Download and prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Govt & Non-Govt employees Salary Pattern + Automated H.R.A. Exemption Calculation + Automatic Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17

Main Data Input Sheet for Deductor

Employees Salary Structure 

Form 16 Part A&B

Form 16 Part B

Arrears Relief Calculator with Form 10E

At the investment stage, National Pension System (NPS) offers the income tax benefits under different sections of the Income Tax Act – Section 80CCD (1), Section 80CCD (1b) and Section 80CCD (2).

NPS is especially useful for investors who may have exhausted the Rs 1.5 lakh investment limit under Section 80C but want to save more.

Under Section 80CCD (1) – Investment up to Rs 1.5 lakh into NPS in a financial year is eligible for deduction under Section 80CCD(1). This deduction comes under the overall ceiling of Rs 1.5 lakh for deduction under Section 80C.

Under Section 80CCD (1b) – In budget 2016, the government had introduced additional tax benefit for investment up to Rs 50,000 in NPS. 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 claimed as a deduction under the new Section 80CCD(1b).

Under Section 80CCD(2): Over and above the ceiling limit of Rs 1.5 lakh provided under Section 80C and limit of Rs 50,000 under Section 80CCD(1B), contribution from the employer up to 10% of Basic Salary + Dearness Allowance is also eligible for deduction under Section 80CCD(2). There is no upper cap (in terms of amount) on this tax deduction and it is available only to employees.

On February 09, 2017 by www.taxexcel.net

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Here is a list of 6 components in your salary that is tax-free. In case you have it in your pay slip, great – but in case you don’t have it – you can always discuss with your company and HR.

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

1. House Rent Allowance (HRA):

The HRA that can be claimed for tax exemption is minimum of

§                    Actual HRA Received or

§                    40% (50% for metros) of (Basic + Dearness Allowance) or

§                    Rent paid (-) 10% of (Basic + Dearness Allowance)

If you pay rent of more than Rs 1 Lakh, you need to give PAN Card number of the landlord to your employer. In case your landlord does not have a PAN Card, you will need to get a declaration signed by him for the same.

Tip: HRA at 50% of (Basic + Dearness Allowance) is the most optimum break up in a salary. Download Automatic H.R.A. Exemption Calculator

2. Medical Reimbursement:

You can claim up to Rs 25,000/- per year against medical expenses by submitting medical bills. Even cost for eye testing and spectacles frame and lens costs are covered.& Rs. 30000/- for a Sr.Citizen person.

3. Transport Allowance:

Transport Allowance up to Rs 1600/- per month is tax-free while this limit is Rs 3200/- per month for orthopedic person. from the F.Y.2016-17

4. Leave Travel Allowance (LTA):

LTA is tax-free only when you get your traveling expenses reimbursed from the company on submission of the bills. You can claim LTA twice for two domestic trips with family in the block of four years. The present block is 2014 – 2017. There is no maximum limit of LTA and is decided by the employer.

The meaning of ‘family’ for the purposes of exemption includes spouse and children and parents, brothers and sisters who are wholly or mainly dependent on you. Only expenses incurred in traveling is covered.  You cannot claim hotel stay and food bills.

Assuming Rs 1,500 per ticket for the one-way train journey in 3AC, it costs Rs 12,000 for the return journey for a family of four. For journey by flight, this expense can easily go to Rs 30,000 per trip. Since this can be claimed once in two years LTA of at least Rs 12,000 per year seems sensible.

5. Uniform Allowance:

Amount up to Rs 24,000 per annum is tax-free, but this cannot be given for normal clothes. This is more common in manufacturing units where they have the dress code; it would be difficult to implement the same in IT/ITES sector.

6. Children Education Allowance:

Rs.100 per month per Child and Rs.300 for Hostel Expenditure for the maximum of two children is tax exempted.

