CIRCULAR NO : 01/2017
F.No.275/192/2016-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi
Dated the 2nd January, 2017
SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2016-17 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.
Reference
is invited to Circular No.20/2015 dated 02.12.2015 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 2015-16, 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 2016-17 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, 2016:
As
per the Finance Act, 2016, income-tax is required to be deducted under
Section 192 of the Act from income chargeable under the head "Salaries"
for the financial year 2016-17 (i.e. Assessment Year 2017-18) at the
following rates:
2.1 Rates of tax
A. Normal Rates of tax:
B.
Rates of tax for every individual, resident in India, who is of the age
of sixty years or more but less than eighty years at any time during
the financial year:
C.
In case of every individual being a resident in India, who is of the
age of eighty years or more at any time during the financial year:
