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Showing posts with label Arrears Relief Calculator for F.Y.2016-17. Show all posts
Showing posts with label Arrears Relief Calculator for F.Y.2016-17. Show all posts

Sunday, 2 October 2016

Generally, all of us think that taking a loan to buy a residential property is not a good idea and so, they start saving some amount from their monthly income into recurring investment or a Systematic Investment Plan (SIP) offered by mutual funds. But the financial planners recommend that for acquiring a house for self-use, one should go for a housing loan and pay EMIs in place of going for recurring investment or SIP in other investment product.

Download Automatic Arrears Relief Calculator U/s 89(1) with Form 10E from F.Y.2000-01 to F.Y.2016-17 [ Up to date Version]


A payee can get income tax benefits through home loan under two different Sections of Income Tax Act.
Under Section 24B– Deduction on interest on home loan for self-occupied property up to Rs 2 lakh.
Under Section 80C– Deduction on repayment of principal amount of home loan up to Rs 1.5 lakh. 
Tax Benefits under Section 24 and Section 80CMr. X is eligible to claim tax benefits under Section 80C for the principal repayment of the home loan and under Section 24 for interest components. He can claim deduction up toRs 1.5 lakh along with all other permissible instruments like life insurance premium, PPF, ELSS, NSC etc under Section 80 C and up to Rs 2 lakh under Section 24.
Income Tax Benefits on Joint Home Loan: One can avail income tax benefit on home loan up to Rs 1.5 lakh under Section 80C and 2 lakh under Section 24. But if you go for a joint home loan along with your spouse in the ratio of 50: 50, then both of you can claim these benefits separately. So the combined limit will be Rs 3 lakh under Section 80C and 4 lakh under Section 24B. This can reduce your overall cost of the loan for the family considerably.
The total deduction will be Rs 7 lakh and if both spouses are in the highest income tax slab, they will get an income tax benefit of Rs 210000/- which is just double compared to an individual home loan, although this provision may vary from person to person.

Before going for a joint home loan, you should mutually work out your ownership share if you wish to optimize the income tax benefit. That is, if you and your spouse own the house jointly in the ratio of 50:50, both can claim deductions in equal proportion. Therefore, if your income tax slabs are different, you need to work out your ownership share in a manner that the spouse in the higher income tax bracket owns a bigger share.

Saturday, 1 October 2016

The Finance Budget 2016  has to introduce or extend the Tax Deduction limits Under few Sections of the Income Tax Act. For the Financial Year 2016-17 & Assessment Year 2017-18.

Let us understand all the important sections and new introduce in respect to ‘Income Tax Deductions 2016-17′. This list will help you in planning your taxes.

Income Tax Deductions 2016

Section 80C
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues under this section are;
  • PPF (Public Provident Fund)
  • EPF (Employees’ Provident Fund)
  • Five year Bank or Post office Tax saving Deposits
  • NSC (National Savings Certificates)
  • ELSS Mutual Funds (Equity Linked Savings Schemes)
  • Kid’s Tuition Fees
  • SCSS (Post office Senior Citizen Savings Scheme)
  • Principal repayment of Home Loan
  • NPS (National Pension System)
  • Life Insurance Premium
  • Sukanya Samriddhi Account Deposit Scheme

Download the All in One TDS on Salary for Non-Govt employees for the F.Y.2016-17 [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure + Automatic H.R.A. Exemption Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B + Form 12 BA ]


Section 80CCC (1)
Contribution to the Pension Fund by the Employee Max Rs. 1.5 Lakh.
Section 80CCD(2)
Employer’s Contribution to the Employee’s Pension Fund Max 10% of employees Basic salary.This deduction can be made out of 1.5 Lakh U/s 80C
80CCD(1B) :- additional exemption of Rs 50,000 u/s 80CCD (1b) will be allowed. ( To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS).This Deduction can be made out of 1.5 Lakh of U/s 80C

Download All in One TDS on Salary for Govt & Non Govt employees for F.Y.2016-17 and A.Y.2017-18 [This Excel utility can prepare at a time Tax Computed Sheet + Individual Salary Sheet + Automatic Arrears Relief Calculator U/s 89(1) with Form 10E + Automatic H.R.A. Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17 as per the Finance Budget 2016]


Section 80D
Deduction u/s 80D on health insurance premium will be Rs 25,000, increased from Rs 15000. For Senior Citizens it has been increased to Rs 30,000 from the existing Rs 20,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, the deduction is allowed for Rs 30,000 toward medical expenditure.
Section 80DDB
An individual (less than 60 years of age) can claim up to Rs 80,000 for the treatment of specified critical ailments.

