Income-Tax Deduction from Salaries during the Financial Year 2018-19
CIRCULAR NO : 01 /2019
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/-