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Showing posts with label Automated income Tax Form 16 for the F.Y.2020-21. Show all posts
Showing posts with label Automated income Tax Form 16 for the F.Y.2020-21. Show all posts

Monday, 12 April 2021

 

Income Tax Filing

Know all about TDS on Salary under Income Tax Act1961. Depending on the source, the tax deduction is a means of levying income tax, dividend or sale of assets, which deducts the tax from the taxpayer before the arrears are paid. In India, under the Indian Income Tax Act of 1961, income tax has to be deducted at source as per the provisions of the Income Tax Act, 1961. In this article, we will discuss tax deduction at the source of salary.

 

Who is responsible for deducting TDS from salary?

 

Pursuant to Section 192, each person responsible for the payment of any income applicable to tax under the heading “income from salary” is liable to deduct TDS on the amount payable.

You may also, like: Prepare at a time 50 Employees Form 16 Part B for theF.Y.2020-21 as per new and old tax regime

 
Form 16 Part B

What is the method of TDS deduction?

 

Under Section 199 of the Income-tax Act, the assessor has to calculate the average income-tax on the basis of the rate applicable for the amount to be paid based on the estimated total income.

 

Therefore, the obligation to deduct TDS in case of payment arises only at the time of payment. The average rate of income tax rate means that the rate divided the amount of income tax received based on total income divided by such national income.

 

We can say that TDS must be calculated considering the existing slab rate. According to the Finance Act 2020, the employee has the option to choose the old rate or the new rate as per Section 115 BAC which is further discussed in the article.

 

If the assessee is employed under more than one employer or the assessee joins another employer in the financial year after the former employer resigns or retires, he may submit under the head of income statement “salaries” paid by the assessee from the previous employer or Received/

 

If any other details related to this national salary are given to the TDS and the current employer, then the subsequent employer must consider this information and then deduct the fee payable from both the employers for the corresponding financial year with the consent of the employee.

You may also, like Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime [Who are not able to download Form 16 Part A from the income Tax TRACES PORTAL, they can use this Form 16 Part A&B]

 

Data Input Sheet of Form 16

 

In order to deduct TDS from the salary payable in foreign currency, the value of a salary in rupee terms has to be calculated at the rate of exchange prescribed in section 2 rule of the Income Tax Act, 1922.

 

The employer must send the following, determining that there is salary income in addition to other taxable income for that financial year:

 

A. Details of this national income

B. Details of tax deduction under any other provision

C. If there is a description of the loss under the heading “Income from home property

 

The employer will consider the above details while calculating the TDS.

 

Is there any requirement to get a deduction or proof of income from an employee?

 

Yes, there is a need to get proof of discount or income from the employee. The person responsible for the payment of income under the heading "Income from salary" is liable to collect evidence or any other statement relating to the claim or exemption considered with the set-up of loss under these provisions. Or TDS should be made in the prescribed form and manner for the purpose of calculation.

 

Rule 26C has been inserted in the Income Tax Rules 1962, effective from 1 June 2016, stating that proof of claim will be submitted to the person responsible for payment under Form No. 19 under filed by an employee. For the purpose of calculating his income or calculating his income or source of tax deduction 12BB:

You may also, like Prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime [Who are not able to download Form 16 Part A from the income Tax TRACES PORTAL, they can use this Form 16 Part A&B]

 

Form 16 Part A and B

 

S. Proof of the need for the nature of any claim

 

1 House rent allowance is the name, address and PAN of the zamindars where the total rent paid for the year exceeds Rs.1 lakh rupees

 

2 Evidence of travel waiver or renunciation of assistance

 

3 Name, address and PAN of the interest rate deductible for a housing loan under the heading "Income from home property"

 

Chapter 4 Proof of discount or investment or expenditure under VIA

 

What is the meaning of section 115BAC?

 

In order to make taxes easier for the people, Budget 2020 has introduced a new tax system under Section 115BAC. This new tax system has given individuals and HUF taxpayers an option to pay income tax at a lower price.

 

The new tax rates will be applicable for income earned in FY 2010-2011. These new tariffs were proposed for those who wished to disregard certain discounts or rebates when calculating total income for tax purposes and when paying tax at a lower rate.

 

According to the department, 115BAC employers must take an announcement from the employee. An employee who earns income other than "profit and profit from business or profession" and wishes to take up the option of discount rate under section 114 BAC of this Act, must have his employer as his employer, for this purpose every previous year and so on.

 

Upon investigation, the cutter calculates his total income and makes TDS in accordance with the provisions of Section 115BAC of this Act.

 

If such national investigation is not carried out by the employees, the employer will make TDS without considering the provisions of Section 115BAC of this Act. The employer has to deduct TDS considering the old slab rate.

 

No alternative application should be made in the case of sub-section (5) of section 115 BAC of this Act and the person has to do so in addition to the return under sub-section (1) of section 139 of the Act for the previous year. Thus, it is covered under sub-section (1) of section 139 of the Act

 

The option at the time of filing the income return may differ from the investigation made by such an employee to the employer for the previous year.

 

Download & Prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21 as per new and old tax regime

Income Tax


 

Wednesday, 31 March 2021

 

5 new rules are being introduced in the income tax in April 2021. Changes have been made in the field of income tax in line with the new labour and wage policy. 

NPS

Union Finance Minister Nirmala Sitharaman announced several new policies on income tax in the Union Budget. The new policy is going to be effective from  1st April 2021.

 

A number of new policies are being introduced to ensure that more citizens file their income taxes on time. That is why the new tax policy is being introduced in the case of PF. Besides, the Union Finance Minister has also announced an increase in TDS and TCS. Not only that, changes have been made in the field of income tax in line with the new labour and wage policy. The Union Finance Ministry has also tried to facilitate the process of paying income tax. Pre-field income tax return application is being introduced.

 

Take a look at what changes are coming from April 1:

1

1) Benefits for Senior Citizens:

Those aged 65 and above who are dependent on full pension and bank interest money for income does not have to file income tax returns. The money will be deducted from the bank where they get their pension.

2

2) Pre-filled Income Tax Return Form:

Every taxpayer will get a pre-field income tax return form. This means that all the information of the taxpayer will be filled in the form beforehand. All the information like income, interest income from savings, payment of tax etc. will be mentioned there in advance. So the tax payment process will be easier.

Download Automated Income Tax Revised Form 16 Part A &B and Part B which can prepare One by One Form 16 for the F.Y.2020-21

Data Input sheet Form 16
3YouY

3) New tax policy for PF:

If more than Rs 5 lakh is deposited on behalf of the employee for PF, the tax will be applicable from now on. Tax will be levied on the interest accrued on deposits above Rs 5 lakh. However, in this case, the money that the employer is depositing will not be caught.

In the words of the Union Finance Minister, 'The new EPF policy should be done keeping in mind the interests of the workers. This policy will not have any effect on a person earning less than Rs 2 lakh per month.

4

4) TDS:

In this case, the main purpose of the new policy is to encourage more citizens to file income tax. In this year's budget, the finance minister has announced an increase in TDS and TCS.

The Union Finance Minister also announced the addition of two new sections, 206AB and 206CCA, to the Income Tax Act in the budget. According to this policy, those who do not file income tax will be deducted TDS and TCS at an extra rate.

5

5) LTC:
In the Union Budget 2021, the Finance Minister announced tax exemption on Leave Travel Concession (LTC). The centre announced the policy during the Corona Lockdown last year. This year the workers will get the whole money. Basically, government employees will benefit from this.

 

Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC

income tax Form 16 Part B


Sunday, 21 March 2021

 

Income Tax Slab Rate for the F.Y.2021-22

Tax Planning for the F.Y.2021-22 A.Y.2022-2023

 

There are certain investments and expenses under Section 80C of the Income Tax Act which helps the taxpayer to reduce tax liability.


If you want to continue existing or outdated tax discipline while filing your Income Tax Return (ITR) for F.Y 2020-21, you can avail several exemptions under the Income Tax Act, 1961. However, to be sure, you must Assume that you have compared the taxes payable under the old and new tax systems.

 

Initially, the old tax duty includes 4 basic income tax exemptions for the taxpayer for tax assessment and earnings for the assessment year 2021-22. In addition to Section 80C, the taxpayer has a few more exemptions.

Download Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 with the new and old tax regime [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

Income Tax Revised form 16 Part A&B

Tax benefits under section 80C

 

Some investment under Section 80C of the Income Tax Act which helps the taxpayer to reduce the tax payable. However, the maximum limit is up to Rs 1.5 lakh per annum which can be in any of these investments or expenses. Fixed investments include five-year notified tax-savings bank deposits, life insurance premiums, Employees Provident Fund(EPF), Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Equity Linked Savings Scheme. (ELSS). There is also an 80C tax benefit on home loans (principal amount) for EMI providers. Children's tuition fees paid as school fees fall under section 80C.

 Tax benefits under section 80D

 

The premium paid for health insurance brings a tax benefit. The premium can be purchased as a separate plan, family floater plan, critical illness plan as a separate plan or as a rider from life and in favour of health insurance providers or general insurance companies.

 

Currently, the limit for those under the age of 60 is Rs 25,000. This includes self, wife and children and the health cover can be Mediclaim, Family Floater, Critical Illness etc. The premium paid for any of these projects will be deducted from the total income under section 80D. The limit is Rs 50,000 for those above 60 years of age. If both the individual taxpayer and the parent are over 60 years of age, the exemption can be taken up to Rs one lakh. Any payment up to Rs 5,000 for a preventive health check-up is also eligible for tax benefits but it has to be within the overall limit.

 Download Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 with the new and old tax regime [This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B]

 Form 16 Input sheet


 National pension system tax savings

 

Section 80 CCD (1): Under Section 80 CCD (1), the employer and the employee can contribute to NPS. The discount should not exceed 10 % of the basic salary, except for all other allowances and permits. In the case of self-employment, under 80 CCD (1) of the Income Tax Act, 20 per cent of the total income contribution can be deducted from the taxable income, subject to a ceiling of Rs 6,000. 1.50 lakh under 60 CCEC.

Section 80CCD (1B): Under Section 80CCD (1B), the taxpayer will be allowed a rebate of ৫০ 50,000 for either employee or self-employed NPS. Exemption under Section 80CCD (1B) is exempt from exemption under Section 80CCD (1), but the same amount cannot be claimed under both sections.

 

Download Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 with new and old tax regime [This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

 

Income Tax Revised Form 16 Part B

Section 80 CCD (2): Salary employees get tax benefit on the employer's contribution to his or her NPS account. Contribution of ten per cent of the employer's salary (Basic Plus Dearness Allowance) may be claimed as exemption from taxable income under Section 80CCD (2) of the Income Tax Act, 1961. There is no high cap on the amount of this tax deduction. This exemption exceeds the ceiling limit of Rs 1.5 lakh given under Section 80C and the limit of Rs 50,000 under Section 80CCD (1B). Under the new tariff system, benefits under section 80CCD (2) are still available for the benefit of taxpayers.

Education loan repayment

 

When higher education is for higher education, tax income on interest paid in an educational institution qualifies for an income tax deduction.

 

The interest earned on higher education is exempt from gross income under Section0EE, there is no financial ceiling on that interest that can be claimed as a discount. In order to educate yourself, your child or even your spouse, you should take it from a financial institution or an approved educational institution. This waiver will be granted at any time prior to the year of initial assessment and the seven immediate assessment years until the initial assessment year is successful or full interest is claimed.

 

Download Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 with new and old tax regime [This Excel Utility can prepare at a time 100 Employees Form 16 Part B]

Form 16 Master sheet

Salary Input and Tax Section Sheet

Income Tax Revised Form 16 Part B