If you received arrears of salary/pension in the previous financial year 2020-21, your tax liability will be higher due to arrears; did you know that you can double your income from arrears? You can get relief on the relevant year and 89 (1) of the Income-tax Act, 1961.

 

We have prepared a small Excel calculator which will be helpful to calculate the relief under 89 (1) with Form 10E for the buckets received in F|Y 2020-21 and the arrears are related to the oldest till the financial year 2000-01.

 

How it works

 

This calculator shows two calculations of income tax, one is a tax on the basis of salary / arrears and the other is a tax on the basis of relevant years and if the tax on the basis of receipts is higher on the basis of the relevant year, relief will be available under Section 89 (1) not available means there is no benefit in the distribution of arrears in the respective years.

 

How to use it?

Note / FAQ about calculator usage you only need to fill in the white Cell. All colour cells are only necessary which is not mandatory to fill. Fill in the blanks where no figure is required for men and for women and for Senior Citizens.

 

You must select the status each year. Ensure that the position is correctly selected. Fill in the total income with arrears including all other incomes and the arrears from  the Financial Year 2000-21 to the Financial Year 2020-21 under the relevant year after all exemptions like Section 80C, 80CC, 80D, 80G, 80U etc. Fill out.

 

The total will appear automatically under the 2020-21 financial year. The arrears column (C-11) 2020-21 of the accounts under the financial year is secured and cannot be edited. (C-10 of the calculation sheet) not included for inclusion. The result is that if the total is A> Total B, relief will be shown under Section 89 (1), otherwise 0 will be displayed. Form 10E with the next relevant attachment will also be filled automatically along with Table-1 in the Form 10E

Download Automated Income Tax Arrears Relief Calculator U/s89 (1) with Form 10E from the Financial Year 2000-01 to the Financial Year2020-21

 

On March 11, 2021 by www.taxexcel.net

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Part B of Form16 is an addition to Part of Form 16 Part A, the employer of Part B must be prepared for his staff and have details of salary breaks, deductions approved under Chapter VI-A If you change jobs in a financial year, you will receive from both employers.

 

Form 16 should be taken. Here are some of the ones that have been notified to Part B: Detailed pay break in part b. detailed break of exemption allowance under section 10 of Form 16.

 

Allowance of exemption under Income-tax Act (under VIA in Chapter): The list of exemptions mentioned is as under:

• 1. Exemption for life insurance premium paid under section 80C, contribution to PPF etc. Exemption for Employee's Contribution to Pension Scheme under Section 80CCD (1)

 • 4. Exemption for Taxpayer Self-Contribution to Pension Scheme Notified under Section 80CCD (1B) Exemption for Contribution Insurance 6. Exemption for health insurance premium paid under section 80D & 807A.Exemption for interest paid on higher education under section 80E

 

• 5. Exemption for a grant paid under section 80G

 

• 6. Section Discount for interest income on savings accounts under 80TTA

Download and prepare One by One Automated Income Tax Revised Form16 Part B for the Financial Year 2020-21 as per new and old tax regime

# Details required from Form 16 when filing your return With reference to the figure below, you will be able to find specific information for filing an income tax return for the relevant financial year, here (Exemption Allowance 2 under Article 10 (A.Y 2021-22). Discount cut under section under

 

# Taxable salary

 

#. Income (or acceptable loss) from the home property reported by the employee paid for TDS

 

# Other sources of income paid under TDS

 

# Section 80C Exemption Breakup Section. Section 80C Exemption Sum (Total and Exemption Amount)

 

# The additional form you need from your Form 16 when filing an annual return due to tax payable or refund is: a. TDS cut by the employer

b. Employer's TAN

c. Employer's pan

d. Name and address of the employer

e. Current assessment year

f. Your (taxpayer's) name and address

g. What are the eligibility criteria for your PAN

Download and prepare at a time 50 Employees Automated Income Tax Revised Form 16 Part B for the Financial Year 2020-21 as per new and old tax regime

 

As per the rules issued by the Ministry of Finance, Government of India, every salaried person covered under the taxable bond is eligible for Form 16. If an employee does not fall within the prescribed tax brackets, he/she will not need to reduce the source tax (TDS). Therefore, in this case, the employee of the company is not obliged to provide Form 16.

 

However, nowadays, as a good work practice, many organizations issue this certificate to the employee even in this case because it has a unified image of the individual's earnings and has other additional uses.

 

Points must be specified when examining Form 16. After a person receives Form 16 from the employer, it is his / her responsibility to ensure that all the details described here are correct.

 

The PAN number is the most important thing to verify in Form 16 along with verifying the personal details as well as the amount of income and the details of the TDS deducted. If it is mentioned correctly, the HR / Parole / Finance section of the company should be reached immediately and the same should be corrected.

 

The employee will be provided a revised and updated Form 16 by his employer. In addition to these, in order for TDS to be submitted in the correct pan, the employer has to amend it from the edge by submitting the revised tax return.

Download and prepare at a time 100 Employees Automated Income Tax Revised Form 16 Part B for the Financial Year 2020-21 as per new and old tax regime

 

On March 10, 2021 by www.taxexcel.net

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Section 89 comes in picture when salary/annuity or different parts are paid financially overdue or advance. As indicated by Section 89, on the off chance that you simply get salary financially overdue or advance during a budgetary year thanks to which your all-out income for the year expands, which thusly builds your taxable income, you'll guarantee for relief under Section 89. you need to refill Structure 10E with these subtleties and afterwards submit it to your current manager to make sure the relief. Structure 10E must be submitted on the web and no duplicate is required to be connected alongside your tax return.

Here's the way relief u/s 89 is set

Step 1: Ascertain tax for this year (counting cess and instruction cess) on income remembering salary for arrears/advance/pay.

