Showing posts with label Automatic Income Tax Form 16 for F.Y.2016-17. Show all posts
Showing posts with label Automatic Income Tax Form 16 for F.Y.2016-17. Show all posts
Monday 10 July 2017
Wednesday 28 June 2017
Tuesday 18 April 2017
Click here to Download Automated new amended Format of Form 16 Part B for the Financial Year 2016-17( This Excel Based Software can prepare at a time 50 employees Form 16 Part B)
At a Glance Under Section 80DDB for Medical Treatment as per the Income Tax Rules 11DD:-
The deduction u/s 80DDB is available if the expenses for the medical treatment of specified disease or ailment is incurred by the assessee on himself or on dependent. The specified disease for the purpose of section 80DDB is prescribed in Rule 11DD as under 11DD. (1) For the purposes of section 80DDB, the following shall be the eligible diseases or ailments :
(i) Neurological Diseases where the disability level has been certified to be of 40% and above,
(a) Dementia ;
(b) Dystonia Musculorum Deformans ;
(c) Motor Neuron Disease ;
(d) Ataxia ;
(e) Chorea ;
(f) Hemiballismus ;
(g) Aphasia ;
(h) Parkinsons Disease ;
(i) Malignant Cancers;
(ii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
(iii) Chronic Renal failure ;
(iv) Hematological disorders :
(v) Hemophilia ;
(vi) Thalassaemia.
The amount of deduction allowable under section 80DDB is the expenditure actually incurred or Rs. 40,000/- (Rs. 80,000/- for senior citizen) whichever is lower.
Click here to download the Automated Form 16 Part A&B F.Y.2016-17( This Utility can prepare at a time 50 employees Form 16 Part A&B)
Wednesday 29 March 2017
Simple One Page Income Tax Return to be Introduced – Finance Minister reduces the tax rate from 10 to 5 percent for individual income between Rs 2.5 to Rs 5 lakh.
Ministry of Finance Press Release on Simple One Page Income Tax Return
The Union Finance Minister Shri Arun Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent for individual assesses between the income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 per cent of their existing liability.
Download Automated Master of Form 16 Part B for F.Y. 2016-17 [ This Excel Utility can prepare at a time 50 Employees Form 16 Part B]
While presenting the General Budget 2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. The Finance Minister further said that if a nominal rate of taxation is kept for the lower slab, many more people will prefer to come to the tax net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.
Download Automated Master of Form 16 Part A&Bfor F.Y.2016-17 [ This Excel Utility can prepare at a time 50 employees Form 16 Part A&B ]
The Union Finance Minister Shri Jaitley said that the Government is trying to bring within tax-net more people who are evading taxes. So, in order to expand tax net, it is decided to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income up to Rs 5 lakhs other than business income. Also, a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high-value transaction.
Download Automated One by One preparation ExcelBased Form 16 Part B for F.Y. 2016-17 [ This Excel Utility can prepare One by One Form 16 Part B ]
In his Budget Speech, the Finance Minister further said that in order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500, available only to assessees up to income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income up to Rs 3 lakhs per annum. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. While the taxation liability of people with income up to Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crore.
In order to make good some of this revenue loss on account of this relief, a surcharge of 10 per cent of the tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore has been proposed. This is likely to give additional revenue of Rs 2,700 crore.
The Finance Minister said that the direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore.
Source from Gconnect.in
Sunday 8 January 2017
With the tax-planning season about to end, most individuals are rushing around to make investments to minimise their tax liability. It has been observed that individuals (often salaried ones) end up paying more taxes than they are obligated to.
While the lack of sufficient time to conduct the tax-planning exercise is a reason, largely, this can be attributed to lack of awareness about different incentives, allowances, and rebates under the Income Tax Act. Apart from the Section 80C deductions which are quite popular, there are various other sections which can help salaried individuals save taxes.
We believe there is a need for salaried individuals to devote adequate time and effort to the tax planning exercise and be aware of the various benefits that they can avail of. In this article, we present 5 tax-planning tips that can aid salaried individuals to minimise their tax liability.
Download Automated All in One Income Tax Preparation Excel Based Software for West Bengal Govt Employees for F.Y.2016-17 [ This Excel Utility can prepare at a time your Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic H.R.A. Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17]
1. Utilise the entire Section 80C deduction
Under Section 80C, the maximum deduction available is Rs 150,000 pa. Ideally, salaried individuals whose gross total income is equal to or more than Rs 250,000 should utilise the entire Rs 150,000 limit.
Consider the case of an individual whose taxable income is Rs 600,000 and who only utilises half of the available Rs 150,000 limit. He would end up paying an additional tax of Rs 15,450 as opposed to an individual with the same taxable income but has utilised the entire limit.
Also, at times, individuals make investments of over Rs 1,50,000 in Section 80C designated avenues, since they fail to understand that the benefits are capped. For example, despite making investments of Rs 70,000 in Public Provident Fund and Rs 40,000 in ELSS, the amount eligible is only Rs 1,50,000.
