PPT on Income Tax provisions for F.

Y 2023-24

By – Dr. Manish Sood

CALCULATION OF TAXABLE SALARY INCOME (OLD
TAX REGIME VIS-À-VIS NEW TAX REGIME OF SECTION
115BAC)

THE INCOME UNDER THE HEAD SALARY SHALL BE TAXABLE

ON A DUE BASIS OR RECEIPT BASIS, WHICHEVER IS EARLIER.
SALARY DUE FROM AN EMPLOYER TO AN EMPLOYEE, EVEN IF IT IS
NOT PAID DURING THE YEAR, SHALL BE CHARGEABLE TO TAX.
Computation of Gross Total
Income
Particulars Amount Amount
Income from Salary :
Add: Additions xxx
a) Allowances xxx
b) Perquisites xxx
c) Profit in Lieu of Salary xxx
d) Retirement benefits xxx
e) Pension xxx xxx
Less: Deductions
a) Entertainment Allowance xxx
b) Employment Tax xxx
c) Standard Deduction xxx
d) Professional Tax xxx
e) HRS U/s 10(13)A xxx xxx
Income from House Property :
Gross Annual Value
Less: Muncipal Taxes xxx
Net Annual Value (NAV) xxx
(in case of self occupied property: xxx
Net annual value = 0) xxx
Less: Standard Deduction U/s 24(a) @ 30% of NAV xxx
Interest on Borrowed capital u/s 24(b) xxx
(Subject to Max. of Rs.2,00,000/-) Xxx Xxx
Income from Other Sources :
Interest from Banks xxx
Dividend Income xxx
Family Pension xxx Xxx
The lowest of the following amounts can be claimed as HRA exemption U/s
10(13)A :

S.No. Description
1 Actual HRA received
2 50% of [basic salary + DA] for those living in metro cities (Delhi,
Kolkata, Mumbai or Chennai) or
40% of [basic salary + DA] for those living in non-metros
3 Actual rent paid (-) 10% of basic salary + DA
The standard deduction allowable from Family pension U/s 57(iia):

1/3 of pension subject to maximum of Rs.15,000 will be

allowed as standard deduction from family pension
Deductions allowable from
Gross Total Income
 Income Tax Deduction for FY 2023-24(AY Maximum deduction available for FY
Sections Eligible person
2024-25) 2023-24(AY 2024-25)

Investing into very common and popular Individual

investment options like LIC, PPF, Sukanya
Section 80C
Samriddhi Account, Mutual Funds, FD, child Or
tuition fee, ULIP, etc
HUF
Upto Rs 1,50,000
Section 80CCC Investment in Pension Funds Individuals

Atal Pension Yojana and National Pension

Section 80CCD (1) Individuals
Scheme Contribution

Atal Pension Yojana and National Pension

Section 80CCD(1B) Individuals Upto Rs 50,000
SchemeContribution (additional deduction)
Upto Rs 50,000 (including parents)
Individual
(Rs.1,00,000/- for senior citizens including
Medical Insurance Premium, preventive
Section 80D for parents)
health checkup and Medical Expenditure Or
*including of Rs.5,000/- towards
HUF preventive health checkup

Normal Disability (atleast 40% or more

Individual
but less than 80%): Rs 75000/-
Medical Treatment of a Dependent with
Section 80DD Severe Disability (atleast 80% or more) :
Disability Or
Rs 125000/-
HUF
 Income Tax Deduction for FY 2023- Maximum deduction available for FY 2023-24(AY
Sections Eligible person
24(AY 2024-25) 2024-25)
No limit (Any amount of interest paid on education
Interest paid on Loan taken for Higher
Section 80E Individual loan) upto 8 assessment years from the year of re-
Education
payment or closing period WEL.
Upto Rs 50,000 subject to some conditions
(applicable for loans sanctioned between 1st April
Section 80EE Interest paid on Housing Loan Individual
2016 and 31st March 2017)

Upto Rs 1,50,000/- subject to some conditions

(applicable for loans sanctioned between 1st April 2019
Section 80EEA Interest Paid on Housing Loan Individual
and 31st March 2022)

