How to get an HRA tax exemption if you work from home? Advantage of HRA income tax for WFH

For employees, the rental allowance tax exemption (HRA) is a significant advantage. The HRA comes through a portion of the payroll and can be claimed through resident employees. 

But in fiscal 2020-21, there are some employees, mostly young people, who live far from the place where they rent and work from home with their parents. But now those same workers are baffled that if they can benefit from HRA even if they live with their parents while working from home, and if they can, how is that possible? The questions are briefly discussed within the article. But first, let us know who is responsible for the HRA and what the calculation method is.

Download Automatic Income Tax Revised Form 16 Part A&B and Part B for the F.Y.2021-22[This Excel Utility can prepare One by One Form 16 Part A&B and Part B]

Who gets HRA and what is the method of calculating it?

HRA is available to employees and provides a portion of the salary. Employees living in rent should be entitled to full or partial tax relief on the amount received from HRA. But workers living in rent are not exempt from the tax and workers are required to pay the full amount of the tax to HRA. one of the circumstances must be necessary to qualify for the HRA benefit.

 

You can take advantage of the HRA tax credit when an employee submits the rent. This shows that the HRA tax benefit cannot be used if the rent is not presented.

Download Automatic Income Tax Revised Form 16 Part B for theF.Y.2021-22 [This Excel Utility can prepare One by One Form 16 Part B]

 

Home rental allowance (HRA) calculation

The tax credit in lieu of HRA is available on the lesser of the following amounts:

• Real HRA received through an employee

• 50% of the salary (base + DA) for employees residing in metropolitan areas. And 40% base + DA for non-metropolitan employees.

• Real rent with furniture minus 10% of the salary (Base + DA)

Download Automatic Income Tax House Rent Exemption Calculator U/s 10(13A) in Excel

For employees who live with their parents while working from home, there is no HRA tax credit if they have not paid their rent. But this benefit must be claimed through the people who presented the rent to the parents. 

No HRA benefits unless the rent is registered

If someone has filed for rent with their guardians, they must appear as rental income on their tax return. Their lease must be implemented and presented as proof of payment.

The submission period is currently active for the fiscal year 2020-21, however, the latest extension is until December 31, 2021.

Download and prepare at a time 50 Employees Form 16 Part B for the F.Y.2021-22 in Excel

On March 02, 2022 by www.taxexcel.net

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 Understanding Form 16 | If you are an employee, I am sure you have already received Form 16. This

 information is issued by employers every year. It is very important to understand the details of form 16.

 Understanding the content of form 16 will help you to easily file your tax return.

 

So what is Form 16?

This is a certificate under section 203 of the Income Tax Act of 1961, which contains information about the withholding tax (TDS) on accrued income in the payroll entry. It contains detailed information on the taxes deducted by your employer. Put simply, Form 16 is the "wage/income statement" issued by your employer.

 

In this post, let's break it down: what are the different sections in Form 16? What is the difference between Form 16 Part A and Part B? What is the relationship between Form  16 Part A and Form  16 Part B? How to check if TDS is filed or not? How do you use Form 16 to submit your tax return? What should you do if you have multiple Form16s?

Download and Prepare at a time 50 Employees form 16 Part A&B for the F.Y.2021-22

Form 16 - Details 

 

Form 16 is a useful document. It consists of two sections: "PART A" and "PART B". 

• Name and address of the employee

• Name and address of the employer

• PAN and TAN number (tax code) of your employer (computer)

• TIN of the employee

• Billing year (the year in which the tax burden is calculated on the income earned in the previous year. If the fiscal year or the previous year is 2019-2020, the billing year will be 2020-2021)

• Part A contains a summary of the TDS deductions. (This summary can be quarterly / monthly or based on how often your employer deducts TDS and credits the tax to the IT department)

• This section also contains detailed information on the “busy period”. (If you worked for two or more companies during a fiscal year, you will have more than 16 modules)

Part B of form no. 16 contains the following information:

• Income accrued under the item "Salary". (Includes wages - allowance and deductions (e.g. LTA / HRA / business tax, etc.)

