Showing posts with label Automated Form 16 Part B for F.Y.2016-17. Show all posts
Showing posts with label Automated Form 16 Part B for F.Y.2016-17. Show all posts
Wednesday 12 July 2017
Thursday 29 June 2017
This is the common demand regarding issuing of Form-16 by the Employer to Employee, even if Employer not deducts any Tax from drawn salary. What shall happen when Employee want's his Salary Certificate Form-16 for the same year. In such situation, Employer is liable to issue Form-16 to each and every who have already hold the PAN Card.
Wednesday 7 December 2016
1 1. The Basic threshold income that is tax-free – 2.5 Lac 2. Section 80 C deduction – 1.5 Lac
Section 80 C includes PF, PPF, Insurance premium, ELSS, Pension plan, FDs, and NSCs. In order to get this tax benefit, you need to make an investment in any of the investment avenues mentioned here.
3. Section 80 CCD (1B) – 0.5 Lac This additional deduction is announced this year. According to this 0.5, Lac investment in NPS will be tax-free.
4. Contribution to NPS by employer Section 80 CCD (2) – 1 Lac In order to get this benefit employer has to register and contribute to NPS. This contribution is restricted to 10% of salary (Basic + DA). The maximum limit is 1 Lac.
Download Automated All in One Income Tax Preparation Excel Based Software for Govt & Non-Govt(Private) Employees for the F.Y.2016-17. [ This Excel based software can prepare at a time your Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure for both of Govt and Non-Govt employees Salary pattern + Automatic H.R.A. Exemption Calculation + Automatic Arrears Relief Calculation with Form 10E from the F.Y.2000-01 to F.Y.2016 + Automatic Form 16 Part A&B and Form 16 Part B in a single Excel based Software for F.Y. 2016-17]
5. Home loan Interest or HRA – 2 Lac U/s 24B AND Rs.1.5 Lakh U/s 80EE, If you have taken the home loan you can take benefit of home loan interest component for tax saving. If you have not taken the home loan you can claim HRA amount for this.
6. Tax-Free Medical Allowance – 15,000 Rs/- The tax-free medical allowance is payable to most of the salaried people. In order to avail this benefit, you need to submit actual bills.
7. Tax Free Transport Allowance – 19,200 Rs/- P.M. & Rs. 3200/- P.M. for More than 80% of Phy.Disabled Persons. Tax-free transport allowance limit is enhanced this year.
8. Medical Insurance – 25,000 Rs/- Medical Insurance premium limit is hiked this year. If you have purchased medical insurance you can avail tax benefit.
9. Medical Insurance of parents – 30,000 Rs/- Premium paid for Medical Insurance of parents can be claimed for the tax deduction. This limit was enhanced this year.
10. LTA – 25,000/- Leave Travel Allowance is given to salaried people every two years. A small amount is taken here for illustration.
Thursday 24 November 2016
Experts are divided over 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 the deduction for their mandatory contributions under the new Sec 80CCD(1b). "An employee's mandatory contribution to NPS the is eligible for deduction under Section 80CCD (1b).
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, maximise 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.
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 the voluntary investment and claimed as a deduction under the new Section 80CCD(1b).
Download Automatic Income Tax Preparation Excel Based Software All in One for Govt & Non-Govt Employees for F.Y.2016-17.
[This Excel utility can prepare at a time your Individual Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure for both of Govt & Non-Govt employees Salary Pattern + Automatic Arrears Relief Calculation U/s 89(1) with Form 10E + Automatic H.R.A. Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17 with all amended Income Tax Section by the Finance Bill 2016-17]
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Salary Structure
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Tax Compute Sheet
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Arrears Relief Calculation with Form 10E
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Form 16 Part B
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"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.
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.
The new tax return forms have done little to dispel the confusion. While the deductions under different sub-sections of 80CCD have to be shown separately in the forms, there is no clarity regarding whether 'employee contributions' can be treated as 'self-contribution'. Tax experts say the department should clarify how this deduction can be availed of.
Monday 21 November 2016
Download Automated Master of Form 16 Part B with Form 12 BA FY 2016-17 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B with 12 BA for Financial Year 2016-17]
For the person earning income from Salary , documents Form 16, and Form12BA
are provided by an employer which has details about his salary,
perquisites and tax deducted at source(TDS) by his employer.Looked into
details of Form 16. Form 12BA give details of Perquisites given
by the employer to the employee had looked into what are perquisites,
what income tax laws apply to it, about the valuation of perquisites and
the taxation with an example, which perquisites are exempted from
tax, Difference between Perquisite, Allowance, and Fringe benefit. In
this article, we shall see how Form 12BA shows the information about perquisites.
