Taxexcel

Wednesday, 25 May 2022

Tax filing season is almost here. This is the time of year when you need to collect various proofs of

income and expenses so that you can file your taxes. For employees, one of the most important

documents required to file a tax return is Form 16. Here is a summary of Form 16.

1. What is FORM 16?

Form 16 is an annual tax document issued by employers to employees. This document contains details of income received by the employee, tax-saving investments and deductions that have been used, and any tax deducted at source (TDS) for the relevant fiscal year. These are the basic data an employee needs to file an income tax return.

Under the Income Tax Act 1961, employers are required to provide the form to 16 employees who earn an annual income of more than Rs. 2.5 lakh. Form 16 is usually issued to employees no later than June 15 of each year.

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

If you changed jobs during a fiscal year, you will receive a Form 16 from all of your employers during that year. You will then need to match income, TDS and tax savings or deductions from 16 multiple forms so you can calculate your income tax online and file your ITR correctly.

2. FORM 16 Format

Because Form 16 is an income tax document, it has the format. The Income Tax Department of India has a predefined Form 16 format.

Form No. New Revised 16 have two parts - Part A and Part B.

Part A of Form 16 contains information about TDS, which is deducted directly from your paycheck and paid to the government. Part A usually includes details such as:

• Employee, ie your personal details such as name, residential address and Permanent Account Number (PAN).

• Employer information such as company name, tax credit account number (TAN), and PAN number.

• The amount of TDS that is deducted every quarter, along with details such as deposit dates, bank details through which TDS was made, challan serial number for each transaction, etc.

• Year of tax calculation

• Date of Employment to your concern

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

Part B of Form 16 describes the calculation of tax paid. This is a detailed statement of your salaried income, various components, deductions and benefits, and the final tax paid. It should include:

• Gross salary with details of base salary, high-cost allowance, house rent allowance, reserve fund contributions, any other allowances, TDS, occupational tax, etc.

• Exceptions such as HRA, transportation allowance, medical allowance, etc.

• Any deductions under Chapter VI A of the Income Tax Act 1961.

• Any concessions

• Amount of tax paid

• Any tax that may be payable

• Tax refund, if applicable

Part A and Part B of Form 16 should not be confused with Form 16A and Form 16B.

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

3. Income tax return FORM 16

When considering how to get a Form 16, the only thing to know is that it must be provided by your employer. You cannot download Form 16 from anywhere. If you have moved from a previous position, you can contact the human resources or finance department of your former organization and ask them to provide you with an income tax form 16.

The information provided on Form 16 is required to file a tax return. Whether you file your own taxes or use the help of a registered account, Income Tax Form 16 is required for employees to file taxes.

You can also use online portals where you download Form 16 issued by your employer and it will collect the relevant data for you to file your tax returns.

4. Eligibility for Form 16

Under the rules of the Income Tax Act of 1961, all employees who fall within the taxable range must obtain a Form 16 from their employers. This means that any person hired by someone else earns more than Rs. 2,50,000 a year must receive a Form 16. You can request this from your current and previous employers when filing your tax return.

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

5. Importance of FORM 16

Form 16 is the key document for employees filing a tax return.

• Form 16 contains a detailed statement of your salary and taxes paid. This is proof that the tax was paid to the government on your behalf. When filing taxes, this is necessary to provide an accurate report of your income.

• In addition to a tax return, Form 16 can also be used as proof of income for a loan.

• Electronic Form 16 is also useful for verifying the correctness of taxes paid. You can compare the same with your 26AS form.

• It is also a good supporting document for visa applications.

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Tuesday, 24 May 2022

Income tax salary deduction | An income tax deduction helps you reduce your taxable income by

reducing your overall tax liability and thereby helping them save on taxes. Those who qualify for

withholding depend on several factors, with different limits being set for different purposes.

What is a tax deduction?

Income tax deductions help reduce taxable income. This reduces your overall tax liability and helps you save on taxes. However, the amount of the withholding varies depending on the type of tax deduction you request. You can apply for income tax deductions for amounts spent on medical bills, university fees, and charitable contributions. Also, you can invest in different schemes like retirement savings schemes, life insurance plans and national savings schemes etc. The Government of India provides tax exemptions for various expenses incurred in various activities to stimulate commercial institutions and individuals to participate in activities that have social benefits.

Many of our day-to-day expenses qualify for income tax deductions, along with information about them that is critical in helping us save money. You can claim a tax deduction on money spent on medical bills, education, retirement plans, insurance investments, charitable contributions, etc. This reduction is done to stimulate community members to take part in some useful activities, helping everyone who has been involved in the process.

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

Income Tax Deductions Under Section 80C:

Section 80C of the Income Tax Act offers provisions for income tax returns on some payments, with undivided Hindu households and individuals eligible for the deduction. People who can afford to pay taxes can apply for a tax deduction of up to Rs. 1.5 lakhs per year under the 80C section, with this amount being a combination of the applicable deductions under the 80C, 80CCC and 80CCD sections.

Some of the important investments that qualify for a tax return are:

Life insurance policy payments (for spouse, car or children)

Payment of pension/pension funds

Payment of tuition fees to educate a maximum of two children

Payments for the construction or purchase of residential property

Payments are made to fixed deposits with a minimum term of 5 years

Section 80C of the IT Act 1961 offers some additional deductions such as mutual fund investments, NABARD bond purchases, senior savings schemes, etc.

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

Subsections of Section 80C:

There is a complete list of withholdings under Section 80C of the Income Tax Act, 1961.

Section 80 CCC:

This part of the IT Act, 1961 offers jurisdiction for tax breaks on investments made in pension funds. Any insurance company can offer this pension and can ask for a maximum deduction of Rs. 1.5 lakhs below. Only individual taxpayers can request this deduction.

Section 80 CCD:

Section 80 CCD of the Income Tax Act intends to strengthen the habit of saving among people by offering them incentives to invest in pension plans promulgated by the central government of India. Both contributions paid by the individual and his employer can benefit from an income tax deduction, with a deduction of less than 10% of the subject's salary.

Part 80 of the GCC:

This section of the Income Tax Act allows for a maximum deduction of Rs. 25,000 per year with certain residents who can benefit from this deduction. Investments made in government-proclaimed equity savings schemes are eligible for income tax deductions, subject to a cap of 50% of the investment amount.

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

Section 80D Income Tax Refund:

Section 80D of the Income Tax Act allows income tax to be deducted from amounts spent by an individual on health insurance premiums. This includes payments made by the central government on behalf of parents, spouses, children, or yourself for a health plan. You can request an amount of 1,000,000 rubles. 15,000 as insurance deduction for your spouse, own children or dependents if this amount is Rs. 20,000 if the person is over 60.

Both undivided Hindu families and individuals are eligible for a deduction under this section subject to a payment method other than cash.

Subdivisions of Section 80D

Section 80D of the Income Tax Act contains subsections that explain the benefits available to taxpayers.

Section 80DD:

Section 80DD of the Income Tax Act makes provision for income tax deductions in two cases: deduction of Rupees One Lakh and Fifty Thousand in case of major disability and Rs. 75,000 in case of normal disability. You may claim a deduction under this section for the following expenses:

About payment for treatment of dependents with disabilities

Payment of an amount as a premium to maintain or purchase an insurance policy for these dependents.

Deduct Rs. 1.25 lakh for critical deficit and Rs. Allowed 75,000 for normal disability. Both resident individuals and undivided Hindu families are eligible for this deduction. In this case, the dependents may be parents, spouses, children, or siblings.

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

Tax deductions under Section 80 E:

Section 80 E of the Information Technology Act of 1961 is intended to ensure that an individual's education does not become an additional tax burden. Taxpayers are entitled to tax deductions for higher education when paying interest on a loan. You can use this taxpayer loan to fund your child's education. Only individuals who have borrowed from approved financial institutions and charitable organizations are eligible for tax credits.

Subsections of Section 80 E:

Section 80EE:

Only individual taxpayers are eligible for income tax deductions under this section, and interest payments on a loan taken by an individual to purchase residential property are eligible for deductions. In this section, you can take advantage of the maximum deduction of Rs. 3 thousand.

Tax deductions under section 80G:

Section 80G of the Income Tax Law allows taxpayers to contribute to charities by giving them tax credits on tax donations. This deduction is available to all taxable persons as long as they provide proof of payment, and the deduction limit is determined according to certain factors.

100% deductions without limits:

100% of the royalties are provided for donations to funds such as the Prime Minister's Relief Fund, the National Defense Fund, the National Sickness Relief Fund, etc.

100% deduction with qualifying limit:

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

Contributions made to local associations, authorities or institutions to support the development of sports and family planning are 100% deductible subject to a certain eligibility threshold.

50% deduction without qualification restrictions:

Monetary contributions made to funds such as the Rajiv Gandhi Foundation, the Prime Ministers Drought Relief Fund, etc. are subject to a 50% deduction.

50% deduction with qualifying limits:

Donations made to a faith-based organization and local government for reasons other than family planning institutions and other charities are eligible for a 50% deduction, subject to a certain eligibility threshold.

The eligibility threshold refers to 10% of a taxpayer's total gross income.

Subsections of Section 80G:

Section 80G of the Income Tax Act of 1961 has been divided into the following four categories for ease of understanding:

Section 80GG:

Those individual taxpayers who do not receive rental housing allowance are entitled to this deduction from the rent they pay, subject to a higher deduction equal to 25% of total income received or Rs. 2000 per month. You may claim the lesser of these options as a deduction.

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

Tax deduction under Section 80 U:

Local individual taxpayers with disabilities may claim tax deductions under Section 80 U. Maximum deduction of Rs. 75,000 per year is eligible for persons with a Person with a Disability (PwD) certificate from an appropriate medical institution. Persons with severe disabilities are eligible for a maximum deduction of Rs. 1.25 lakh depending on certain criteria they meet. Some examples of disabilities that qualify for tax credits include cerebral palsy, mental retardation, autism, etc.

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Tuesday, 17 May 2022

What is Form 16 for Income Tax? Form 16 is nothing more than a certificate issued by your

an organization providing information about the salary you received during the financial year and the

amount of TDS withheld from your salary.

In the event that the income from your annual salary exceeds the original withholding tax limit; then, your employer is required to deduct TDS from your salary and pay it to the Government of India. Employers provide 16 forms to their employees as proof of filing a tax return. If your annual income is below the discount limit, no TDS is deducted from your paycheck.

Form 16 Part B is issued annually by the employer containing information on other income, exemption benefits, arrears in wages, taxes payable, etc., which is usually before June 15 of the following year. This immediately follows the tax year in which the tax is withheld. You don't have to worry if you lose 16 forms, you can get duplicates issued by your employer without any recruitment problems

The essential elements of Form16 Part A are listed below:

Employer information such as billing account number (TAN), name, fixed account number (PAN), tax exemption, etc.

All information related to tax payment such as amount, invoice number, money order number, check number, etc.

Tax is withheld as per Section191A.

Recognition of the total amount of tax paid by the employer.

• Extra information such as wages, total salary, net salary, parks, deductions etc.

• TDS receipt provided.

If you work with only one employer in a financial year, that employer will post Form 16 for the full fiscal year. If you change jobs and work for more than one company in a financial year, Form 16 will be issued to all employers individually during their period of employment.

Download Auto Calculate and Automated Income Tax Salary Certificate Form 16 Part B for the Financial Year 2021-22

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Monday, 16 May 2022

Income tax exemptions under head salary | Income tax exemption below Rs.2.5 Lakh | Salary-Based Income Tax Exemption Individuals who choose to tax income under the new tax regime will not be able to take advantage of some of the popular exemptions under the Income Tax Act, 1961. For the new tax system U/s 115 BAC

Section 80C - Rs. 1.50.000/- (For example Insurance, PPF (General Insurance Fund), National Conservation Certificate, etc.)

Section 80D - Rs. 25.000-50.000/- (doctor)

Standard discount - 50.000 /

Discount allowance (LTA)

House rental allowance (HRA)

Housing Interest 24 (B)

Download Auto Calculate Income Tax Revised Form 16 Part B for the F.Y.2021-22 which can prepare at a time 50 Employees Form 16 Part B Accurately

Various tax saving methods:

1) House rental allowance (HRA)

Paid persons living in a rented house/apartment can apply for a reduced amount of the rental benefit tax or HRA.

Discounts are available in quantities lower than the following amounts:

Actual HRA receipts;

50% of the base salary of those living in a metropolitan city (40% non-metropolitan); OR

Rent pays less than 10% of base rent base salary

You can apply for a discount on a home loan and HRA interest together.

You can apply for an HRA while you are with your parents.

Example: Rahul works in a multinational company in Gurgaon and receives a monthly salary. 12,000,000 per year and lives in his parents' house in Delhi. Even if he lives in a private home, he can get income tax benefits from the company to pay for housing allowances. All he had to do was pay his parents' monthly rent and send the rent receipt to HRT. His parents must show the rent he paid on his tax return. But they can save a lot as a family.

2) Tax relief at home

Each borrower provides interest and principal material for the loan. The Income Tax Act provides benefits to both components

Interest Share: You can claim a maximum of Rs. 2,000,000 / - deducted (expense) interest on home loans Homes owned or in an empty position. However, if the house is rented, you can ask for a discount on the unlimited amount of interest paid mentioned above. This discount can be adjusted to match your wage income, reducing your overall tax liability.

Download Auto Calculate Income Tax Revised Form 16 Part A&B for the F.Y.2021-22 which can prepare at a time 50 Employees Form 16 Part A&B Accurately

Main components: You can request a maximum of Rs. 2,000 / -. 1.50.000/- as an exception under section 80C for original components. This is consistent with overall revenue and consequently reduces the overall tax burden.

Facts about tax sellers: If the co-loans are taken together, the holders can apply for a discount of up to Rs 10,000 each. 200,000/- each as well as Rs. 1.50.000/- each in a separate SPT.

3) Discounts under Sections 80C, 80CCC, 80CCD and 80D Investment-Discounted Investments on 80C Maximum limit Rs. 1.50.000/-: 80C PPF, EPF, LIC accepted as a gift, principal stamp duty and registration fee for property purchase, Sukanya Smriti Yojana (SSY), National Savings Certificate (NSC) allows for investment discount, Senior Citizen Savings Exemption Scheme (SCSS), ULIP, FD tax savings for 5 years, infrastructure bonds etc. NPS: 80 CCD (2) Additional limit Rs. 50,000/-: 60 CCD (2) allows an additional discount of Rs. 50.000/- for the money deposited into the employee's NPS account. Discount for Mediclaim: 80D You can request a discount of Rs 25000/- under 60 years old and Rs. 50,000/- over the last 60 years

Additional discount for parental medical visits is available up to Rs 25,000 if they are under 60 years old. Maximum exclusion limit of Rs. 50,000 for Seniors over 60 years old.

Download Auto Calculate Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E from the F.Y.2000-01 to F.Y.202-23(Updated Version)