All about Income Tax Form 16| Form 16 has all the details about the TDS deduction from your

 paycheck and is submitted to the government by the employer.

 

Form 16 is a commonly used income tax-related document in India, which is used when filing ITR. Form 16 is required financial documentation to apply for your ITR. Therefore, a clear understanding of this document is very important for every salaried person in India.

 

What is Form 16?

Employers of those earning taxable income are subject to withholding taxes, known as TDS when paying wages. This tax deduction by the employer is documented on Form 16. Form 16 has all the details about deducting TDS from your paycheck and is submitted to the government. Form 16 is a statement of how much you have earned as income in a tax year and how much TDS your employer has withheld from your wages, depending on the tax class you are in.

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

Issued under Section 203 of the I-T Act, Form 16 states that your employer withholds the TDS and submits it to the I-T Department. Form 16 also provides information about how your tax liability is calculated, based on the investment report you made at the beginning of the year.

 

If you have changed jobs several times in a fiscal year and all employers have deducted TDS during this period, you must collect Form 16 from each of your employers before submitting your ITR.

 

Download form 16

Downloading Form 16 is not possible as only your employer can provide Form 16. Most organizations have an internal payroll platform, where an employee can download Form 16 after it has been issued by the employer. However, it is not possible to download Form 16 from any other source.

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

 

The company creates and downloads Form 16 through the TRACES portal at https://www.tdscpc.gov.in/app/login.xhtml. The employer must authenticate the contents of Form 16 before providing it to the employee.

 

Eligibility Form 16

All salaried employees, whose income falls into the taxable category, are entitled to a Form 16 from their employer. Some organizations issue Form 16 even to employees whose salaries are not taxed and therefore TDS is not withheld.

 

Form 16: Details you can find

On Form 16, you will find the following information:

1. Company TAN and PAN data

2. Employee data

3. Details of tax payment

4. Tax withheld under Section 191A

5. Salary details

6. TDS receipt

7. Refund or balance of taxes to be paid

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

 

Make 16 parts

Form 16 consists of two parts: Form 16 A and Form 16 B.

 Details of Form 16 Part A

• PAN and TAN entrepreneurs

• Employee PAN

• Employer's name and address

• Taxes are deducted and deposited every three months

Details of Form 16 Part B

• Detailed salary details

• Details of allocation under Section 10

• Deductions allowed under Chapter VI-A

• Help under Section 89

Form 16, Form 16A and Form 16B

While Form 16 is a TDS certificate of your wages, Form 16A is a TDS certificate of wages for income other than wages. Form 16 B, on the other hand, is a TDS certificate for income earned through the sale of real estate.

 

If your employer has withheld the TDS and submitted it to the IT Department, you can find these details on Form 26AS. Issued by the IT Department, Form 26AS is a consolidated annual tax credit report, which contains information about taxes withheld from your income by employers and banks, including up-front taxes or self-assessment taxes paid during the year, sales and purchases of property.

Also, know all about UAN login

Form issue date 16

Form 16 is issued by your employer annually on or before June 15. Form 16 is issued immediately after the tax year in which the tax was withheld.

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

Form 16: Uses

A salaried employee may use the information listed on Form 16 in the following situations:

• To file a tax return

• To apply for all types of loans

• To apply for a foreign visa

• When joining a new company

• To show proof of income

• To check the effectiveness of your tax-saving instrument

 

On June 21, 2022 by www.taxexcel.net

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RELAXATION  FOR RETIREMENT EMPLOYEES under the Income Tax Act of 1961

Higher basic exclusion limit

Exemption from taxes on amounts received by way of gratuities reduced pensions and pension funds

Greater dedication to health insurance premiums

The highest interest deduction limit from Banks and Post Offices

and much more.

 

Exemption for retired employees under the Income Tax Act of 1961

I retired from service after serving 35 years at the age of 60. I get various retirement benefits like gratuity, switching pension, leave, GPF etc. I have many questions regarding the taxability of these benefits on my hands that I am looking for answers to. 

What is the basic exemption limit for a retired employee like me under the IT Act, 1961? Are pensions received after retirement taxable?

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 and B]

For ordinary private taxpayers the basic exemption limit, until they are not required to pay any tax, is currently set at Rs. 2.50 lakh for A.Y. 2020-21. However, for retired employees who are also senior citizens between 60 and 80 years old, the basic exemption limit is set at a number higher than Rs. 3 lakhs. For super seniors over 80 years of age, the exemption limit is set at Rs. 5 lakhs. The pension you receive is taxed under "Salary" Income beyond the exclusion limit.