100% or 50% of the Donated amount or Qualifying

Donation to specified funds/institutions. All Assessee (Individual, limit,
Section 80G
Institutions HUF, Company, etc)
Allowed donation in cash upto Rs.2000/-

Rs. 5000 per month

Income Tax Deduction for House Rent 25% of Adjusted Total Income
Section 80GG Individual
Paid Rent paid - 10% of Adjusted Total Income

- whichever is lower
Section 80TTA Interest earned on Savings Accounts Individual Upto Rs 10,000/-
Interest Income earned on deposits(Savings/
Section 80TTB Individual (60 yrs or above) Upto Rs 50,000/-
FDs)
Normal Disability: Rs. 75,000/-
Section 80U Disabled Individuals Individuals
Severe Disability: Rs. 1,25,000/-
 Deductions allowable from
Gross Total Income in new tax
regime U/s 115BAC
Deductions or exemptions allowable under New tax regime (also known as alternative tax regime) for
the Assessment Year 2023-24 for an individual or HUF under Section 115BAC :

1. Transport allowances in case of a specially-abled person.

2. Conveyance allowance received to meet the conveyance expenditure incurred as part of the
employment.
3. Any compensation received to meet the cost of travel on tour or transfer.
4. Daily allowance received to meet the ordinary regular charges or expenditure you incur on
account of absence from his regular place of duty.
5. Perquisites for official purposes
6. Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s
10(10AA)
7. Interest on Home Loan on let-out property (Section 24)
8. Gifts up to Rs 50,000
9. Deduction for employer’s contribution to NPS account [Section 80CCD(2)]
10. Deduction for additional employee cost (Section 80JJA)
11. Budget 2023 introduced a standard deduction of Rs 50,000 under New Tax Regime
applicable from FY 2023-24
12. Budget 2023 also introduced deduction under Section 57(iia) of family pension income
 Particulars Amount
Gross Total Income xxx
Less: Dedcutions xxx
Net Total Income xxx
Computation of Tax on Total
Income for F.Y 2023-24
Tax Slabs under old Tax regime:
Net Income Range Rate of Income-tax

Up to Rs. 2,50,000 -
Rs. 2,50,000 to Rs. 5%
5,00,000

Rs. 5,00,000 to Rs. 20%

10,00,000

Above Rs. 10,00,000 30%

New tax regime (also known as alternative tax regime) for the
Assessment Year 2023-24. An individual or HUF has to exercise
the option under Section 115BAC(5) to avail its benefit.:

Net Income Range Tax rate

Upto Rs. 3,00,000 Nil

From Rs. 3,00,001 to Rs. 6,00,000 5%
From Rs. 6,00,001 to Rs.9,00,000 10%
From Rs. 9,00,001 to Rs. 12,00,000 15%
From Rs. 12,00,001 to Rs. 20%
15,00,000
Above Rs. 15,00,000 30%
 Add:
a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee
exceeds specified limits:-

Rs. 50 Lakhs to Rs. 1 Crore Rs. 1 Crore Rs. 2 above Rs. 5

to Rs. 2 Crores to crore
Crores Rs. 5
Range of Income Crores

Rate of Surcharge 10% 15% 25% 37%

b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of
income-tax plus surcharge.
 Rebate U/s 2. From Assessment Year 3. Further, if the total
2024-25, a maximum income of the resident
87A : rebate of Rs. 25,000 is
allowed under section
individual opting section
115BAC(1A) exceeds
87A, if the total income Rs. 7,00,000 and the tax
1. A resident individual of a resident individual, payable on such income
(whose net income does who is opting for the new exceeds the difference
not exceed Rs. 5,00,000) tax scheme under Section between the total income
can avail rebate 115BAC(1A), is up to and Rs. 7,00,000, he can
under section 87A. It is Rs. 7,00,000. claim a rebate with
deductible from income- marginal relief to the
tax before calculating extent of the difference
education cess. The between the tax payable
amount of rebate is 100 on such total income and
per cent of income-tax or the amount of income by
Rs. 12,500, whichever is which it exceeds Rs.
less. 7,00,000
  Marginal Relief :
in case where net income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 Crore, the amount payable as
ii.

