VERY IMPORTANT QUESTION AND ANSWERS REGARDING INCOME TAX

Some Questions and Answers regarding Income Tax



1.WHAT CONSTITUTES SALARY INCOME?





“Salary” is the remuneration received by or accruing periodically to an individual for service rendered as a result of expressed or implied contract.





Compensation or remuneration even in the following circumstances is chargeable to Income-tax under the head ‘Salaries’: -





a) When due from the former employer or present employer in the previous year, whether paid or not.





b) When paid or allowed in the previous year, by or on behalf of a former employer or present employer, though not due or before it becomes due.





c) When arrears of salary are paid in the previous year by or on behalf of a former employer or present employer, if not charged to tax in the period to which it relates.





It is, therefore, clear that apart from current years salary, even advance salary and/or arrears of salary may be taxed in the year of receipt. More specifically and elaborately, the Income-tax Act has stipulated that salary includes :-





a) Salary, including advance/arrears of salary;





b) Wages;

c) Fees;

d) Commission;

e) Pension;

f) Annuity;

g) Perquisite;

Receipts from Provident Fund chargeable to tax; Profit in lieu of or in addition to salary or wages; Gratuity;

Contribution of employer to Recognised Provident Fund in excess of prescribed limit; Interest on credit balance of Recognised Provident Fund in excess of notified rates;

i) Encashment of leave



definition of ’salary’ is inclusive and not exclusive.



2.IS RELATIONSHIP OF EMPLOYER AND EMPLOYEE NECESSARY ?



No, payment can be taxed under this section unless the relationship of employer and employee exists between the payer and payee. The employer and employee relationship is the relationship of a master and servant, and it distinctly differs from that existing between a principal and agent. Primarily, the degree of control of the employer over the employee would be a deciding factor, as the agent is generally not under the complete Control and supervision of his principal.

That is why even the emoluments received by an Member if Parliament/ M.L.A. are not taxable under the head “Salary” because of the absence of employer and employee relationship

3.EXEMPTIONS OF INCOME



RELEVANT FOR THE HEAD “SALARIES”

It is not true that every income received by an employee from his employer is taxable. Any income falling within any of the following paragraphs shall not be included in computing the income from salaries: -

(1) The value of any travel concession or assistance received by or due to an employee from his employer or former employer for himself and his family, in connection with his proceeding

(a) on leave to any place in India or

(b) on retirement from service, or, after termination of service to any place in India is exempt under clause (5) of Section 10 subject, however, to the conditions prescribed in rule 2B of the I.T. Rules, 1962.

(2) Death-cum-retirement gratuity or any other gratuity which is exempt to the extent specified from inclusion in computing the total income.

(3) Any payment in commutation of pension received under the Civil Pension (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the Civil/Defense services under the Union/State/Local Authority or a Corporation established by a Central, State or Provincial Act. Payments in commutation of pension received under any scheme of any other employer, exemption will be governed by the provisions of Section 10(10A) (ii).

(4) Any payment received by an employee of the Central /State Government, as cash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement on superannuation or otherwise, is exempt. In the case of other employees it is subject to a maximum of ten month’s leave. This exemption has an overall max. limit of Rs. 2,40,000 [S.0.1015 (E) dated 27.11.97).

(5) Under Section 10(10B), the retrenchment compensation received by a workman is exempt from income-tax subject to certain limits.

(6) Under Section 10(10C), any payment received by an employee of the notified bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempted to the extent that such amount does not exceed five lakh rupees

(7) Any sum received under a Life Insurance Policy, including the sum allotted by way of bonus on such policy other than any sum received under sub-section (3) of Section 80DDA.





(8) Any payment from a Provident Fund to which the Provident Funds Act, 1925 (19 of 1925), applies.





(9) Under Section 10(13AJ of the Income-tax Act, 1961, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed.





(10) Under section 10(14) exemption of notified allowances is provided. The CBDT has prescribed guidelines for the purpose of classes (i) and (ii) of Section 10(14) vide Notification No.SO617(E) dated 7th July/ 1995 (F.No.l42/9/95TPL)which has been amended vide Notification SO No.403(E) dated 24.4.2000 (F,No.l42/34/99-TPL).





