Sub: Deduction of Income Tax from salary for the Financial Year (Assessment Year )

Transcription

1 MAIN : HRM -103/ a DT SUB : SAL - 13 HO/HRM DEPARTMENT FILE M 3 SUB Sub: Deduction of Income Tax from salary for the Financial Year (Assessment Year ) a) Income Tax Menu in Salary Site b) Income Tax menu in CBS Help Desk All employees whose gross salary income during the financial year exceed Rs.2,00,000/- are requested to furnish the particulars of investments made out of the current income in the menu available in salary site (Centralized Payroll Processing) for reckoning the Investments (Savings) and Other Income for calculation of Income Tax for the Financial Year ending corresponding to the Assessment Year In case, the Investment particulars are not entered in the Menu before 26 th January 2014 Income-Tax for the year will be computed on the basis of the details already made available and recovery will be effected accordingly from the salary of January / February 2014 onwards(as applicable). A. For Branches /Offices other than Head Office/Corporate Office Menu has been provided in salary site to enable branches enter the details of proof for the eligible savings / Investments submitted by the employees under extant provision of Income- Tax Act. i. Savings ( For the investments made) and ii. Income ( Other income earned) Loss on house property to be shown under Savings (S.No.30) and Income on House property under Income (S.No.63). OR Employees of branches/offices themselves can enter savings and income particulars through the format given in CBS help Desk Navigation: Branch Champion >> Staff Pay slip / IT Projection. Note: Entries can be authorized in salary site by officers only. Once authorized, the entries cannot be altered. B. For Head Office / Corporate Office Staff Format for entering the particulars of eligible Savings/Investments and Other income has been ported in CBS Help Desk. Navigation : Branch Champion >> Staff Pay slip / IT Projection Employees (other than Sub staff) themselves may enter the Savings (Investment Details) and Income Earned ( Other than Salary Income ) and sub-staff(with the assistance of clerks) have to enter the details in the format already provided. Xerox Copy of the Investments made along with original has to be produced to Salary section of CO: HRM, on or before 30 th January Only those investments supported by Proof will be reckoned for calculation of Income-Tax.

2 Navigation : Select Investment details (with proof) as shown in the screen below under Income-Tax Menu. Screen for entering Savings / Income detailed instructions are given in How to make an entry and authorize. 2

3 Based on the investment projection given by staff, monthly deduction of Income Tax has already been made effective from April 2013 for the financial year and this was continued till Dec 2013 salary. Deduction of income tax, from the month of Jan 2014 onwards will be based on the proof of investments submitted by the employees. Hence employees are advised in their own interest to submit before 26 th January 2014 the proof of investments made and details of other income at the respective Branches/Offices. At Branches/Offices, the officer- in-charge of salary jointly with ABM/BM have to verify the proof submitted by the employee. Proof of investments submitted by the employees after due verification shall be kept in safe custody by entering the details in Branch Document Register so that they can be made available to the Inspecting Officials of our bank or Income Tax authorities on demand. We reiterate that Officer in-charge of salary/ ABM/BM will be held accountable if proof of documents obtained are not available or not tenable. How to make an entry and authorize 1. Any authorized salary site user (Clerk /Officer) shall login into salary site and enter the details for the purpose of Income-Tax. Entries can be authorized by an officer user only. 2. Enter the SRNO with check digit and click check. 3. Verify the correctness of the Name, scale and PAN Number of the employee, populated on the screen. 4. In case PAN Number is incorrect then ensure correction of the PAN number through the menu provided for the purpose in the salary site. 5. Two options are provided a. Savings : Select for investments made for availing the rebate on Income-Tax in the field Nature of Investments, select the relevant code from the drop down menu and enter Details on Investment, by selecting the relevant code ). b. Income : For entering the applicable Other income (Income entered will be added to the salary income). 6. Ensure filling up of the amount, receipt number (alphanumeric) and receipt date. 7. Finally after filling in all the relevant details press the SUBMIT button. 8. A reference number is provided by the system. 9. Three options are available to the authorizing Officer (Edit, Delete and Authorize). The entry can be authorized after duly verifying the details entered with the physical proof provided by the employee. If found incorrect the entry can be corrected using EDIT option available or can be DELETED. Any entry deleted will be captured at our end with SRNO of the official who has deleted the entry. Hence make sure before deleting an entry. 10. Provision for Cancellation of Authorized entries is also available for canceling any authorized entry if found incorrect. Important points to be noted: a) Note that remittance made through an incorrect PAN number will be treated as nonpayment of Income Tax for the staff concerned. b) Proof of investment should be preserved and shall be made available for Inspecting Officials of our Bank and Income Tax Department officials whenever demanded c) Income Tax will be calculated by the system based on the data submitted on savings/investments made. d) Once income tax is deducted and the tax remitted to Income Tax Department, no refund can be made. Hence Branches/Offices are advised to take extra care to furnish the correct data as input. 3