Form 12BA
Form 12BA is
a statement showing particulars of perquisites, other fringe benefits
or amenities, and profits in lieu of salary with value thereof.
Form
No. 12BA, if the amount of salary paid or payable to the employee is
more than one lakh and fifty thousand rupees, which shall accompany the
return of income of the employee. [Explanation : “Salary” for the
purposes of this rule shall have the same meaning as given in rule 3.]
Note:The limit has changed to one lakh and eight thousand (1,80,000) by circular in 2011.
Saturday 5 November 2016
Download Automated Master of Form 16 Part B with Form 12 BA FY 2016-17 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B with 12 BA for Financial Year 2016-17]
For the person earning income from Salary , documents Form 16, and Form12BA are provided by an employer which has details about his salary, perquisites and tax deducted at source(TDS) by his employer.Looked into details of Form 16. Form 12BA give details of Perquisites given by the employer to the employee had looked into what are perquisites, what income tax laws apply to it, about the valuation of perquisites and the taxation with an example, which perquisites are exempted from tax, Difference between Perquisite, Allowance, and Fringe benefit. In this article, we shall see how Form 12BA shows the information about perquisites.
Form 12BA
Form 12BA is a statement showing particulars of perquisites, other fringe benefits or amenities, and profits in lieu of salary with value thereof.
Form No. 12BA, if the amount of salary paid or payable to the employee is more than one lakh and fifty thousand rupees, which shall accompany the return of income of the employee. [Explanation : “Salary” for the purposes of this rule shall have the same meaning as given in rule 3.]
Note:The limit has changed to one lakh and eight thousand (1,80,000) by circular in 2011.
Friday 4 November 2016
Click here to download the Private employees All in One TDS on Salary for FY 2016-17 [ This Excel Utility can prepare at a time Tax Compute Sheet + Automatic HRA Exemption Calculation + Automated Form 16 Part A&B and Form 16 Part B+ Form 12 BA]
Tax Compute Sheet
How to calculate your Income Tax for the Financial Year 2016-17 and Assessment Year 2016-17. It is most easy to calculate, if you read carefully the Manual of Income Tax which published by the Income Tax Department in the year 2010. Just add the new some Income Tax Section which included in the Last Finance Budget 2014. The New Most effective Income Tax Section is 87A (Tax Rebate up to Rs.5,000/-).Income Tax Slab Raised up to Rs. 2.5 Lakh and U/s 80C has also raised up to Rs. 1.5 Lakh.
As per the Finance Budget 2016 Income Tax Section 87A has raised up to Rs. 5000/- from Rs. 2000/-. The Income Tax Section 80CCD(1b) has introduce which Max Rs 50000/- out of U/s 80C Slab.
Also it is mandatory to download the Form 16 Part A from the TRACES portal ( www.tdscpc.gov.in). Below given the Income Tax preparation Manual which you can download and read the same.
Thursday 20 October 2016
Download the Automated Master of Form 16 Part B with 12 BA for prepare at a time 50 Employees Form 16 Part B with 12 BA for Financial Year 2016-17 and Assessment Year2017-18.
Feature of this Excel Utility :-
1) Automatic Prepare at a time 50 employees Form 16 Part B with 12 BA for F.Y.2016-17
2) Most easy to generate this Excel Utility, just like any Excel File
3) You can prepare more than 1000 employees Form 16 Part B with 12 BA by this One Software.
4) Automatic Convert the Amount into the In Word without any Excel Formula
5) All amended Income Tax Section have in this utility as per the Finance Bill 2016-17
Tuesday 27 September 2016
1- Public Provident Fund U/s 80C
Public Provident Fund is my topmost tax saving option. It gives you full tax saving with maximum safety. There is a lot of flexibility and ease also. Anyone can invest in this. Almost every big bank offers this facility.
Tax Saving
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Lock-In Period
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PPF investment is for 15 years. Normally you can’t redeem it before that.
You can take loan before 5 years and withdraw it partially after 5 years
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Investment Limit
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You have to invest minimum 500 annually.
Maximum investment limit is 1,50,000 annually
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Safety
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This is one of the safest investment options. Banks process it and money remains with the government of India
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Interest
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rate varies with the market rate. 10 Year government Bond yield is the benchmark. hence it will never underperform .
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Where to Invest
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State bank of India and all big National and private Banks give this facility.
