Administration Manual - B.E.S.T. Undertaking.

and the from taxable income the income tax is deducted in every month
from the salaries of the employees.
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In the month of February, every year a circular is issued requesting
all employees to submit their declaration of investment which are
proposed to be made by them in the approved investment plan mentioned
in the relevant section of Income Tax Act, so that necessary rebate/
exemption/ deductions can be allowed.
These declarations are accepted till the month of December. On
the receipt of the declaration forms, at the end of every month they are
forwarded paysheet wise to EDP Dept. in lot of 100 forms to give
appropriate rebate on Income Tax & to stop deducting Income Tax to the
extent of declaration.
2. Housing loan rebate (As per Format by I/Tax authorities).
Employees are also asked to submit format for getting deduction
under section 24(iv) of the Income Tax Act 1961, on interest payable on
housing loan. Deduction up to Rs.1,50,000/- is allowed under this section
if loan is taken on or after 1.4.99 and up to Rs.30,000/- on loan taken
prior 1.4.99. A circular in this respect is issued every year through the
circular of Declaration.