PAGAuII/IncomeTax/TDS/2023-24
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OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT II), KERALA
THIRUVANANTHAPURAM
OE(BILLS)/AU II/IT-TDS/2023-24 07.09.2023
CIRCULAR No.
Sub : Recovery of Income Tax for the Financial Year 2023-24 (Assessment Year
2024-25) – reg
Section 115BA C(1) of the Income Tax Act, 1961 provides an option for
assesses to opt for the rates of Income Tax applicable either New Tax Regime or
Old Tax Regime whichever is beneficial to them.
From this financial year, in PFMS the new regime is set as default tax
regime. Staff members those who wish to opt old tax regime, should exercise the
option in the PFMS website/Income Tax Menu and forward to the DDO (Forward
Register in PFMS) on or before 31-10-2023.
Option once exercised and forwarded to DDO Shall be final.
As of now, there is no provision for alteration of Tax Regime, staff
members should click "Forward Regime" only after ascertaining the beneficial
Tax Regime to them.
[ [Link]=>Employees login ID/Password => EIS > Go to EIS=>
income Tax=>Emplovee Savings => Regime Comparison/Emplovee Savings
=>saved process Forward to DDO (Forward Regime)]
However, the option exercised can alter at the time of filing IT Return for
FY 2023-24/AY 2024-25 with Income Tax Department.
Rebate limit of Personal Income Tax has been increased to ` 7 lakh in
the new tax regime. Thus, persons in the new tax regime, with income up to ` 7
lakh shall not pay any tax.
The standard deduction `50,000 is applicable to new tax regime from
financial year 2023-24.
The Officials opting for the New Tax Regime will have to forgo the
following Exemptions and Deductions:
1. The professional tax and entertainment allowance on salaries
2. Leave Travel Allowance (LTA)
3. House Rent Allowance (HRA)
4. Children education allowance
5. Other special allowances [Section10(14)]
6. Interest on housing loan on the self-occupied property or vacant property
(Section 24)
7. Chapter VI-A deduction (80C,80D, 8OE and so on) (Except Section 80CCD (2)
and 80JJAA)
8. exemption or deduction for any other perquisites or allowances
9. Deduction from family pension income
Officials willing to remain in the Old Tax Regime are
requested to furnish a statement in form 12 BB (appended) so as to reach
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OE(Bills) before 31.10.2023 compulsorily. Details of expenditure/investments
stated therein should invariably be supported by documentary evidence wherever
applicable.
No deduction will be allowed without proper documents.
Some of the items of investments/expenditure for which deduction can be
claimed under various sections of IT Act are listed below.
80 C Deduction in respect of certain deposits/payments. The maximum
admissible deduction under this section is `.1.5 lakh
Some of the investment avenues or expenses that can be claimed as
tax deductions under section 80c are as below:
i. PPF (Public Provident Fund) in the name of self, spouse or
children
ii. GPF (General Provident Fund)
iii. Five-year Bank or Post Office Tax Saving Deposits
iv. NSC (National Savings Certificates)
v. ELSS (Equity Linked Saving Schemes) of Mutual Funds
vi. Tuition Fees (For maximum of two children)
vii. Principal repayment of Home Loan
viii. NPS (National Pension System)
ix. Life Insurance Premium (for self, spouse or children)
x. Sukanya Samriddhi Account Deposit Scheme
80 CCC Contribution to annuity plan of LIC (Life Insurance Corporation of
India) or any other Life Insurance Company. The maximum allowable
deduction under this section is `. 1.5 Lakh
80CCD(1) Employees contribution to the pension scheme notified by the
Central Government (NPS), subject to a maximum of 10% of salary
(Salary included Dearness Allowance but excluded all other
allowances and perquisites)
80CCD Shall be allowed a deduction, whether or not any deduction has been
(1B) allowed under section 80CCD (1), of the deposit made in a pension
scheme notified by the Central Government (NPS) which shall not
exceed `. 50,000
80CCD Employers’ contribution to the Pension (NPS) account of the
(2) employee shall be allowed as a deduction, subject to a maximum of
10% of salary (Salary includes Dearness Allowance but excludes all
other Allowances and Perquisites).
Note: - Employers contribution to the NPS account of the employee
should be included under Gross salary of the employee (Section 17)
80CCE The aggregate amount of deductions under section 80C, section
80CCC and sub-section (1) of section 80CCD shall not, in any case,
exceed `.1,50,000
80 D Section 80D of the Income Tax Act permits deductions on amounts
spent by any mode other than cash to effect or to keep in force an
insurance on the health of the assessee or his family/parents, or any
contribution made to the Central Government Health Scheme, or
medical expenditure, subjects to limits/conditions specified therein.
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80DD Deduction in respect of maintenance including medical treatment
of a dependent who is a person with disability.
(a) any expenditure for the medical treatment (including
nursing), training and rehabilitation of a dependent, being a
person with disability; or
(b) paid or deposited any amount under a scheme framed in
this behalf by the Life Insurance Corporation or any other
insurer or the Administrator or the specified company subject
to the conditions specified in the section for the maintenance
of a dependent, being a person with disability,
Provides provisions for tax deductions of `. 75,000 for normal
disability (40%) and ` 1.25 lakh for severe disability (80% and
more).