Download and Prepare at a time 50 Employees form 16 Part B for the F.Y.2021-22

 

 • Gross income is wage income + any other income listed. (Other income could be negative income, e.g. loss from your home, property or capital gains, etc.)

• The deductions of section 80c / 80 ccc / 80 CCD are further provided. (The maximum limit is One lack and Fifty Thousand)

Then there are the deductions for other sections, such as 80D (health insurance contributions), 80E (student loan interest), 80G (donations), and others. (Would you provide proof of investment to your employer for tax credits, these tax credits are listed here)

 

The total allowable deductions (together with the deductibles referred to in Chapter VI A: Sec. 10) are deducted from the gross income (Item no. 8) to obtain the "taxable income" (Item no. 11). The tax is calculated (item 12) on this amount according to the tax table.

Download and Prepare at a time 100 Employees form 16 Part B for the F.Y.2021-22

 

• If your employer deducts TDS, this amount will be deducted from your full tax liability. The net tax amount may be zero (or) a payable (or) refundable tax amount.

 If your wage income exceeds the basic tax exemption limit (Rs 2.5 lakh for the 2014-2015 fiscal year), your employer is required to deduct TDS from your salary and deposit it into the government account.

 

If you have also disclosed your income from other executives to your employer, they will consider your total income for the TDS deduction. If your income is below the minimum exemption limit, your employer will not deduct any TDS and will not be able to issue you this form. If you have worked with more than one employer during the year, you will have more than one module 16.

Download and Prepare at a time 100 Employees form 16 Part A&B for the F.Y.2021-22

On February 28, 2022 by www.taxexcel.net

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What is Salary Certificate Form 16? Form 16 is a certificate issued for the deduction of withholding tax (TDS) from income under the "Salary" section under section 203 of the Income Tax Act, 1961. It is issued by the employer after deduction of the imposed by the employee's salary and deposit it with the employee

 

The certificate provides a detailed summary of the amount paid or deposited to the employee and the TDS on it. This form is released annually

 

The provisions of the Income Tax Act (I-T Act) are generally enacted after the end of the financial year for which it was enacted. If the tax has been deducted from the salary by the employer, it is mandatory for the employer to issue a certificate to the taxpayer.

Download and prepare at a time 50 Employees Automatic Income Tax Revised Master of Form 16 Part B for the F.Y.2021-22 

Form 16 helps make it easier for an individual to submit ITR as the salary, tax exemption information available on it is readily available. The TDS certificate consists of two parts: part A and part B. Make sure there should be a trace logo on both parts.

 

What is Part A of Form 16?

Part A of Form 16 contains details of the withholding tax on salary. Form 16 Part A downloaded by the employer from the  Income Tax TRACES portal.

 

• Part A of Form 16 covers the following:

• Name and address of the employer

• PAN and TAN of the employer

• PAN of the employee

• Summary of the amount paid or paid and tax deduction at source as indicated for the employee

 

Photograph of form 16 part A

Download and prepare at a time 50 Employees Automatic Income Tax Revised Master of Form 16 Part A&B for the F.Y.2021-22

What is Part B of Form16?

This is an attachment to Part A of Form 16 to be issued by the employer.

Part B of Module 16 includes the following:

 

• Detailed salary breakdown

• Tax deductions on income to the extent permitted by section 10. is exempt from tax pursuant to art

• The deduction is allowed under Chapter VI-A of the Income Tax Act such as section 80C, 80D etc.

• Any other deductions such as the standard deduction available for salaried employees.

• Section 89. relief under 

Photograph of form 16 part B

Download and prepare at a time 100 Employees Automatic IncomeTax Revised Master of Form 16 Part B for the F.Y.2021-22

 

If you have worked with one or more employers?

