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Income-tax deduction from salaries during the Financial Year 2015-16 under section 192 of the Income-tax Act, 1961

CIRCULAR NO : 20/2015

F.No. 275/192/2015-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi
Dated the 2nd December, 2015

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2015-16 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961

Reference is invited to Circular No.17/2014 dated 10.12.2014 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 2014-15, 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 2015-16 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.gov.in.

2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2015:

As per the Finance Act, 2015, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2015-16 (i.e. Assessment Year 2016-17) at the following rates:

2.1 Rates of tax

2.2 Surcharge on Income tax:

2.3.1 Education Cess on Income tax:

2.3.2 Secondary and Higher Education Cess on Income-tax:

3. SECTION 192 OF THE INCOME-TAX ACT, 1961: BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM “SALARIES”:

3.1 Method of Tax Calculation:

3.2 Payment of Tax on Perquisites by Employer:

3.2.1 Computation of Average Income Tax:

3.2.2 Illustration:

To view the complete Notification, please click below:

Income-Tax Deduction from Salaries during the Financial Year 2015-16 under Section 192 Of The Income-Tax Act, 1961

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