Taxexcel: Automated Form 16 Part B with 12 BA for F.Y.2015-16

Download Automated Master of Form 16 Part B with 12 BA for Financial Year 2015-16 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B with 12 BA for A.Y.2016-17 as per New Finance Budget 2015-16]

First of all you should know that ‘is it mandatory to deposit income tax online or not?’ and there are lots questions in your mind. We’ll try to cover all of your questions to solve like how to pay income tax online, how to pay income tax offline, how to fill tax Challan and how to deposit Challans in banks.

1) Electronic deposit of income tax is mandatory in case of accounts audited and all companies. Otherwise you can deposit income tax offline by filling the paper form i.e. challan No.280 or appropriate challan.

2) You can deposit online income tax from the account of any other person or your own account. There is no restrictions like that. But you must enter the PAN of the person on whose behalf the payment is made. (CBDT Circular No.5/2008, dt.14-7-2008)

3) You can deposit income tax online by making payment through internet banking facility(required user id and password of your bank) and by credit/debit cards.

Which bank Offer e-payment of taxes facility?

There are lots of nationalized and private banks offers e-banking facility. You can contact bank manager to opt for e-payment facility which require user id and password. Some of the following banks offer e-payment facility.

Allahabad Bank
Axis Bank
Bank of Baroda
Bank of Maharashtra
Canara Bank
Coropration Bank
Dena Bank
HDFC Bank
ICICI Bank
IDBI Bank
Indian BAnk
Indian Overseas Bank
Oriental Bank of Commerce
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderbad
State Bank of India
State Bank of Indore
State Bank of Mysore
State Bank of Paitala
State Bank of Travancore
Syndicate Bank
Union Bank of India
Vijaya Bank

Detail Procedure to Pay Income Tax Online

Step 1

Visit www.incometaxindia.gov.in and go to e-Pay Taxes and go to e-payment; pay tax online.

Step 2

It will redirect you at https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp. Click on applicable challan out of the following

Income & coproation tax – Challan No./ITNS 280
TDS/TCS – Challan No.281
Securities Transaction Tax, Wealth Tax, Hotel Receipts Tax, Expenditure Tax/ Other Direct Tax – Challan No.282

Step 3

Clicking on the applicable challan, the relevant challan’s screen will be shown. Now you have to fill the challan detail like PAN, Name, Address, Assessment year, type of payment etc. NSDL will credit our payment as per information we have filed. So ensure that correct PAN is entered. Otherwise it will credit to other account and you can not get refund of your tax.

Step4

Once all details entered and verified. Click on ‘Submit’ button. It will redirect to your net banking website.

Step5

Enter User ID and password given by the bank. It will redirect you on authorization page of e-payment gateway of taxes. All banks has its different procedure, layout of page and display.

Step 6

Enter the amount of tax to be paid with other detail like education cess, interest, penalty etc.

Step 7

Click to proceed or submit. The bank will begin to pay the taxes and debiting the bank. After competing the process it will be displayed the payment detail like CIN, tax amount, bank name, BSR code. All information must be printed and kept with you for future reference.

[box type=”tip”]Challan Identification Number(CIN) must be needed in Income Tax Return. Otherwise you can not claim refund or claim that you have paid your due taxes. So it is very important document to keep with you[/box]

See: Document prepared in support of income tax return.

How to verify that my payment is credited to my account?

You can verify your payment by going to NSDL TIN website in the ‘Challan Status Inquiry’. But it will take time to shown for 5 to 7 days.

Note: If you encounter any error during the e-payment of income tax contact at e-tax@nsdl.co.in or call center at 022-24994650.

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For person earning income from Salary , documents Form 16, and Form 12BA provided by employer are needed. We looked into details of Form 16. Form 12BA give details of Perquisites given by the employer to employee in the financial year. Before we look at Form 12BA lets try to understand Perquisites, also known as perks.

Download All in One TDS on Salary for Govt & Non-Govt employees for F.Y.2015-16 and A.Y.2016-17 [ This Excel Utility can prepare at a time Tax Compute Sheet + Automatic Arrears Relief Calculation with Form 10E + Automatic HRA Exemption Calculation + Automatic Form 12 BA + Automatic Form 16 Part A&B and Form 16 Part B + Individual Salary Structure for Govt and Non-Govt employees]

What are Perquisites?

Perquisites are benefits provided by the employers in addition to the normal salary at a free of cost or concession rates. Income tax act defines Perquisite as any casual emolument or benefit attached to an office or position in addition to salary or wages. Value of these perquisites is added to the income of employees. Hence Perquisites are taxable. There are rules for valuation of perquisites. Some of the perquisites are given below:

1	Accommodation [Download Accommodation Value Calculator]
2	Cars/Other automotive [ Download Value of other Perquisite Calculator]
3	Sweeper, gardener, watchman or personal attendant
4	Gas, electricity, water [ Download Value of Perquisite of Other calculator]
5	Interest free or concessional loans[ Download Loan Value Calculator]
6	Holiday expenses
7	Free or concessional travel [ Download Travel Value Perquisite Calculator]
8	Free meals [ Download Value of Perquisite of meal calculator]
9	Free Education [ Download Value of Perquisite of education calculator]
10	Gifts, vouchers etc. [ Download Value of Perquisite of Gift calculator]
11	Credit card expenses [ Download Value of Perquisite of calculator]
12	Club expenses [ Download Value of Perquisite of l calculator]
13	Use of movable assets by employees [ Download Value of Perquisite of l calculator]
14	Transfer of assets to employees [ Download Value of Perquisite of meal calculator]
15	Value of any other benefit/amenity/service/privilege [ Download Value of Perquisite of calculator]

A perquisite can be provided both by way as:-

· Monetary payment : Employer either reimburses the expenses incurred by the employee for such facilities or pays on behalf of the employee. Ex:personal gas bills of the employee are in the name of employee and the employer reimburses the amount of such gas bills to him or pays on his behalf to the gas agency, it is in monetary terms and taxable in case of all employees; on the other hand, if such bills are in the name of employer, it will be perquisite in case of specified employee only.

· Non-monetary payment/benefit : Payments which can be called non-monetary payments are car facility, benefit on account of interest-free loans, rent-free accommodation, furniture provided to employees etc.

As defined earlier, Perquisite as any casual emolument or benefit attached to an office or position in addition to salary or wages, Mostly perquisites are associated with position or office. Often distinction is made between employees and specified employees. A Specified employee is the one who satisfies any of the following cases:

· He is a director of the company,

· He has a substantial interest in the company, ie he is the beneficial owner of equity shares carrying 20% of voting power in the employer company.

· His monetary income under the head “Salaries” for the year exceeds Rs.24,000. The amount considered here includes amounts due from, paid or allowed by one or more employers. It excludes all non-monetary benefits.

The perquisites and allowances, as aforesaid, shall include accommodation (furnished or otherwise) or house rent allowance in lieu thereof; house maintenance allowance together with reimbursement of expenses and / or allowances for utilisation of gas, electricity, water, furnishing and repairs; medical reimbursement; leave travel concession for self and family including dependents; medical insurance and such other perquisites and / or allowances.

Perquisites and Indian Income tax Act

Definition of Perquisites: Perquisites are defined in the section 17(2) of the Indian Income-tax Act of 1961.

Section 10(10CC) – Exemption on Non monetary perquisites: With effect from 01.06.2002, employer has given a option to deposit the tax on non monetary perquisites on behalf of employee without deducting the same from the employee {section 192(1A) &192(1b)} As per section 10(10CC), the amount of tax actually paid by an employer, at his option, on non-monetary perquisites on behalf of an employee, is not taxable in the hands of the employee. Such tax paid by the employer shall not be treated as an allowable expenditure in the hands of the employer under section 40. The tax so paid by the employer shall be deemed to be TDS made from the salary of the employee.

Statement of Perquisites: 192 (2C) lays down employer, shall furnish to employee a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof in form no. 12BA. The form and manner of such particulars are prescribed in Rule 26A, Form 12BA and Form 16 of the Income-tax Rules . Information relating to the nature and value of perquisites is to be provided by the employer in Form no. 12BA in case of salary paid or payable is above Rs.1,80,000/-. In other cases, the information would have to be provided by the employer in Form 16 itself.

Type of perquisites, valuation of perquisites are defined in every Finance Act (popularly known as Budget presented by Finance Minister).

Valuation of Perquisites

Perquisites are taxable in the hands of employees. There are rules for valuation of perquisites. Let’s look at some of the rules. Please note that these rules keeps changing and are notified by Central Board of Direct Taxes (CBDT). For the financial year 2011-12 or Assessment Year 2012-13 Circular No.08/2010 dated 13.12.2010 . Valuation of some of the perquisites are discussed below:

Accommodation :- For purpose of valuation of the perquisite accomdation is divided into various categories like: Rent free Unfurnished Accommodation, Rent-Free Furnished Accommodation, Concession in Rent etc. is explained below:

Description	Perquisite Value
Where Government provides the accommodation to a person holding an office or post in connection with the affairs of the Union or State or serving with any body or undertaking under the control of such Government on deputation.	Licence fee determined by Union or State Government in respect of accommodation in accordance with the rules framed by that Government.
Where any other employer provides such accommodation.	Where accommodation is owned by employer. Perquisite Value is - · 15% of the salary in cities having population more than 25 lakhs as per 2001 census. · 10% of the salary in cities having population more than 10 lakhs but up to 25 lakhs as per 2001 census. · 7.5% of salary in other cities. Where accommodation is taken on lease or rent by the employer. Perquisite Value is least of the following - · Actual amount of lease rental paid or payable by the employer · 15% of the salary.

Interested readers can find about more about Taxable value of Rent-Free Furnished Accommodation, Taxable value of Concession in Rent

Gift or Voucher or Token: [Rule 3(7)(iv)]: The value of any gift or voucher or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise shall determined as equal to the amount of such gift.

However, where the value of such gift, voucher or token, as the case may be, is below Rs.5,000 in the aggregate during the previous year, the value of perquisite shall be taken as Rs.Nil.

Medical Reimbursement by the employer exceeding Rs. 15,000/- p.a. u/s. 17(2)(v) is to be taken as perquisites.

· Links to details about other perquisites from website accounting-n-taxation are given

Exempted Perquisites:- Some of the perquisites are exempted from income tax (free) such as:

· Tea, coffee(non-alcoholic beverages), snacks provided during working hours.

· Free Meals provided at the office or business premises during office hours or through paid non-transferable vouchers usable only at eating joints. If the value is up to Rs.50 per meal, it is not taxable. Otherwise, taxable. Assuming 2 meals per day and 22 working days in a month, it works out to Rs. 2200/- p.m which at times is given in form food coupons or Sodexo coupons.

· Recreational facilities provided.

· Good manufactured by employer and sold by him to employees at the concessional (not free) rates. Ex: Motorola providing his employees Motorola mobiles at less than market value or Hindustan Lever giving its products(Surf, Knorr soup) at lesser than market value.

· Amount spent on training of employee including the boarding and lodging expenses of the employees on such a training.

· Telephone and mobile phone facility.

· Computer or laptop whether to use at home or office (ownership is not transferred to employee)

· Loan given at nil or concessional rate of interest by the employer provided the aggregate amount of loan does not exceed 20,000.

· Health club, sports facility.

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Wednesday 25 November 2015