ITR FORMS

ITR 1

Return Forms Brief Description

ITR 1 Also known as SAHAJ is applicable to a ordinarily Resident individual having salary or
pension income or income from one house property (not a case of brought forward
loss or loss to be carried forward) or income from other sources (not being lottery
winnings and income from race horses and in come chargeable to tax at special
rates). However, an individual who is a director in a company or has held equity shares
of an unlisted company shall not be eligible to use ITR -1.
Further, the ITR-1 shall not be available to a taxpayer in whose case the tax has been
deducted on cash withdrawal under Section 194N or tax has been deferred in respect
of ESOPs allotted by an eligible start-up.
 ITR 2

Return Forms Brief Description

ITR 2 It is applicable to an individual or an Hindu Undivided Family not having income
chargeable to income-tax under the head “Profits or gains of business or profession”
 ITR 3

Return Forms Brief Description

ITR 3 It is applicable to an individual or a Hindu Undivided Family who has any income
chargeable to tax under the head business or professioṇ
 ITR 4

Return Brief Description

Forms
ITR 4 Also known as SUGAM is applicable to individuals or Hindu Undivided Family or
partnership firm who have opted for the presumptive taxation scheme of section
44AD/44ADA/44AE.
 ITR 5

Return Brief Description

Forms
ITR 5 This Form can be used by a person being a firm, LLP, AOP, BOI, artificial juridical person
referred to in section 2(31)(vii), cooperative society, local authority Private
Discretionary Trust, Society registered under Society Registration Act, 1860, trust other
than trusts eligible to file ITR 7, estate of deceased person, estate of an insolvent,
business trust and investment fund. However, a person who is required to file the
return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not
use this form (i.e., trusts, political parties, institutions, colleges.)
 ITR 6

Return Brief Description

Forms
ITR 6 It is applicable to a company, other than a company claiming exemption under section
11 (exemption under section 11 can be claimed by charitable/religious trust).
 ITR 7

Return Brief Description

Forms
ITR 7 It is applicable to a persons including companies who are required to furnish return
under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) (i.e.,
trusts, political parties, institutions, colleges.).
 An over view of Computation of Income Tax on Salary
Income of the Govt. Servants and TDS under Section 192
 Nature of Income Tax

• Income Tax is a Direct Tax;

• It is an income based Tax;
• Payer and sufferer of tax is one and the same;
• It is a Progressive Tax;
• Previous year income is assessed in the assessment year;
• Every person who earns taxable income is an assessee;
• A person is required to self assess his tax and File his IT returns.
 Different Heads (Sources) of Income
What are the different Heads of income according to Income-Tax Act ? (Sec 14 of IT
Act 1961)
There are 5 different Heads. The income under each Head will be charged to income
tax. Thus the tax will be computed on the basis of Gross Total Income.
---------------------------------
1) Income from Salary including allowances, value of perquisites, profits in lieu of
salary and Pension.
2) Income from House Property, whether residential, commercial or let out.
3) Income from Profits and Gains of Profession or Business
4) Income from Capital Gains-Short & Long term
5) Income from Other Sources including Bank Interest, Interest on Securities,
Lotteries, Cross word Puzzles, Races, Games, Gift received in excess of Rs.50,000
in cash + kind from unrelated persons.
Among the above heads Loss from house property can be deducted and income from
other sources can be added to the income from salary
 Previous Year and Assessment Year

