Category Archives: Form 16

As per Budget 2015 Guess your Tax Liability for the Financial Year 2015-16 and Ass Year 2016-17 with TDS on Salary All in One for Govt and Non Govt employees for FY 2015-16


Download the All in One TDS on Salary for Govt & Non Govt employees for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel Based Software can prepare at a time Tax Compute Sheet + Automatic HRA Calculation + Automatic Arrears Relief Calculation with Form 10E + Automatic Form 16 Part A&B and Form 16 Part B for A.Y.2016-17]

As per the Central Finance Budget 2015, it is clear that the Tax Slab have not changed, but some of the limit of Tax Section has hike and one more deduction has include U/s 80C in the name of Sukanya Samriddhi Account.

 As the financial Year 2015-16 and Assessment Year 2016-17 is just now started and the Advance Tax will be paid for this financial year very shortly. So it is necessary to calculate your Tax Liability

for the Financial Year 2015-16.

 Most of the tax changes is given below for the Financial Year 2015-16 :-
  1. Section 80D is hike the max limit Rs. 25,000/- for below 60 years and Rs.30,000/- for Sr.Ctzn.
  2. Section 80U has raised the Max limit Rs. 25,000//-
  3. Section 80DDB hike the Max Limit Rs. 80 thousand
  4. Section 80 the Travelling Allowances has hike the Max Limit Rs. 19200/- P.A.
  5. Section 80CCC has hike the Max Limit Rs. 1.5 Lakh as the previous year’s was Rs. 1 Lakh

The itaxsoftware.net has prepared a Excel Based Advance Tax Calculator for Govt and Non Govt employees for the Financial Year 2015-16 and Assessment Year 2016-17 with the Automated Arrears Calculator with Form 10E since FY 2000-01 to 2015-16 and Automated House Rent Exemption Calculation U/s 10(13A). This Excel Utility can use both are Govt and Non-Govt employees with Salary Structure.

Main Input Sheet

Salary Structure 

Tax Compute Sheet

Download the All in One TDS on Salary for Govt & Non Govt employees for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel Based Software can prepare at a time Tax Compute Sheet + Automatic HRA Calculation + Automatic Arrears Relief Calculation with Form 10E + Automatic Form 16 Part A&B and Form 16 Part B for A.Y.2016-17]

Mandatory to download Salary certificate Form 16 Part A from the Traces Portal vide CBDT Circular No.4/2013 with Automated Form 16 Part B for FY 2014-15


                                                                                                                   CIRCULAR NO. 04/2013

F.No 275/34/2011-IT(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

                                                                                                               New Delhi, the 17th April, 2013

Sub: Issuance of certificate for tax deducted at source in Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules 1962 — regarding :-

1. Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc. The relevant form for such TDS certificate is Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provision of Chapter XVII-B of the Act. TDS certificate in Form No. 16 is to be issued annually whereas TDS certificate in Form No. 16A is to be issued quarterly. TDS Certificate in Form No 16 as notified vide Notification No. 11/2013 dated 19.02.2013 has two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

Download the Automated Salary Certificate Form 16 Preparation Excel Based Software for the Financial Year 2014-15 from below link


1)Automated One by One preparation Form 16 Part B  FY 2014-15      ( Click to Download)


2)Automated One by One preparation Form 16 Part A&B  for FY 2014-15  ( Click to Download)


3)Automated at a time 50 employees Form 16 Part B For FY 2014-15 ( Click to Download)


4)Automated at a time 50 employees Form 16 Part A&B For FY 2014-15(Click to Download)


5)Automated at a time 50 employees Form 16 Part B with Form 12 BA For FY 2014-15 ( Click to Download )


6)Automated at a time 100 employees Form 16 Part B For FY 2014-15(Click to download)

2. With a view to streamline the TDS procedures, including proper administration of the Act,

the Board had issued Circular No. 03/2011 dated 13.05.2011 and Circular No. 01/2012 dated 09.04.2012 making it mandatory for all deductors to issue TDS certificate in Form No. 16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (https://www.tdscpc.gov.in) (hereinafter called TRACES Portal) previously called TIN website. In exercise of powers under section 119 of the Act, the Board has now decided as following:-


2.1 ISSUE OF PART A OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE

MADE ON OR AFTER 01.04.2012:

All deductors (including Government deductors who deposit TDS in the Central Government

Account through book entry) shall issue the Part A of Form No. 16, by generating and

subsequently downloading through TRACES Portal, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number.

