Income-Tax Deduction from Salaries during the Financial Year 2018-19

Income-Tax Deduction from Salaries during the Financial Year 2018-19

CIRCULAR NO : 01 /2019

F.No. 275/192/2018-IT(B)
Government of India
Ministry  of Finance
Department of Revenue
Central Board of Direct Taxes
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North Block, New Delh
Dated the 1st January, 2019

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2018-19 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Reference is invited to Circular No. 29/2017 dated 05.12.2017 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 2017-18, 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 2018-19 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, 2018:

As per the Finance Act, 2018, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2018-19 (i.e. Assessment Year 2019-20) at the following rates:

2.1 Rates of tax
A.Normal Rates of tax:

S.NO	TOTAL INCOME	RATE OF TAX
1	Where the total income does not exceed Rs 2,50,000/-.	Nil
2	Where the total income exceeds Rs 2,50,000/- but does not exceed Rs 5,00,000/-.	5 per cent of the amount by which the total income exceeds Rs. 2,50,000/‑
3	Where the total income exceeds Rs 5,00,000/- but does not exceed Rs 10,00,000/-.	Rs. 12,500/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4	Where the total income exceeds Rs 10,00,000/-.	Rs. 1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-