Chief Minister Distress Relief Fund and Income Tax returns

As part of the grave floods that devastated the major parts of our state, the govt employees might have contributed a huge sum of money in person or through salary challenge. Since such amount paid towards relief fund is eligible for tax deduction, the tax amount to be paid has to be revised. Or, the same rate of tax deduction would lead to excess amount towards tax. Many have doubts regarding this. It is made clear here.

Q.At the time of filing income tax returns, where should the contribution towards CMDRF be entered?

The amount paid towards CMDRF is deducted from taxable income, not from tax amount. While submitting income tax returns, it should be deducted under section 80G. The total amount paid towards CMDRF till February 2019 only should be deducted for this financial year. The contribution can be done from September 2018 to the maximum of 10 terms. Hence, there would be 6 installments till February 2019. The amount paid up to this period only, can be deducted while doing TDS this year. The eligible tax deduction for the rest of the amount can be claimed in the next year. It is to be noted that the total contribution amount paid till February 2019 irrespective of the number of installments is eligible for TDS.

Q.Since one month salary amount is deducted, is it sufficient to enter 11 month salary as total income?

No. Even though one month salary amount is deducted, it is necessary to include it under total income.

Q.Do we need add the festival allowance amount as it was not granted?

No. There is no need to mention it as source of income or deduction under 80G.

Q.What are the things to be noted for those who have contributed their 4th term pay revision arrear ?

Those who have contributed the pay revision arrear to CMDRF, should show the amount in salary arrear details as income source. Also, the total amount and the rest of the amount to be contributed till February 2019 should be added and entered for deduction under section 80G of this financial year.

Q.What should be done in the case of leave surrender for CMDRF contribution?

The surrender amount should be entered as source of income before deducting under 80G.

Q.What has to be done for those who contributed to CMDRF from NRA?

Those who availed of NRA from their PF amount for CMDRF need not show it under total income. It is sufficient for them to deduct the amount under 80G.

The anticipatory income tax calculation software given here can be used by the govt employees who have contributed their salary to CMDRF, to calculate the income tax amount to be paid each month. The video on how to use this is also given with this link.

Downloads

Chief Minister Distress Relief Fund and Income Tax returns-Frequently Asked Questions

Anticipatory Income Tax Statement 2018-19(CMDRF Enabled). Software by Alrahiman

Anticipatory Income Tax Statement 2018-19 Help(Video File)