Showing posts with label Income Tax Form 16 Part B for F.Y.2016-17. Show all posts
Showing posts with label Income Tax Form 16 Part B for F.Y.2016-17. Show all posts
Wednesday 12 July 2017
Monday 19 June 2017
Form 16 is a TDS Certificate issued by the employer deducting the TDS while making payment to an employee. As per the Income Tax Act, every employer at the time of payment of Salaries shall deduct TDS at the average rate of income tax computed on the basis of the Income Tax Slab Rates in force for that financial year in which the payment is made on the estimated income of the assessee.
The TDS so deducted by the employer is to be deposited with the Income Tax department and after depositing the same, the employer issues a TDS Certificate containing all particulars of the tax so deducted and deposited in Form 16. It is issued by the employer after the end of the year. As per the Income Tax (Sixth Amendment Rules), the last date for issuance of Form 16 by an employer to his employee is 31st May of the next year.
Only the TDS Deducted from Salary is reflected in this form and TDS Deductions from any other Income are reflected in Form 16A/ Form 16B.
Components of Form 16
Form 16 is a very simple and easy to understand form which states the Salary (and its related components) paid by an employer to his employee and the income tax deducted thereon.
On the basis of Form 16, a taxpayer can easily file his income tax return form without the help of a Chartered Accountant. There are various income tax return forms for different category of income earners. For taxpayers earning income from Salary and/or House Property and/or Capital Gains and/or Other Sources, they can file ITR 1/ ITR
Form 16 is divided into 2 parts: Part A & Part B.
PART A OF FORM 16
Part A of this type of TDS Certificate consists of details like:-
- Name, PAN Card No. & Address of the Employee
- Name, PAN No., Address & TAN No. of the Employer
- The Assessment Year for which the TDS has been deducted.
- Summary of Salary paid and the TDS deducted and deposited with the govt.
- Acknowledgement No. of the TDS Payment deposited with Govt.
PART B OF FORM 16
Part B of this type of TDS Certificate consists of details like:-
§ Detailed Salary particulars like House Rent Allowance, Leave Travel Allowance, Leave Encashment, Gratuity, Pension, Deductions claimed like PPF, Tax Saving FD, National Saving Certificate etc:-
- The Total Income and the Total Tax on Salaries thereon
- Education Cess and Surcharge if any
- Tax Deducted under section 192(1A)
- Balance Tax Payable/tax refundable
This TDS Certificate also contains a declaration at the end that the person deducting the tax has deposited the same with the Central Govt. This statement may either be manually signed or digitally signed. An extract of a specimen copy of Form 16 is shown below:-
Form 16 in case of Job Change
In case you have changed your job during the year, you are required to collect this form from both the previous employer as well as the new employer as you would be filing your Income Tax Returns on the basis of your Form 16.
When you join any new organisation, you should furnish your TDS details from the previous employer to the new employer. You would also be required to furnish Form 12B to the new employer
Furnishing the TDS Details issued by the previous employer would help the current employer in deducting the tax accordingly. Although furnishing these details is not mandatory, if you do not mention these details to your current employer, then you are liable to yourself compute the total income from both the employers and calculate your tax liability accordingly. (Only applicable in the year of job change)
BENEFITS OF FORM 16
1. This TDS Certificate contains all particulars and details of the TDS deducted and deposited. Although a copy of this TDS Certificate is not required to be furnished at the time of filing of Income Tax Return, the details mentioned in Form 16 are required to be furnished in the Income Tax Return.
2. This TDS Certificate is the most powerful proof of the Income of an Individual and the fact that the tax has been paid thereon. Banks heavily rely on this TDS Certificate to assess the Income of an Individual at the time of Home Loan application and require any Home Loan applicant to furnish his Form 16
Download Below given Automated Form 16 for the Financial Year 2016-17
One by One Preparation Form 16 Part A&B and Part B for FY 2016-17
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Master of Form 16 Part B ( Prepare at a time 50 employees Form 16 Part B for FY 2016-17)
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Master of Form 16 Part B ( Prepare at a time 100 employees Form 16 Part B for FY 2016-17)
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Master of Form 16 Part B with 12 BA ( Prepare at a time 50 employees Form 16 Part B + 12 BA for FY 2016-17)
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Master of Form 16 Part A&B for 50 employees ( Prepare at a time 50 employees Form 16 Part B for F.Y.2016-17)
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Master of Form 16 Part A&B ( Prepare at a time 100 employees Form 16 Part A&B for FY 2014-15
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Tuesday 23 May 2017
Income tax act provides the scope of claiming the deduction from gross total income. Income earned by an individual under different heads like salary, business or profession is clubbed together to calculate the gross total income. Then eligible deductions are claimed and tax is calculated on the balance income. Here we shall discuss deductions allowed for the assessment year 2018-2019 under chapter VI-A of IT act, which includes section 80C to 80U.
