Circular No
:
1
Date of Issue
:
4.2.2002
Section(s) Referred
:
192 , 17
Statute
:
Income-Tax Act


Subject : Income-tax deduction from salaries during the financial year 2001-2002 under section 192 of the Income-tax Act, 1961 - Clarifications - Regarding.

It has been brought to the notice of the Central Board of Direct Taxes that the changes in rule 3 of the Income-tax Rules, 1962, read with sub-section (2) of section 17 of the Income-tax Act, 1961, regarding the valuation of perquisites brought about by Notification No. S. O. 940(E), dated September 25, 2001 have caused hardship to certain classes of salaried assessees.

In view of the same, it has been decided that no tax deduction at source be made under section 192 of the Income-tax Act, for the financial year 2001-02 in respect of the value of perquisites,-

(a) received in non-monetary form for assessees having income under the head "Salaries" (exclusive of such perquisites) not exceeding Rs. 1 lakh, or;

(b) received in the form of free or concessional tickets received by employees of airlines or railways.

The above clarifications are in supersession of the Central Board of Direct Taxes Circular No. 15 [F. No. 275/192/2001-IT(B)], dated December 12, 2001 regarding deduction of tax at source from salaries under section 192 of the Income-tax Act, 1961, and are applicable for the financial year 2001-02 only.

Sd/-
Supriyo De
Under Secretary (TPL-II)
Central Board of Direct Taxes

[F. No. 149/15/2002-TPL dt. 04-02-02 issued by Deptt. Of Revenue CBDT, New Delhi]