Tax savings the right way | This is the time of year when you need to invest in a variety of investment products to secure your tax savings in the fiscal year 2021-22. Or after March, regretting not taking advantage of the various deductions available to you.

 

Nowadays, no one wants to invest just for tax savings, everyone needs investment products that not only help us save on taxes but also meet our long-term investment needs.

 

Here is a list of 10 such investment products that will help you double-down on tax savings as well as long-term investments.

Download and Prepare One by One Form 16 Part B for the F.Y.2021-22

 

1. Tax Savings Mutual Fund (ELSS) Tax Perspective: - One of the most attractive ways to save on taxes today is to invest in tax saving mutual funds (ELSS). Healthy has a 3-year maturity, which means you cannot sell the fund before the 3-year maturity.

 

Investment Perspective: -ELSS - Mutual fund with a maturity of 3 years. As we all know, the inherent risk of mutual funds is that they are exposed to market risk. The amount you receive from the sale of the fund will depend on the prevailing market conditions at the time. A mutual fund is commonly known as an average return in terms of risk and average return.

 

2. National Pension Scheme (NPS) Tax Perspective: - The advantage of investing in NPS is that you get an additional deduction of Rs 50,000/- in addition to the aforementioned deduction for 80C of Rs 1,50,000/-. So this is an attractive option for saving additional fees.

 

Investment perspective: - The amount invested under the NPS will be repaid in instalments after the person reaches the age of 60, together with interest. The length of time an individual must invest in NPS makes this investment product less attractive to young people. This investment vehicle is one of the best in terms of retirement prospects.

Download and Prepare One by One Form 16 Part A&B for the F.Y.2021-22

 

3. Real estate investment combined with a real estate loan tax perspective: - Buying a house as an investment has many advantages. First, they are recognized as a deduction in accordance with Art.

 

Now, if the house is bought on credit, then the person receives a double benefit from the fee paid. The instalment interest amount is allowed as a homeownership deduction, and the installment principal amount is allowed as a deduction under section 80C.

 

Many people use equity investments and borrow them as a tax planning tool.

 

Investment Perspective: - Investing in a house is considered to be one of the best investments as its value increases year by year. Also the same can be rented to get a positive cash flow. However, if the same is used as a living room, it is not considered an investment as you will never sell the place where you live.

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

 

4. LIP (life insurance premium)

Tax Perspective: - Life insurance premium paid for the year is allowed as a deduction from income received, provided that the total limit is Rs 1,50,000 / - in accordance with section 80C. The redemption value is released under certain conditions

 

Investment Perspective: The premium is cumulative and the accumulated amount is received along with interest returned at maturity or death, whichever comes first. This investment tool helps protect your family during times of crisis.

 

5. ULIP (Unit Linked Insurance Plan)

Tax Perspective: - The premium paid ULIP, like LIP, is allowed as a deduction from earned income, provided that the total limit is Rs 1,50,000 / - in accordance with section 80C. The redemption value is released under certain conditions

 

Investment perspective: – Part of the premium paid is invested in capital market securities, so the maturity depends on market conditions. This investment vehicle helps counter the aspect of inflation that standard LIP payments don't take care of.

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

 

6. NPF (State Pension Fund)

Tax Perspective: - Paid PPF is allowed as a deduction from earned income, provided that the total limit is Rs 1,50,000 / - in accordance with section 80C. The redemption value is released under certain conditions.

 

Investment Perspective: -PPF is a win-win in terms of investment. The amount cannot be withdrawn for 12 years unless certain conditions are met. Interest rates vary within 6-7%. The minimum payment amount each year must be Rs 500/- and the maximum Rs 1,50,000/-

 

7. Term deposits in the mail

Tax Perspective: - The amount invested in the Post Office Time Deposit is allowed as a deduction of u/s 80C subject to a maximum amount of Rs 1.50.000/-. The term of the deposit must be 5 years to be eligible for a tax deduction

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

 

 

8. NSC (National Savings Certificate)

Tax Perspective: - The amount invested under the NSC is allowed as a deduction of u/s 80C subject to a maximum amount of Rs 1,50,000/-.

 

 

9. Savings Scheme for seniors

Tax Perspective: - The amount invested under the Senior Savings Scheme is allowed as a deduction u/s 80C up to a maximum of Rs 1,50,000/- 

 

10. Term deposit for tax savings

Tax Perspective: - The amount invested in the fixed tax savings deposit is allowed as a deduction of u/s 80C subject to a maximum amount of Rs 1.50.000/-. These FD tax savings have a validity period of 5 years and cannot be withdrawn before 5 years.

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

On March 23, 2022 by www.taxexcel.net

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 Download Form 16

1. Fundamentals of Form-16

As we discussed above, Form-16 is a certificate that is issued by the employer until June 15, after the end of the financial year. Form-16 has two parts: part A and part B.

