The Central Board of Direct Taxes (CBDT) on February 20, 2025, notified regarding the Income Tax deduction from salaries during the FY 2024-25 under Section 192 of the Income-Tax Act, 1961.
This circular updates the previous Circular No. 24/2022, incorporating amendments from the Finance Acts of 2023 and 2024. Key highlights include:
• Definition of Salary: The term "salary" now encompasses contributions made by the Central Government to the Agniveer Corpus Fund for individuals enrolled in the Agnipath Scheme, as per the amendment in section 17(1) of the Act.
• Perquisites: The definition of "perquisite" has been expanded to include rent-free accommodation provided by employers and accommodations offered at concessional rates, following amendments in section 17(2) of the Act.
• Surcharge Rates: The Finance (No.2) Act, 2024, revised surcharge rates for individuals under the old tax regime, with specific rates applicable based on income brackets.
[Notification no. - 275/107/2024-IT(B)]