A Financial Year is called “ Previous Year” in Income Tax Act. The income of
“previous year “ is assessed to tax in the succeeding year. Such succeeding
year is called “Assessment Year” .Otherwise the year in respect of the
income on which the tax is levied is called the Previous Year.
To illustrate, Finance Act 2016 prescribes tax rates for F/Y2016-2017, which is
also referred as Assessment Year 2017-18.and for F/Y 2018-19 AY is 2019-20
and for 2020-21 it is 2021-22 and for 2021-22 it is 2022-23
Income Tax is deducted at Source (TDS) or paid in Advance before the
commencement of the Asst Year i.e. In the Previous year following the
concept of ….
PAYE i.e.. Pay As You Earn
4. Who is an Assessee ?
ASSESSEE [ Section 2(7) ] Assessee' means a Person by whom any
Tax or any other sum of money is payable under this Act. ... Any
person who entitled to refund of Tax under this Act
A DDO is an Assessee in default who is responsible for deduct Tax at
source from the salary income of other employees working under
him
 What is Salary
As per section 15 of the Act, the following incomes are chargeable to
income-tax under the head "Salaries"-
(a) any salary due from an employer or a former employer to an
assessee in the previous year. whether paid or not;
(b) any salary paid or allowed to him in the previous year by or on
behalf of an employer or a former employer though not due or
before it became due to him;
(c) any arrears of salary paid or allowed to him in the previous year by
or on behalf of an employer or a former employer, if not charged to
income-tax for any earlier previous year
 What is Salary ?
- Any amount received by an Employee from an Employer is known as Salary. To
receive / give salary, there has to be an Employee- Employer relationship.
Salary is chargeable to tax on Due or Receipt basis whichever is earlier

What is Gross Salary according to Income- Tax Act ? (Section 17)

- Gross Salary Means -
* Basic Salary or Wages, Bonus, Pension, Gratuity (beyond exempted limit), Leave
Salary or encashment, Advance salary, Salary Arrears, Fee or commission,
Remuneration for extra work, Ex-gratia, Award for excellence etc.

* Allowances such as House Rent Allowance, Dearness Allowance, Over time

Allowance, City Compensatory Allowance, Children’s Education Allowance,
Conveyance Allowance, Fixed Medical Allowance and any other special
Allowances.
*Contribution made by the Govt. to the account of employee under New Pension
Scheme
 Perquisites(Rule3)
Rent Free Accommodation, amount spent or paid by the employer on behalf of
the employee in respect of Gas, Electricity, Water Charges, Children's School Fee,
Club Fees, gifts above (Rs 5000), Med allowance(sec. 17(2)) (Generally not given
to the state govt. employees. If given to be taken in to account)

* Benefits received in place of salary which includes Retrenchment

Compensation (Amount given to an employee when his service are no longer
required).
Pension
* Received from former Employer is taxable as “salaries”. However, Family
Pension is taxed as income from other sources and the employer is not required
to deduct on such family pension of the employee.
Commuted Pension is fully exempt from tax for Govt. Employees.
Uncommuted pension is taxable.
 Annual Net Income from all sources Income- tax Rates (in percentage on Taxable Income)
(After all permissible exemptions & deductions)
Up to 2,50,000 ------Nil------

2,50,001 – 5,00,000 But 5% of the amount exceeding 2,50,000

Rs 12500/-income tax rebate is allowed only to (5,00,000 – 2,50,000 = 2,50,000 X 5%) = Rs:12500
tax payers in this bracket up to RS 5,00,000
(section:87A)
5,00,001 – 10,00,000 Rs:12500+20% on the amount exceeding 5,00,000
[10,00,000 – 5,00,000 =5,00,000 X 20% = 1,00,000]
=1,12,500+4% Health &Education cess Rs.4500 = 117000

10,00,001 & above Rs:1,12,500+30% on the amount exceeding 10,00,000

+4% Health&Education cess on net income tax payable.

 # Slab begins from 3,00,001, for Senior Citizens & for very Senior Citizens begins from 5,00,001.
 Surcharge applicable for the total income exceeding rupees fifty lakh
 Concessional Rate of Tax

The concessional rates of tax provided under section (I5BAC ) are

subject to the condition that the total income of the individual is;
a)Without any exemption or deduction specified under clause (i) of sub-
section (2) of section 115BAC.
b) Without set of any loss specified in clause (ii} of sub-section (2) of
section 115BAC.
c)Without any exemption or deduction for allowances or perquisite, by
whatever name called. provided under any other law for the time being in
force, as specified in the clause (iv) of sub-section (2) of section
115BAC
 New Concessional Rates of Income Tax u/s 115BAC A.Y. 2023-24 (F.Y. 2022-23)

Income Tax Slab Tax Rate

Up to Rs.2.5 lakhs Nil

5% of the total income that is more than Rs.2.5 lakh +

From Rs.2,50,001 to Rs.5,00,000
4% cess ie.12,500Section 87A applicable)