2.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:

The Deductor, issuing the Part A of Form No. 16 by downloading it from the TRACES

Portal, shall, before issuing to the deductee authenticate the correctness of contents

mentioned therein and verify the same either by using manual signature or by using digital

signature in accordance with sub-rule (6) of Rule 31.

2.3 In other words, Part A of Form No. 16 shall be issued by all the deductors, only by generating it through TRACES Portal and after duly authenticating and verifying it.
2.4 ‘Part B (Annexure)’ of Form No. 16 shall be prepared by the deductor manually and issued to the deductee after due authentication and verification alongwith the Part A of the Form No. 16 stated above.

2.5 Sub rule (3) of rule 31of the Rules sets the time limit for issuance of Form 16 by the

deductor to the employee. Currently, Form 16 should be issued by 31st May of the financial Year immediately following the financial year in which income was paid and tax deducted.


3.1 The Director General of Income-tax (Systems) shall specify the procedure, formats and

standards for the purpose of download of Part A of Form No. 16 from the TRACES Portal and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for download of Part A of Form No. 16 in electronic form.


3.2 It is further clarified that Part A of Form No. 16 issued by the deductors in accordance with this circular and as per the procedure, formats and standards specified by the Director General of Income-tax (Systems) and containing Unique Identification Number shall only be treated as a valid compliance to the issue of Part A of Form No. 16 for the purpose of section 203 of the Act read with rule 31 of the Rules.

                                                                                                                                   -sd-

                                                                                                                         (Anshu Prakash)

                                                                                                                        Director (Budget)

                                                                                                             Central Board of Direct Taxes

Download Tax Compute Sheet + Salary Sheet + HRA Calculation + Form 16 Part A&B and Part B for West Bengal Govt employees for FY 2014-15


All in One Income Taxpreparation Excel Based Software for West Bengal Govt employees For Ass Yr2015-16( This Excel Utility can prepare at a time your Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automated HRA Calculation + Form 16 Part A&B and Part B)

                      Snapshot of Main Data Input Sheet

  Snapshot of Salary Structure of W.B.Govt employees

                              Snapshot of Salary Sheet

                            Snapshot of Form 16 Part B

                           Snapshot of Form 16 Part A&B

The Financial Year have already started since the 1/4/2014 and which will be end of March 2015. In this Financial year have already passed the New Central Finance Bill and some Income Tax Section introduce to the Income Tax Payers ( All Salaried Persons). It is observed that the Income Tax Slab has  changed up to Rs. 2.5 Lakh and the Section 80C also Raised up to Rs. 1.5 Lakh in this Financial Year 2014-15, Tax Slab For Men and Women is Rs. 2,50,000/- = NIL and 2,00,001 to 10,00,000/- Tax @ 10% and above 10,00,000/- @ 20%.

The New Income Tax Section started from the Financial Year 2013-14 is given below:-

Section 87A Tax Rebate Rs. 2,000/- who’s Taxable Income not more than 5,00,000/-

Section 80EE, House Building Loan Interest who’s HBL interest started since 1/4/2013 Max Rs. 1,00,000/- additional amount of U/s 24 B.

Download the utility from below link.

Income Tax Section 80EE: New section In budget to allow increased housing loan deduction Plus Master of Form 16 Part B for FY 2014-15 ( Prepare at a time 100 employees Form 16)


Click here to Download Automated Master of Form 16 Part B for FY 2014-15 ( This Excel Utility can prepare at a time 100 employees Form 16 Part B for Financial Year 2014-15)

A new section has been introduced in the income tax act i.e. Section 80 EE. This section has been introduced to cater to the need for affordable housing. This section allows for a deduction up to Rs. 100000/- for the AY 2014-15 (i.e. FY 2013-14) to individual assesses for interest payable on their housing loan. Few conditions are required to be satisfied for this section to be applicable.

1)  The loan is sanctioned between the FY 1/4/2013-31/3/2014.

2)  The loan sanctioned does not exceed Rs. 25 Lakh.

3)  The value of residential house does not exceed Rs. 40 Lakhs.

4)  The assessee does not own any other residential house as on the date of sanction of the loan. In other words, this house is supposed to be his self occupied property.

5)  The assessee is a first time home buyer

Where the interest payable is less than Rs. 100000/- for AY 2014 – 15, then the balance amount shall be allowed in AY 2015-16. If a deduction under this section is allowed for any interest, no deduction shall be allowed in respect of such interest under any other provisions of the Act. The benefit under this section is mainly for one time primarily for AY 2014-15 and to a certain extent for AY 2015-16 for balance interest as mentioned above.

Also it is important to note that this deduction is in addition to the deduction of Rs. 150000/- in respect of interest on loans for self occupied property U/s 24(b). This is the current scenario as per the tax laws i.e. there is a maximum deduction of Rs. 150000/- on interest on housing loan for one self occupied property.

In my opinion, this new section would benefit the low to medium income section of assesses. It will greatly benefit such people who are first time house buyers as not only do they get a deduction up to Rs. 150000 for interest paid on housing loan but also an additional deduction of Rs. 100000/- from their gross total income as a result of introduction of this section.

It can be said that since the maximum cap of housing loan amount is Rs. 25 lakhs, on an average the yearly interest obligation on such loans amounts to Rs. 2.5 or 2.75 lakh. Thus as a result of this section, an individual can now effectively claim this entire interest expense as a deduction (i.e. 150000/- as per Section 24 (b) + Rs. 100000/- as per Section 80EE) from his gross total income and reduce his tax obligation accordingly.

Click here to Download Automated Master of Form 16 Part B for FY 2014-15 ( This Excel Utility can prepare at a time 100 employees Form 16 Part B for Financial Year 2014-15)

Tax Preparation Excel Based Software for Non-Govt employees FY 2014-15(Tax Compute +Salary Structure+Salary Sheet+HRA Exemption+Form 16 Part A&B and Part B + Form 12 BA)


As per the Central Finance Budget, the Income Tax Slab has already Raised from 2 lakh to 2.5 Lakh, and the most popular Tax Section 80C has also Raised from 1 lakh to 1.5 Lakh. It is also available the Tax Rebate Rs. 2,000/- U/s 87A.

It appears from the various web site, published various type of Income Tax Calculator, but all are not complete Tax Calculator which can prepare all calculation as required for the submit the Income Tax Statement to the employee’s office or Dedoctor.
Here is given below an unique Excel Based Software only for the Private / Non-Govt employees for the Financial Year 2014-15. This Excel Based Software can prepare at a time your Tax Compute Sheet + Salary Structure + Salary Sheet + Automatic HRA Exemption Calculation + Form 16 Part A&B and Part B + Form 12 BA.

Main feature of this Excel Utility :-

1) Prepare at a time all tax compute sheet for fy 2014-15

2) Tax Slab and other Tax Section have in this Utility as per Finance Budget 2014-15

3) All calculation will be calculate automatically 

4) Automatic Convert the Amount in to the In Words without any Excel Formula

5) Automated Form 16 Part A&B ( Modified Format of Form 16)

6) Automated Form 16 Part B ( Modified Format)

7) The Salary Structure have prepare on the salary pattern of Private Concerned pattern

Download the All in One TDS on Salary for Private Employees For Financial Year 2014-15 (Prepare at a time Tax Compute Sheet+HRA Compute + Form 12 BA + Form 16 Part A&B + Form 16 Part B)

Exemptions available to Salaried Employees, Income -Tax 2014-15, Plus Tax Preparation Excel Utility for FY 2014-15


As per the Finance Budget 2014 the following changes relating to determination of Income Tax payable by Salaried Employees, which provide income tax exemption varied from Rs.15,000 to Rs. 30,000 on the basis of taxable income of individual.

  1. Income Tax Slab has Raised  from Rs. 2 lakh to Rs. 2.5 lakh
  2.  80 C deduction limit has Raised from 1 Lakh to 1.5 Lakh
  3. Income Taxexemption on Interest paid on housing loan under Section 24 of the Income TaxAct increased from Rs. 1.5 lakh to Rs. 2 lakh

Income Tax Rebate of Rs. 2000 for taxable income up to Rs. 5 lakh will be continues this year also under Section 87A .

