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Taxation Central Ministry of Finance Income Tax Act, 1961

CBDT (Income Tax) issues a circular regarding the rate of deductions from the Income under the head of "Salaries"

20-Feb-2025 | CIRCULAR NO : 3/2025

CBDT (Income Tax) has issued a circular regarding the rate of deductions from income under the head 'Salaries' under Section 192 of the Income Tax Act, in accordance with the amendments made in the Finance Act, 2023 & 2024. By virtue of circular: - The term "salary" now includes contributions made by the Central Government to the Agniveer Corpus Fund account of individuals enrolled in the Agnipath Scheme. - The value of rent-free accommodation and any accommodation at a concessional rate provided to the employee is included in the ambit of "Perquisite." - New surcharge rates have been introduced for individuals with higher incomes under the Old Tax Regime. These rates range from 10% to 37% based on income brackets. - Form No. 16 has been amended to reflect the new tax regulations. The form now includes details of other income, tax deductions, and exemptions. It also provides a comprehensive breakdown of salary components and tax calculations. For more information, please refer to the specified document.

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