On January 27, 2017 by www.taxexcel.net

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Salaried employees are well aware of HRA and its benefit while filing IT returns. The section 80GG of the income tax offers a tax benefit for individuals and employees who do not receive rent allowance or those self-employed, they can get the exemption from the House Rent U/s 80GG Max Rs. 5000/-P.M. or Rs. 60,000/- P.A. from the financial year 2016-17

The Section 80GG of the Income Tax is only applicable for individuals who do not avail HRA. It also holds true for people who do not claim a deduction for their rent in any other sections of the Income Tax.

Download Automatic All in One TDS on Salary for Govt & Non-Govt employees for F.Y.2016-17.

The feature of this Excel Utility:-

1) Automatically calculate your income tax as per latest tax slab

2) Automatic Prepare your Income Tax Computed sheet

3) Individual Salary Structure have in this utility for both of Govt & Non-Govt employees.

4) Automatic Calculate your House Rent Exemption Calculation U/s 10(13A)

5) Automatic Prepare Income Tax Form 16 Part A&B and Part B

6) Automatic Calculate the Arrears Relief Calculation from the F.Y.2000-01 to 2016-17

7) Automatic Convert the Amount into the In-Words.

However, to be eligible under the Section 80GG of the Income Tax, you required to meet the following conditions:

1.             The Section 80GG is valid for individuals and HUF.

2.             The person or the recipient should be a salaried or self-employed. However, the taxpayer should not receive any amount under HRA.

3.             The taxpayer himself or spouse/minor child/HUF of which he/she is a member should not possess any property or accommodation at the location where they are working or carrying business activities.

4.             If the individual or the taxpayer holds the possession of accommodation or property in another place than stated above, the tax deduction seeking concession is not valid [Under Section 23 (2) or 23 (4)(a)].1

5.             It is important to submit Form No.10BA, stating details of the expenditure incurred by him/her towards house rent.

Individuals or employees who do not receive HRA as part of their salary have to seek exemption under Section 80GG. The deduction for the claim is possible by filing appropriate details during the Income Tax Return filing.

However, even at the sake of repeating,  the following conditions must be met:

1.                                     Exemption for HRA is available only to individuals or HUF

2.                                     The assessee is self-employed or salaried and does not receive any benefit under Section 10(13A) for House Rent Allowance

3.                                     The assessee or the spouse or the HUF should not possess any accommodation at the location of the work or carried his/her profession or business

4.                                     If the assessee owns a property at any other place, he/she shall not claim benefit from it as self-occupied property

If you, as a taxpayer, are claiming deduction under Section 80GG of the Income Tax Act, you require furnishing declaration in Form 10BA that satisfies all the conditions mentioned above.

Limitations of Section 80 GG

The deduction allowed under Section 80GG for expenditure towards the rent paid is the least of the following:

1.             INR 5,000 per month

2.             Rent paid minus 10% of the total income

3.             25% of the total income earned by the taxpayer

The income of the taxpayer is the amount of total revenue received for a period.

Additionally, rent paid towards finished or semi-finished accommodation is also eligible for the claim under Section 80GG of the Income Tax.

On December 26, 2016 by www.taxexcel.net

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When salary or other income arrears are received in any particular year, one’s tax liability for that year increases. Simply because one’s total income for that year has increased. Most salaried individuals will be able to identify with such situations. But having to pay a higher tax on account of arrears is unfair to the taxpayer. Had he originally received the money in the year(s) that he was supposed to receive it, the additional tax would have been staggered over this time, instead of converging in one year as a lump sum payment.

On May 13, 2016 by www.taxexcel.net

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RELIEF UNDER SECTION 89(1) with Form 10E From F.Y.2001-2002 to F.Y.2017-18

Where by reason of any portion of an assessee’s salary being paid in arrears or in advance or by reason of his having received in any one financial year, salary for more than twelve months or a payment of profit in lieu of salary under section 17(3), his income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as prescribed. The procedure for computing the relief is given in rule 21A. This relief is called relief u/s 89(1).

On April 29, 2016 by www.taxexcel.net

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