Vignesh SC Bose

Presently, employees who wanted to claim tax deductions are required to file self-declarations of tax savings/deductions to employer along with the evidences of such tax savings for every financial year. Employer was liable to deduct tax at sources on the estimated income of employees after considering such self-declarations of tax savings. Now the CBDT has notified new form no. 12BB for such purposes. Employees are now required to submit evidences/particulars of tax savings to employer in Form no. 12BB. The CBDT has also notified revised due dates for filing of quarterly TDS returns by persons (other than government). Due dates for filing TDS return for the quarter ended 30th June, 30th September, 31st December and 31st March has been extended to 31st July, 31st October, 31st January and 31st May respectively (old dates were 15th July, 15th October, 15th January and 15th May respectively). View Form no. 12BB and amended Rules

Finance Minister, Mr. Arun Jaitley, did not propose any change in the income-tax slab rates. However, various changes have been proposed in the income-tax provisions which impact the taxable income of an individual. All relevant proposals made for an Individual are as under: (1)   Rate of surcharge shall be increased to 15% from 12% if total income of an individual exceeds Rs. 1 crore. (2)   An additional tax at the rate of 10% of gross amount of dividend shall be paid by a resident individual, HUF or a firm, if dividend received by them from a domestic company exceed Rs. 10 lakhs per annum. Dividend income is otherwise exempt under Section 10(34), however, such exemption is proposed to be withdrawn in case of rich investors receiving dividend exceeding Rs. 10 lakhs [Section 115BBDA]. (3)   Relief under Section 87A is proposed to be raised from Rs. 2,000 to Rs. 5,000 in order to provide relief to small taxpayers. Relief under Section 87A is available to a res...