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					                    NATIONAL INSTITUTE OF TECHNOLOGY CALICUT


     A8/IncomeTax/2008                                                                      03.11.2008


                                                  CIRCULAR

    Sub: - Deduction of Income Tax from salaries during 2008- 2009 (Assessment Year 2009- 10)

                 Members of staff whose gross salary income during 2008-2009 would exceed
    Rs.1, 50,000/- for men and Rs.1,80,000 for women are requested to furnish a statement in the
    Proforma appended with relevant documents in original, so as to reach Accounts Section on
    or before 14-11-2008. In case the statement is not furnished within the above mentioned date,
    income tax for the year 2008-2009 will be computed on the basis of the details available in the
    relevant office records and recovery effected accordingly from the salary for November 2008
    onwards.

2. Loss under the head “Income from House Property” being interest on House Loan may be claimed
   as deduction (Section 192(2B)). The maximum amount of eligible for such deduction is Rs.30, 000
   for housing loans taken for construction or acquisition of residential building upto 31.03.99 and
   Rs.1, 50,000/- for housing loans availed for construction or acquisition of residential building
   from 01.04.1999 for the year 2008-09. Certificate to this effect from the person to whom the
   interest is payable specifying the amount of interest payable has also to be obtained and furnished
   in original. The higher rate (Rs.1, 50,000/-) is not available for loans taken for repairs/renovation.

3. In order to allow deduction towards rent paid, as per Sl.No.5 of the Proforma, the officials
   concerned should produce rent receipts along with the statement of income. Deduction will not be
   considered if rent receipt in original is not produced. Salary for regulating the exemption for HRA
   includes DP and DA if the terms of employment so provide, but excludes all other allowances and
   perquisites.

4. Medical reimbursement by the employer exceeding Rs.15000/- p.a is to be taken as perquisite u/s
   17(2)(V) of Income Tax Act.

5. Important deductions under Chapter VI-A of Income tax Act are:
              I.T                                                                       Amount of
    Sl.No.                                 Category
            Section                                                                     Deduction
                     Aggregate of amount paid/ incurred/invested towards
                     any of the following:
                     a. Premium paid towards Life Insurance Policy not
                        exceeding 20% of the total Sum Assured.
                     b. Any annuity or Deferred Annuity Plan
       1     80C     c. Contribution towards approved Provident Fund                Up to Rs.1, 00,000
                        including PPF
                     d. Subscription towards National Saving Certificate
                     e. Contribution to UTIs Retirement Benefit Plan.
                     f. Investment in UTIs Unit Linked Insurance Plan
                     g. Approved Mutual Fund Investment
               h. Repayment of Housing Loan Principal towards
                  Self-occupied Residential Property
               i. Payment of Tuition fees towards any two children
                  of the assessee
               j. Investment in Equity Linked Savings Scheme /
                 approved Infrastructure Bonds
               k. Investment in Pension Fund / Deposit Scheme of
                  National Housing Bank Under Home Loan
                  Account Scheme
               l. Fixed Deposit of any Scheduled Bank /Housing
                  Finance Co. for not less than 5 years
               m. Investment in Equity Shares Debentures of
                  approved Public Finance Instn. or Company
2    80 CCC    Premium paid towards IRDA approved Pension Fund       Up to Rs.1, 00,000
               Amount paid/deposited in an approved Pension
                                                                     Up to10% of Salary
               Scheme of Central Government
3.   80CCD
               & matching contribution made by the Employer to
                                                                     Up to 10% of Salary
               the Pension A/c of individual.
               Aggregate of deduction u/s 80C, 80CCC & 80CCD
4.   80 CCE                                                                  ----
               shall not exceed Rs.1 lakh.
               a. Medical Insurance Premium paid by any mode
5                                                                     Up to Rs. 15,000
      80 D       other than cash.
               b. For Senior Citizens                                 Up to Rs. 20,000
            a. Any expenditure for Medical, Nursing &
              Rehabilitation incurred on dependent relative           Upto Rs.50, 000 if
              suffering from permanent Physical Disability,            disability is over
6     80DD    Autism, Cerebral Palsy and Multiple disability         40% & Rs.75, 000 if
            b. Deposits under LIC, UTI’s Scheme & other IRDA           disability is over
              approved Insurers for the benefit of Physically                80%
              Handicapped dependent
            a. Actual expenditure incurred on medical treatment
              of self, or dependent relative suffering from
                                                                       Upto Rs.40, 000
7    80 DDB   terminal diseases like Cancer, AIDS, Renal failure
              etc.
                                                                       Upto Rs.60, 000
            b. For Senior Citizens.
              Interest on repayment of Loan taken from
              charitable / financial institution for Self, Spouse,     Any amount of
8      80E
              Children Higher Education for a maximum of                  interest
              8 years
            a. Donation paid to P.M.Relief fund, National
               Defence Fund, Funds of Universities or
                                                                        Tax deduction
               Educational Institution of National Fame, National
                                                                     admissible U/s 80G
               Trust for welfare of persons with Autism, Cerebral
                                                                        will have to be
               Palsy, Mental retardation and multiple disabilities
9      80G                                                             claimed by the
            b. Donations to National Children fund, Jawaharlal
                                                                        tax payer in the
               Lal Nehru memorial fund, P.Ms Drought Relief
                                                                      return of income.
               Fund, Any Charitable / Religious Institutions,
               Corporation established for promoting interest of
               the members of a minor community.
                           Deduction in respect of rents paid provided no       Lowest of actual
                           house is owned by self, spouse or minor child         amount of HRA
                           in the place of work and is residing in any of     received or Rs.2000
                           the specified cities. The officials concerned        per month or rent
      10        80GG
                           should produce rent receipts with declaration        paid in excess of
                           in Form10BA                                        10% of total income
                                                                               subject to a ceiling
                                                                                 of 25% thereof.
                          Persons suffering from permanent physical                Rs.50, 000 if
                          Disability and includes Autism, Cerebral Palsy,       disability is over
       11       80U       Multiple Disability, Person with Disability         40% and Rs.75, 000
                          and Severe Disability                                if disability is over
                                                                                      80%.