Download the Automated All in One TDS on Salary for West Bengal Govt Employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Utility can prepare at a time Tax computed sheet + Automatic H.R.A. Exemption Calculation U/s 10(13A) + Individual Salary Structure as per W.B. Govt Salary Pattern + Automated Form 16 Part A&B and Form 16 Part B]


Section 24 (B) H.B.L.Interest
You can claim up to Rs 2 Lakh as a tax deduction on the home loan interest payment. If your property is a let-out one then the entire interest amount can be claimed as a tax deduction.
Section 80EE Additional H.B.L.Interest.
You can claim up to Rs 1.5 Lakh as a tax deduction on the home loan interest payment Excluding the Section 24(B).
Section 80U
You can claim up to Rs 75,000 (increased from the existing Rs 50,000) for spending  who have up to 80% disability. It is also been Introduce  to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of above 80% severe disability.

The other sections are – Section 80E (tax deduction benefit on the interest payment of an education loan), Section 80 G (Donations), Section 80GG (when HRA is not paid by the company but you incur rental expenses) and 100% TAX DEDUCTION on contributions made to SWACHH BHARAT & CLEAN GANGA initiatives have also been proposed.
The above ‘Income Tax Deductions 2015′ are applicable for Financial year 2015-2016 (or Assessment Year 2016-2017).

Download the All in One TDS on Salary for the Cental Govt Employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Utility can prepare at a time Tax Compute Sheet + Automatic H.R.A. Exemption Calculation + Individual Salary Sheet + Individual Salary Structure as per Cental Govt. Salary Pattern + Automated Form 16 Part A&B and Form16 Part B ]


Section 80TTA:- Interest from Bank up to Rs. 10,000/- who’s taxable income less than 5 Lakh.


Section 87A :- Tax Rebate Rs.5,000/- can be availed from the F.Y.2016-17 as this Rebate was in F.Y.2015-16 Rs.2,000/-

Monday, 12 September 2016

The Income Tax Act and the Profession Tax Act provides various income tax deductions under Section 80DD, 80DDB and 80U for differently-abled (disabled and handicapped) people.
Most states in India allow a professional tax exemption for any person suffering from a permanent disability.

Download All in One Income Tax Preparation Excel Based Software for Govt & Non-Govt Employees for F.Y.2016-17 & A.Y.2017-18. [This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic H.R.A.Exemption Calculation + Automated Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Form 16 Part B ] 

Section 80U
Under Section 80U a mentally or physically challenged person can claim an income tax deduction of up to Rs 75000 provided he/she suffers from over 40% of the identified disabilities notified as per the Income Tax Act. In the case of severe disability of over 80%, the disabled person can claim an income tax exemption up to Rs.125,000.
Disabilities included under Section 80U include blindness, low vision, leprosy-cured, hearing impairment, mental retardation, mental illness, locomotor disability. Documents related to the expenses don’t have to be produced if you are claiming for self.
However, you are required to submit a medical certificate authenticating the disability of the dependent from a certified medical professional to claim an income tax deduction. This certificate is not required at the time of filing taxes but may have to submit to an assessing officer, if demanded.
Section 80DD
Under Section 80DD the expenses on maintenance/ medical treatment of disabled dependents can be claimed as an income tax deduction. Dependents include spouse, children, parents, brothers and sisters and the income tax deduction is valid only if they have not already claimed a benefit under Section 80U. Income-tax Deduction for expenses for partially disabled dependants (severity 40-80%) is allowed up to Rs.75,000 while it goes up to Rs 1.25 lakh if the dependant is over 80% disabled. The plus side is that even if your actual expenses are lesser than Rs 75000 you can claim a full deduction.
Section 80DDB
Section 80DDB allows an income tax deduction on expenses incurred on medical treatment of various ailments. This included Neurological Diseases where the disability level has been certified to be of 40% and above (including Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia, Parkinson’s Disease), Malignant Cancers, Full Blown Acquired Immuno-Deficiency Syndrome (AIDS), Chronic Renal failure, Hematological disorders including Hemophilia and Thalassaemia.