4 e) Penalty clause 20% of tax has to de deducted from the Gross Salary where there is No/Invalid PAN Numbers will be invoked wherever PAN numbers are not provided. Help List of Nature of investment and other income SAVINGS Code Nature of Details of Investment Receipt/Document to be Maximum Limit No Investment obtained ***Aggregate of Deduction u/s 80C, 80 CCC & 80CCD(1) shall not exceed Rs. 1 lakh 1 ELSS Equity Linked Savings Share Certificate/ No Limit *** Scheme 80C Receipt No 2 LIC 80C Direct Payment(not from Receipt No No Limit *** Salary Deductions) 80 C 3 LIC Direct Payment 80 CCC Receipt No No Limit *** 80CCC 4 Notified Like Tax Savings Fixed Deposit Receipt No No Limit *** Deposit Deposit etc., - 80 C 5 NSC National Saving Certificate NSC Certificate No No Limit *** 80 C 6 NSC Int 80 C & treated as both NSC Certificate No No Limit *** Investment & Income 8 PLI Postal Life Insurance- Receipt No No Limit *** Direct Payment(not from Salary Deductions) 80 C 9 Postal RD Direct Payment(not from Receipt No No Limit *** Salary Deductions) 80 C 10 PPF Public Provident Fund 80C Receipt No No Limit *** 11 Regn.amt / Registration amount in Receipt No No Limit Stamp case of house duty property/stamp duty paid - 80C 12 Tuition Fee paid 80 C Fee Receipt No No Limit *** 13 ULIP Unit Linked Investment Certificate NO No Limit *** Plan 80 C 14 PF arrears Disabled for branches to enter 15 VPF Arrears Disabled for branches to enter 16 Home Loan Not shown under Salary Home Loan a/c No No Limit *** Recovery Monthly Loan with proof (Principal) Installment taken for 1 st Housing Loan only eligible 80C 17 SHL Recovery adjustment 80 C Home Loan a/c No with proof No Limit *** 26 Sec 80DD Expenditure on medical Medical certificate Upto if disability is over 40% & Rs. treatment for dependents by competent if disability is over 80% authority to be produced 27 Sec 80E Interest on Educational Education Loan A/C Any amount of Interest Loan Paid No : 28 Sec 80G Donation for PM/CM Donation receipt No No Limit *** Relief Fund Only (PM/CM Relief Fund Only, for others refund to be claimed on submission of income tax returns, 4

5 5 a 29 Sec 80U Deduction allowed to Medical certificate Upto if disability is over 40% & Rs. persons with disabled by competent if disability is over 80% Employees authority to be produced 30 HL Int Home Loan Interest Home Loan a/c No or ( refer to note given in (a) (Loss) including interest on SHL with Interest below) Certificate D (parents Mediclaim Policy No aged < 65 years) Limit D (parents Mediclaim Policy No aged 65 years and above) SAVINGS Code Nature of Investment Details of Investment Receipt/Document to Maximum Limit No be obtained D (self+spouse+children) Mediclaim Policy No Limit Rs Rajiv Gandhi Equity Saving 50% of Investment or Share Certificate/Folio No limit Scheme(u/s 80 CCG) Rs.25,000 which ever No is less ) 35 SEC89(1)-10E - IT Relief Disabled for branches to enter Evidence to be produced to CO/HRM 36 Prof.tax Recovered Seperately Receipt No Actual Amount Paid 37 HRA Rebate for Award staff Stamped Rent receipt Refer (b) below No 38 Other allowance Non - Taxable Prescribed allowances Limits as exempt under section mentioned under 10(14)(ii) of the income section 10(14) of tax rules 1962 the income tax rules HRA Rebate for Officers Disabled for branches to enter Evidence to be produced CO/HRM 40 Prof. Tax Excess Recovered To be Reversed Interest on Home Loan-80EE First Time Buyers Only, No Other House Sanctioned during to Property to be Owned(Max Rs ) INCOME Code No Nature of Income Details of Income Branch input Amount 51 Bonus Branch to input Actual payment 52 Over Time Branch to input Actual payment 53 Car Perks Car Perks Branch to input As mentioned in 54 Quarters Perquisites Quarters Perks Branch to input As mentioned in to