Click to Download Automated Master of Form 16 Part A&B for F.Y. 2016-17 and A.Y.2017-18[This Excel Based Utility can prepare at a time 100 employees Form 16 Part A&B for F.Y.2016-17]
Click to Download Automated Master of Form 16 Part B for F.Y. 2016-17 and A.Y.2017-18[ This Excel Based Utility can prepare at a time 100 employees Form 16 Part A&B for F.Y.2016-17]
Section 80C
The individual taxpayer can claim deduction up to Rs. 1,50,000/- under section 80C of Income Tax act.
1) Tuition fees towards full-time education of children,
2) Principal amount of home loan repaid during the financial year,
3) Amount paid towards stamp duty and registration of the house purchased during the year is eligible for claiming the deduction.
4) Apart from this taxpayer can also claim deduction in respect of contribution towards employee provident fund or public provident fund,
5) Subscription to Equity Linked saving Scheme,
6) NSC, Senior Citizen Saving Scheme,
8) Life insurance premium paid subject to qualifying limit.
Section 80CCD
An individual contributing an amount in National Pension System (NPS) is eligible for claiming deduction under section 80CCD(1).
The aggregate amount of deduction under sections 80C, 80CCC and 80CCD(1) shall not exceed Rs.1,50,000/- (Section 80CCE).
In budget 2015 a new sub-section (1B) has been inserted so as to provide for an additional deduction in respect of any amount paid, of up to Rs. 50,000 for contributions made by any individual assessee under the NPS.
Section 80D
Deduction up to Rs. 25,000 is allowed in respect of premium paid to buy or to keep a health insurance policy in force for self, spouse and dependent children. Additional deduction of Rs. 25000 is allowed in respect of the premium paid for health insurance policy of parents.
The limit is Rs. 30000 for senior citizens. Expenses up to Rs. 5,000 towards preventive health checkup can also be included within the prescribed limit under section 80D.
People aged above 80 and not covered by health insurance are allowed deduction of 30,000 rupees for medical expenses.
Section 80DD
Those who have a dependent with a disability can claim a deduction in respect of their maintenance including medical treatment under section 80DD of the Income Tax Act.
The deduction allowed is Rs. 75,000 if the disabled dependent is not suffering from severe disability.
The deduction allowed is Rs. 1,25,000 if the disabled dependent is a person with severe disability. A person with a disability means a person suffering from not less than 40% of any of the disabilities as defined in the act. Severe disability means 80% or more of one or more of the disabilities.
Section 80DDB
Deductions of expenses on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases) can be claimed under Section 80DDB.
The maximum amount of deduction allowed from gross total income is restricted to Rs 40,000 on condition that no medical reimbursement is received from any insurance company or employer for this amount. In the case of reimbursement, the deduction will be allowed for the amount over and above the amount received from an insurer or an employer.
The deduction in respect of a senior citizen is allowable up to sixty thousand rupees and in respect to a Super senior citizen, a deduction up to eighty thousand rupees would be allowed.
Section 80E
The deduction can be claimed for interest paid on loan taken for pursuing higher education by the assessee himself or for the purpose of higher education of his relative.
You can deduct the entire interest amount from your taxable income without any cap, however, there is no benefit available on the repayment of principal amount of the loan.
Parents are also eligible to claim a deduction of interest paid by them on loan taken for their children’s education. Higher education would mean any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the government. The tax benefits on education loan are only valid once you start the repayment and moreover they are only available up to eight years. For instance, if your loan tenure exceeds eight years, you cannot claim for deductions beyond eight years.
Section 80G
Donations paid to specified institutions qualify for tax deduction under section 80G but is subject to certain ceiling limits.
For claiming deduction under Section 80G, a receipt issued by the recipient trust must contain the name, address & PAN of the Trust, the name of the donor and the amount donated.
Donation may be eligible to 100% deduction or 50% subject to qualifying or without qualifying limit. No deduction is allowable if the donation in excess of Rs. 10,000 paid in cash.
Section 80 TTA
Deduction U/S 80TTA is applicable to individual taxpayers and HUF only. Interest earned up to Rs. 10,000 from saving bank accounts is allowed to deduct from gross total income. This deduction is not applicable to the interest you received on your fixed deposit
Section 80U
An assessee who is suffering from any disability, not less than 40% is eligible for the deduction to the extent of Rs. 75,000/- and in the case of severe disability allowable deduction is Rs. 1,25,000.
Section 87A:- Tax Rebate Rs. 5000/- who’s taxable Income below Rs.5 Lakhs.
Saturday 7 January 2017
Download the Automated Form 16 Part B and Part A&B for the Financial Year 2016-17 ( This Excel Utility can prepare Form 16 One by One Form 16 Part B & Part A&B)
A. Section 80C:- Entitles an employee to deductions for the whole of amounts paid or deposited in the current financial year in the following schemes, subject to a limit of Rs.1,50,000/-:
(1) Payment of insurance premium to effect or to keep in force an insurance on the life of the individual, the spouse or any child of the individual.