10% of the total income that is more than Rs.5 lakh + 4%

From Rs.5,00,001 to Rs.7,50,000
cess

15% of the total income that is more than Rs.7.5 lakh +

From Rs.7,50,001 to Rs.10,00,000
4% cess

20% of the total income that is more than Rs.10 lakh +

From Rs.10,00,001 to Rs.12,50,000
4% cess

25% of the total income that is more than Rs.12.5 lakh +

From Rs.12,50,001 to Rs.15,00,000
4% cess

30% of the total income that is more than Rs.15 lakh +

Income above Rs.15,00,001
4% cess
Intimation to DDO for deduction of tax at concessional rate

Any employee intending to opt for the concessional rates of tax under section 115BAC of the
Act. may intimate the deductor, being DDO of such intention for each previous year and
upon such intimation, the deductor shall compute his total income. and make TDS thereon
in accordance with the provisions of section 115BAC. If such intimation is not made by the
employee. the employer shall make TDS without considering the provision of section
115BAC of the Act. The intimation so made to the deductor shall be only for the purpose of
TDS during the previous yea r and can not be modified during that year. (CBDT Circular No.
ci of2020 dated 13.04.2020)
 Salary from more than one employer
• Section 192(2) The employee shall be required to furnish the details of
salary received and the deductions made of the previous employer in
writing and duly verified by him and by the previous employer.
• The present employer shall take in to account and make TDS on the
aggregate of such salary

Salary Paid in Arrears

• In case of salary paid in arrears/advance and also family pension relief
under section 89 read with rule 21A may be sought in Form No 10E duly
verified by the employee.
• An application is made to the DDO and the DDO will take in to account
the same for computing the relief on the basis of particulars and make
deduction accordingly
 Adjustment for Excess or Short fall of Deduction
• The provisions of Section 192(3) allow the DDO to make adjustments for any
excess or shortfall in Tax deduction arising out of any previous deduction or
failure to deduct during the financial year.

Information regarding any other head

• Section 192(2B) enables a taxpayer to furnish particulars of income under any
head other than "Salaries" (not being a loss under any such head other than
the loss under the head ‘Income from house property‘ (to the extent of Rs
2.00 lakh) received by the employee for the same financial year and of any tax
deducted at source thereon. The particulars may now be furnished in a simple
statement. which is properly signed and verified by the employee.

• Loss under any other head cannot be considered by DDO for calculating the
amount of tax to be deducted
 Some income not included under the head salaries of Govt.
employees (common exemptions)
Travel concession on leave, retirement etc.
Contribution to New Pension Scheme up to 14%
Death Cum Retirement Gratuity
Commuted pension
Leave encashment during retirement
Medical reimbursement
TA and DA and such other allowance to meet the expenditure of
tour and transport while on duty
Basic Salary 810600 Rent Paid (Working in 1,50,000
Bangalore)
D A with arrears 1 12300 Bank SB interest 3500
HRA 194504 KGID premium 36000
EL encashment (included in 33,775 Insurance (LIC prem) 30684
the above)
Personal Pay 72000 NPS contribution 88912
CCA 3600 GIS contribution 5520
Honorarium 3000 Sukanya Samradhi Yojana 20000
FD investment(more than 20000 Charity (CMs fund) 3552
five yrs)
FD interest received 1800 Tuition fee 8600
Med Insure GIC self &family 25000
Income tax TDS 52300 Int on Edu. loan 22600
PT 2400
 Salary and Non salary Income
Salary Income Amount Income from Other Amount
Source
Basic 810600 F.D Interest 1800

DA 112300 S.B Interest 3500

HRA 194504 Honorarium 3000

CCA 3600
EL Encash (included (33775)
above)
PP 72000
M.A. 00

Other Allowance 00

Total 1193004 Total 8300

 House Rent Allowances

--Income Tax(IT) Deduction of House Rent Allowances (HRA).----

Under Section 10(13A) read with Rule (2A)
House Rent Allowance or HRA is an allowance given by the employer to the employee
for taking care of his rental or accommodation expenses. Employer can choose to
offer HRA in salary package irrespective of whether you live in a rented
accommodation or in your own house.
--------Eligibility for HRA exemption-------

