The Finance Bill, 2021 proposes to withdraw the income tax exemption on interest on employees' contributions to the Employees Provident Fund (EPF) under certain circumstances. As a result of the proposed amendment, the tax deduction on interest income on the total amount of contributions made by the employee has been limited to Rs. These amendments to the introduction of tariffs on interest on PF contributions are subject to certain issues which are discussed in detail in this article. The amendment includes not only EPFE but also GPFO so that government employees can contribute their PF. Interest on EPF contributions is exempt from tax. 2.5 Lakh among the major amendments to the Union Budget 2021-22

 

Rationalization of tax-free income in provident funds 

 

Finance Minister Mrs Nirmala Sitharaman announced in her budget speech during the presentation of the Union Budget 2021 that from April 1, 2021, Rs. Two and a half lakh taxes will be collected annually.

 

 

For the rationale of the tax deduction for income earned by high-income employees, it has been proposed to limit tax exemption for income of employees' contributions to various provident funds for annual contributions of various provident funds. Rs.2.5 Lacks. This limitation will only apply to contributions made on or after 01.04.2021, the budget statement said.

You may also, like- Automated Revised Income Tax Form 16 Part A&B and Part B for the F.Y.2020-21 as per new and old tax regime [This Excel Utility can prepare One by One Form 16 Part A&B and Part B]

 

As per last year's Finance Act, 2020, the government has made arrangements for the withdrawal of tax exemption and paid more than Rs. 4,000 / - to the employer's contribution in the account of recognized provident fund, national pension scheme (NPS) and additional funds of the concerned employee. A total of 750,000 people from the three funds are taxed in one year under the heading of ‘income from salary. This additional contribution from the employer will be treated as your / 17 (2) (vii).

 

This year’s budget did not change income tax rates in 2021 but did tax the interest earned on PF contributions by high-wage earners. However, interest tax-exempt on the contribution of employees in PF will be maintained till the total contribution in any financial year does not exceed Rs.500. 2,50,000. The ceiling of employee contribution in PF is Rs. 250,000 per annum indicates that the basic salary (including DA) must be at least Rs. 1,74,000 per month to qualify to pay tax on interest income Thus, an employee whose initial salary, including value-added allowance (DA), if any, exceeds Rs. The amount of interest he earns on his contribution to the PF above Rs. 1,744,000 / - per month should be subject to tax. 2,50,000 for a financial year contribution of Rs. 250,000, no tax will be involved and interest income for annual PF contribution will be Rs. 250,000 will be tax-free.

 

The Provident Fund is a retirement-cum-savings scheme. All funds other than the recognized provident fund are eligible for significant tax benefits, which is why the contribution of the provident fund is one of the most popular forms of retirement.

 

You may also, like- Automated Revised Income Tax Form 16 Part B for the F.Y.2020-21 as per new and old tax regime [This Excel Utility can prepare One by One Form 16 Part A&B and Part B]

 

 

What is the position of interest tax on PF contribution before amendment?

 

 

Under the existing provisions of the Income-tax Act, tax treatment exemptions, rebates and exemptions (EEE) of the Provident Fund i.e., monthly/periodic contributions are allowed as income deductions for tax purposes; Earnings encouraged on this contribution at the collection stage are also exempt from tax; And terminal facilities at the time of departure are not taxable in the hands of individual employees.

 

 

This is not the first time that the government has offered to pay PF tax. The Finance Bill, 201 proposed that tax be levied at the time of withdrawal of 75 0% contribution of EPF. The proposal was then withdrawn after a widespread outcry against the new tariffs.

 

 

However, this amendment may not face such a large response as it only affects the cream level of salaried employees.

 

 

Types of Provident Fund

 

 

For income tax purposes, provident funds are classified into:

 

 

Recognized Provident Fund (RPF) - A fund recognized by the Commissioner of Income Tax (CIT). EPFO's Provident Fund A scheme where the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 applies to the Provident Fund recognized under the Income Tax Act, 1919.

 

 

If the employer operates the provident scheme by creating his own PF trust, the same recognition is required by the CIT.

 

You may also, like- Automated Revised Income Tax Form 16 Part A&B  for the F.Y.2020-21 as per new and old tax regime [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

 

Section 2 (38) defines "provident fund" as a provident fund that has been recognized by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in accordance with the rules of Part A of the Fourth Schedule and continues and the Employees' Provident Fund Act 1952 (1952). Includes a Provident Fund established under a project set up under 19).