    Deductions under Chapter VI-A will be allowed only on production of relevant documents in
    original.

    Rates of income tax for the Year 2008-2009 are given below for information.
                                                                        Primary &
     Annual income from all             Income tax Rates for
                                                                        Secondary
              sources
                                   Male      Women        Sr.Citizen    Education       Surcharge
     (After all exceptions &
                                 below 65 below 65         65 years        Cess
           deductions)
                                    Yrs        Yrs.      and above
     Upto 1,50,000                  Nil         Nil           Nil          Nil              Nil
     1,50,001 – 1,80,000           10%          Nil           Nil          3%               Nil
     1,80,001 – 2,25,000           10%         10%            Nil          3%               Nil
     2,25,001 – 3,00,000           10%         10%           10%           3%               Nil
     3,00,001 – 5,00,000           20%         20%           20%           3%               Nil
     5,00,001 and above            30%         30%           30%           3%               $

    $ Surcharge on income beyond Rs.10, 00,000 is charged at 10%.

6. Permanent Account number (PAN) is to be invariably mentioned in the statement of income tax,
   as required by the Income tax Department.

7. As per Para 3.3.1 of Circular No.9/2008 [FNo.275/192/2008 – IT (B)] of CBDT, the income tax
   will be deducted by the DDO on average basis at the time of each payment. For working out the
   average monthly income tax, deduction will be considered to the extent to which proof for such
   deduction has been furnished by the assesse to the satisfaction of the DDO.

 * Circular and format will be available in the NITC website.




                                                                            DIRECTOR
 Copy to:

           All Departments/Heads
               NATIONAL INSTITUTE OF TECHNOLOGY CALICUT


 STATEMENT OF INCOME TAX FOR THE FINANCIAL YEAR 2008-2009
                      (A.Y 2009-2010)

1    Name, Designation and Emp.Code :
2    Permanent Account Number            :
3    Pay as on 01-03-2008            Rs. :                          FOR OFFICE USE

4    i) Probable income from salary/Pension during
        2008-2009 including all allowances
        Salary (Pay, DA, CCA, Tr.All.)                        Rs.
     ii) Employer’s contribution towards New Pension
         Scheme during the Financial Year 2008-09.            Rs.
     iii) Honorarium                                          Rs.
     iv) Bonus/Arrears                                        Rs.
     v) Reimbursement of medical claim received in            Rs.
         excess of Rs.15,000/-
                                           Total              Rs.

5   Less: House Rent Allowance exempt U/s 10 (13A)
(a) :Least of :
       (i)      Actual Amount of HRA received
       (ii)     Expenditure of rent in excess of 10% of
                salary subject to a ceiling of 25% thereof.
       (iii) Rs.2000*12
       (Indicate the amount of rent paid Rs…)
(b)    i)       Transport Allowance

                                           Total              Rs.
6    Balance (4-5)                                          Rs.
7    Professional tax paid                                  Rs.
8    Balance (6-7)                                            Rs.
9    a) Income from House Property:
        Interest payable on loan U/s 24               (-)     Rs.

     b) Income from other source (NSC Interest etc.)(+) Rs


10   Deductions under Chapter VI-A, if any vide Para 3
     Sl.No.5 – 11 of circular. (-)                            Rs.


11   TOTAL INCOME                                           Rs
12   Deduction U/s 80 C                                                 Office use

     GPF Contribution                                     Rs.
     CGEGIS                                               Rs.
     Five -Year Bank Fixed Deposit                        Rs.
     LIC/ULIP/PLI (Policy No…………………)                      Rs.

     Refund of HBA (Principal)                            Rs.
     NSC/NSS                                              Rs.
     Interest on NSC
     (Show amount and year of related deposits also)      Rs.

     Tuition fees for full time education of children
     (for two children)                                   Rs.

     Subscription to equity shares or debentures forming
     Part of Capital (approved) of public companies
     notified for clause xvi known as infrastructure bonds.
                                                         Rs.
     Subscription to mutual funds approved               Rs.


                                          Total      Rs.
13   Deduction u/s 80CCC contribution to Pension Fund Rs.
     Deduction u/s 80CCD. Contribution to the New Pension
14   Scheme up to 10% during the financial year 2008-09 by
     the
     i) Employee Rs.
     ii) Employer Rs.

     Section 80CCE (12+13+14)
15   (Maximum qualifying amount is Rs.1, 00,000/-)
16   Total Taxable income (11-15)                  Rs.
17   Tax on total income                                  Rs.
18   Relief under Chapter VIII B
     Relief u/s 89 (1) for arrears if any (give Form 10E) Rs.
19   Balance Tax payable (17-18)                          Rs.
20   Education cess @2%                                  Rs.
21   Secondary and Higher Education Cess @1%              Rs.
22   Total (19+20+21)
23   Tax deducted at source                              Rs.
24   Tax to be paid                                      Rs.
     Recovery rate:-

                                                    Signature & Date:
                                                    Name:
                                                    Designation
                                                    Department: