Income tax rebate U / s 87A up to 12,500/-. Currently, tax exemption is available for those whose income is not more than Rs. 5 lakh 

The government has not changed the basic exemption limit of Rs 2.50 lakh for some time because the government does not want people to get out of the tax net and get exempted from filing ITRs.

 

At the same time, subsequent governments have offered tax breaks for taxpayers up to a certain income limit. At present, tax exemption is available for those whose income is not more than five lakh rupees. This discount is available under Section 87A. Discuss with us how this works for you.

 

What is the correct provision?

 

Section 87 was introduced in the Finance Act 2003 which changed from time to time. Currently, a separate taxpayer, who is a resident of India for income tax purposes, can claim tax exemption up to Rs. 2,000 / -. 12,500 as against his tax filing if your income is not more than five lakh rupees. However, the right to claim a waiver under section 87A is completely lost if you exceed the income limit.

You may also, like- Download and Prepare One by One Revised Form 16 Part A&B and Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Anyone and everyone are not entitled to this discount. Although the basic exemption limit is Rs.12, 500/-. Whether residential or non-residential, the exemption under Section 63A is available to one person only and is applicable to all persons and HUFs only if he is a resident for income tax purposes. So not all HUFs and non-residents are entitled to this discount.

 

Any income must be considered for eligibility criteria

 

There is always confusion in the minds of taxpayers as to what income should be considered to be eligible for this discount. This is the final tax liability of your income. So to begin with, the income considered for this purpose is the income after all the old losses incurred against the current year's income.

 

Similarly, after such a set-off of losses, you will have to deduct from the net income all the discounts available under the various sections of the VIA chapter. Chapter VIA has clearance for various items under Section 80C (LIP, EPF, PPF, ELSS, Tuition Fee, Home Loan Repayment, etc.), Section 80CCD (NPS), Section 80D (Health Insurance), 80G (Grants). And 80 TTA and 80 TTB (bank interest).

You may also, like- Download and Prepare One by One Revised Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

 

This exemption can be adjusted against any tax filing and cannot be adjusted

 

Not that a waiver of up to Rs 30,000 can be claimed against any of the 12,500 available under section 87A. Long term capital gain under section 112. (Equity-based projects of mutual funds in addition to shares applicable for long-term capital gain in case of sale of any capital assets other than listed 112 equity)) This discount is also available against the liability on which tax will be payable at a flat rate of 15%.

 

Please note that in addition to the listed equity shares, equity-based schemes of mutual funds are salable, payable 10 per cent initial deductible, you are not entitled to waive your tax liability in case of long term capital gains under section 112A which is Rs 2,000. 1 lakh rupees.

You may also, like- Download and Prepare at a time 50 Employees Form 16 Part B and Form 16 Part B for theF.Y.2020-21 as per new and old tax regime U/s 115 BAC

 

How the discount actually works

 

People generally have the idea that if their income does not exceed the magic number of Rs. 5 lakhs, they will not have to pay any tax. This is because the tax rate for general income ranges from Rs 2.5 lakh to Rs 5 lakh and the taxable duty on 5% over Rs 2.50 lakh comes to Rs 12,500 respectively.

 

However, you will still have to pay some tax on your income, not more than five lakhs, even if your income is more than 15% (short-term capital gain) or 20% (another long-term capital gain). For your income earnings, one lakh out of five lakh listed shares have one lakh short-term capital gains and the balance is your regular income.

 

You will be liable for a duty of Rs. 2,25,000, which includes Rs. 7,500 (5% over 1.50 lakhs) +15,000 (15% over 1 lakh short-term capital gains). 12500 / - after discount you get Rs. 10,000 / - and earnings even when your income is not more than five lakhs.

You may also, like- Download and Prepare at a time 100 Employees Form 16 Part B and Form 16 Part B for theF.Y.2020-21 as per new and old tax regime U/s 115 BAC

 

Please note that in addition to listed equity shares, equity-based schemes of mutual funds are salable, payable 10 per cent initial deductible, in the case of long-term capital gains under section 112A you are not entitled to waive your tax liability which is Rs 2,000. 1 lakh rupees.

 

Please note that in addition to listed equity shares, equity-based schemes of mutual funds are salable, payable 10 per cent initial deductible, in the case of long-term capital gains under section 112A you are not entitled to waive your tax liability which is Rs 2,000. 1 lakh rupees.