6 55 Furniture Perquisites Furniture Perks Branch to input As mentioned in 56 Interest Perquisites Diff of Interest Amount Branch to input As mentioned in on Concessional Loan to Staff 57 Incentive (PLI) Incentive on Branch to input Actual payment Performance Linked Incentive Scheme 58 Medical reimbursement Pl. enter only the Branch to input Refer ( c ) below Taxable portion of medical aid 59 Other Income Branch to input As per branch input 60 Sal. Arrears Branch to input As per branch input 61 NSS withdrawn Branch to input Actual payment 62 PF (addl.int) Disabled for branches Evidence to be to enter produced to CO/HRM 63 House prop(income) Income on House Branch to input As per branch Property Like Rental input Income Other important Points : a) Loss under the head Income from House Property being interest on Home Loan / SHL may be claimed as deduction (Section 192(2B)). The maximum amount eligible for such deduction for self occupation is Rs.30,000 for housing loans taken for construction or acquisition of residential building up to and Rs.1,50,000/- for housing loans availed for construction or acquisition of residential building from for the year Certificate to this effect from the specified Institutions to whom the interest is payable specifying the amount of interest payable has also to be obtained and furnished in original. The higher rate (Rs.1, 50,000/-) is not available for loans taken for repair/renovation. b) In order to allow deduction towards rent paid, the staff concerned should produce rent receipt. In case the rent exceeds Rs.8,333/= PM, it is mandatory to provide the PAN number of the landlord. Deduction will not be considered if rent receipt in original/pan number of landlord is not produced. Salary for calculating the exemption on HRA shall include Basic Pay, PQA (Professional Qualification Allowance), FPA(Fixed Permanent Allowance) and Dearness Allowance. c) Medical reimbursement by the employer exceeding Rs.15,000/-p.a is to be taken as perquisite u/s 17(2)(V) of Income Tax Act. d) Rates of income tax for the are given below for information. e) Finance Act 2013 provides, an individual is allowed a deduction upto a limit of Rs.1.00 lakh paid as interest on a loan taken from Financial Institution for residential house property under Sec.80 EE. To be eligible, the loan should have been sanctioned during the period 01/04/2013 to 31/03/2014 (loan not exceeding Rs lakhs), value of the house should not exceed Rs lakhs and the assessee should not own any residential property on the date of sanction of the loan. 6

7 Annual income from all sources (After all exemptions & deductions) Citizens below 60 Yrs (born after April 1, 1953) Income tax Rates for Sr. Citizen above 60 & below 80 Yrs.(born during April 1, 1933 and March 31, 1953) Super Sr. Citizen 80 years and above(born before April 1, 1933) Primary & Secondary Education Cess Upto 2,00,000 Nil Nil Nil Nil 2,00,001-2,50,000 10% Nil Nil 3% 2,50, ,000 10% 10% Nil 3% 5,00,001-10,00,000 Rs plus 20% 10,00,001 and RS plus above 30% Rs.25,000 plus 20% 20% 3% Rs plus 30% RS.100,000 plus 30% 3% f) Changes, if any, in any of the above provision will be intimated in due course. g) Detailed Circular on Income Tax will be released Before January 31, h) Rebate of Rs.2,000/= for individuals having total Income up to Rs.5.00 lakhs (under Sec 87A). T.JAYASHANKAR DEPUTY GENERAL MANAGER (HRM). 7