Quick Summary
Introduction This circular provides details regarding income-tax deduction from salaries for the financial year 2024-25 under Section 192 of the Income-tax Act, 1961 ("the Act"). It includes amendments introduced by the Finance (No.2) Act, 2024, Finance (No.1) Act, 2024, and Finance Act, 2023. In c
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FAQ :
For FY 2024-25, the definition of salary now includes contributions by the Central Government to the Agniveer Corpus Fund under Section 80CCJJ. Perquisites, such as rent-free and concessional-rate accommodation provided by employers, are also included.
Under the new tax regime for FY 2024-25, the tax rates are: Nil up to Rs 3,00,000; 5% from Rs 3,00,001 to Rs 7,00,000; 10% from Rs 7,00,001 to Rs 10,00,000; 15% from Rs 10,00,001 to Rs 12,00,000; 20% from Rs 12,00,001 to Rs 15,00,000; and 30% above Rs 15,00,000.
The valuation of employer-provided accommodation has been amended. For owned accommodation, the charge is now 5% to 10% of salary based on city population. For leased accommodation, it's the lower of the actual lease rental or 10% of salary.
The exemption for leave encashment for non-government employees at the time of retirement has been increased to Rs. 25,00,000.
Yes, Form No. 16 has been updated, effective from 15.10.2024. Form No. 24Q now requires 'Health and Education Cess' instead of 'Education Cess' and includes a new column for additional TDS details.
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