11) Under Section 10(15)(iv)(i) of the Income-tax Act, interest payable by the Government on deposits made by an employee of the Central Government or a State Government or a public sector company from out of his retirement benefits, in a notified scheme, is exempt.





(12) Income by way of pension received by an individual or family pension received by any member of the family of an individual who has been in the service of the Central Government or State Government and has been awarded 'Param Vir Chakra" or "Maha Vir Chakra" or "Vir Chakra" or such notified gallantry award, is exempt.





(13) Under Section 17 of the Act, exemption from tax will also be available, under prescribed conditions, in respect of any medical treatment provided to an employee or any member of his family or premium paid by the employer in respect of approved medical insurance taken for his employees or reimbursement of insurance premium to the employees for such medical insurance for the employee or his family members.





4.WHAT ARE PERQUISITES?



A 'perquisite' is defined in the Oxford as 'any casual emolument, or profit attached to an office or position in addition to the salaries or wages'. In sunlit words, perquisites are the benefits in addition to normal salary to which the employee has a right to by virtue his employment. In simple language, 'perquisites 1 are benefits or amenities provided in kind by the employer free of cost or at a concessional rate. Their value, to the extent these go to reduce expenditure that the employee normally would have otherwise incurred in obtaining these benefits and amenities, is regarded as part of taxable salary. As a golden rule, the taxable value of perquisites in the hands of the employee, is its cost to the employer.





However, there are specific rules for valuation of certain perquisites.

5.WHAT IS FAIR RENT?

'Fair rent' is the rent which a similar accommodation is able to get in the same locality or the Municipal value of the accommodation, whichever is higher.





Where the accommodation is hired by the employer, it is the actual rent paid for the accommodation.





Where it is owned by the employer, maintenance expenses of garden and salary of the gardener, if borne by the employer, are also to be taken into account.





6.IS THERE A RELIEF AGAINST HIGHER TAX RATES WHEN SALARY IS PAID IN ARREARS OR IN ADVANCE?





Yes. If because of Payment of salary in arrears or in advance, or payment of compensation or provident Fund or gratuity etc., an assessee's income becomes assessable at a higher, rate in a particular year than at which it would otherwise have been assessed, the Assessing Officer is bound by Section 89(1) to grant relief as prescribed. This enables the assessee to pay the tax at lower rates.





7.WHO WOULD GRANT RELIEF TO PENSIONERS U/S. 16, 88, 88B AND 88C?





The deductions from the amount of pension of standard deduction under section 16 and the tax rebate U/S 88B will be allowed by the DDO/Bank, before making payment to pensioner. For rebate under section 88 on account of contribution to Life Insurance, Provident Fund, NSC etc., if the pensioner furnishes the relevant details to the banks, the tax rebate will also be allowed. Necessary instructions were issued by the Reserve Bank of India to the Banks vide RBFs Pension Circular (Central Series) No. 7/C. D. R./ 1992 (Ref. Co. DGBA: GA (NBS) No. 60/GA. 64 (11 CVL)-91/92) dated the 27th April, 1992, and, they must be followed by all the Banks, which have been entrusted with the task of payment of pensions.



8.WHICH FORM IS SPECIFIED FOR CLAIMING RELIEF u/s 89 (1)?





Yes, it is Form No. 10E



9.WHICH RULE IS RELEVANT FOR DETERMINATION OF RELIEF U/S 89(1)?



The relevant rule for determination of relief u/s 89(1) is Rule 21A of the I.T. Rules 1962

HOW IS THE RELIEF U/S 89(1) COMPUTED?



It is computed as per following steps; -



1. Salary of current year it arrears + advances A

2. Tax on (A) at current rates B



3. Current Salary (i.e) Others excluded C



4. Tax on (C) at current rates D



5. Deduct: [D (-) B] E



6. Add arrears to total income of year to which it relates F



7. Tax on (F) at rates of that year G



8. Total income of that year (-) arrears H



9. Tax on (H) at rates of that year



10.Extra tax for that year : [G (-) I}



11.Relief: {E (-) J}



12.Tax payable for the current year {B (-) Relief}

10.ENTERTAINMENT ALLOWANCE





Upto A.Y. 2001-02 Entertainment allowance is first , included in the employee's salary and then exemption is allowed as given here-in-below:-





(a) In the case of Government employee the least of





(i) Rs.5000 or,





(ii) 20% of salary (exclusive of any other allowance), is allowable as a deduction.