Following investments/contributions qualify for Section 80C deductions,
- Public Provident Fund
- National Saving Certificate
- Accrued interest on National Saving Certificate
- Life Insurance Premium
- Tuition fees paid for children's education (maximum 2 children)
- Principal component of home loan repayment
- Equity Linked Savings Schemes (ELSS)
- 5-Year fixed deposits with banks and Post Office
2. Think beyond Section 80C
For salaried individuals whose gross total income exceeds Rs 250,000 pa, deductions under Section 80C may not be sufficient to reduce the overall tax liability. In such cases they can consider the following:
Home loan: Individuals intending to buy a house should consider opting for a home loan. Interest payments of up to Rs 150,000 pa are eligible for deduction under Section 24.
Medical insurance: An individual who pays the medical insurance premium for self or spouse/dependent children is allowed a deduction of up to Rs 25,000 P.A. under section 80D.
An additional deduction of up to Rs 25,000 P.A. is allowed for premium payment made for parents. In case the parents are senior citizens, then the maximum deduction allowed is Rs 30,000 per year.
Donations: Subject to the stated limits, donations to specified funds/institutions are eligible for tax benefits under Section 80G.
Salaried individuals who plan to pursue higher education should avail of an education loan as the entire interest is eligible for deduction under Section 80E. The loan can be for self, spouse or child from an approved charitable institution or a notified financial institution.
3. Restructure the salary
Restructuring the salary and including certain components can go a long way in reducing the tax liability. Unlike eligible investments which lead to an additional cash outflow, restructuring the salary is a more 'efficient' means of claiming tax benefits. The following can form a part of one's salary structure:
· Individuals living in a rented accommodation should have House Rent Allowance (HRA) as part of their salary. Download Automatic H.R.A. Exemption Calculator U/s 10(13A)
· Transport allowance is exempt up to Rs 1600 per month for general & Rs. 3200/-P.M. for Phy.disable person.
· Leave Travel Allowance (LTA) can be claimed twice in a block of four years for domestic travel.
4. Claim tax benefits on house rent paid
Salaried individuals can claim rent paid by them for residential accommodation if HRA doesn't form part of their salary. This deduction is available under Section 80GG and is least of the following:
· 25% of the total income or,
· Rs 5,000 per month or,
· Excess of rent paid over 10% of total income
Please note that the above deduction will be denied if the taxpayer or his spouse or minor child owns a residential accommodation in the location where the taxpayer resides or performs his office duties.
5. Opt for a joint home loan
As discussed earlier, the principal repayment on a home loan is eligible for a deduction of up to Rs 150,000 pa and the interest paid is eligible for a deduction of up to Rs 150,000 per year.
In cases where the home loan is a substantial sum, it is not uncommon for the interest and principal repayment to exceed the stated limit. To ensure that the tax benefit is optimally utilised, an individual can consider opting for a joint loan with his spouse or parent or sibling.
This will ensure that both the co-owners can claim tax deductions in the proportion of their holding in the loan. The co-owner falling in the higher tax bracket should hold a higher proportion of home loan to ensure that the tax benefits are maximized.
Thursday 22 December 2016
Tax saving and Tax Planning are important aspects for the salaried person. As it allows you to save more money. If as a salaried person you are earning Rs 10 Lac per year, you have very little scope to avoid tax. At the most, you can invest in tax saving scheme and get a tax benefit of few thousand rupees.
In any case, you have to pay income taxes, but with little tax planning, you can optimize your tax outgo. So, here is Tax Saving Tips for a Salaried person to maximize tax saving.
Income Tax Exemption for Salaried Person
The first thing you should do as a salaried person is to take maximum advantage of available tax exempted allowance/reimbursements. In order to take this benefit, you must be aware of such allowances. So, here is a detail of all applicable tax exempted allowances.
Download Income Tax Preparation Excel Based Software for West Bengal Govt Employees for F.Y.2016-17 [ This Excel Utility can prepare at a time Individual Salary Structure + Individual Salary Sheet + Individual Tax Compute Sheet + Automatic H.R.A. Exemption Calculation U/s 10(13A) + Automatic Form 16 Part A&B and Form 16 Part B for F.Y.2016-17
House Rent Allowance
Most of the employer gives a benefit of HRA to their employees. Under House Rent allowance a minimum of a following is exempted from the income tax.
· Actual HRA
· Actual Rent Paid minus 10% of salary
· 50% of Basic for Metro City or 40% of Basic for NonMetro City
Leave Travel Allowance
LTA or Leave Travel Allowance is given by the employer to their employee in order to reimburse the cost incurred on the vacation. This allowance is exempted from income of the salaried people provided employee actually goes on the vacation and produced the valid proof of travel. Two such trips in the block of four years are allowed under LTA. The amount payable should not exceed Economy Air Ticket or First class AC Rail Fare for the shortest distance to a single destination.