 

Will I benefit from the Standard Deduction?

From AY 2023-24, standard discount up to Rs. 50,000 versus salary income earned during the year u/s16 introduced IT Act, 1961. A retired employee over the age of 60 who receives retirement income from his former employer can claim a deduction of up to Rs. 50,000/- towards this salary income.

 

Am I exempt from paying fees upfront?

Everyone whose estimated tax liability for the year is Rs 10,000 or more is subject to prepaid taxes. However, retired workers over the age of 60 are not required to pay prepaid taxes, as long as they do not receive any income under the heading “Profits and benefits from activities or professions”.

Is the gratuity I receive upon retirement tax-exempt?

Yes, gratuities received in retirement are excluded under the following conditions:

(i) Any free death plus any pension benefits received under the Revised Central Government Pension Regulations.  Central Civil Servant Pension Regulation, 1972.

(ii) Any gratuities received under the Gratification Payments Act, 1972 to the extent not exceed the amount calculated under Sections 4 (2) and 4 (3) of the law.

(iii) other gratuities received by an employee upon retirement or termination of employment or received by widows, children or dependents upon death to the extent specified therein.

(Section 10 (10) IT Law, 1961)

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]

Is the amount I receive for retirement reimbursement tax-exempt?

Yes, Amounts received on Retirement Compensation are waived with the following conditions:

(i) any pension payments received under the Central Government Civil Retirement Compensation Regulations. or under a similar scheme.

(ii) Any payment in exchange for a pension received under any scheme from another employer to the extent provided for in the Income Tax Act, 1961.

(iii) any pension conversion payments received from a fund pursuant to clause 23AAB, or a Fund established by a LIC on or after 1 August 1966.

(Section 10 (10A) of the IT Act,1961)

 

Are amounts received as part of a vacation collection exempt from taxes?

Yes, The amount received while on leave is waived with the following conditions:

(i) any payments received by employees of the Central Government. or state government. as the money equivalent of vacation pay in respect of the period of leave earned to your credit upon your retirement (either) in retirement or vice versa.

 

(ii) any such payments (as provided for in paragraph (i) above) received by employees other than central government employees or civil servants. for a portion of the EL period not exceeding 10 months calculated based on the average wage received by workers in the 10 month period immediately prior to retirement.

(Under Section 10 (10AA)) 

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 and B]

Are amounts received from a pension fund exempt from taxes?

Yes, the amount received from the pension fund is exempt from tax (if the Pension Fund Act 1925 applies or the payment comes from another pension fund determined by the central government and notified by it on behalf of the State Gazette). Also accumulated balances payable and payable to employees participating in recognized pension funds to the extent provided for by rule 8 Part A of the 4th Annex.

(Sections 10 (11) and 10 (12) of the IT Act, 1961).

 

Are amounts received from a pension fund exempt from taxes?

Yes, Amounts received from approved pension funds are tax-exempt under certain conditions.

(Section 10 (13) IT Law, 1961)

 

What is the deduction limit for health insurance premiums?

From AA 2020-21, the upper limit of deductions of US 80D in respect of payments made for health insurance premiums in respect of retired employees over the age of 60 has been permitted at Rs 50,000/-. Discounts up to Rp. 50,000/- is also eligible for medical expenses incurred for the health of an Elder provided no amount is paid for the health insurance of the person. To claim this deduction, health insurance premiums / medical expenses must be paid in a way other than cash.

What is the deduction limit for medical treatment?

 

If you have paid any amount during the 2018-19 fiscal year (relevant to the 2019-20 academic year) or after that period for medical treatment of a certain disease or disorder and you are an elderly citizen, you can request a reduction of Rp. 1,000,000/-of your earnings.

Section 80DDB of the IT Act, 1961)

 

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 B]

Can you tell me the withholding limit for interest earned by the Bank and Post Office in my case?

Individual taxpayers other than parents are allowed a maximum deduction of Rs. 10,000 u/s 8OTTA for interest income on a savings bank checking account.

 

However, from 2019-to and 2020 onwards, retired employees over the age of 60 can apply for a reduction of up to Rs. 50.000 u/s 80TTB through interest income earned not only on savings accounts but also interest income earned from bank deposits or deposits at post offices or cooperative banks.

