Income Tax - TDS - Assessees to submit proof of claims
AS per Section 192(1) of the Income Tax Act, the employer is required to deduct tax (TDS) on the salaries paid to the employees. By Section 192(2D) inserted by last year's Finance Act, the deductor employer for the purposes of estimating income of the assessee or computing tax deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims under the provisions of the Act in such form and manner as may be prescribed.
Now, the CBDT has amended the Income Tax Rules to prescribe the form and manner.
A new Rule 26C is inserted which provides that the assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source.
The evidence to be produced:
Sl. No | Nature of claims | Evidence or particulars |
|---|---|---|
(1) | (2) | (3) |
1. | House Rent Allowance. | Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh. |
2. | Leave travel concession or assistance. | Evidence of expenditure. |
3. | Deduction of interest under the head "Income from house property". | Name, address and permanent account number of the lender. |
4. | Deduction under Chapter VI-A. | Evidence of investment or expenditure. |
CBDT Notification No. 30/2016., Dated: April 29, 2016