Leave Encashment
You must be getting several leaves in the year. In case if you don’t claim these leaves employer gives the option to encash these leaves. The amount received by a salaried person as a leave encashment can be claimed for tax exemption up to certain extent.
Travel and Fuel Reimbursement
Travel and Fuel Reimbursement allowance is also exempted from the tax up to some extent. Let us say If an employer provides you a car for the official purpose and employer also gives you fuel reimbursement you can avail tax exemption. You need to maintain the record that car is used for official purpose only. The maximum amount that can be exempted from tax via this allowance is Rs 2400 per month. If the small car less than 1600 CC is used amount exempted would be Rs 1800 per month.
Uniform Allowance
Uniform allowance paid by your employer to you as a part of your salary is fully exempted from the tax. It should be uniform, not a civil dress.
Children Education Allowance
Allowance namely children education allowance given by an employer to the salaried person is exempted from the income tax. The amount of exemption is very low it is Rs 1200 per year for maximum two children.
Medical Reimbursement
Medical reimbursement is actual amount paid to an employee by an employer on producing bills of medical treatment availed. The maximum tax exemption limit for this medical bill reimbursement is Rs 15000 year.
Transport Allowance
If you are getting transport allowance in your salary you can avail tax exemption benefit of the same. Transport allowance is given to meet the expense of traveling between your house and office. A maximum exemption limit for this allowance is Rs 1600 per month & Rs. 3200/-P.M.for Phy.Disabled Persons.
Section 80 C
Under section 80 C you can make an investment up to 1.5 Lac and avail tax benefit. Some of the best tax saving investment options under 80 C are ELSS, PF, PPF, Sukanya Smariddhi Scheme etc. You can also claim home loan principal and children’s school fees under this section.
Home Loan Interest U/s 24B
If you have taken the home loan, you can avail additional benefit up to 2 Lac on the interest component of the home loan under section 24 B.
Home Loan Interest U/s 80EE
New amended section 80EE introduce as a Home Loan Interest Max Rs.1,50,000/-
Section 80 E
If you have taken education loan you can take benefit of income tax exemption on repayment of interest on the education loan. The entire amount paid for the interest on education loan can be claimed under this section.
Section 80 CCD
Investment under New pension scheme can bring additional tax saving for you. So if you are the salaried person and want to maximize tax outgo you can plan to invest in NPS. As per new rule, one can avail a deduction up to Rs 50,000/- under section 80 CCD (1B).
Section 80 D Health Insurance
Health Insurance premium can bring you additional tax saving of Rs. 25000 per year under section 80 D & Rs. 30,000/- for Sr.Citizen. it includes health insurance premium payment of self, family, and parents. Along with this payment made for the preventive health checkup up to Rs 5000 can also be claimed as a tax deduction.
Monday 24 October 2016
Individuals who are looking for investments should consider tax and TDS along with risk and return of an investment. This is because returns may differ depending on the taxation of financial instruments. Income earned from most of the investments are subject to TDS. Say, for example, salary income, interest earned on debentures attract TDS. So one should be aware of tax and TDS applicability and how it can be avoided.
Download Automatic 100 employees Master of Form 16 Part B for F.Y.2016-17 & A.Y.2017-18.[ This Excel Based utility can prepare at a time 100 employees Form 16 part B for the Financial Year 2016-17, This Utility can use both of Govt and Non-Govt Concerned.]
Below mentioned some income and investments where TDS is applicable:
TDS on Salary Individuals who have income above the taxable limit will see the employer deduct TDS on total income, including income other than salary after considering all deductions and exemptions. TDS is applicable as per his income slab. The same can be avoided if investments are made under 80C, 80D of Income Tax Act by providing investment proof of the same. The company will issue a TDS certificate also known as Form 16A at the end of the financial year.
TDS on Interest Income Banks deducts TDS on interest income earned above Rs 10,000 in a year. Taxpayers who fall in higher tax bracket need to pay tax as per liability. Individuals with lower income can claim for the TDS by submitting form 15G or H, whichever is applicable. Also, one can avoid TDS by opening a fixed deposit in the different banks where interest earned in a single bank should not exceed Rs 10,000. Note that the TDS will be applicable on the complete amount not only of the exceeded amount. TDS is applicable at 10 per cent if PAN is not submitted with the bank, 20 percent TDS will be applied.
TDS on EPF Withdrawal TDS will be applicable if Employee Provident Fund is withdrawn before five years of contribution. However, TDS will not be deducted for an amount below Rs 50,000 from June1, 2016. TDS is not applicable when individuals transfer Provident Fund from one account to another Provident Fund Account. TDS will be deducted at 10 per cent if Form-15G or 15H is not submitted provided PAN is submitted. In absence of PAN, it is 20 percent of the amount.
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