Now you can open PPF account online also. Even Post office also gives this facility.
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Recurring Investment
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It is not mandatory to invest fixed amount every year, unlike insurance schemes. You can invest any amount. You can invest once a year or up to 12 times a year.
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Employees get the benefit of EPF which gives them retirement saving with the tax benefit. For professional and self-employed PPF plays this role. Return and conditions of PPF withdrawal are same as EPF. But in PPF you get much more flexibility. You can invest in PPF up to the limit of 80C investments.
Note – PPF starts calculating 15 years from next April. It means that if you start investing since Dec 2013, your PPF account will mature in April 2029. But if you invest during 1 – 5 April your account would be considered from the same financial year. Also, put your money before 5 of every month to get the interest of that month.
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2- Employee Provident Fund U/s 80C
Organised sector employee must be aware of this tax saving investment. It is mandatory for employers to deduct 12% of the employee salary towards employee provident fund (EPF). The employer also contributes the same amount. This investment is qualified for a tax deduction. Fewer people know that you can invest more than the prescribed 12%. This excess amount also gets a tax benefit. The EPF can be transferred from one job to another easily. After leaving the job you can withdraw EPF.
Tax Saving
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Lock-In Period
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Money is locked till your retirement.
If you remain unemployed for 2 months then you can withdraw your whole amount.
Withdrawing money before 5 years would be taxable
You can withdraw partially in special situations.
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Investment Limit
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You get tax benefit till 80C limit. You can invest more than the prescribed 12% of the salary. Excess amount will also get the tax benefit.
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Safety
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This is one of the safest investment options. Money remains with the government of India
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Interest
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EPFO determines Interest rate every year according to its return. EPFOinvest mainly in government bonds.
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How to Invest
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Your employer deducts it regularly. For excess deduction, you can say to your employer in the beginning of the financial year.
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Recurring Investment
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There is no flexibility. EPF portion always remains 12% of your salary. Also Once you decide for excess deduction it will remain there until the end of financial year.
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3- Equity Linked Saving Scheme (ELSS) U/s 80C
Equity Linked Saving Scheme (ELSS) has a minimum lock-in period. Your money is locked only for three years. But you should not always exit from it after three years. Equity investments give good return in a longer period. You can even rotate your investment after three years. Because of this, you will be spared of fresh investment for tax saving after the three years. Also, If you need some money before three years then choose the dividend option. It will give tax-free dividend as well. SIP would be the perfect way to invest in these funds. It averages the ups and downs of the market. You can invest more than the 80C limit in the ELSS.
Tax Saving
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Lock-In Period
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This option has the smallest lock-in period. After 3 years you can redeem your money.
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Investment Limit
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You can invest any amount, but tax benefit is limited to 80C rules. (Upper limit for 80C tax rebate is 1 lakh total)
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Safety
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It is as risky as any diversified equity mutual fund. As all of your money is invested in share market yo can experience the roller coaster ride.
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Return
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Traditionally, long-term Equities give a better return than any other investment. But it may happen that after the completion of 3-year lock-in period your money gets depleted.
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How to Invest
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Many fund houses have the ELSS. You can Invest online directly through the Fund house’s own website or through the distributors such as FundsIndia.
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Recurring Investment
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There is no limitation for recurring investment. But fixed SIP would be suitable to overcome the market’s up and down.
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4- National Pension System (NPS) U/s 80C
- National Pension System (NPS) is not much popular tax saving investment. But it gives you a happy retirement life as well as tax saving. You can claim investment in the NPS for tax deduction under the 80C. But it has a big drawback also. The government did not make maturity proceedings tax free.
- You will get money only after the retirement.
- From the 60% of the maturity amount you have to take annuity policy.
- Rules are somewhat stiff but it is designed to give you happier retirement life. The government has added some flexibility, which has made it more attractive. You can read in details about it here
Pension Bill – Changes in National Pension System and Benefits to You
Tax Saving
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Lock-In Period
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Money is locked till your retirement. You can withdraw 25% in special circumstances with some conditions .
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Investment Limit
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Tax saving under 80C rule . You can claim the tax deduction up to 10% of your salary which should not be more than 80C limit . However, can invest more but it will not get tax saving.
Your employer can contribute more on his behalf in your account. This contribution will be tax-free over and above the 80C limit.
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Safety
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Money is invested in fixed instrument as well as in shares. You have to choose where you want to invest. Equity investment can not be more than 50% of the fund. Also, there is life cycle fund which automatically changes your asset allocation with age.