Click here to download Income Tax Calculator 2014-15 (A. Year 2015-16) with Form 16 [ This Excel utility can prepare at a time Tax Compute sheet + HRA Calculation + Form 16 Part A&B and Form 16 Part B]

Allowances exempted under Section 10 of Income Tax Act

House Rent Allowance:

When rent is actually paid by an individual, he / she is entitled to exemption in respect ofHouse Rent Allowance which is limited to least of the following

  1. Actual HRA received.
  2. Rent paid less 10% of salary.
  3. 40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi) Salary is defined as Basic Pay. Dearness allowance will form part of salary if the same enters into computation of retirement benefits

Click here to download Exemption on HRA Calculator

Leave Travel Allowance or Leave Travel Concession :

LTC or LTA is exempted if the same is actually spent

Transport Allowance:

Transport Allowance granted to an employee to meet expenditure for the purpose of commuting between the place of residence and place of duty. Income Tax Exemption on Transport Allowance is restricted to Rs.800 per month.

Children Education allowance:

Rs. 100/- per month per child up to a maximum of 2 children.

Hostel Allowance:

Rs. 300/- per month per child upto a maximum of two children.

Income Tax Exemption on Interest paid on Housing Loan / Income or loss from House Property:

Total deduction for interest paid on Housing Loan when the property is self occupied has been increased to Rs. 2 lakh as per amendment made in Under Section 24 B

Clickhere to Download automated Form 16 Part B for Financial Year 2014-15 ( This Excel Utility can prepare at a time 50 employees  Automatic Form 16 Part B)

Section 80C: [Click to view total deduction of U/s 80C]

The total deduction under this section (along with section 80CCC and 80CCD) is limited to Rs. 1.50 lakh. Some investments, savings, expenditure etc covered under Section 80 C.

Deductions under Chapter VIA of Income Tax Act [Click to view Chapter VIA]

Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)

As per the Budget 2012 announcements, a new scheme Rajiv Gandhi Equity Saving Scheme (RGESS) will be launched. Those investors whose annual income is less than Rs. 10 lakh (proposed Rs. 12 lakh from A.Y. 2014-15) can invest in this scheme up to Rs. 50,000 and get adeduction of 50% of the investment. So if you invest Rs. 50,000 (maximum amount eligible forincome tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).

Section 80D: Deduction in respect of Medical Insurance

Deduction is available up to Rs. 20,000/- for senior citizens and up to Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deductionavailable under this section is to the extent of Rs. 40,000/-. From AY 2013-14, within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is available.

Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative

Deduction of Rs. 50,000/- w.e.f. 01.04.2004 in respect of

  1. Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
  2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

Further, if the defendant is a person with severe disability a deduction of Rs. 100,000/- shall beavailable under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist. Note: A person with ‘severe disability’ means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the ‘Persons with disabilities (Equal opportunities, protection of rights and full participation)’ Act.

Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 40,000/- or the amount actually paid, whichever is less isavailable for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Section 80E: Deduction in respect of Interest on Loan for Higher Studies

Deduction in respect of interest on loan taken for pursuing higher education. The deduction is also available for the purpose of higher education of a relative w.e.f. A.Y. 2008-09.

Section 80G: Deduction in respect of Various Donations

The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G

Section 80GG: Deduction in respect of House Rent Paid

Deduction available is the least of

  1. Rent paid less 10% of total income
  2. Rs. 2000/- per month i.e.Maximum Deduction available is 24,000/-
  3. 25% of total income, provided
  4.               Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
  5.                He should not be in receipt of house rent allowance.
  6.               He should not have self occupied residential premises in any other place.

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 01.04.2012 (Assessment Year 2013-14).

Section 80U: Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 50,000/- to an individual who suffers from a physical disability(including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 100,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Click here to Download Income Tax Calculator 2014-15 (Assement Year 2015-16) with Arrears Relief Calculation with Form 10E

Prepare at a time 100 employees Form 16 Part A&B for the Financial Year 2014-15 & Assessment Year 2015-16


Click here to Download Automated Form 16 Part A&B for the Financial Year 2014-15 & Assessment Year 2015-16 ( This Excel Utility can prepare at a time 100 employees form 16 Part A&B)

The CBDT has already changed the Format of Form 16 dated on 19/2/2013. In this Format have two part. Part A which found the Tax Deducted At Source and deposited in to the Central Govt Account  and another Part B which is found the details of employee’s Salary. This Part B is mandatory to prepare by the employer. This Part A is mandatory to download form the Income Tax TRACES  Portal. 

Most of the Employer or deductor yet not well known about this new Format of form 16. Also you most of employer could not able to download the Form 16 Part A from the TRACES portal.