You may also, like- Download and Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

 

How the discount actually works

 

People usually have the idea that if their income is not more than five lakh rupees, they will not have to pay any duty. This is because the tax rate for general income ranges from Rs 2.5 lakh to Rs 5 lakh and the taxable duty on 5% and above Rs 2.50 lakh comes to Rs 12,500 respectively.

 

However, you will still have to pay some tax on your income, not more than five lakhs, even if your income is more than 15% (short-term capital gain) or 20% (another long-term capital gain).

 

You have one lakh short-term capital gains on one lakh listed shares for an income of five lakh rupees and this is your regular income. You will be liable for a duty of Rs. 2, 25,000,

Download and Prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

 

On May 05, 2021 by www.taxexcel.net

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Form 16 is a document or certificate issued to salaried professionals in India by self employers under Section 203 of the Income Tax Act, 1961

 

It has details of the salary paid to the employee by the employer in the F.Y. and the tax deducted from the salary by the deductor as well as the employer.

 

TDS deducted by the employer is credited to the income tax department and instead, Form 16 is the proof. Employers must issue Form 16 to their employees on or before June 15 of the financial year that the income was immediately collected and tax deducted.

Eligibility Criteria for Form 16?

 

Every salaried person under the taxable bracket is eligible for Form 16 is. If an employee does not fall within the prescribed tax brackets, he/she does not have to deduct tax at the source (TDS).

 

Form 16 the elements of Form 16 are subdivided into the following two parts which include:

Form 16 Part A and

Form 16 Part B

Form 16 Part A

Download and Prepare One by One Form 16 Part B for the F.Y.2020-21 as per the New and Old Tax Regime U/s 115 BAC 

Part A gives the summary of the salary income collected by the employer on behalf of the employee and deposited in the government account. It is a certificate duly signed by the employer which they deducted TDS from the employee's salary and submitted to the income tax department. This Form 16 Part A mandatory to download through the Income Tax TRACES PORTAL. 

This Form 16 Part A has the following details:

Employee's as well as employer's information

 

Individual and employer name, address details,

PAN details of both, and TAN details of the employer.

Evaluation Year (A.Y)

The period for which the individual was employed with the employer in the financial field 

Summary of paid salary

Date of tax deduction from salary

Date of submission of tax to government account

Three months Interval the tax deduction and submission to the Income Tax Department

Recognition number of TDS payment

Form 16 Part B  is a compilation of details of the salary paid, any other income declared by the employee to his organization, the amount of tax payable, and if any tax payable is paid as an addition to Part B of Form 16, it includes Presents information on applicable discounts as well. The names and details of the employees like PAN are also mentioned in the passage 

It contains the following information:

 

Total salary received

 

Exempt allowed U/s 10 (5),10 (10), 10 (10A), 10 (10AA), 10 (13A), any other discount amount U/S 10.

 

The standard exemption is allowed under section 103 of the Income Tax Act.

 

Income (or perceived loss) from the home property reported by the employee proposed for TDS,

 

Other sources of income under the head are proposed for TDS.

Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21 as per the New and Old Tax Regime U/s 115 BAC

 

Fields are available for the amount of total salary received from other employers. 

Income Tax deduction from the salary:-

Section 80C / 80CC / 80CCD / 80D / 80E / 80G / 80TTA and other applicable sections are supplied.

 

All these discount details must be submitted to the employer by the employee along with the required supporting documents.

 

Net taxable salary

 

Scholarship fees and surcharges if any. If applicable, exempt under section 87 released under Section 89, if any

 

The amount of total tax payable on income. Tax-deductible and balance tax applicable or refundable.

 

Download Form 16

Form 16 Part A Portion downloaded and issued by the employer. No one can download his Form 16 Part A For each employer in a financial year

 

In the case of people who have changed jobs as well as worked with more than one employer in a particular financial year, they will receive a separate Form 16 from all employers.

Download and Prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21 as per the New and Old Tax Regime U/s 115 BAC

 

The link between Form 16 and Form26AS?

 

The 26AS form will be submitted with all taxes and deductions from your salary and/or unpaid income to the concerned authorities. Thus, the tax exemption displayed on Form 16 / Form 16A can be cross-checked and verified using Form 26AS. Ideally, the amounts of TDS deducted in Form 26AS and Form 16 A must match. If there is any discrepancy, the Tax Department considers the TDS figures as only 26 forms.