(b) In the case of non-Government employees least of the



following : -





(i) Entertainment allowance regularly received from his present employer from a date prior to 1.4.1955 or,





(ii) A sum equal to 1/5th of salary (exclusive of any other allowance, benefit or perquisite) or,





(iii) Rs.7,500, is allowed as a deduction.





11.IS STANDARD DEDUCTION ALLOWABLE TO PENSIONERS?



Yes. The standard deduction is also allowable to pensioners.



12.DEDUCTION FOR PROFESSIONAL OR EMPLOYMENT TAX





Professional tax or employment tax, levied by a State Government is eligible as a deduction. The amount so paid can be deducted from the taxable salary.



13.STANDARD DEDUCTION





For A.Y. 1998-99, Standard deduction of a sum equal to 33-1/3% of the salary or Rs.20,000 whichever is less, was allowed to an individual having income from salary.



Then w.e.f. 1-4-99 this limit of Standard deduction for assessees having salary income upto Rs. 1,00,000 was increased from Rs.20,000 to Rs.25,000, However, the benefit of standard deduction to assessees having salary income of more than Rs. 5,00,000 was withdrawn. This implies that an assessee earning salary income between Rs. 1 lac and Rs.5 lacs will only be entitled to a Standard deduction of a sum equal to 33-1/3% of the salary or Rs.20,000 whichever is less.



14.THE DEDUCTIONS FROM SALARY INCOME UNDER SECTION 16

The following deductions are available from salary income:-

Standard deduction.



Deduction for professional or employment tax



Deduction of entertainment allowance.



15.HAS THERE BEEN A CHANGE IN RATE OF EMPLOYEE'S CONTRIBUTION TO HIS PROVIDENT FUND?



Yes. After 22nd September 1997 it has been raised upto 12% (previously 10%) by the Employee's Provident Fund 85 Misc. Provisions [Amendment Ordinance, 1997 (17 of 1997)].



16.EMPLOYER’S CONTRIBUTION TO SUPERANNUATION FUND





HAS THERE BEEN A CHANGE IN RATE OF DEDUCTION ALLOWED ON ACCOUNT OF INITIAL CONTRIBUTION THAT AN EMPLOYER MAY MAKE FOR PAST SERVICES OF EMPLOYEE ?

Yes. Upto 21st Sept. 1997 the tax deductible contribution by an employer was upto 25% of the annual salary of the employees. Now this limit has been increased to 27% of the employee’s salary for each year. [I.T. (Second Amendment) Rules 1998, G.O.I. Gazette Notification No. S.O. 50(E) dt. 16th Jan. 1998; CBDT F.No. 142/79/97-IPL No. 105071.



17.EMPLOYER'S CONTRIBUTION TO PROVIDENT FUND

The annual contribution of employer to the balance in a employees' account in a recognised fund is exempt to the extent it does not exceed the limit as given below: ~

(i) The employer's contribution should not exceed 12% of the employee's salary (excluding allowance and perquisites but including D.A if it forms the part of salary as per terms of/employment). If it exceeds, the excess over 12% is taxed.

(ii) Interest on the accumulated balances should not be paid at a rate higher than 12% per annum. Such interest in excess of this exempted limit forms part of the employee's salary, and the deduction under section 80-L is also not allowable in respect of such interest.



18.IF GRATUITY IS RECEIVED FROM MORE THAN ONE EMPLOYER IN THE SAME YEAR, WHAT WILL BE THE CEILING?

The Ceiling of Rs.3,50,000 would apply to aggregate of gratuity from one or more employers in the same year in case of retirement or death etc. occurring after 24.9.97 Prior to that date, ceiling was Rs.2,50,000.

19.IF THE GRATUITY IS RECEIVED FROM DIFFERENT EMPLOYERS IN DIFFERENT YEARS WILL THE CEILING BE DIFFERENT?

