**Executive Summary:**
This circular from the Central Drugs Standard Control Organisation (CDSCO) addresses the deduction of tax at source (TDS) from employee salaries as per Section 192 of the Income Tax Act 1961. It instructs all officers/staff to declare their preferred Tax Regime (either old or new under section 115BAC) for the Financial Year 2024-2025 (Assessment Year 2025-2026) on PFMS and submit it to the DDO. TDS will be deducted based on the declared regime; otherwise, the New Tax Regime will be applied.
**Key Points / Main Content:**
* **TDS Deduction Authority:**
* The Drawing and Disbursing Officer (DDO) is authorized to deduct tax at source (TDS) from employee salaries.
* **TDS Calculation:**
* Annual income tax is calculated based on estimated salary, other reported income, investment planning, and changes in DA rates.
* TDS is deducted at the average applicable income tax rate.
* **Tax Regime Declaration:**
* All officers/staff must declare their Tax Regime preference (Old or New under section 115BAC) on PFMS.
* Declaration must be forwarded to DDO, including all savings if opting for the old regime.
* If no declaration is made, TDS will be deducted as per the New Tax Regime.
* Declaration due for F.Y 2024-2025 A.Y 2025-2026.
* **TDS Deduction Implementation:**
* TDS will be deducted monthly as per PFMS calculations.
* Requests to avoid TDS deductions will not be considered.
**Impact Analysis**
**Impact on Officers/Staff:**
* *Impact:* Affected by TDS deductions from their salaries. Require to declare their choice of tax regime (Old/New)
* *Action Required:* Declare Tax Regime preference (Old or New) on PFMS and submit to DDO along with savings details (if opting for the old regime).
**Impact on Drawing and Disbursing Officer (DDO):**
* *Impact:* Responsible for calculating and deducting TDS from salaries according to the declared tax regime or, if no declaration is made, according to the New Tax Regime.
* *Action Required:* Calculate and deduct TDS based on employee declarations or the default New Tax Regime via PFMS and do not consider any applications to avoid tax deductions.
Key Entities Referenced
Ministry of Health and Family Welfare: A ministry of the Government of India mentioned as the issuing authority of the circular.
Directorate General of Health Services: An organization under the Ministry of Health and Family Welfare.
Central Drugs Standard Control Organisation: An organisation under the Directorate General of Health Services, specifically its headquarters (HQ) at FDA Bhawan, Kotla Road, New Delhi.
New Delhi, Delhi: The location of the Central Drugs Standard Control Organisation HQ and place of publication of the circular.
Income Tax Act 1961: A law pertaining to income tax mentioned in the context of tax deduction at source (TDS).
Section 192 of Income Tax Act 1961: Specific section of the Income Tax Act 1961 authorizing DDOs for TDS.
DDO: Drawing and Disbursing Officer, responsible for deducting tax at source (TDS) from employee salaries.
Section 115BAC of Income Tax Act: Section of the Income Tax Act related to opting for old or new tax regime
F.No. 18011(11)/16/2024-eoffice (E-8800)
ARG GepR/Government of India
fared ak oRar wean Fateas/Ministry of Health and Family Welfare
; waRea Gal Aeleenea/Directorate General of Health Services
Gale sits ame aac d194/Central Drugs Standard Control Organisation(HQ)
FDA Bhawan, Kotla Road/v5.31.4.., Heat Us,
New Delhi-110002/"¢ fe#-110002,
Dated\*"July, 2024
ufaa/CIRCULAR
It is informed that as per section 192 of Income Tax Act 1961, “DDO
has been authorised for deducting tax at source while disbursing salaries to
employee. Calculation of monthly TDS (Income tax): Calculate annual
income tax payable from estimated salary and other income (reported if any
by employee), considering the investment planning and change in DA rates.
It is the responsibility of DDO to deduct the TDS at average rate of income
tax as applicable, before disbursing the salary”.
2. All the officers/staff are requested to declare Tax Regime u/s 115BAC
for opting old Tax Regime/New Tax Regime under Income Tax Act for
computation of TDS on Salary for the F.Y¥-2024-2025 (A.Y- 2025-2026) on
PFMS and forward to DDO including all savings (who is obtaining old
regime). Otherwise, deduction will be as per “New Tax Regime” from next
month.
Bs Hence, it is requested that further income tax will be deducted on
monthly basis as per calculation/PFMS and no application will be considered
regarding “not to tax deducted in any month by individual”.
Drawing & Officer.
Saad. posers apn
C.D8.C.0. (HQ). FDA Bhawan
feelt/New Delhi