officers verifying tax deducted at source against the certificate

The provisions it speaks to

The instrument, as the Board published it

NOTIFICATION NO. 50/2006, DATED 9-3-2006

S.O. 303(E).-- In exercise of the powers conferred by section 295 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 ( First Amendment) Rules, 2006.

(2) They shall come into force on the date of their publication in the Official Gazette.

In the Income-tax Rules, 1962, in Appendix II, in Form No. 16, -

in item 4, -

(A) clause (a) shall be omitted;

(B) clause (b) shall be relettered as clause (a);

(C) clause (c) shall be relettered as clause (b);

(ii) in item 5, for the word, brackets and letter "to (c)", the word, brackets and letter "and (b)" shall be substituted;

for item 9, the following shall be substituted, namely:-

" 9. Deductions under Chapter VIA

sections 80C, 80CCC and 80 CCD

Gross amount

Deductible amount

section 80C

(i) ………….... Rs………

(ii) …………... Rs………

(iii) …………… Rs………

(iv) ………….. Rs………

(v) …………... Rs………

(vi) ………...... Rs………

section 80CCC

section 80CCD

Rs…………

Rs…………

Rs…………

Rs…………….

Rs…………….

Rs…………….

Note: 1. aggregate amount deductible under section 80C shall not exceed one lakh rupees

2. aggregate amount deductible under the three sections, i.e., 80C, 80CCC and 80CCD, shall not exceed one lakh rupees

(B) other sections (for e.g., 80E, 80G etc.) under Chapter VIA

Gross amount

Qualifying amount

Deductible amount

section ……….

section ……….

section ……….

section ……….

section ……….

Rs……

Rs……

Rs……

Rs……

Rs……

Rs…………

Rs…………

Rs…………

Rs…………

Rs…………

Rs…………

Rs…………

Rs…………

Rs…………

Rs…………

";

for items 13 to 15A, the following items shall be substituted, namely:-

" 13. Surcharge (on tax computed at S. No. 12 ) Rs…………

14. Education Cess (on tax at S. No. 12 and surcharge at S. No.13) Rs…………

15. Tax payable (12+13+14) Rs…………";

for item 17, the following item shall be substituted, namely:-

" 17. Tax payable ( 15-16 ) Rs…………".

[Notification No. 50/2006/F.No.142/40/2005-TPL]

What it changes

Forms it touches. Form No. 16

From when

the date of publication in the Official Gazette.

What to watch

• The rules come into force on the date of their publication in the Official Gazette.
• The certificate must now show section 80C, 80CCC and 80CCD deductions separately, with the one lakh rupees ceiling both for section 80C alone and for the three sections together.
• The renumbering of items 13 to 15 and item 17 changes the arithmetic references in the form, tax payable at item 15 being the sum of items 12, 13 and 14 and the final figure at item 17 being item 15 less item 16.
• Education cess appears in the form as a separate item computed on tax and surcharge together.

Where you meet it

In the Form No. 16 an employer hands to an employee after the close of the year and in the return prepared from it.

What it names

Forms it names. Form No. 16

On the same provision

• Notification No. 134/2021 [F. No. 178/4/2021-ITA-I] / SO 5056(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 6 December 2021
• Notification No. 45/2020 [F. No.370142/26/2019-TPL] / SO 2232(E) — Ministry of Finance 7 July 2020
• Notification No.91/2015 [F.No.178/21/2014-ITA.I] / SO 3313(E) — jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99 8 December 2015
• Circular No. 19/2015 — Circular No.- 19 /2015 27 November 2015
• Circular 1/2015 — Explanatory notes to the provisions of the finance no.2 act 2014 21 January 2015
• Notification No. 9/2015 [F.No.178/3/2015-ITA-I]/SO 210(E) — Section 80C of the Income-tax Act, 1961 - Deductions - in Respect of Insurance Premium, ETC. - Notified Plan under secti 21 January 2015

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