No. The ceiling will still be Rs,3.5 lakhs or Rs.2.5 lakhs as specified in the preceding paragraph.



20.WHAT IS THE AMOUNT OF EXEMPTION OF GRATUITY RECEIVED AT THE TIME OF RETIREMENT?





Gratuity is a payment in return of service and it is taxable as contractual salary. However, the I. T. Act exempts gratuity from Income-tax, subject to limits.





In case of Government employees, the whole of the death-cum-retirement gratuity is exempt from tax.



In the case of Industrial Workers, any gratuity received by an employee drawing monthly salary (not exceeding Rs.2,500) only the feast is exempt:-





(a) 5 days salary (7 days in the case of seasonal employment) for each completed year of service or in excess of 6 months.





(b) Rs. 50,000 .





(c) The amount of gratuity actually received.





In other cases, the exemption is available in respect of amount of gratuity actually received.





21.IS ENCASHMENT OF LEAVE DURING THE EMPLOYMENT ALSO EXEMPT?





No. Encashment of leave at any time during the employment is taxable in full.





TAXATION OF COMMUTATION OF PENSION





22.WHAT IS THE AMOUNT OF EXEMPTION OF COMMUTATION OF PENSION?





In the case of Government employees the entire amount is exempt from tax. However, in the case of non-Government employees the maximum amount exempt from tax is restricted to the commuted value of I/3rd of pension where the employee also received gratuity. Commuted value of 50% of pension is, however, exempt.



23.IS ENCASHMENT OF EARNED LEAVE EXEMPT AT THE TIME OF RETIREMENT?





Yes, subject to certain limits, if it relates to a Government employee his retirement from service on superannuation or otherwise, it is fully exempt.





In the case of other employees, the exemption from Income-tax is in respect of encashment of upto the maximum of 8 months earned leave calculated at the average of Jast 10 month's salary. There is also maximum monetary limit which is Rs. 1,35,360 for a person retiring on or after 1.7.95.





This limit is applied on the aggregate amount of such payments received from, two or more employers, whether received in the same year or in different years.



24.ENCASHMENT OP EARNED LEAVE

As the name suggests, it is the amount received by the employee for the leave period not availed by him.



25.HOW MANY TIMES CAN EXEMPTION BE CLAIMED ?





The assessee can claim exemption in respect of two such journey(s) in a block of 4 years. For this purpose, the first block of 4 years was calendar year 1986-89. For a block of 4 years, the journey performed in the first year following that block year is also eligible for exemption. Also, such journey will not be taken into account for determining the tax exemption for the succeeding block.





26.LEAVE TRAVEL CONCESSION





WHAT ARE THE LIMITS OF EXEMPTION IN L.T.C. is granted to an employee in connection with the journey on leave by him or his family. It is exempt from income tax within certain limits as under : -





(a) Where journey is performed by rail; railway-fare in Second AC class by shortest route to destination.





(b) Where places of origin and destination are connected by rail but the journey is performed by any other mode then Second AC class fare by shortest route to the place of destination.





(c) Where place of origin of journey and destination, or part thereof, are not connected by rail and journey is performed by any other transport; then





(i) If a recognised public transport system exists between such places the first class or deluxe class fare of such transport by shortest route, or,





(ii) If in other case, Second AC class fare for the distance of the journey by the shortest route, as if the journey has been performed by rail.





Exemption will, in no case exceed actual expenditure incurred in the performance of journey.





Leave Travel Concession Rules have been amended on the recommendation of the Fifth Pay Commission to extend the facility of travel by air economy Y- Class to certain categories of employees of the Central Government with effect from 1st October, 1997.



Consequently, where the journey is performed on or after 1st October, 1997 by air, an amount not exceeding the air economy fare of the National Carrier by the shortest route to the place of destination.





Also, where the entitlement was previously for air-conditioned Second Class Rail fare, it has been upgraded to air-conditioned First Class Rail fare. [l.T. (First Amendment) Rules 1998, O.O.I. Gazette Notification No. S.O. 34(E) dt.





12th Jan. 1998; CBDTF.No. 142/85/97-TPL No. 105021].





