TDS on Salaries - Income Tax Department

(6) The National Blood Transfusion Council,
(7) The State Blood Transfusion Council,
(8) The Army Central Welfare Fund,
(9) The Indian Naval Benevolent Fund,
(10) The Air Force Central Welfare Fund,
(11) The Andhra Pradesh Chief Minister's Cyclone Relief
Fund, 1996,
(12) The National Illness Assistance Fund,
(13) The Chief Minister’s Relief Fund or Lieutenant
Governor’s Relief Fund, in respect of any State or Union
Territory, as the case may be, subject to certain conditions,
(14) The University or educational institution of national
eminence approved by the prescribed authority,
(15) The National Sports Fund to be set up by the Central
Government,
(16) The National Cultural Fund set up by the Central
Government,
(17) The Fund for Technology Development and Application
set up by the Central Government
(18) The national trust for welfare of persons with autism,
cerebral palsy mental retardation and multiple disabilities.
6.5 Subscription of long term infrastructure bonds. A new
section 80 CCF has been introduced vide Finance Act, 2010.
This provides that for F.Y. 2010-11(A.Y. 2011-12) and onwards
a further deduction upto Rs. 20,000/- shall be available, for
subscription to long term infrastructure bonds, notified by the
Central Government.
6.6 Allowability of Deduction by the Employer/DDO : The
drawing and Disbursing Officers should satisfy themselves about
the actual deposits/subscriptions/payments made by the employees,
by calling for such particularly information as they deem necessary
before allowing the aforesaid deductions. In case the DDO is not
satisfied about the genuineness of the employee’s claim regarding
any deposit/subscription/payment made by the employee, he should
not allow the same, and the employee would be free to claim the
deduction/rebate on such amount by filing his return of income and
furnishing the necessary proof etc., therewith, to the satisfaction of
the Assessing Officer.
6.7 Tax Rebate : The total income of an assessee is determined
after deductions from the gross total income are made as discussed
in the previous chapter. It is on this total income that the tax payable
is computed at the rates in force. The Income Tax Act further,
provides for rebate from the tax payable as computed above, if
certain investments or payments are made. Rebates provided u/s
88 of the Act are distinct and separate from deductions provided in
Chapter VIA of the Act. While the latter reduces the gross total
income, rebate is a reduction from the tax payable.
It is important to note that no tax rebate u/s 88 shall be
available from A.Y.2006-07 onwards. Similarly, sections 88B
and 88C providing special rebates to senior citizens and ladies
and section 88 D stand omitted w.e.f. 01.04.2006.
6.8 RELIEF UNDER SECTION 89(1)
6.8.1 Relief u/s 89(1) is available to an employee when he receives
salary in advance or in arrear or when in one financial year, he
receives salary of more than 12 months, or receives ‘profit in lieu
of salary’ covered u/s 17(3). Relief u/s 89(1) is also admissible on
family pension, as the same has been allowed by Finance Act, 2002
(with retrospective effect from 1/4/96).
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