FINANCIAL YEAR 1975-76
Instructions for deduction of tax at source from salary during financial year 1975-76 at the rates specified in Part III of First Schedule to Finance Bill, 1975 and Finance (Amendment) Act, 1975
1. Attention is invited to paragraph 1 of Circular No. 161, dated 22-3-1975 [Clarification 1] enclosing an extract of Sub-Paragraph I of Paragraph A of Part III of the First Schedule to the Finance Bill, 1975 giving the rates for deduction of income-tax from salaries during the financial year 1975-76.
2. The Finance (Amendment) Act, 1975, which received the assent of the President on July 31, 1975, has, inter alia, replaced Paragraph A of Part III of the First Schedule to the Finance Act, 1975. Under the new rate schedule, the rate of income-tax on the first slab of income up to Rs. 8,000 (as against Rs. 6,000 previously) has been fixed at nil and the rate on the new slab of Rs. 8,001—15,000 at 17 per cent. The rates of tax on the slabs of income beyond Rs. 15,000 remain unchanged. An extract of the new Sub-Paragraph I of Paragraph A of Part III of the First Schedule is enclosed as Annex I.
3. It is requested that deduction of income-tax may be made during the financial year 1975-76 according to the rates in the new schedule. In this connection, it may be noted that it is permissible under section 192(3) to reduce (or increase) the amount of tax to be deducted at source for the purpose of adjusting any excess (or deficiency) arising out of any previous deduction (or failure to deduct it) during the financial year.
4. Three typical examples of calculations on the basis of the new provisions are given for guidance in Annex II.
5. It may please be noted that with the raising of the exemption limit from Rs. 6,000 to Rs. 8,000, no tax is deductible at source unless the estimated salary income of a person during the financial year 1975-76 is likely to exceed Rs. 8,000.
Circular : No. 176 [F. No. 275/12/75-ITJ], dated 16-8-1975.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018