If you worked with an employer during the financial year, Form 16 will be issued by that employer for the full financial year. It will contain the details of the taxes deducted and filed for all quarters of the year.

 

If you have worked with more than one employer during the financial year, each employer will issue Form 16 for the period that you have worked with each of them. However, Part B of Form 16 can be issued by any employer or final employer at the choice of the taxpayer.

 As per current legislation, the deadline for the release of Form 16 by employers is June 15 of each year. The provisions of the Income Tax Act make it mandatory for the employer to issue Form 16 to his employee if TDS has been deducted from his salary.

Download and prepare at a time 100 Employees Automatic Income Tax Revised Master of Form 16 Part A&B for the F.Y.2021-22

 

You should also know that if an employer delays or fails to issue Form 16 by the specified date, he or

 she is required to pay a fine of Rs 100 per day as long as the non-compliance persists. However, the

 fine must not exceed the amount of the tax deducted

On February 24, 2022 by www.taxexcel.net

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 Form 16 of the income tax automatic salary certificate for the financial year 2021-22 with defecation of

 the new revised form 16. The Form 16 certificate, also known as the TDS certificate, is a financial

 statement issued by a salaried employee's office that includes earnings, deductions, and "income tax"

 or "I-T" paid to the government. This Form-16 Certificate (TDS Certificate) must be issued by your

 employer to each employee covered by "Withholding Tax Deduction - TDS" at the end of each

 financial year. 

All salaried employees must use the Form 16 certificate as a supporting document for IT return to India. If you worked in two different organizations in the same financial year, you will need to submit separate Form 16 certificates from both organizations to file your I-T declaration.

Download Automatic One by One Preparation Form 16 Part B In Excel for the F.Y.2021-22

Even if your earnings are outside the TDS constraint, you are still eligible to receive the Form 16 document or also known as a TDS certificate upon request. In certain situations, such as obtaining a bank loan for a house or car, etc., the bank may ask you to present a salary certificate and Form 16 as proof of your earnings, deductions and the company's net income.

 

Form 16 Certificate Definition with reference to Department I-T, Gov. of India

 

Form 16 is a certificate issued to an employee by his officer under section 203 of the Income Tax Act, 1961 for the deduction of withholding tax from income under "Salaries".

Download Automatic One by One Preparation Form 16 Part A&B In Excel for the F.Y.2021-22

 

The form 16 certificate must contain details of the withholding tax (TDS) by the company on behalf of the employee.

 

Tax deducted at source: TDS is a tax payable on the tax payable against the same income tax paid by a third party taxpayer (employer or official authorized to issue the Form-16 certificate) to the individual. , The withholding tax deduction is the general taxation of income for most countries.

 

Tax Deductible Account Number: TAN is the authorization number that an employer or officer must obtain from the Income Tax Department before filing TDS. It is the responsibility of the TAN holder to receive TDS from an employee's salary and pay the same amount of collective tax to the government on behalf of their employee.

The employee must use the Form-16 certificate to file the income tax (IT) return at the end of each financial year.

Download and prepare at a time 50 Employees Automatic Form 16Part B In Excel for the F.Y.2021-22

 

Form 16 Composition of the certificate (tax certificate)

We will now look at the Form-16 certificate format and what data is specifically shown in the Form 16 format structure:

 

The first part of the Form-16 format requires primary information about the employer (TDS depositor) and the employee. It should contain the address, designation, PAN, TAN, period of the TDS, year of evaluation, and the approval number of all quarterly TDS details received from the IT department.

 

The second part of the form 16 template requires details of the salary paid by the employer, the other income declared by the employee and the tax deducted at the source.

The third part of Form 16 shows the details of the tax deducted and filed with the Department of Income Tax, Govt. of India.

 

Finally, all data reported in this "Form-16" certificate must be certified by the issuing authority with signature, date and office seal.

Download and prepare at a time 50 Employees Automatic Form 16 Part A&B In Excel for the F.Y.2021-22

On February 22, 2022 by www.taxexcel.net

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