Who have not able to download the Form 16 Part A from the TRACES Portal, they can use this below given both in one file Form 16 Part A&B in New Format of Form 16.

This Excel Based Software can prepare at a time 100 employees Form 16 Part A&B for the Financial Year 2014-15 and Assessment Year 2015-16. This Utility can use both of Govt and Non Govt Concerned.

Feature of this Utility:-

  • Automatic Calculate the Income Tax of each employee
  • Automatic Prepare the Form 16 Part A&B in New Format
  • Automatic Convert the Amount in to the In Words
  • Prevent the Double entry of PAN No and Name of Employee
  • Govt and Non Govt Concerned can use this utility
  • This Excel Utility can prepare at a time 100 employees Form 16 Part A&B

Click here to Download Automated Form 16 Part A&B for the Financial Year 2014-15 & Assessment Year 2015-16( This Excel Utility can prepare at a time 100 employees form 16 Part A&B)

Income Tax Preparation Excel Based Software For FY 2014-15 with Income Tax Deduction Chapter VIA with 80C at a glance


Download Income Tax Preparation Excel Based Software for the Financial Year 2014-15 & Assessment Year 2015-16 [ This Excel Based Software can prepare at a time Tax Calculation+Tax Compute Sheet+Automatic HRA Exemption Calculation+Automatic Form 16 Part A&B and Form 16 Part B. This Utility Only for Non-Govt employees)

As per the  Finance Budget (Central) 2014-15, the most popular Section 80C has Raised up to Rs. 1.5 Lakh from the Financial Year 2014-15 The Income Tax Department as well as the Central Govt provides certain exemptions under various sections of the Income Tax Act, to encourage investors to save and hence reduce their tax liability. The tax benefits under section 80C allow one a maximum investment of Rs 1.5 lakh from the Financial Year 2014-15 and Assessment Year 2015-16.

Good Returns.in has explained the various sections with the instruments available for exemption.

Gross total income means total income computed in accordance with the provisions of the Act before making any deduction under sections 80C to 80TTA i.e. Under Chapter VIA Deduction.

The income of a person is computed under the following heads:
1. Salaries.
2. Income from house property.
3. Profits and gains of business or profession.
4. Capital gains.
5. Income from other sources.

Here is given a  chart of deduction from total income available under section 80C to 80U ( CHAPTER VIA) of the Income Tax Act. This chart will give you a fair idea of deduction which will help you while planning your tax.

Below given a Chart of deduction Under Chapter VIA after Finance Budget 2014-15

Deduction from total income u/s 80c to 80u
Sec Eligible assessee Nature of Deduction Amount
80C Indl/HUF General deduction for investment in PPF,PF,Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc Amount deductible: Rs. 1,50,000/-
80CCC Indl Contibution to Pension funds Amount deductible: Rs. 1,00,000/-
80CCD(1) Indl Contibution by an employee or any other individual towards notified pension scheme Amount deductible: Rs. 1,00,000/- or 10% of Salary
80CCD(2) Employer ’s Contibution by an employer towards notified pension scheme Amount deductible: maximum of 10 % of salary.
80CCG Resident Individual Investment made under equity scheme if gross total income does not exceed Rs 10 lakh. Amount deductible: 50% of amount invested in equity shares, restricted to Rs 25,000.
80D Indl/HUF Medical insurance premia Amount deductible: Max upto Rs 30,000- 40,000 incase of senior citizen
80DD Resident Indl/ Resident HUF For maintenance including treatment or insurance the lives of physical disable dependent relatives. Amount deductible: Rs 50,000. In case disability is severe , the amount is Rs 1,00,000
80DDB Resident Indl/ Resident HUF Medical treatment expenses Amount deductible: Rs 40,000
80E Indl For interest payment on loan taken for higher studies for self or education of spouse or children Amount deductible: Entire amount of interest is deducatble for max of 8 years.
80G All assessees Donations to charitable institution Amount deductible: 100% or 50% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc.)
80GG Indl For rent paid Amount deducatble: 1). Rs 2000/- p.m

