Income-Tax Deduction from Salaries during the Financial Year 2018-19
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.jiov.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:
| S.No | 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/- |
vc says
THis circular is normally issued in October/November each year. This time it has been delayed by more than two months. All the more, this circular is issued by Department of Revenue, Central Board of Direct TAxes!
S.mani says
When the commission rised the salary then why not increase the income slab .thats jetly ji forward community so he is purposly suffer the middle and lower class. Jan pooch kar tax slab not increase. But the vongrss govt look after such problem .very same to this govt creshing middle and poor classes.
Anand upneja says
How about I come tax deduction from government pension of NRI senioner citizens ?
Gopalaswamy Honnavalli says
Almost all the pensioners are Sr Citizens. Their income up to 340,000 and for the super Sr (80+) upto 540,000 ( includes 40,000 SD)IT is not attracted. However, as per the circular no.1/2019 of the GOI (MoF-DoRev) dated01/01/2019 I T is being directed to be deducted by PDA from FY 2018-19( AY 2019-20). Thus a pensioner aged up to 80 yrs getting income between 250,000 and 340,000, and super citizen getting less than 540,000 though do not attract IT, and yet are made inevitably to file IT returns only to claim back the amount of TDS..Thereby alround work is increased un-necessarily to all the 3 fronts vs pdas,individuals and also considerably to IT Authorities. As such the circular needs modification based on age.
It is also brought to the notice that:-
CCS Pension Rule 3(0) and Railway pension Manual R-3(19) exclude DR from the definition of Pension. As such ,while pdas do not consider this but take the entire amount paid by them ( including arrears ,if any, due to 7th CPC etc) and deduct tax as directed in the circular. Attraction is also invited to Art 366(17) of the constitution for the definition of pension.
Gopalaswamy Honnavalli says
Under Sec 17(a) of lT Act pension is salary. In that case is tax as above deductible by PDA?