27.HOUSE RENT ALLOWANCE





The exemption from tax with regard to HRA is restricted to the least of the following amounts:-





(i) Actual amount of H.R.A.



The amount by which actual rent paid by the employee exceeds 10% of his salary; and





ii) 50% of salary if the rented house is situated at Delhi, Bombay, Kolkata or Chennai, or 40% of the salary in the case of other cities.





In simpler terms, the whole of H.R.A. is exempt from tax only if it is not in excess of 50% in the 4 metropolitan cities, and 40% in the case of other cities, and further if the rent paid is more than the total of H.R.A and 10% of the “salary. Otherwise, the excess has to be added to the taxable income.





28.IN THE CASE OF EMPLOYEE RESIDING IN HIS OWN HOUSE, IS THE H.R.A EXEMPT FROM TAX ?





No. As he is not paying any rent, so exemption from tax with regard to H.R.A. is restricted to ‘Nil’.



29.IF AN EMPLOYEE IS RESIDING ALONG WITH HIS PARENTS IN A HOUSE FOR WHICH NO RENT IS PAID BY HIM, WILL H.R.A. RECEIVED BY HIM BE TAXABLE?





Yes. The entire H.R.A. would be taxable f6r the same reason as given above. FOR THIS PURPOSE WHAT DOES “SALARY” MEAN?





“Salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.





30.IS RENT RECEIPT COMPULSORILY GIVEN TO DDO?





No. It has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3,000 pm will be exempted from giving rent receipt to DDO. But in the regular assessment of the employee, the Assessing Officer is free to make enquiry or request proof of payment of rent by assessee.





31.ARE THERE ANY OTHER ALLOWANCES WHICH GET SPECIAL TREATMENT UNDER THE I.T. ACT ?





Yes. There are other payments e.g. leave travel concession etc., made by the employer which get special tax treatment.





32..WHAT ARE ALLOWANCES?





An allowance is defined as a fixed amount of money given periodically in addition to the salary for the purpose of meeting some specific requirements connected with the service rendered by the employee or by way of compensation for some unusual conditions of employment. It is taxable on due/accrued basis whether it is paid in addition to the salary or in lieu thereon.





The basic golden rule is that all such allowances are taxable as these are paid because of direct relationship between an employer and employee. However, there are exceptions to this rule. Some of them are given below :-

Clause (14) of Section 10 provides for exemption of the following allowances: -

(a) Any special allowances or benefit granted to an employee to meet the expenses incurred in the performance of his duties.





(b) Any allowance granted to an assessee either to meet his personal expenses at the place of his posting or at the place he ordinarily resides or to compensate him for the increased cost of living.





However, the allowance referred to in (b) above should not be in the nature of a personal allowance granted to the assessee to remunerate or relating to his office or employment unless such allowance is related to his place of posting or residence.

Earlier the exempt allowances were being specified through notifications issued by the Central Government. With effect from 1.7.95, the details of allowances exempt is given in the Income Tax Rules.





The following allowances are exempt to the extent and subject to the conditions indicated in the Rules :-





a) Any allowance for meeting the cost of travel on tour or on transfer.

b) Any allowance, whether granted on tour or for the period of journey in connection with transfer (including any sum paid in connection with transfer, packing and transportation of personal effects on such transfer).





c) Any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office/employment of profit. Provided free conveyance is not provided by the employer.





d) Any allowance granted to meet the expenditure incurred on a helper where he is engaged for the performance of duties of any Office/employment of profit.





Any allowance granted for encouraging academic research in educational and research institutions.





Any allowance for Purchase or maintenance of uniform for wear during the performance of duties of an office/employment of profit.

33.ARE THE ABOVE ALLOWANCES TO BE ACTUALLY SPENT TO AVAIL OF THE EXEMPTION?





Yes, certainly. Any allowance (mentioned above) received but not actually spent will be taxable.





If ARE THERE ANY ALLOWANCES, WHICH ARE ONLY : exempt when received at a particular place(s) ;pr area(s)? and do they have any upper ceilings : for exemption?