2).25% of total income
3). rent paid- 10% of total income

80GGA All assessees not having any income chargeable u/hPGBP For donation to entities in scientific research or rural development Amount deducatable: Sum paid as donations
80GGB Indian companies Contribution give to political parties Amount deducatable: Sum contibuted to political parties
80GGB Assessee Contribution give to political parties Amount deducatable: Sum contibuted to political parties
80TTA Indl/HUF Interest in savings account Amount deductible: Max is Rs 10,000/-
80U Indl/HUF Income of person with disability Amount deductible: RS 50,000 which goes to Rs 1,00,000 in case taxpayer is suffering from severe disability.
80EE Ind/Huf Extra Tax Relief from House Building Loan Interest w.e.f. 1/4/2013 Maximum Rs. 1 Lakh get relief from the House Building Loan Interest since 01/04/2013 and on-words financial year

The most popular Income Tax Section 87A,Tax Rebate Rs. 2000/- ( Who’s taxable income less than 5 lakh) can get this Financial Year 2014-15 as before.

Download Income Tax Preparation Excel Based Software for the Financial Year 2014-15 & Assessment Year 2015-16 [ This Excel Based Software can prepare at a time Tax Calculation+Tax Compute Sheet+Automatic HRA Exemption Calculation+Automatic Form 16 Part A&B and Form 16 Part B. This Utility Only for Non-Govt employees)

All in One TDS on Salary Calculator for Fy 2014-15,with Method of Income Tax Calculation for the year 2014-15 Section 192 of the Income Tax Act 1961


Download Income Tax Calculator with Form 16 for the Financial Year 2014-15

Download Your desired Income Tax Excel Based Software for FY 14-15
Download All in One TDS on Salary for Govt & Non-Govt employees for FY 2014-15 (This Excel Utility can Prepare at a time Tax Compute Sheet +Individual Salary Sheet+Individual Salary Structure+Arrears Relief Calculation+HRA Calculation+Form 16 Part B and Form 16 Part A&B for FY 2014-15)
Download All in One TDS on Salary for only Non-Govt Employees for Financial Year 2014-15 (15 (This Excel Utility can Prepare at a time Tax Compute Sheet +Individual Salary Sheet+Individual Salary Structure+Arrears Relief Calculation+HRA Calculation+Form 16 Part B and Form 16 Part A&B for FY 2014-15)
Download All in One Master of Form 16 Part B for the Financial Year 2014-15 ( This Excel Based Utility can prepare at a time 50 employees Form 16 Part B with Individual Salary Structure + Individual Salary Sheet )

SECTION 192 OF THE INCOME-TAX ACT, 1961: BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM “SALARIES”:

3.1  Method of Tax Calculation:

Every   person who is responsible for   paying   any income   chargeable   under the head “Salaries” shall  deduct income-tax  on  the estimated income of the assessee  under the head “Salaries” for the financial year 2014-15. The income-tax is required to be calculated on the basis of the rates  given above, subject to the  provisions related to requirement to furnish PAN as per sec 206AA of the Act, and shall be deducted at   the time of each payment. No tax, however, will be required to be deducted at source  in  any  case unless the  estimated salary income including   the value of perquisites, for the financial year exceeds Rs. 2,50,000/- as the case may be, depending upon the age of the employee.(Some typical examples of computation of tax are given at Annexure-I).

3.2   Payment of Tax on Perquisites by Employer:

An option has been given to  the employer to pay the tax  on non-monetary perquisites given toan employee.  The employer  may, at its option, make  payment of the tax on such perquisites himself  without making any TDS from the salary of the  employee. However, the employer will have to pay the tax at the time when such tax  was  otherwise  deductible  i.e. at the time of payment of income chargeable under the head “salaries” to the employee.

3.2.1  Computation of Average Income Tax:

For the purpose  of  making  the  payment  of  tax mentioned in para 3.2 above, tax  is to be determined at the  average  of   income  tax  computed on the  basis of rate in force  for  the financial  year, on  the  income  chargeable under   the  head  “salaries”, including the  value of perquisites for  which tax  has been paid by the employer himself.

3.2.2    Illustration:

The income chargeable under the head “salaries” of an employee below sixty years of age for the year inclusive of all perquisites is Rs.4,50,000/-, out of which, Rs.50,000/- is on account of non-monetary perquisites and  the employer opts to pay the tax on such perquisites as per the provisions discussed in para 3.2 above.