Income tax deduction for any of the above diseases ranges between Rs 40000 to Rs 80000 depending on your age and income tax slab.

Thursday, 11 August 2016

How taxpayers can claim the additional tax deduction for NPS contributions announced in last year's Budget. Some tax experts claim that employees covered by NPS can claim a deduction for their mandatory contributions under the new Sec 80CCD(1b). "An employee's mandatory contribution to NPS is eligible for deduction under Section 80CCD (1b)"

Download Automated All in One Value of Perquisite U/s 17(2)

This means taxpayers covered by NPS will not have to make additional investments to claim the new deduction. Other tax-saving investments and expenses, such as home loan principal, children's tuition fees, life insurance premium, NSCs and ELSS funds, can be claimed under Section 80C while the mandatory contribution to NPS can be claimed under Section 80CCD (1b). 
"If you have contributed Rs 50,000 or more towards NPS via salary deductions, maximize the tax benefits under both Section 80C and Section 80CCD(1b). Claim the full Rs 50,000 under the new section first and then adjust the residual to achieve total tax deduction of Rs 2 lakh, 

Download Automatic Arrears Relief Calculator U/s 89(1) with Form 10E up to F.Y.2016-17


Another interpretation says that the mandatory contribution can be claimed under the new section only if it exceeds the Rs 1.5 lakh limit under Section 80CCD(1). High-income earners covered by NPS stand to benefit from this interpretation. If the taxpayer contributes more than Rs 1.5 lakh to the NPS in a year, the amount in excess of Rs 1.5 lakh can be treated as a voluntary investment and claimed as a deduction under the new Section 80CCD(1b). 
"Taxpayers have the flexibility to choose the sub-sections under which they want to claim the deduction. All they have to specify is that the deduction claimed is for their own contributions and there is no duplication in these claims,"
However, others believe that the mandatory contribution to retirement savings made by an individual will not make him eligible for the new deduction. For that, the taxpayer must make an additional 'voluntary' or 'self' contribution to the NPS. 

Download Income Tax Preparation Excel Based Software All in One  for Govt & Non-Govt Employees for F.Y.2016-17 [ Prepare at a time Individual Tax Compute Sheet + Individual Salary Structure + Automatic H.R.A. Exemption Calculation + Automated Arrears Relief Calculation with Form 10E up to F.Y.2016-17 + Automated Form 16 Part A&B and Form 16 Part B ]


Income tax laws allow the tax deduction for contributions to NPS under three sections. First, the employee's contribution under Section 80CCD(1). This deduction is under the overall Rs 1.5 lakh limit under Section 80C. Second, up to 10% of the basic salary put into the NPS by the company on behalf of the employee is deductible without any limit. The third is the new Section 80CCD(1B) under which a taxpayer can claim the deduction for the voluntary contribution of up to Rs 50,000.

Sunday, 19 June 2016

When you have spent money for treatment of a dependent, suffering from a listed disease, you can claim deduction under section 80DDB. This deduction can be claimed by an individual or HUF. Only residents in India can claim this deduction. It can be claimed for your spouse, children, parents and siblings. (The diseases for which this deduction is allowed are listed at the end of this article). 

Monday, 23 May 2016

Arrears Relief Calculator to calculate relief Under section 89(1) of the Income Tax Act, 1961 in respect of Arrears of salary received during the financial year 2016-17.  The Calculator will calculate relief if any which Assessee can claim U/s. 89(1) in respect of salary received in Financial Year 2015-16 pertaining to years prior to that. Calculator will calculate the Relief for Arrears received pertaining to the period from from 01.04.2015 to 31.03.2016 The Calculator also automatically Fills Form 10E with its annexure and Table A Automatically. We also uploaded a calculator which will calculate relief U/s. 89(1) in respect of arrears of Salary Received  pertaining to financial year 2000-2001 to 2016-17

Tuesday, 12 April 2016

Download Income Tax All in One TDS on Salary for Govt & Non-Govt employees for the Financial Year 2016-17 & Assessment Year 2017-18 [ This Excel Utility can prepare at a time your Individual Tax Computed Sheet + Individual Salary Sheet + Individual Salary Structure + Automated Arrears Relief Calculator with Form 10E up to F.Y.2016-17 + Automatic H.R.A. Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B as per the amended by the Finance Budget 2016-17]

 You can open a National Pension System (NPS) account online within 30 minutes. . The eNPS facility has made the NPS registration and contribution a very easy affair. Through the eNPS, the subscription to NPS has become easier than opening a bank account.