 To be eligible for HRA exemption, you must first receive HRA in your salary and live
in a rented accommodation for which you pay the rent.
 Your rent should be More then 10% of your salary.
 If you live in a house you own, you will not be eligible for HRA exemption.
 Calculation of HRA exemption
The actual HRA that is exempt from tax is the lowest of the following three

1. Actual HRA received from employer

2. 50% of salary in case of metros or 40% in case of non-metros.
3. Actual rent paid minus 10% of salary.(ie. Rent paid over and above 10%of the salary)

Definition of salary
In the context of tax exemption for House Rent Allowances, salary is defined as sum total of
basic and dearness allowances ( if it is part of retirement benefit) (Plus Commission if any)
2A.6-1 Meaning of ‘salary’ - In terms of Explanation (ii) to rule 2A, ‘salary’ shall include
dearness allowance if the terms of employment so provide. Thus, ‘salary’ shall not include
other allowances & perquisites. The following points must also be noted : Where
dearness pay is treated as ‘pay’ for purposes of pension, gratuity and compensatory
allowances including house rent allowance, the term ‘salary’ will include such dearness
pay also for purposes of calculating the exempt portion of HRA—CBDT Circular No. 90,
dated 26-6-1972
 Example for (HRA) calculation
Let us calculate the salary first,
(Assumed DA is part of pensionary benefit)

 Salary = Rs.922900 per annum. (Basic=810600+DA 112300.=922900)

1. Actual HRA received = Rs.194504

2. Since Mr. A is based in Bangalore we will take 40% of his salary, which comes to
40% of 922900 = Rs.369160
3. Actual Rent paid = Rs.150000 and 10% of salary is= 0.10x 922900 =Rs92290
4. The difference comes to Rs.150000 – 92290 = Rs. 57710

The minimum of these is Rs. 57710. So Rs. 57710 of HRA is exempt from tax. The
rest which is 194504 – 57710 = Rs. 136794 is taxed.
 Other Considerations of HRA

-- Rent receipts need to be produced as proof to your employer to show that you are indeed
paying rent and to claim HRA. And if the aggregate rent paid in any financial year exceeds
1 lakh rupees then details of land lord should be furnished in form no 12BB

• DDOs empowered to obtain evidence of proof or particulars of the prescribed claim (including
claim for set-off of loss) under section 192(2D)
--------------------------------------------------------
• It is stated that the DDO can take into account any loss only under the head ―Income from
house property up to Rs 2 lakh (Interest on HB Loan)‖.
• Loss under any other head cannot be considered by the DDO for calculating the amount of tax
to be deducted at source from the income from salary.
 Furnishing of Information in Form no 12BB
• Calculation of TDS on the salary income should be done in the
financial year (Previous Year) for the purpose of assessment year of
income tax. "The person responsible for paying "for the purpose of
Sec192 is the DDO in case of central government and state
government (Sec 204(iv)) employees.
• Rule 26C. (1) The assessee shall furnish to the “person responsible
for making payment” under sub-section (1) of section 192, the
evidence or the particulars of the claims referred to in sub-rule (2),
in Form No.12BB for the purpose of estimating his income or
computing the tax deduction at source.
 Calculation of Income tax on the Income from Salary
Name of the Government Servant : Mr A
Designation :Dy Director Public Inst
Name and Address of the Office : Bangalore
Permanent Account No(PAN) : ABCPM4512K
Financial Year : 2022-23
Assessment Year : 2023-24
Serial Particulars Amount (Rs) Amount (Rs)
No Old Slab New Slab
1 Total Salary Income including all allowances (1-4-2022 to 31-03-
2023) 1193004 1193004
2 House Rent Allowance Exemption (Least of the following three
items. u/s 10(13)(a) of the IT Act 1961
a) Actual HRA Received 194504
b) Rent paid in excess of 10% of the Salary
for the period in which the rent is paid 57710
(Salary=Basic+DA )
c) 40% of the Basic+DA 369160
(50% in case of Metro cities)
(Assumed DA is part of pensionary benefit)
(-)57710 No Exemption
3 Amount of Income from Salary after deducting para (2) from (1) 1135294 1193004
4 Deductions Under Section 16
a) Standard Deduction u/s 16 (ia) Rs 50,000
b) Professinal Tax u/s 16(iii) Actual paid Rs 2400
c) Entertainment allowance Maxm: 5000 Rs Nil
(-) 52400 Not deductible
5 Income from Salary after deducting para 4 from 3
Serial Particulars Amount (Rs) Amount (Rs)
No
6 A) Income from other sources like Interest from savings bank
account and interest from NSC etc
8300 8300
7 Amount of total Income from Salary Para 5+6A-6B 1091194 1201304
Serial Particulars Amount (Rs) Amount (Rs)
No