For the new amended Rules contain other allowances also .which are exempt (subject to ceilings) in particular area(s) only. These special allowances are :-





i) Any special Compensatory Allowance, in the nature of Composite Hill Compensatory allowance or High Altitude, Allowance or Uncongenial Climate Allowance or Snow Bound Area Allowance or Avalanche Allowance;





ii) Any special Compensatory Allowance given which is in the nature of border area allowance or remote area allowance or difficult area allowance or disturbed area allowance;





ii) Tribal Area Allowance;





iii) Allowance granted to an employee working in any transport system to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place, provided that such employee is not in receipt of daily allowance;





iv) Children Education Allowance;

v) Any allowance granted to an employee to meet the hostel expenditure of his child;

vi) Compensatory Field Area Allowance;

vii) Compensatory Modified Field Area Allowance;





viii) Any Special allowance, in the nature of counter insurgency allowance granted to the members of armed forces operating in areas from their permanent locations for a period of more than 30 days.





It may be noted that the Dearness Allowance and City Compensatory Allowance granted to an employee are not covered by the Amended Rules. So, these allowances will clearly be part of income and will have to be taken into account in the computation of income for the purposes of deduction of tax at source.





The reimbursement of tuition fee is also not exempt.The transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of Rs. 800 per month vide Notification S.O.No. 395(E) dated 13.5.98.





34.WHAT ARE THE CONDITIONS FOR MEDICAL FACILITIES TO QUALIFY AS TAX FREE PERQUISITES?

Section 17 of the IT Act, exempts from tax :-





(a) The value of any medical treatment provided to an employee or any member of his family, in any hospital maintained by the employer;

(b) Any sum paid by the employer in respect of any expenditure actually incurred by employee on his medical treatment or of any member of his family:

(i) In ally hospital the Government or of any local Authority or any other hospital approved for the purposes of medical treatment of its employees;

(ii) In respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner :

Provided that, in a case failing in sub-clause (ii), the employee shall attach with his return of income a hospital certificate specifying the disease 85 hospital Receipt for amount paid.

(c) Premium paid by the employer in respect of approved medical insurance taken for his employees or reimbursement of insurance premium to employees for medical insurance for themselves/family members.





(d) Reimbursement by the employer, of the amount spent by an employee in obtaining medical treatment for himself or any member of his family from any doctor, max. aggregate Rs. 15,000 in an year.

(e) As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. As regards the expenditure incurred on travel abroad by the patient/attendant, it shall be excluded from perquisites only if the employee’s gross total income, as computed before including the said expenditure, does not exceed Rs.2 lakhs.



35.IS THE PERQUISITE AVAILING OF INTEREST FREE OR CONCESSIONAL LOANS EXEMPT IN ANY CASE?

Yes, small loans upto Rs.20,000 in the aggregate are exempt. Loans for medical treatment specified in Rule 3A are also exempt, provided the amount of loan for medical reimbursement is not reimbursed under any medical insurance scheme. Where any medical insurance reimbursement is received, the perquisite value at normal rates shall be charged from the date of reimbursement on the amount reimbursed, but not repaid against the outstanding loan taken specifically for this purpose.



36.IS IT NECESSARY THAT DEDUCTIONS AND REBATES CLAIMED SHOULD HAVE BEEN MADE OUT OF INCOME CHARGEABLE TO TAX?





Yes. Absolutely. It is to be strictly noted that deductions rebates under Chapter VI-A of the IT Act, 1961 are allowed only if the investments/payments are made out of the income chargeable to tax of the financial year relevant to the assessment year under consideration.

37.IF THE TAX PAYER ALSO ENJOYS INCOME UNDER OTHER HEADS OF INCOMES / SOURCES, SHOULD THE EMPLOYER DEDUCT TDS ON SUCH OTHER INCOME(S)?

Not necessarily. An option to be is given U/S 192(2B) which enables a tax payer to furnish details of income under any head other than Salaries and to get TDS thereon.

The employer shall take such other income and tax, if any, deducted at source from such income, into account for the purpose of computing tax deductible under section 192 of the Income-tax Act. From 1.8.98 the DDO’s have been empowered to take into account the loss if any under the head “Income from House Property” for making deduction of Income-Tax U/S 192(1).



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