 

One can contribute to the NPS account regularly. The accumulated amount along with the interest would be given after the age of 60. The NPS gives you an option to invest your money into the share market and bond market. The fund of NPS is managed by the different fund managers. The fund management charge for such scheme is lowest among all the saving scheme

Benefits of NPS

·                                 It is the best pension scheme for those who would not get any pension after the retirement.
·                                 It can build a big corpus for retirement as withdrawal before the retirement is very difficult.
·                                 The investor can enjoy the benefit of stocks as well. In the long run, shares can give the best return.
·                                 It has the proper arrangement to reduce the risk. You can switch your fund once in a year.
·                                 It gives an automatic portfolio allocation. The investment to equity fund reduces with the increase of age.
·                                 It gives you tax benefit under section 80CCD.
·                                 It gives extra tax deduction of up to Rs 50,000 under section 80CCD (1B).

Convenience of Online NPS Registration

Through the eNPS facility, the NPS registration and contribution has become a cakewalk. You can open an NPS account without stepping out of your house.

Most of People was thinking of opening an NPS account since last two years, but could not visit the intermediary. After the new eNPS facility, They have completed all the procedure sitting at my desk. Today They have opened my NPS account and contributed Rs 40,000 as well. Now I can claim an extra tax deduction in the FY 2015-16Since They have the Adhaar number, the registration of NPS was very easy for me. I hope you would have the Adhaar as well. On this date, more than 100 Crore people have enrolled into the Adhaar. Because of the Adhaar, you are not required to give KYC document. The KYC is required for all type of the investment.

Requirement For Online NPS Registration

The online NPS is very easy but you need to fulfill some conditions. I hope you would be able to meet these conditions.
·                                 You must have the Adhaar or PAN. The Adhaar Number should have your current address and current mobile number. All the details in the Adhaar should be correct.
·                                 You must have a bank account.
·                                 You must  have the internet banking facility or debit/credit card.
·                                 You should have your photograph of 4 kb -12kb size.
·                                 You should have the scanned image of your signature. It should be less than 12 kb in size.
·                                 You should also  have a physical passport size photo. It would be used after opening the account.
Steps to NPS Online Registration [ Click here to eNPS portal  ]
To open the NPS Account online you have to visit the eNPS page of the NPS trust. This page gives the facility of online registration and online contribution into the NPS account. To register, You have to click on the Registration Button. But before that, you must read the instruction given at the left side.
The next page asks your preference about the NPS account. Go through it thoroughly and choose the option as required.

·                                 The first row has the radio buttons for New registration, Complete pending Application and Printout of the completed application. The new investor should choose the first one.
·                                 As you would be an individual subscriber, so let this option selected. The corporate subscriber should use the next option for their employees.
·                                 As you can see, the NRI can also subscribe to the NPS account. You should choose the applicant status accordingly.
·                                 Now you have to choose the account type. It can be of both the tier I & tier II or only Tier I. Tier-II account gives you the facility to invest extra in the NPS account. You have the liberty to withdraw the fund any time from the Tier II account but this account does not give you the tax benefit. The Tier II account is similar to the mutual fund.
1.                             Tier I is the mandatory account for long-term savings. Invest in Tier I account to avail exclusive Tax benefit upto Rs.50,000 u/s 80CCD(1B).
2.                             Tier II is an add-on account which provides you the flexibility to invest and withdraw from various schemes available in NPS without any exit load.
 The next step is for authentication. If you have chosen the Adhaar as authentication mode, you are required to enter the Adhaar number. This number would be authenticated by sending the ‘One Time Password – OTP’. This OTP is sent to your Adhaar registered mobile number.
The Authentication through PAN requires the PAN and name of the Bank. Please note, in this mode your bank do the KYC in place of you. The bank performs this task by using your PAN. Thus, your personal detail given at the bank should be same as the given in theonline NPS application form. The bank would debit maximum Rs 125 for this authentication. Hence, If you don’t have Adhaar and do not want to pay Rs 125, you should go through the offline mode.
Also, There are many banks which do not give this facility at all. Indeed, none of my banks gives this facility. Punjab National Bank, Bank Of Baroda and private banks do not participate in this facility.
On the next page, You have to give the personal details. You will notice that your name, date of birth and address are already there. You can’t edit this information as it is taken from the Adhaar data. Now you are required to give your father’s and mother’s name. You have to give mobile number into which you want NPS authentication OTP in the future.
Now you are required to give your father’s and mother’s name. You have to give mobile number into which you want NPS authentication OTP in the future. Also, enter the email ID, PAN number and other details.
After completing the captcha and submitting the details you would get the acknowledgment slip. You must keep this slip as acknowledgment number is used to access the application further. After this step, you can complete your application anytime.