 

 

2. Recognized Provident Fund (URPF) - A fund that is not recognized by the Commissioner of Income Tax.

 

 

3.Statutory Provident Fund (SPF) - This fund was established under the Provident Fund Act, 1925. It is primarily for government employees, universities, educational institutions, etc.

 

 

4. Public Provident Fund (PPF) - Employee-focused provident fund which is completely different from the above funds. Established under the PPF Public Provident Fund Act, 1968 and can be operated and operated by any person including self-employed persons.

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On March 20, 2021 by www.taxexcel.net

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Recently modified the new format of Form 16 has been notified by the CBDT (Central Board of Direct Taxes) that is the 'salary TDS certificate.” This new format can break the tax-absolved recompenses in subtleties that area unit paid to the representative and separated from this, the full tax brakes that area unit declared by the taxpayers. Salary TDS Certificate Notified Date and once it came into effect. The CBDT notified the new format of Form 16 comes with the effect from the month of April ’2019.

Main replace are created within the new format of the Tax Return?

 

The new format of Form 16 offers full subtleties of the remittances just like the house lease recompense below section 10(13A), Travel concession or helps Recently modified the new format of Form 16 has been notified by the CBDT (Central Board of Direct Taxes) that is the 'salary TDS certificate.” This new format can break the tax-absolved recompenses in subtleties that area unit paid to the representative and separated from this, the full tax brakes that area unit declared by the taxpayers. Salary TDS Certificate Notified Date and once it came into effect. The CBDT notified the new format of Form 16 comes with the effect from the month of April ’2019.

Main replace are created within the new format of the Tax Return?

 

The new format of Form 16 offers full subtleties of the remittances just like the house lease recompense below section 10(13A), Travel concession or helps section 10(5).

It is noted that as per the new Budget 2020 the Finance Minister has introduced a New Section 115 BAC as well as introduced a new system of Income Tax Calculation on the basis of New and Old Tax Regime under this section. Now it is necessary to make out what is the New and old Tax Regime?

1) In the New Tax Regime, you can not avail any Income Tax Sections benefits except NPS benefits. And also benefited in the new Tax Slab only for the New Tax Regime.

 

2) In the Old Tax Regime, you can avail all the Tax Sections benefits but the Tax Slab will be the Old Tax Slab as per the Financial Year 2019-20. In this Budget it is clear that you will give an option as per your choice as the new and old tax regime in the Prescribed Form No 10-IE

Now choose your required Income Tax Form 16 Preparation Excel Based fully automated Software as per the New and Old Tax Regime U/s 115 BAC from the below -

 

It is noted that as per the new Budget 2020, the Finance Minister has introduced a New Section 115 BAC as well as introduced a new system of Income Tax Calculation on the basis of New and Old Tax Regime under this section. Now it is necessary to make out what is the New and old Tax Regime?

1) In the New Tax Regime, you can not avail any Income Tax Sections benefits except NPS benefits. And also benefited in the new Tax Slab only for the New Tax Regime. 

2) In the Old Tax Regime, you can avail all the Tax Sections benefits but the Tax Slab will be the Old Tax Slab as per the Financial Year 2019-20. In this Budget it is clear that you will give an option as per your choice as the new and old tax regime in the Prescribed Form No 10-IE

Now choose your required Income Tax Form 16 Preparation Excel Based fully automated Software as per the New and Old Tax Regime U/s 115 BAC from the below -

 

Download & Prepare at a time 50 Employees Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC.

OR

 

Download & Prepare at a time 50 Employees Automated Income Tax Revised Form 16 Part B for the Financial Year 2020-21 with the new and old tax regime U/s 115 BAC.

 

OR

 

Download & Prepare at a time 50 Employees Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC.

 

OR

 

Download & Prepare at a time 100 Employees Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 with new and the old tax regime U/s 115 BAC.

 

On March 18, 2021 by www.taxexcel.net

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If you failed to file your ITR by January 31st, don't worry that you can still file the file but with the expense?

 

The date of filing of Income Tax Return (ITR) for the financial year 2010-2010 i.e. the year of assessment for the general category of taxpayers is 2020-2012 and the majority of the individual taxpayers have been included, which was 30th July 2020, was extended till 10th, ending 2021 January. What will happen if you miss the bus and fail to file your ITR by the extended deadline? Let us discuss.