Now government also gives the minimum guarantee of the return. You can take that option also.
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Return
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You can expect the market return of fixed investment. If you are investing more in equity then you should be ready for ups and down. But don’t worry for a longer period it will certainly give a good return.
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How to Invest
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Government Employees now invest their money in this scheme by default. Private company employee and the unorganized worker can subscribe this scheme from the ‘point of presence’. These are the distributor of National Pension System. most of them are banks while some are financial companies.
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Recurring Investment
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You have to invest minimum 6000 in a year else you will be fined for 100 rupees per year. No contribution can be less than 500 rupees.
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5- Tax Saving Fixed Deposit U/s 80C
The Tax saving Fixed Deposit are just like any other fixed deposit. You will get similar interest rate also. But your money will be locked for 5 years. You can’t withdraw your money before maturity. Also, Interest-earning would be taxable. Ease and peace of mind are the biggest plus point of this tax saving investment.
6- Term Insurance U/s 80C
Term Insurance does not give you ant maturity amount . You can save tax and have a big peace of mind. This gives life cover so that our family would not suffer in distress if there is any eventuality with us. These days online term plans are cheaper and you can have 1 crore term plan in 10-15 thousand annually. HDFC Life, Birla SunLife gives these online term plans.
7- National Saving Certificate U/s 80C
National saving certificates (NSC) are similar to Tax Saving Fixed Deposit. But today it gives less return than Bank Fixed Deposit. Also now finding post office is difficult than banks. But NSC should be considered safer than FD since your money remains with the government of India.
- NSC also gives the benefit of tax saving under 80C. Unlike ELSS, PPF or EPF interest is taxable in case of NSC. There is one extra tax benefit with NSC. As your interest is considered accrued every year. But it stays invested so you can claim this interest also for the tax deduction.
- There is no maximum limit of investment.
- Rate if Interest if 8.50% for 5 years and 8.80% for 10 years.
- You can take a loan from banks also using this certificate as collateral.
8- Senior Citizens Saving Scheme U/s 80C
Senior Citizen Saving Scheme is designed for elderly and it is one of the best tax saving scheme for them. Even the senior citizen who don’t need tax saving can also invest in this scheme. It gives them a regular income as interest is deposited regularly in their account.
- Tax Saving is under the 80C Scheme.
- Interest is taxable. But as many Senior citizens earn less than their limit of tax so this should not be any hindrance.
- This Scheme is for 5 years but one can withdraw the amount with some conditions.
- The maximum limit for this account is 15 Lakhs.
- The minimum limit is 1000.
- Interest Rate is 9.2% compounded quarterly. Interest is credited in an account on 31 March, 30 June, 30 September and 31 December irrespective of your date of deposit.
- It is very safe as your money remains with Government of India.
9- Unit Linked Insurance Products (ULIP)U/s 80C
Unit Linked Insurance Products give you insurance cover as well as investment. ULIPs invest some amount of your money in shares. You can decide which proportion of your fund should be invested in shares. ULIP has some positives but many negatives also.
Positives
- ULIPs are very tax efficient. You can save tax from investment under 80C. While maturity amount would not be taxed also.
- It forces you for regular saving.
- You are forced to have some insurance cover if you don’t have one.
- You can continuously change asset allocation
Negatives
- You can’t withdraw your money before 5 years.
- You remain under-insured because the cover is only 10-20 times of the premium.
- ULIPs are somewhat opaque. While Mutual funds are analysed and compared by many research agencies. less information is available about ULIPs.
- Initially, charges are higher than a normal Mutual fund.
- If there is an underperformance for a long period you can’t switch another funds house. The maximum you can do is allocate more fund to another category. Suppose you chose equity option for building the wealth. But equity fund is underperforming than the benchmark. Then you will not have the option to switch over to another equity fund. You can only switch to balanced or debt fund, Which might also give the lesser return.
10- Health Insurance U/s 80D
The best part is that it gives tax saving benefit also. The premium you pay for health insurance is tax-deductible under Section 80(D). You can get tax saving up to 55,000 of expense in health insurance and health check up for below 60 years Rs.25 thousand and Parents who have above 60 Years can avail Rs.30 thousand.
- You can avail tax deduction on the expense of health insurance for you and family. The limit for tax deduction is 25,000.
- You can additionally avail tax deduction for your parent's health insurance. The limit is 30,000 for the senior citizen.
- Health checkup for you and family is also tax-free. The limit is 5,000 annually.
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