 

Note. If an employee loses the Form-16, he may request a duplicate of the Form-16.

 

2. Part A of form 16

 

Using the TRACES Portal (https://www.tdscpc.gov.in/app/login.xhtml), an employer can create and upload a TRACES Form-16. Before issuing a certificate, the employer must cross-check the contents of Form-16. Please note that if you change jobs during the financial year, your employer will issue a separate Form-16 Part A for the period of employment. The main components of Part A of Form16 are:

Name and address of the employer

TAN of the employer

TAN of the employer

PAN of the employee

Confirmed tax amount deducted and filed quarterly by an employee

Download Automated Income Tax Form 16 Part B for the Financial Year 2021-22(This Excel Utility can prepare One by One Form 16 Part B)

3. Part B of form 16

Form 16 Part B is an attachment to Part A. Also note that if you change jobs between fiscal years, you can request Form 16 Part B from both your employer and former employer. The main components of Module 6, Part B are:

Detailed pay break

Detailed break in exempt allowances u/s 10

An income tax deduction is permitted under the chapter VI-A of the Income Tax Act.

Here are the fields that are notified about deductions:

 

A life insurance premium paid, PPF contribution, etc., U/S 80C

Contribution to PF U/S 80C

Employee's contribution to pension fund Under Section 80CCD (1)

Taxpayer's Contribution to a U/S 80CCD Claimed Retirement Scheme (1B)

Employer's contribution to a pension fund U/s 80CCD(2)

A medical insurance premium is paid in the amount of Rs.25000/-.

Interest on a loan taken for higher education U / S80E

Total donations to specific foundations or charities U/S 80G

Savings account interest U/S 80TTA

Download Automated Income Tax Form 16 Part A&B for the Financial Year 2021-22(This Excel Utility can prepare One by One Form 16 Part A&B)

 

 

4. Form 16 data required for tax filing.

Here is a list of details that you need to take from form-16 to file a tax return:

Benefits exempted under Section 10

Violation of U/S deductions 16

Income from the boss's salary

Eligible income/loss from employee homeownership offered for TDS

Input from other sources offered for TDS

Section 80C Breach of Deductions

Section 80C Cumulative Deductions

Due refund or tax payable

Other information that can also be used when filing an ITR

Amount of TDS withheld by the employer

Employer's TAN data

Name and address of the employer

Employer PAN data

Current assessment year

Name and address of the taxpayer

TIN of the taxpayer

Download Automated Income Tax Form 16 Part B for the Financial Year 2021-22(This Excel Utility can prepare at a time 50 Employees Form 16 Part B)

 

Enter your name (taxpayer), address and TIN. You can also find additional information about your employer on Form 16 when filing your annual return, such as:

TDS is held by the employer

TIN of the employer

TIN of the employer

Name and address of the employer

Current assessment year

Your personal number

Download Automated Income Tax Form 16 Part A&B for the Financial Year 2021-22(This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B)

What is the eligibility criterion for Form 16?

 

Under the rules issued by the Ministry of Finance of the Government of India, any employee whose income falls under the tax bracket can apply for a Form 16.

 

If the employee's income is outside the established tax limits, the tax does not need to be deducted at source (TDS). Therefore, in these cases, the company is not required to provide Form 16 to the employee.

 

However, these days, as a good work practice, many organizations issue this certificate to an employee because it contains a summary picture of a person's income and has other additional features.

 

What to Look for When Testing Form 16

Once a person receives a Form 16 from their employer, it is their responsibility to ensure that all details are correct.

 

You must check the details on Form 16, such as the amount of income, TDS deducted, etc.

If any of the details are incorrect, you should contact your organization's HR/Payroll/Finance department immediately and have the same corrected.

The employer will then correct their termination by filing a revised TDS application to credit the TDS amount against the corrected PAN. After processing the revised TDS return, the employer issues an updated Form 16 to their employee.

Download Automated Income Tax Form 16 Part B for the Financial Year 2021-22(This Excel Utility can prepare at a time 100 Employees Form 16 Part B)

 

FAQ

 

How to get from 16?

Your employer gives you Form 16 | Even if you quit your job, your employer will provide you with Form 16.

 

I don't have a form 16. How do I file a declaration?

While this is one of the most important forms of income tax, don't worry if you don't have one. You can file a tax return.

 

If TDS is not deductible, should the employer issue a Form 16?

A Form 16 TDS certificate is issued when the TDS has been issued. If your employer has not deducted TDS, they may not provide you with Form 16.

 

Can the employer write off the TDS and does not issue a certificate?

Any person responsible for paying wages must deduct TDS before making payment. The Income Tax Law states that any person who deducts TDS from a payment must provide a certificate with the TDS data deducted and recorded. In particular, the employer is required to provide a certificate in form 16.

Download Automated Income Tax Form 16 Part A&B for the Financial Year 2021-22(This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B)

On March 21, 2022 by www.taxexcel.net

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