The following are the synopsis of letter sent to DTA by income tax Dept vide "No.Addl CIT-14/TDS-State Govt/2012-13 dated 30-1-2013" to be followed by DDOs while accepting the IT returns by Employees under their jurisdiction.
1. As the TDS on salary not being deducted every month, Ensure that the entire Balance Tax liability for the current financial Year 2012-13 should be deducted out of the respective salaries to be paid in the Month of February 2013 .
2. Deduction u/s 80DDB cannot be cannot be considered by the DDO.
3. HRA should be deducted from least of
a. Actual HRA Recieved
b. Actual /rent Paid - 10% of Salary
c. 40% of Basic Salary (50% incase of Metropolitons of india)
* Salried Employees Drawing HRA lessthan Rs.3000 are exempted from producing rent receipt.
4. DDO's should not allow the claims made u/s 80C PF,LIC,NSC's,PPF,Specified Bonds etc.without documentary evidence of such investments being actually made
5. Treatment of Arrears credited to PF Accounts shall be calculated for TAX.
6. Generally no dedudction should be allowed by DDO from the salary income in respect donations being made for Charitable Purpose. The Tax relief on such donations as admissible under section 80G should be claimed by the Tax Payer in the return of Income. However Payments collected by DDO's for CMRF, PMNRF, LGRF can be treated u/s 80G on producing certificate by DDO's
1. As the TDS on salary not being deducted every month, Ensure that the entire Balance Tax liability for the current financial Year 2012-13 should be deducted out of the respective salaries to be paid in the Month of February 2013 .
2. Deduction u/s 80DDB cannot be cannot be considered by the DDO.
3. HRA should be deducted from least of
a. Actual HRA Recieved
b. Actual /rent Paid - 10% of Salary
c. 40% of Basic Salary (50% incase of Metropolitons of india)
* Salried Employees Drawing HRA lessthan Rs.3000 are exempted from producing rent receipt.
4. DDO's should not allow the claims made u/s 80C PF,LIC,NSC's,PPF,Specified Bonds etc.without documentary evidence of such investments being actually made
5. Treatment of Arrears credited to PF Accounts shall be calculated for TAX.
6. Generally no dedudction should be allowed by DDO from the salary income in respect donations being made for Charitable Purpose. The Tax relief on such donations as admissible under section 80G should be claimed by the Tax Payer in the return of Income. However Payments collected by DDO's for CMRF, PMNRF, LGRF can be treated u/s 80G on producing certificate by DDO's
LATEST INSTRUCTIONS ON HRA RECEIPT for INCOME TAX 2012-13 CLICK HERE
DOWNLOAD IT DEPARTMENT LETTER TO DTA vide CIT-14/TDS - CLICK HERE
DOWNLOAD IT DEPARTMENT LETTER TO DTA vide CIT-14/TDS - CLICK HERE