 

The scheduled date is also the last date to file ITR?

 

People usually have the idea that you can't submit your ITR even on the scheduled date which is not the correct date. There are two different dates for ITR filing. One is the due date and the other is the end date. If you fail to submit your ITR by the due date, you can still file by the deadline. The deadline for submission of ITR for the 2020-2011 assessment was extended from January 10, 2021, but the last date is March 21, 2021. So the due date is not the last date but if you follow a few results you submit your ITR after the due date.

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What happens if you miss the deadline? If you fail to submit your current ITR by January 10, 2021, you will be able to do so by March 31, 2021, but you will lose your right to any loss against next year's income. So, if there is a loss or capital gain under your main business income or a loss of more than two lack rupees under the head of home property for the current year and you are entitled to proceed to set up in the following years, you should miss the January 10, 2021 deadline. Even you can't able to do that. If the taxes paid by you or on your behalf are more than your tax liability and therefore you are entitled to a refund for the additional taxes paid, you may not be interested in the additional taxes paid for this period. If there is a deficit in the duty payable to you as opposed to your overall tax liability, in addition to the interest on such deficit, you will also have to pay interest for the delay in submitting your ITR even if you have already paid the crisis after March 31, 2020. Delay in the submission of your ITR will be applied from the original due date of interest i.e. if the national deficit is more than one lakh on 31st July 2020 otherwise interest will be payable from 10th January 2021.

You may also, like- Automated Income Tax Form 16 Part A&B and Part B  in Excel which can prepare One by One Form 16 Part A&B and Part B for the F.Y.2020-21

Late payment for filing your ITR after the due date

 

In addition to the above results, if the ITR is submitted after the due date as extended, you will be required to pay a delay fee when filing the ITR. Under normal circumstances, you have to pay a late fee of Rs 10,000. If the ITR is submitted by 31st December, however, as the 2020-2021 assessment date itself is extended to 10th January 2021, you will not be charged any late fee for submitting ITR by 10th January 2021. However, if you are after 10th January 2021 If you file your ITR, but within the last date i.e. 20th March to 31st March you will get Rs. ten thousand in case your taxable income is more than Rs.5 lac. Late fees are limited to Rupees One Thousand if the taxable income is below Rs. 5 lac.

 

So if you have to submit your ITR as per the basic discount limit like your total income or due to ownership of any property outside of you or as a signatory to an account outside India to spend a certain amount on electricity or overseas travel, you have to submit after January 10, 2021, If you miss the bus and cannot file the ITR, you will have to pay the late fee as discussed above.

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What happens if you fail to submit ITR even after the deadline?

 

If you fail to file this file by March 31, 2021, the Income-tax department may charge you a minimum penalty equal to 50% of the income-tax and interest-liability tax that you may have avoided so far, in response to the tax department's notification of your date. File ITR.

 

Very few people know that the government has the power to prosecute you and if you do not file an ITR you have the power to put you in jail. Current income tax laws provide for a minimum of three years imprisonment and a maximum of seven years imprisonment. It is not that in every case of failure to file an ITR the department can handle the case against you. If the income tax department wants to avoid it, it can handle the case only if the amount of tax exceeds Rs 10,000/-.

Download and Prepare at a time 50 Employees Master of Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime.[This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

On March 17, 2021 by www.taxexcel.net

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The requirement of Form 16?

 

Form 16 is a Salary certificate (or document) issued to salaried employees by their employers after tax is deducted from their salary. It is used by companies to inform their employees about the amount of tax deducted from them and paid to the authorities.

 

The certificate contains full details of the salary that the company or employer pays to the employee in a particular financial year and the income tax payable which is deducted from the individual's salary by the payer. You can think of form 16 as your salary TDS certificate. In that case, the amount of your salary income for the financial year is Rs. 4,00000/-  more than the basic discount per limit.

After 2,50,000, your employer will have to deduct the TDS of your salary and submit it to the government. And if the basic exemption limit of your income does not fit, the employer will not waive any TDS in that case.

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 for the F.Y.2020-21

Form 16 divided into two parts, Form 16 Part A and Part B. Here, Form 16 Part A contains details of employer and employee such as details of PAN and TAN, name and address, deduction and submission of TDS etc.

