Administration Manual - B.E.S.T. Undertaking.

handicapped. On the receipt of these applications, necessary advises are
forwarded to EDP Dept. to stop deduction of Profession Tax and for
giving exemption as per the provisions of Income Tax Act under this
Section.
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Income Tax is also deducted on various payment other than salary
such as LTA / encashment / deputation allowance / honorarium / medical
reimbursement bills etc and advice of the same is forwarded to EDP for
giving effect in income tax certificate i.e. form 16 of the employee.
employees.
Deduction of Income tax from the Final Bill of the separated
In case of separated employees Income Tax is deducted from their
income at the time of their final dues bill. The final dues bill of such
separated employees is prepared by respective T.K. Dept. and forwarded
to Income Tax section for calculation of Income Tax. Considering their
total income & the investments made by them for getting exemption/
rebate, an advice is sent to the EDP for giving necessary effect on their
Form No. 16.
Issue of Guidelines on Income Tax.
A circular on guidelines is issued in the month September or
October every year on the receipt of notification of Finance Ministry.
This circular gives the details of rates of income tax for the prevailing
financial years alongwith permissible deductions/ rebates from gross