Step 2: Find out tax for this year (counting cess and instruction cess) on income barring salary falling behind financial remunerations.

Step 3: Step 1 short Step 2

Step 4: Ascertain tax for the year during which salary should are gotten (counting cees and instruction cess) on income remembering salary for arrears remunerations.

Step 5: Compute tax for the year during which salary/remuneration should are gotten (counting cess and instruction cess) on income barring salary financially overdue

Step 6: Step 4 short Step 5

Step 7 : Arrears Relief u/s 89 = Step 3 short Step 6 (if positive, in any case nil)

Step 8: Tax purchased Current Appraisal year = Step1 short step7

Download Automated Excel Based Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10E from the Financial Year2000-01 to the Financial Year 2020-21 (Updated Version)

On March 10, 2021 by www.taxexcel.net

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As per the new and old tax regime U/s 115 BAC, will initially discuss what form 16 is, at that point its segments and their significance.

 

About form 16?

 

Every year your employer issues form 16 authentications. This is a testament under Section 203 of the Income Tax Act that gives insights regarding the tax sum that has been deducted by your employer which is called TDs. Additionally, it likewise contains the subtleties of your salary different incomes and tax benefits accessible and profited by you in the last monetary year. It has nitty-gritty information about the way of ascertaining income according to the income tax laws and tax payable on it. May, 31 is the last date for your employer to give a Form 16 to you.

 

Presently we will discuss the segments of form 16 encourages us to understand the tax covered likely tax or discount we can get, and can likewise help in better tax arranging, we can do it one year from now, and in particular, can likewise help us to record our income tax returns form 16 contains basically of two-section.

You may also, like- Automated Income Tax Revised Form 16 Part A&B and Part B which can prepare One by one Form 16 Part A&B and Part B as per the New and Old Tax Regime

First is Part A,

 This is the way Part A looks. It contains our own information like our name, address, employers name and address container of both dishes of our employer and the receipt number of TDs instalment. This information helps the income tax division to monitor the cash stream from our own just as our employers account.

 

Also, the gathering gives information like evaluation year, which is a year wherein tax the obligation is processed for the income procured during the earlier year. So 2019-20 evaluation year here implies taxes determined on the income from first April 2019, to 31st March 2020.

 

At that point, it gives an outline of TDs deducted by the employer for our sake. This sum is deducted by the employer from our salary consistently as tax and attributes the equivalent to the income tax division to know why these TDs is deducted. The main information in Part An is TAN. That is, tax deduction account number of employer and all-out TDS deducted, as both of this information must be accurately referenced in our income tax return.

 Presently we should discuss Part B.

 This piece of form 16 gives significant information that you need to record your income tax return. Most importantly, the absolute salary given by the employer in the monetary year is referenced, at that point essential, or advantages is an extra advantage given by the employer. Notwithstanding the salary. It is any advantage allowed liberated from cost, or at concessional rates, for example, lease free home motorcar office advances at financed rates, and so on

 

Here the individual has got rupees 10,00342/ - as a component of this essential salary. At that point, this field, benefit in lieu of salary implies any installment due to or got by the employer regarding the end of work. For instance, tip submitted estimation of benefits and so on At that point, there are allowances. They are the sum paid by the employer, notwithstanding salary to meet some help prerequisites like D.A. recompense house lease stipend. Live travel remittance transport recompense youngsters' schooling stipend and so on stipend can be completely taxable.

 

Here the individual has just a kid recompense, which is completely tax-deductible. for this situation, and consequently is deducted from absolute salary before tax counts, at that point here, are the subtleties of tax benefits we get on our home loan interest according to section 24(b) of the Income Tax Act. So in the wake of deducting all the cost allowances and cash paid on home credit revenue EMI, we get our cross income.

 

At that point, deductions are uncovered deductions incorporate those under Section 80 C, C and 80CCD, whose all-out the whole deductible under these individual sections should not go past rupees 1.5 lakhs. For this situation, the individual has not taken total rupees of 1.5 lakhs tax advantage in this year, which means has paid higher tax than the person in question ought to have. At that point after these deductions under Section 80 D, add and others are likewise referenced here, the individual has taken, none of them. The whole deductions are then subtracted from net income to show up at taxable income.

You may also, like- Automated Income Tax Revised Form 16 Part A&B which can prepare at a time 50 Employees Form 16 Part A&B as per the New and Old Tax Regime

Subsequently, tax is then registered on this sum dependent on the current tax piece of the important year, which in this model is this much alleviation under the section, 89 methods, in the event that you have gotten any bit of your salary in early years, or ahead of time, you are permitted some tax help under this section. In straightforward words, you are saved from paying more tax due to postponing the instalment to you.

 

Presently we should discuss the significance of form 16, form 16 fills in as a source report during documenting of income tax return, as it involves insights regarding your income deductions tax determined and TDS deducted according to income tax rules. It fills in as a significant report for guaranteeing credit of tax deducted by employers, and you may expect it to deliver before income tax specialists. In the event that you don't get a credit of TDS appropriately form 16 can likewise be utilized on the off chance that you wish to apply for home advances, there are a few banks that requested form 16 for income proof form 16 is required for visa preparing also. Also, it is a validated authentication for income proof.

 

Before we close a couple of other significant information about the form 16 hours. In the event that TDS isn't deducted, it isn't required to give form 16 to the employer. In the event that the association doesn't have the tan. At that point, they are not qualified to deduct TDS, and afterwards, in the present circumstance, they will clearly not give form 16.

Download and Prepare 100 Employees Automated Income Tax Revised Form 16 Part A&B as per the New and Old Tax Regime

 

On March 08, 2021 by www.taxexcel.net

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