 

Form 16 Part B contains details of other income, exemption permission, arrears of salary, tax payable, etc. Form 16 The deductor issued end of each Financial Year before June 15 of the following year, Also, if you lose Form 16, your employer may issue a duplicate.

 

Why is Form 16 required?

Form 16 is a very useful document. This form 16 is mainly served the purpose of employees filing their income tax returns. Its components include the tax payable, the expected tax return and it helps in tax planning. This is important when clearing tax. In addition, it is used for the purpose of processing income proof certificates and visas.

You may also, like- Automated Income Tax Revised Form 16 Part A&B which can prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2020-21

 

It is very important to look for loans and take forward losses. Yes, you must have Form 16 if you are a salaried person who is also a responsible citizen of the country who pays all due taxes on time. For example for employees salaried employees online Form 16 material Form 16 is an important document required to file your ITR that you have to receive this document from your employer. Even if you leave your job, you can claim it from the previous employer.

 

Form 16 includes this part of the form: Your total salary (with no discounts) including the preconditions you have accepted. All allowances paid to you by the company, be it vehicle allowance, housing rent allowance, etc., are total income under the salary. Form Figure 16 Part A of Form 16 Part B looks like this:

This section will cover the tax benefits you have earned as well as all your investments. Here are some key elements of Part B: Taxable Pay Section 80C Exemption Separation Section 80C Exemption Summary, which contains records of gross and deducted amounts. Tax deduction by source, i.e. TDS tax payable or refundable type of Form 16 although they differ from similar hearing Form 16

 

Form 16 Part A. In this part of the original Form 16, there are two types of Form 16 - Form 16 Part  A and Form 16 Part B.

Let us know more about Form 16 Part A and Form 16 Part B:

Form 16 Part A has been created and downloaded by the employer in Form 16 Part. The employer performs this task through the TRACES PORTAL which is the official TDS website.

You may also, like- Automated Income Tax Revised Form 16Part B which can prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21

 

This is a very significant part and so, before issuing the certificate, it is cross-checked for authentication purposes, so that the employer can verify the provided materials. One important thing you shouldn’t want to lose is that if you switch jobs in one financial year, each employer under which you worked will publish them in a separate part of the form issued for the total duration of your work.

 

By now you may be curious about the content of this part. Here are some of the key elements of Section A - Personal details such as employer's name and address TAN and the employer's PAN employee's PAN tax deduction and quarterly deposit summary, which must be certified by the employer Date of tax deduction from salary and date of tax credit (A.Y) - This refers to the year in which the income is being assessed or in other words, the year in which the taxpayer needs to work on the tax return processes.

Download and Prepare at a time 100 Employees Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21

On March 16, 2021 by www.taxexcel.net

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 Know about Section 203. Certificate of Income Tax Salary Form 16

 

(1) Every person who has deducted tax in accordance with the aforesaid provisions of this the chapter shall, within this period, from the time of payment of credit or payment, within the prescribed period, or as the case may be, from the time of issuance, pay a check to any shareholder for payment of any dividend. Or warrant, the person on whose account such credit has been given or to whom this payment has been made or the check or warrant has been issued, the certificate of duty specifying the amount of the tax deducted, and Description.

 

(2) Every person, as an employer, referred to sub-section (1a) of section 199, within this period, as prescribed, the person whose income has been taxed shall pay the tax to the Central Government. Form 16 A certificate of proof of this and specifies the amount to be paid, the rate at which the tax has been paid and other details as prescribed.

Download and Prepare at a time 50 Employees Form 16 Part B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC

What's in Form 16? 

(3) Form 16- Part A and Part B have two parts when the primary information of the employer and the employee such as name, address, PAN and TN details, tenure with the employer, a summary of deduction of TDS in Part A and in Part B details of Tax Deductions and Income- It has been found that there is any other income taxable income under the title of 'salary' in part B.

 

(4) Lastly, it will carry the total income figures (earned in the previous year) and apply to it. "Part A must be created and downloaded through the TRACES PORTAL. Part A of Form 16 also has a unique TDS Certificate Number. And Part B is prepared by the employer.

Download and Prepare at a time 100 Employees Form 16 Part B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC 

 Conclusion

In addition to salary income, an employee can also have other income. Once you have received Form 16 but have not declared any other income to the employer (and therefore no TDS has been deducted), you can show it when submitting the income tax return, the last date of which currently stands July 31.

On March 15, 2021 by www.taxexcel.net

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