(2) Any payment made to effect or to keep in force a contract for a deferred annuity, not being an annuity plan as is referred to in item (7) herein below on the life of the individual, the spouse or any child of the individual, provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity;
1) Provident Fund
2) Saving certificates
3) Unit-linked insurance plan of the LIC Mutual Fund referred to section 10 (23D) and as notified by the Central Government
4) Any sums paid by an assessee for the purpose of purchase or construction of a residential house property
5) Tuition fees
6) Term deposit for a fixed period not below 5 Years
8) Deduction in respect of contribution to certain pension funds (Section 80CCC)
9) Deduction in respect of contribution to pension scheme of Central Government
10) Deduction U/s 80CCD(1) Max Limit Rs.1.5 Lakh
11) Deduction U/s 80CCD(2) deduction made by the employer to the employee ( this amount this amount calculated out of 1.5 Lakh)
12) Deduction U/s 80CCD(1B) Max Limit Rs. 50,000/- as additional deduction out of 80C 1.5 Lakh.
(Section 80CCD): Section 80CCD(1) & 80CCD(1B):- allows an employee, being an individual employed by the Central Government or any other employer, on or after the 01.01.2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide
Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 or as may be notified by the Central
Government. However, the deduction shall not exceed an amount equal to 10% of his salary(includes Dearness Allowance but excludes all other allowance and perquisites).
As per Section 80CCD(2), where an employee receives any contribution in the said pension scheme from the Central Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or any other employer subject to limit of 10% of his salary of the previous year. However, if any amount is standing to the credit of the employee in the pension scheme referred above and deduction has been allowed as stated above and the employee or his
nominee receives this amount together with the amount accrued thereon, due to the reason of
(i) Closure or opting out of the pension scheme or
(ii) Pension received from the annuity plan purchased and taken on such closure or opting out then the amount so received during the FYs shall be the income of the employee or his nominee for that Financial Year and accordingly will be charged to tax.
Where any amount paid or deposited by the employee has been taken into account for the purposes of this section, a deduction with reference to such amount shall not be allowed under section 80C.
Further, it has been specified that w.e.f 01.04.09 that any amount received by the employee from the new pension scheme shall be deemed not to have received in the previous year if such the amount is used for purchasing an annuity plan in the previous year.
It is emphasized that as per the section 80CCE the aggregate amount of deduction under sections 80C, 80CCC and Section 80CCD(1) shall not exceed Rs.1,50,000/-. However, the contribution made by the Central Government or any other employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of Rs.1,50,000/- provided under this Section. And also new additional Section 80CCD(1B) Max Limit Rs.50 thousand can be excluding the limit of 80C 1.5 lakh.
Sunday 4 December 2016
Revised Income Tax Exemption Calculator for Interest paid on Housing Loan – Income or Loss or House Property Calculation under Section 24B of the Income Tax Act.
After enactment of Finance Act 2014, the maximum housing loan interest amount (Interest on house property) which can be deducted from the income of a taxpayer under Section 24 of the Income Tax Act in respect of self-occupied the house, is Rs. 2 Lakhs (Rs. 2,00,000).
Also, there is no limit specified for deduction of home loan interest amount from income in the case of House property being rented out.
Download Automated Income Tax preparation Excel Based Software All in One for Non-Govt Employees ( Private Employees) for the F.Y.2015-16. [ This Excel Utility can prepare at a time Individual Salary Sheet + Individual Salary Structure as per Private employees Salary Pattern + Individual tax computed Sheet + Automatic H.R.A. Calculation U/s 10(13A) + Automatic Form 16 Part A&B and Form 16 Part B + Form 12 BA]
In the case of Self Occupied House Property:
The actual annual value of Interest paid on Home loan or Rs. 2,00,000 whichever is maximum
In the case of House Property rented out:
1. Actual annual value of Interest paid on Home loan
2. Add annual rental value of the house property
3. Less House property Tax paid
4. Less Rebate 30% of the Annual Value of Rent as Repairs and Maintenance
Section 80EE reintroduced in Finance Act 2016
As per Finance Act 2016, the taxpayer is entitled to claim an additional deduction of Rs. 50,000 under Section 80 EE if you are a first time home buyer interest. This deduction is over and above the Rs, 2 lakhs limit under section 24 of the income tax act. Read more about deduction of Rs 2 lakhs on interest on home loan here.
Section 80EE was introduced effective 2013-14 and was available for 2 years, FY 2013-14 and FY 2014-15 only (the assessment year 2014-15 and 2015-16). However, this section has been reintroduced effective FY 2016-17 (the assessment year 2017-18).
Who can avail this Deduction?
· This is the 1st house you have purchased
· Value of this house is Rs 50 lakhs or less
· Loan taken for this house is Rs 35 lakhs or less
· Loan has been sanctioned by a Financial Institution or a Housing Finance Company
· Loan has been sanctioned between 01.04.2016 to 31.03.2017
· As on the date of sanction of loan, no another house is owned by you
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