8 Deductions Under Chapter VI A

Section 80D to 80U ( All Deductions are subject to Certain
Conditions under respective sections , Please refer the respective
section of the Income Tax Act 1961 &Rules for details)
i Section 80D
Medical Insurance Premium paid through cheque to GIC or any
other authorized Insurance company for availing the following
benefit
1) Self and Family Rs 25000
2) Additional premium for Parents Rs 25000
(If one of the Parents is Senior Citizen it is Rs 50000)
4) If MI premium is not paid medical expenses up to Rs 50,000
when the self or family is senior citizen
This includes Preventive Health Checkup maximum Rs 5000
The maximum deductions available from all of the above shall not
exceed Rs 1,00,000 in the financial year if one of the family and
parents are Sr Citizen. All payment in non-cash mode other than
preventive health check up. Rs: 25000 (for self and family) 25000 Not deductible
Serial Particulars Amount (Rs) Amount (Rs)
No

ii Section 80E
Interest on loan borrowed from Financial Institutions/Charitable
Institutions for Higher Education of the Government servant or
his/her children (Education above 12th Standard) Rs 22600
iii Section 80G
Charity paid to the Funds with the purpose mentioned under this
section. The payment above Rs 2000 should have been paid
through cheques Rs 3552
iv Section 80TTA
Interest earned on the balance of amount in Savings Account up to
a maximum of( Rs 10,000) Rs 3500

54652 Not Deductible

Serial Particulars Amount Amount
No (Rs) (Rs)
9 Deduction under Section 80C (Documents shall be produced for
the amonts other than those deducted from Salary)

1) Contribution to the Emp Grp Insurance Scheme(GIS) Rs 5520

2) Contribution to KGID Policy premiums Rs 36000
3) Contribution to LIC Policies premiums(Maximum: 10% and
20% of the sum assured after 1/4/2012 and before
1/4/2012respectively Rs: 30684
4) Tuition Fees up to 2 children Rs 8600
5) Fixed Deposits of More than 5 years in Post Office or Banks Rs : 20000
Total
209716
6) Amount invested in Sukanya
out of
Samrudhi Yojana Rs 20000
which Rs
150000 is Not
allowed deductible
Serial Particulars Amount Amount
No (Rs) (Rs)
10 Deductions under Section 80CCC

Amount invested in the Pension Funds of the LIC or other

Insurance Funds (up to Rs 1,50,000 per year ) Nil

Deductions under Section 80CCD(1a) 88912

11
Amount invested in the National Pension System approved by the
Central Government subject to a limit of 10% of the salary (Salary
includes Dearness Allowance if the terms of employment so
provide excluding all other allowances and perquisites)
Employers Contribution up to 14% is fully exempted u/s 80CCD(2)
---------------------------------------------------------------------------------------------
12 The Amount of 9+ 10+11 should not exceed Rs 1,50,000

Employees Voluntary Contribution (Tier I) Deductions under Section

13 80CCD(1B) Amount invested in National Pension Scheme at the rate of Not
10% or more up to Rs 50,000 00 deductible
Serial Particulars Amount Amount (Rs)
No (Rs)

14 Total Taxable Salary Income(7-8-12-13)(Rounded off

to nearest 10 rupees)