On May 04, 2021 by www.taxexcel.net

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 All about Income Tax Form 16 for salaried employees.

Form 16 Key features: - If you are a salaried employee of the  Government or Private, you will be paid after deducting tax from the employer. So Form 16 is a certificate issued by your employer which includes personal details of the employee including name, permanent account number (PAN), etc., details of your earnings salary, paid perquisites, and details of allowance payments. Deducts taxes and pays to the government. It contains employer details such as name, permanent account number PAN, TAN, etc. 

This is the basic document required by the employee to file an income tax return because the same should be indicated in the income tax returns which contain a taxable salary under the heading "Salary" in Form-16.

 

Form 16 is now divided into 2 parts - Part A and Part B.

 

Part A contains details of both the employer's TAN (tax exemption and collection account number) and the PAN (permanent account number) of both the employer and the employee. Names and addresses of employers and employees are also mentioned. It also mentions the year of assessment and provides a summary of income tax from your income and submits it to the government according to the quarterly TDS return filed with the employer. The monthly details of TDS deduction and deposit are also certified.

You may also, like- Download and Prepare One by One Automatic Revised Form 16 Part A&B and Part B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC 

Part B is an important part of your Form 16 because contains a consolidated statement of salary for the year. In addition to breaking your salary, the details of the exemption claimed by you under Section 80 of the Income Tax Act have been mentioned. Exemptions under Chapter VIA include details of the amount claimed under Section 80D for EPF, PPF, NSC, Life Insurance Premium, or Health Insurance, Section 80G for donations. It shows your total taxable income and the tax deducted on this national income.

 

Requirement of Form 16 for filing an income tax return: Form 16 is required for filing an income tax return in India because firstly, Form 16 works as an examiner for you to check if your employer has submitted the full amount of TDS he may have. Second, it will enable you to file an income tax return that discloses the exact taxable salary income and various discounts from your salary, such as EPF, Occupational Tax, and TDS.

 

Employer's obligation to provide Form 16: - Obligation of the employer to provide Form 16 to all employees within 31st July of the year of supervision (A.Y), if TDS is deducted, in case no TDS is deducted, the employer will give you a Form 16 Cannot issue The 16 for the day through which he delays the issuance of this certificate, also if you are employed under more than one employer per year, each of your employers will provide you a Form 16.

 

Submitting an income tax return without Form 16: - Even if Form 16 is not issued, you will not be able to avoid the obligation to file an income tax return, so to file an income tax return without Form 16 you need to collect a monthly salary slip and calculate total salary for the year.

 

Note: The amount deposited in your bank statement is after deducting the source tax but you have to fix the gross salary to report the ITR.

You may also, like- Download and Prepare at a time 50 Employees Automatic Revised Form 16 Part A&B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC [Who are not able to download Form 16 Part A from the Income Tax TRACES PORTAL]

 

An employee receives various allowances in the form of salary while some allowances such as transport allowance, medical allowance, HRA, etc. are exempt from income tax and the allowance is fully taxable. Therefore, the IT department allows you to deduct deductions from the salary to reach the taxable salary figure.

 

Since you have not received Form 16 from your employer, you need to verify Form 26 AS to know about the TAN and TDS deducted by your employer.

 

If you have income other than salary, add up all the income from home property rental income, capital gain from the sale of assets, income from other sources like interest on bank deposit, RD, FD, etc.

 

Subtract the tax benefit from the above-calculated income such as NSC, LIC, Tuition Fee, PPF, and the payment of principal of the housing loan under Section 80C. Similarly, claims for grants made to charities can be claimed under section 80G, and money paid for premiums of medical insurance policies can be claimed under section 80D.

 

After adding all the income and reducing the tax benefit, the result will be calculated taxable income. Now, calculate income tax on this taxable income using the IT slab rate for F.Y 2020-21.

 

You are now ready to file a tax return. You can now go to the online tax filing site to file your income tax return

Download and Prepare at a time 100 Employees Automatic Revised Form 16 Part A&B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC [Who are not able to download Form 16 Part A from the Income Tax TRACES PORTAL]

On May 03, 2021 by www.taxexcel.net

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