80DDB Deduction in respect of the expense incurred for medical treatment
of specified disease or ailment for self or a dependent. The
permitted deduction is limited to `. 40,000 a n d `1,00,000 if the
treatment is for a senior citizen, as well as super senior citizen
80 E Deduction in respect of interest on loan taken from any financial
institution or any approved charitable institution for the purpose of
pursuing higher education of self, spouse and children, deduction is
admissible for 8 years.
80 G Deduction in respect of donations to certain funds, charitable
institutions, etc. (Eligible for deduction up to either 100% or 50%
with or without restriction) subject to limits/conditions specified in
the section.
1. 100% deductions without any limit: Donations to funds like
National Defence Fund, Prime Minister’s Relief Fund, National
Illness Assistance Fund, etc. qualify for 100% deduction on the
amount donated.
2. 100% deduction with qualifying limits: Donations to local
authorities, associations, or institutes to promote family
planning and development of sports qualify for 100% deduction,
subject to certain qualifying limits.
3. 50% deduction without qualifying limits: Donations to funds
like the PMs Drought Relief fund, Rajiv Gandhi Foundation, etc.
are eligible for 50% deduction.
4. 50% deduction with qualifying limit: Donations to religious
organisations, local authorities for purposes apart from family
planning and other charitable institutes are eligible for 50%
deduction, subject to certain qualifying limits.
5. The qualifying limit refers to 10% of the gross total income of a
taxpayer.
80 TTA Deductions upto `.10,000 in respect of interest on Deposits in Savings
Accounts.
80 U Deduction in the case of a person with disability.
A person, who, at any time during the previous year, is certified by
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the medical authority to be a person with disability, there shall be
allowed a deduction of a sum of `.75,000 (for whom with severe
disability the deduction is `.1.25 lakh) subject to conditions
prescribed in the section.
Interest accrued on contribution to GPF (to the extent of
contribution of 5 lakh per annum) is exempt from taxable income.
Income under head ‘other than Salary income’ can be offered
for TDS from salary under section 192. (2B). Loss under the head ‘Income from
house property’, being interest on house loan (Section 24) [Maximum eligible
amount `.30,000 for loans up to 31.3.1999, and `.200,000 for loans availed on
or after 1.4.1999, and construction completed within three years (within five
years for loan taken from FY 2017-18) from the end of the financial year in which
capital was borrowed] can be allowed as deduction at TDS stage itself. In such
cases, details may be furnished in form 12-C along with calculation of HBA
interest.
The interest, if any, payable on capital borrowed for the period prior
to the previous year in which the property has been acquired or constructed shall
be deducted in equal instalments for the said previous year and for each of the
four immediately succeeding previous years.
The overall limit of deduction for a year remains as `.2,00,000.
Over and above the deduction under Section 24 explained above, a
deduction up to 50,000 is admissible under section 80 EE for AY 2024-25 in
respect of interest on loan taken during April 2019 to March 2022 for the
acquisition of a residential property subject to the following conditions.
1. The loan has been sanctioned by the financial institution during the period beginning
on the 1st day of April 2019 and ending on the 31st day of March, 2022;
2. The amount of loan sanctioned for acquisition of the residential house property does
not exceed thirty-five lakh rupees.
3. The value of residential house property does not exceed fifty lakh rupees.
4. The assesse does not own any residential house property on the date of sanction of
loan.
Apart from the above, there is a standard deduction of ` 50,000/- for salaried employees.
Those who received any salary arrears during the financial year 2023-24 and wish to avail
tax deduction in current financial year should submit the copy of form 10 E after online
filing.
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Medical reimbursement in excess of `. 25,000 per annum, under section 17(2), is to be
taken as perquisite and taxable.
Under Section 87A, an assessee whose total income does not exceed `.5 lakh shall be
entitled to a tax rebate up to a maximum of `. 12,500.
To claim HRA exemption from Gross salary towards rent paid, the officials
should produce rent receipt from the landlord for the rent paid by the employee.
If the annual rent paid by the employee exceed, `1,00,000 per annum, it is
mandatory for the employee to report PAN of the landlord to the employer. In
case the landlord does not have a PAN, a declaration to the effect from the
landlord along with the name and address of the landlord should be filed by the
employee. In both the cases, proof of online payment of rent for at least six
months should be submitted.
The Rates of Income Tax for the FY 2023-24 (AY 2024-25) are furnished
below.
Old Tax Regime New Tax Regime
Taxable Income Rate of tax Taxable income
Rate of Tax
0-250000 0 0-300000 0
250001-500000 5% 300001-600000 5%
500001-1000000 20% 600001-900000 10%
Above 10,00,000 30% 900001-1200000 15%
1200001-1500000 20%
Above 1500000 30%
Besides tax at above rate, Health and Education Cess @ 4% is levied on
income-tax for the financial year 2023-24.
No refund of Income Tax will be allowed at TDS stage. Hence all the
officials are required to take utmost care in planning their Income Tax and
furnishing the expenditure/investments statements for the purpose of TDS
within the prescribed time limit.
Senior Dy Accountant General/Administration