886542 1201304
 Tax calculation on Taxable Income
IT slab Slab Rate Tax amount IT slab (New) Slab rate Tax amount
Taxable Salary 886542 Taxable Salary 12,01,304
0-2.5L Nil 00 0-2.5 L Nil 00
2.5to 5L 5% 12,500 2.5to 5L 5% 12,500
5 to 10L 20% 77,308 5to 7.5L 10% 25,000
Above 10L 30% 00 7.5 to 10L 15% 37,500
Total Tax 89,808 10 to 12.5 L 20% 40,261
H&E Cess 4% on Tax amt 3,592 12.5 to 15L 25% 00
Total Tax 93,400 Total Tax 1,15,261
Liability
TDS 52,300 H&E Cess 4% 4,610
Tax to be paid 41100 Total Tax 1,19,871
Liability
TDS 52,300
Tax to be paid 67,571
 Verification
I, .............. son/daughter of ...................... do hereby certify
that the information given above is complete and
correct..............

(Signature of the employee)

Full Name:
Place: Designation
Date:
 Certificate for House Rent Paid

I certify that I am residing in the rented house

I pay a monthly rent of Rs ……………..for the house I reside
as tenant (if the rent paid is above 1 lakh furnish rent receipt
and the PAN no of the house owner)
PAN no of the house owner………………..
Date :
Place: Signature
Designation
Particulars Amount (Rs) Particulars Amount (Rs)
Basic Salary 10,50,600 House Bldg Loan (principal) 65,750
DA 2,62,650 Interest on HBL 95,800
HRA 1,68,096 KGID premium 36,000
FD investment(more than five 30,000 Insurance (LIC prem) 20,684
yrs)
FD interest received 2,400 GPF 1,20,000
GIS contribution 5520
Income tax TDS 12300
PT 2400
Bank SB interest 3,800
 Salary and Non salary Income
Salary Income Amount Income from Other Amount
Source
Basic Salary 10,50,600 F.D Interest 2,400

D A with arrears 2,62,650 S.B Interest 3,800

HRA 1,68,096

Total 14,81,346 Total 6,200

 Calculation of Income tax on the Income from Salary
Name of the Government Servant : Mr B
Designation :Dy Director Public Inst
Name and Address of the Office : Bangalore
Permanent Account No(PAN) : ABCPM4515K
Financial Year : 2022-23
Assessment Year : 2023-24
Serial Particulars Amount (Rs) Amount (Rs)
No Old Slab New Slab
1 Total Salary Income including all allowances (1-4-2022 to 31-03-
2023) 14,81,346 14,81,346
2 House Rent Allowance Exemption (Mr B is residing in the own
house therefore HRA exemption is not admissible) Nil No Exemption
3 Amount of Income from Salary after deducting para (2) from (1) 14,81,346 14,81,346
4 Deductions Under Section 16
a) Standard Deduction u/s 16 (ia) Rs 50,000
b) Professinal Tax u/s 16(iii) Actual paid Rs 2400
c) Entertainment allowance Maxm: 5000 Rs Nil
(-) 52400 Not deductible
5 Income from Salary after deducting para 4 from 3
14,28,946 14,81,346
Serial Particulars Amount (Rs) Amount (Rs)
No
6 A) Income from other sources like Interest from savings bank
account and interest from NSC etc
6,200 6,200
7 Amount of total Income from Salary Para 5+6A-6B 14,35,,146 14,87,546

8 Interest on House Building Loan *(see note) 95,800 Not Deductible

Amount after deducting 8 from 7 13,39,346 14,87,546

9 Section 80TTA 3500 Not Dedutible

Interest earned on the balance of amount in Savings Account up to a
maximum of( Rs 10,000) ( Rs 3500)

Amount after deducting 9 from 8 13,35,846 14,87,546

 Conditions for claim of deduction of interest on borrowed capital for
computation of Income from House Property -section 24(b)

1. The deduction is allowed only in case of house property which is owned

and is in the occupation of the employee for his own residence. In case the
house property is not occupied by the employee in view of his place of the
employment being at other place, then his residence in that other place
should not be in a building belonging to him.
2. The acquisition or construction of the house should be completed within 5
years from the end of the FY in which the capital was borrowed. Hence, it
is necessary for the DDO to have the completion certificate of the house
property against which deduction is claimed either from the builder or
through self-declaration from the employee.
3. Any prior period interest may be deducted in equal installments for the FY
in question and subsequent four years.
 The amount of interest allowed
Sl No Purpose of borrowing capital Date of borrowing capital Maximum deduction (Rs)
1 Repair or Renewal or Reconstruction of the Any time 30000
house
2 Acquisition or Construction of the house Before 01.04.1999 30000
3 Acquisition or Construction of the house On or after 01.04.1999 150000(up to 2014-15)
200000 w.e.f. AY 2015-16
4 Aggregate deduction of Sl No 1 and 3 of the table above shall not exceed Rs 2,00,000 from the Financial
Year 2019-20
The employee has to furnish before the DDO a certificate from the person to whom any interest is payable on the
borrowed capital specifying the amount of interest payable. In case a new loan is taken to repay the earlier loan,
then the certificate should also show the details of Principal and Interest of the loan so repaid.
Serial Particulars Amount Amount
No (Rs) (Rs)
10 Deduction under Section 80C (Documents shall be produced for
the amonts other than those deducted from Salary)

1) Contribution to the Emp Grp Insurance Scheme(GIS) Rs 5520

2) Contribution to KGID Policy premiums Rs 36000
3) Contribution to LIC Policies premiums(Maximum: 10% and
20% of the sum assured after 1/4/2012 and before
1/4/2012respectively Rs: 20684
4) General Provident Fund: Rs 120000
Total
5) Fixed Deposits of More than 5 years in Post Office or Banks Rs : 30000
277954
6) Principal Amount of House Building Loan : 65750
out of
which Rs
150000 is Not
allowed deductible
Serial Particulars Amount Amount (Rs)
No (Rs)

14 Total Taxable Salary Income(7-8-12-13)(Rounded off

to nearest 10 rupees)

11,85,846 14,87,546
 Tax calculation on Taxable Income
IT slab Slab Rate Tax amount IT slab (New) Slab rate Tax amount
Taxable Salary 11,85,846 Taxable Salary 14,87,546
0-2.5L Nil 00 0-2.5 L Nil 00
2.5to 5L 5% 12,500 2.5to 5L 5% 12,500
5 to 10L 20% 1,00,000 5to 7.5L 10% 25,000
Above 10L 30% 55,754 7.5 to 10L 15% 37,500
Total Tax 1,68,254 10 to 12.5 L 20% 50,000
H&E Cess 4% on Tax amt 6,730 12.5 to 15L 25% 59,387
Total Tax 1,74,984 Total Tax 1,84,387
Liability
TDS 00 H&E Cess 4% 7,375
Tax to be paid 1,74,984 Total Tax 1,91,762
Liability
TDS 00
Tax to be paid 1,91,762
 Verification
I, .............. son/daughter of ...................... do hereby certify
that the information given above is complete and
correct..............

(Signature of the employee)