The next page is about the contact details. The application would fetch these details from your Adhaar data.
Now you are required to give the bank details. The bank details are given to get the NPS maturity amount in the future. You have to also tell about your earnings.
Under the ‘Nomination details’  you have to choose the fund manager. You can choose any of the 7 pension fund managers. To assess the current performance of different fund manager, you can visit the NPS returns page.
In the next step,  you have to choose the investment mode. There are two investment options. In the auto mode, the equity allocation of your fund decreases with the increase of the age. This is an automatic system and does not require your intervention. The automatic shifting of your investment continues till 80% of your fund gets invested into the government bonds.
While in the active investment mode you have to fix the asset allocation according to your choice. However, you can’t invest more than 50% in the equity fund.
The nominee form is as usual. You have to fix the portion for each nominee if you choose more than one nominee.
In the next page, you have to upload the photo and signature. if you are going through the Adhaar authentication, you would see your photo already uploaded. However, you can replace it as well. I have uploaded a better photo.  The Adhaar photograph must be the worst one.
You have to upload the scanned image of the signature as well. However, the image size of the photo and signature should not be more than 16 KB.
In the next tab, you have to enter the contribution amount. If you have also opted for the Tier II account, you must specify the amount separately for that. The minimum amount for Tier-I and Tier-II accounts are Rs 500 and Rs 1000 respectively.
After the confirmation, you would reach to the payment gateway. The NPS uses SBI ePay gateway. The main hindrance of this gateway is the transaction charge. The transaction charge is as following.
Net banking – 60 paise
Debit card – 0.80%
Credit Card – 0.90%
Along with this 14.5% service charge is also levied. The payment through the net banking is very cheap but it is not available for many banks. I could not find link for private banks, Bank of Baroda and PNB.
I have went through the debit card and paid Rs 366 as the transaction charge for the Rs 40K investment.
Once the payment gets approved, you would be allotted the Permanent Retirement Account Number (PRAN). Note it down. This number is required for any further transaction and redemption. It is also mailed to you.
Along with PRAN number, you would see a button to ‘download the completed application form’. You have to download it.
Take the print of the downloaded form. You can see all the details into the form. Stick a passport size photograph at the form and sign it.
 The following points may be noted:
• The Subscriber should sign on the block provided for signature.
• The photograph should not be stapled or clipped to the form.
Send this form to the Central record keeping Agency. The address is given below. It is also given on the form.
Central Recordkeeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited 1st Floor, Times Tower,
Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013
You have to send the form within 90 days of application submission. The subsequent contribution can be made only after the form reaches to the CRA.
Those who have opted for the Tier-II account should also send the copy of PAN card and a canceled cheque. 
After the final approval of your NPS account, you can make a further contribution online through the same eNPS page i. e.

eNPS portal

Meanwhile, the PRAN Kit containing a PRAN Card, IPIN/TPIN, Subscriber Master Report, Scheme Information Booklet along with a Welcome Letter will be sent to your registered address.
The T-PIN and I-PIN are sent separately to the same address. The PIN mailers contain the login credentials required by the subscriber for accessing his/her account over the internet and telephone. The despatch details of the PRAN kit and PIN mailers are provided to the subscriber through SMS alert to the subscriber

eNPS -NPS Account Online: Points To Note

1.                             For Authentication through the PAN, your KYC verification will be done by the Bank selected by you during the registration process. In case, KYC gets rejected by the bank, the applicant should contact the Bank.
2.                             For queries please contact : 022 – 4090 4242 or write to: eNPS@nsdl.co.in
3.                             The contribution to the Tier – II account is not eligible for tax deduction.
4.                             The existing NPS member can also use eNPS portal to submit their contribution online.
5.                             The government employee can contribute extra into their NPS account using eNPS. It can give the extra chance of tax saving.
6.                             NRIs can also invest into the NPS using the online facility. The all other terms are same.

7.                             To change any personal detail you have to change those in Adhaar database first.