IT calculation 2009-10 for salaried class Notified

Tagged with: , ,
Wednesday, January 20, 2010
This article is posted in Income Tax category and has 15 Comments so far.

The Income tax Department has issued notification on 11.01.2010, for envisaging procedures for income tax deduction from salaries under Section 192 of the Income tax 1961 for the financial year 2009-10.  It could be seen that there is no major deviation from the tax proposals announced by the Government in the recent buget.

This circular could be taken as compendium of all the earlier instructions issued by the Income tax department for the estimation of Income tax in respect of salaried class for the financial year 2009-10.

This circular also gains significance in view of categorical announcement by the Income tax department relating to arrears of income received by the emloyees during this year.  It reads as follows.

Relief When Salary Paid in Arrear or Advance:
3.5 Under sub-section (2A)of section 192 where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university,institution, association or body is entitled to the relief under
Sub-section (1) of Section 89, he may furnish to the person responsible for making the payment referred to in Para (3.1), such particulars in Form No. 10E duly verified by him, and thereupon the person responsible as aforesaid shall
compute the relief on the basis of such particulars and take the same into account in making the deduction under Para(3.1)

Download CIRCULAR NO.1/2010 F.No.275/192/2009IT(B)] issued by Income Tax Department

Related Posts

You can leave a response, or trackback from your own site.

15 Responses to “IT calculation 2009-10 for salaried class Notified”

  1. Bhupinder Pathak said on Tuesday, February 9, 2010, 22:37

    Whether the Children Education fee reimbursement is being done in 6th PC upto 12000/- per child upto maximum of two children. Whether the same reimbursement is exempted from Tax.

    Reply

    admin Reply:
    February 13th, 2010 at 11:15 am

    As per the present provisions IT exemption on CEA is limited to Rs.100 per month

    Reply

    Ravi Kumar Reply:
    March 22nd, 2010 at 8:10 pm

    Sir, I used your Income Tax calculation tool for Fin Year 2009-10 where CEA is taken fully exempted under 80c but no exemption as per IT Act i.e 100/- PM I mean to say 1200/- . Please clarify how this calculation is taken into account.

    Reply

    admin Reply:
    March 22nd, 2010 at 9:28 pm

    Tuition fees reimbursed by the govt is exempted to the extent of Rs.100 per month. In other words, if you are reimbursed Rs.1000 per month as CEA, you have to include Rs.900 per month to your taxable income. Under the deduction head, tuition fees paid towards education of children could be deducted from your income under Section 80. Remember, this is nothing to do with CEA, as you deduct the tuition fees paid whether or not it’s reimbursed by Govt. Also tuition fees under deduction head includes fees paid for higher studies

  2. admin said on Tuesday, February 9, 2010, 23:39

    @Bhupinder Pathak

    Yes you are correct.  Children Education allowance will be applicable upto 12000/- per child upto maximum of two children.

    It is exempted from tax upto Rs.100 per month

     

    Reply

  3. Bhupinder Pathak said on Wednesday, February 10, 2010, 11:13

    The forum should take up the matter with the IT department to increase its exemption limit. As this is reimbursement and not the allowance which is given to individual or its exemption limit may be increased and also the Transport allowance exemption limit may be increased after the 6th PC.
    Even the Special Compensatory allowance are exempted upto certain limit which were given after 5th PC and exemption limits have not been increased after 6th PC
    Regards,
    Bhupinder Pathak

    Reply

  4. Dr. Mahe Alam said on Friday, February 12, 2010, 15:53

    Sir, I m working as central Government post of Research officer, in Ministry of Health &family welfare, with pay band 3 scale 15600-39100+ 5400+NPA. My question is wether DA is included in HRA calculation for Exemtion in 40% salary or 10% salary

    Reply

    admin Reply:
    February 13th, 2010 at 8:02 am

    DA should not included. Check this GConnect article for more details

    http://gconnect.in/gc/service/personal-income-tax/it-exemption-for-hra-should-we-take-da.html

    Reply

  5. Jagdamba Prasad said on Saturday, February 13, 2010, 14:19

    Dear sir
    You have included deduction under 80DDB for calculations of taxable income but the circular dated 11th jan has not mentioned the same for Tax deduction at source.Will it be admissible from assessing officer at the time of filing of return or DDO can deduct it.

    Reply

    admin Reply:
    February 17th, 2010 at 5:55 pm

    You have to refer the provisions of Income Tax Act applicable for this year

    Reply

  6. Bhupinder Pathak said on Monday, February 15, 2010, 23:02

    I have used your tool and with this I am able to save Rs. 9246 under section 89(1) because of distributing 60% arrears in previous years. I have two queries.

    1. Whether I have to% submit revise retruns again to IT department of all my previous years ?

    2. As 40% arrear was not bifurcated last year so now whether I can get any relief for the said amount and I can get the refund after filling revise returns by including the 60% bifurcation for whcih I will be claiming benefit under section 89(1) this year.

    Regards,
    Bhupinder Pathak

    Reply

    admin Reply:
    February 17th, 2010 at 2:06 pm

    Query 1: You need not file revised returns for the previous years. You have to file Form 10E along with copies of previous returns to your employer, who would in turn verify its correctness and allow the relief claimed by in the IT return (ITR-1 & 2)

    Query 2: As such there is no provision to claim the unclaimed relief pertaining to the previous year, now.

    Reply

  7. Shamshad ali said on Friday, February 26, 2010, 17:06

    1. Sir I want to know that Bachelor of dental surgery (BDS) degree holder registered under dentists act 1948 admissible for non practice allowanceNPA. 2.A person with BDS degree registered underdentists act 1948 working as tutior in dental college in central university admissable for NPA .

    Reply

  8. Raja Srinivas said on Sunday, February 28, 2010, 19:40

    My son is studying M.S in Australia. Iam took loan from SBH on December 2009. Can I eligible for Educational loan interest exemption for Income Tax 2009-10

    Reply

    admin Reply:
    March 3rd, 2010 at 8:12 am

    No. Exemption from Edu loan interest is available only if the child studies in India.

    Reply

Leave a Reply