Full Name:
Place: Designation
Date:
 Certificate for House Rent Paid

I certify that I am residing in the rented house

I pay a monthly rent of Rs ……………..for the house I reside
as tenant (if the rent paid is above 1 lakh furnish rent receipt
and the PAN no of the house owner)
PAN no of the house owner………………..
Date :
Place: Signature
Designation
 Tax calculation on Taxable Income
IT slab Slab Rate (Ex) Tax amount IT slab (New) Slab rate Tax amount
Taxable Salary 8,50,000 Taxable Salary 8,50,000
All Deductions 98,400 * Deductible All Deductions 98,400* Not Deductible
Net taxable 7,51,600 Net taxable 8,50,000
salary salary
0-2.5L Nil 00 0-2.5 L Nil 00
2.5to 5L 5% 12,500 2.5to 5L 5% 12,500
5 to 10L 20% 50,320 5to 7.5L 10% 25,000
-- -- -- 7.5 to 10 L 15% 15,000
Total Tax 62,820 Total Tax 52,500
H&E Cess 4% on Tax amt 2,512 H&E Cess 4% on Tax amt 2,100
Tax Liability 65,333 Tax Liability 54,600
Rebate under Section 87A is not admissible as the taxable income exceeds Rs 5 lakhs
Deductions: PT:2400+SD:50,000+HRA 6000 + 80C 40,000=98,400*
 Tax calculation on Taxable Income
IT slab Slab Rate Tax amount IT slab (New) Slab rate Tax amount
Taxable Salary 8,50,000 Taxable Salary 8,50,000
All Deductions 2,08,400* Deductible All Deductions 2,08,400* Not Deductible
Net taxble 6,41,600 Net taxble 8,50,000
salary salary
0-2.5L Nil 00 0-2.5 L Nil 00
2.5to 5L 5% 12,500 2.5to 5L 5% 12,500
5 to 10L 20% 28,320 5to 7.5L 10% 25,000
- - - 7.5 to 10L 15% 15,000
Total Tax 40,820 Total Tax 52,500
H&E Cess 4% on Tax amt 1633 H&E Cess 4% on Tax amt 2,100
Tax Liability 42,453 Tax Liability 54,600
Rebate under Section 87A is not admissible as the taxable income exceeds Rs 5 lakhs
Deductions: PT:2400+SD:50,000+HRA 6000 + 80C1,50,000=2,08,400*
 Tax calculation on Taxable Income
IT slab Slab Rate Tax amount IT slab (New) Slab rate Tax amount
Taxable Salary 8,50,000 Taxable Salary 8,50,000
All Deductions 2,73,400* Deductible All Deductions 2,73,,400* Not Deductible
Net taxable 5,76,600 Net taxable 8,50,000
salary salary
0-2.5L Nil 00 0-2.5 L Nil 00
2.5to 5L 5% 12,500 2.5to 5L 5% 12,500
5 to 10L 20% 15,320 5to 7.5L 10% 25,000
7.5 to 10L 15% 15,000
Total Tax 27,820 Total Tax 52,500
H&E Cess 4% on Tax amt 1,113 H&E Cess 4% on Tax amt 2,100
Tax Liability 28,933 Tax Liability 54,600
Rebate under Section 87A is not admissible as the taxable income exceeds Rs 5 lakhs
Deductions: PT:2400+SD:50,000+Med ins. 6000 + House loan int : 65,000+ 80C 1,50,000=2,73,400
 Miscellaneous
The above information are not exhaustive. It is only as a guide to
understand the common provisions relating to deductions of tax
from salaries of state govt. employees. For further information
the trainees may refer to various provisions of The Income Tax
Act 1962, the Income Tax Rules 1962, The relevant Finance Acts
and Taxation and other Laws (Relaxation and Amendment of
Certain Provisions)Act 2020 and relevant circulars/notifications
Eg: Circular No 4/2022 dated 15th March 2022 and also refer
websites www.finmin.nic.in&www.incometaxindia.gov.in
THANKS
Tax Deduction at Source
 Income Tax Calculation on Salary Income.
• Compulsory Deduction of Tax at Source
• DDOs Duties and Responsibilities
• Sources of Income
• Income tax rate for the financial year 2022-23 Assessment Year 2023-24
• Definitions of important terms
• HRA Exemptions
• Deductions and Rebates
• Tax Calculations from salary Income
Compulsory Deduction of Tax at Source

As per section 192 (1) of the Act, any person responsible for paying
any income chargeable under the head "Salaries" shall, at the time of
payment, deduct income-tax on the amount payable at the average
rate of income-tax computed on the basis of the rates in force for the
financial year in which the payment is made, on the estimated
income of the assessee under the head of Salary income for that
financial year.
DDO’s Duties and Responsibilities
(w.r.t. to TDS under IT Act on salary income)
• DDO has to obtain a valid TAN number and obtain PAN of all the deductees
• DDO has to compute the tax of every employee
• Deduct the Tax at Source and pay to Government
• Obtain the records for Deductions/Rebates
• File the Quarterly TDS Returns
• Issue Certificate of Deductions complete in all respects within prescribed
time
• Keep the record of Computation of IT with relevant documents
• Reply to the notices of the department
• A DDO is an assesse in default