 

Further, if the interest income earned during the year is less than Rs. 50,000, the paying bank/post office will not deduct any tax from the interest income

Family pension tax - Family pensions are taxed under the heading "income from sources".

 

The family pension is paid as a regular monthly income (unlicensed pension) by the employer to the

 worker's family member if he dies. The family pension is taxed after allowing a deduction of 33.33%

 or Rs. 15,000, whichever is less

On June 20, 2022 by www.taxexcel.net

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New G.P.F / EPF / VPF Income Tax Rules You Should Know | New Pension Fund Income Tax Rule: The CBDT has notified entities to maintain two separate PF accounts. One of the accounts will be for taxable contributions and the other for non-taxable contributions starting April 1, 2021.

 

• New income tax rules for the GPF: following the pension fund rationalization announced in the 2021 budget, the Central Board of Direct Taxes (CBDT) introduced rule 9D of the income tax rules, 1962

 

New Income Tax Rules for the GPF: Since the start of the new fiscal year 2022-23, the various income tax rules announced in the 2022 Union Budget have come into effect. Therefore, it is important for the taxpayer to be aware of the new changes in the income tax rule that have now been applied. One of them is the taxation of contributions to the Reserve Fund (PF) exceeding Rs 2.50 lakh. Following the pension fund rationalization announced in the 2021 budget, the Central Board of Direct Taxes (CBDT) inserted Rule 9D of the 1962 Income Tax Rules in Exercise 22. Under this rule, each EPFO subscriber will have two PFs. / EPF, while the second account contributions to the PF exceed the threshold.

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

Speaking of new income tax rules for the GPF or General Pension Fund; A SEBI-registered tax and investment expert said: “In the 2021 budget, the union finance minister announced a streamlining of the pension fund by taxing interest from the pension fund earned on a contribution of Rs 2.50 lakh in one year.

 

To ensure the implementation of this announcement and the regular calculation of interest on PF earned by an EPFO subscriber, the CBDT introduced Rule 9 of the Income Tax Rules of 1962 in the fiscal year 2021-22.

 

Under this rule, each EPFO subscriber will have two EPF or PF accounts where a PF contribution of more than Rs 2.50 lakh for one financial year will be deposited in the second PF or EPF account.

 

Thus, interest earned on an EPF/PF-1 account will be exempt from any taxation, while interest earned on a PF/EPF-2 account will be taxed.” from the new financial year, the system of two accounts began to be applied. EPF or PF. However, the classification of taxable and non-taxable PF accounts will come into effect on April 1, 2021.

Download and Prepare at a time 50 Employees Form16 Part B for the F.Y.2021-22

 

Explain the new income tax rules for the GPF; “The CBDT has advised that organizations must maintain two separate accounts in the PF. One of the accounts will be for taxable contributions and the other for non-taxable contributions starting April 1, 2021. Interest accrued on contributions deposited in a taxable account with the EPF will be taxed."

 

On how the new income tax rules for pension fund contributions will work, “Interest earned from an employee's contribution to a pension fund account will be taxable if the contribution in the financial year exceeds 2.5 lakh. If there is, if the employer does not contribute to the pension fund account, the threshold will be 5 lakh rupees per year.”

 

For example, EPFO salaried subscriber contributes Rs 1.5 lakh to EPF accounts and Rs 1.5 lakh to VPF accounts during the 2021-22 fiscal year. The initial balance of the PF account on April 1, 2021, is 20 lakhs. The total contribution to the pension fund account in the fiscal year 2021-22 is Rs 3 million. The contribution of Rs 2.5 million EPF will then be credited to a tax-free account and Rs 50,000 will be credited to a taxable account. The balance of the non-taxable account on March 31, 2022, will be Rs 22.5 lakh (the initial balance on April 1, 2021, is tax-free) and the taxable account is Rs 50,000. The 8.5% interest rate applicable to the 2021-22 fiscal year on £50,000 would therefore be taxable in the hands of the EPFO subscriber.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2022-23 and A.Y.2023-24

 

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

 

2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime

 

3) This Excel Utility has a unique Salary Structure for Government and Non-Government employees Salary Structure.

 

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2022-23 (Update Version)

 

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2022-23

 

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2022-23

On June 15, 2022 by www.taxexcel.net

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