income tax and surcharge shall not exceed the total amount payable as income tax on total income of
Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.
ii. in case where net income exceeds Rs. 1 crore but doesn't exceed Rs. 2 crore, marginal relief shall
be available from surcharge in such a manner that the amount payable as income tax and surcharge
shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than
the amount of income that exceeds Rs. 1 crore.
iii. in case where net income exceeds Rs. 2 crores but doesn't exceed Rs. 5 crores, marginal relief
shall be available from surcharge in such a manner that the amount payable as income tax and
surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crores by
more than the amount of income that exceeds Rs. 2 crores.

iv. in case where net income exceeds Rs. 5 crores, marginal relief shall be available from surcharge
in such a manner that the amount payable as income tax and surcharge shall not exceed the total
amount payable as income-tax on total income of Rs. 5 crores by more than the amount of income
that exceeds Rs. 5 crores.
TDS Rate Chart for F.Y 2023-24
Section Nature of transaction Threshold Limit (Rs) TDS Rate

192 Salary Basic exemption limit As per applicable slab rates

Single transaction- 30,000 HUF/Individuals: 1%

Payment done to
194C
subcontractor/contractor
Aggregate transactions- 1,00,000 Others: 2%

194-I Rent:

194-I(a) plant and machinery 2,40,000 2%

194-I(b) land/building/furniture/fitting 2,40,000 10%

Payment on transfer of immovable

194-IA 50,00,000 1%
property except agricultural land
Rent paid by HUF/Individual who is not
194-IB 50,000 per month 5%
required to conduct tax audit

Fees paid for - 30,000 2%

30,000 2%
194J
Technical services

Royalty in the nature of consideration

for sale, distribution or exhibition of
cinematographic films
Fees paid for any other professional
194J 30,000 10%
services or technical service
Amount exceeding 1 crore (exceeding
194N 20 lakhs for people not filing ITR for 1 crore 2%
previous 3 years)

194Q Purchase of goods after 1.07.2021 50,00,000 0.10%

TDS Payment Due Dates
Due dates for depositing TDS TDS Return Due Date
Quarter ending Month of deduction

(FY 2023-24)* (FY 2023-24)

Apr-23 7th May 2023

30th June 2023 May-23 7th June 2023 31st July 2023
Jun-23 7th July 2023
Jul-23 7th August 2023

30th September 2023 Aug-23 7th September 2023 31st October 2023

Sep-23 7th October 2023

Oct-23 7th November 2023

31st December 2023 31st January 2024
Nov-23 7th December 2023
Dec-23 7th January 2023
Jan-24 7th February 2024
Feb-24 7th March 2024

7th April 2024 (for tax deducted by govt.

31st March 2024 31st May 2024
office)
Mar-24

30th April 2024 (for other deductors)

*All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government without challan (Treasury Challan) should be deposited on the
same day of deduction. Only for tax deducted by the government office during the month of March 2024 should be deposited by 7th April 2024.
Types of TDS Returns
Form No Particulars Periodicity TDS Certificate

Form 24Q Quarterly statement for tax deducted at Quarterly Form-16 (to be issued annually on or
source from “Salaries” before 15th June of the assessment year
for which the income tax return is being
filed

Form 26Q Quarterly statement of tax deducted at Quarterly Form-16A (To be issued Quarterly within
source in respect of all payments other 15 days from the due date of furnishing
than “Salaries” of the TDS Statement)

Form 27EQ Quarterly statement of collection of tax Quarterly Form-27D (To be issued Quarterly within
at source 15 days from the due date of furnishing
of the TDS Statement)
Interest on Late Deposit of TDS

Section Nature of Default Interest subject to TDS/TCS amount Period for which interest is to be paid

From the date on which tax is deductible

201(1A)(i) TDS not deducted (fully/partly) 1% per month to the date on which tax is actually
deducted.

TDS not deposited to the government From the date of tax deduction to the
201(1A)(ii) 1.5% per month
after deduction (fully or partly) date of deposit

Note: The above interest should be paid before filing of TDS return.
Challans under Income Tax

Challan 280 Challan 281

For the payment of advance tax, self-

assessment tax, tax on regular assessment, For depositing Tax Deducted at Source (TDS)
surtax, tax on distributed profits of domestic and Tax Collected at Source (TCS) to the
company and tax on distributed income to unit Income Tax department.
holders.