STEPS:

Income Chargeable under the head “Salaries”inclusive of all perquisites Rs.  4,50,000/-
Tax on Total Salary (including Cess) Rs.    25,750/-
Average Rate of Tax [(25,750/4,50,000) X 100] 5.72%
Tax payable on Rs.50,000/= (5.72% of 50,000) Rs.      2,861/-
Amount required to be deposited each month Rs.      240 (Rs. 238.4) =2881/12)

The    tax  so   paid  by  the  employer shall be deemed to be TDS made from the salary of the employee.

3.3  Salary From More Than One Employer:

Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction  of  tax at source by such employer (as the   tax payer may choose)   from the aggregate salary of   the employee,  who is or has been in receipt of salary from more than one employer. The employeeis now required to furnish to the present/chosen employer details of the income under the head “Salaries” due or received from   the former/other employer and also tax deducted at source there from, in writing and duly verified by him and by the former/other employer. The

present/chosen employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from the former or other employer).

3.4 Relief When Salary Paid in Arrear or Advance:

3.4.1    Under  section  192(2A)  where  the  assessee,  being    a  Government  servant  or  an employee  in  a     company,  co-operative  society,  local  authority,  university,  institution, association or body is entitled to the relief under  Section 89(1)  he may furnish to the person responsible  for making the payment referred to  in Para (3.1), such particulars in  Form No.

10E duly verified by him,  and thereupon the person responsible, as aforesaid, shall  compute the relief on the basis of such  particulars and take the same into  account  in    making  the deduction  under Para(3.1) above.

Here “University means  a  University  established  or  incorporated  by  or  under  a Central, State  or  Provincial    Act,  and  includes    an institution  declared  under  section 3 of  the University Grants  Commission  Act, 1956, to be a University for the purposes of that Act.

3.4.2    With effect from 1/04/2010 (AY 2010-11), no such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in section 10(10C)(i) (read with Rule 2BA), a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under section 10(10C) in respect of such, or any other, assessment year.

3.5  Information regarding Income under any other head:

(i) Section 192(2B)  enables a taxpayer to furnish  particulars  of income under any head other than “Salaries” ( not being a loss under any such head other than the loss under the head “ Income from house property”) received by the taxpayer for the same financial year and of any tax deducted at source thereon. The particulars may now be furnished in a simple statement, which is properly signed and verified by the taxpayer in the  manner as prescribed under Rule

26B(2) of the Rules and shall be annexed to the simple statement. The form of verification is reproduced as under:

I, …………………. (name of the assessee), do declare that what is stated above is true to the best of my information and belief.

It is reiterated that the DDO can take into account any loss only under the head “Income from house  property”.  Loss under any other head cannot be considered by the DDO for calculating the  amount  of  tax  to be deducted.

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Download All in One Master of Form 16 Part B For the Financial Year 2014-15 ( This Excel Utility can prepare at a time 50 employees Form 16 Part B with Individual Salary Structure + Individual Salary Sheet)

Income earned by an individual can be broadly classified under 5 distinct heads and taxed according to the Income tax rules governing them. The 5 heads of income are:

  • Salary Income
  • Income from house property
  • Business or Professional Income
  • Capital Gains
  • Other Income

We shall discuss in detail the first head of income namely Salary Income and how is tax calculated on the same.

What is Salary Income? Use Income tax Calculation with Form 16 

Salary means remuneration paid to the employee by the employer for the services rendered by him during a period of time. It is taxed on due basis or receipt basis, whichever is earlier. Salary comprises of 5 components namely:

  • Basic Salary
  • Fees, Commission and Bonus
  • Allowances
  • Perquisites
  • Retirement Benefits

Basic Salary

Basic salary is a fixed component of the salary which is agreed upon as per terms of employment or as per the graded system of salary. As per the graded system, the increments are fixed till the basic salary reaches a prescribed limit for the grade.

Fees, Commission and Bonus

Fees and bonus paid to the employee is part of taxable salary. Commissions paid to employees maybe fixed or a percentage of turnover achieved by the employee. If commission is paid a s part of percentage of turnover, the same is added to the basic salary for the purpose of computation of retirement benefits.

Allowances

Allowances are fixed amounts paid by an employer to an employee to meet his expenses for personal use or for performance of his professional duties. The allowances are over and above the basic salary and are taxable as per their nature and guidelines laid by the Income Tax Act. These allowances can be classified as:

Fully Taxable Fully taxable allowances are as under:

Dearness Allowance

This allowance is paid to meet the mounting expenses due to inflation. In some cases it forms part of basic salary for computing retirement benefits.

City Compensatory Allowance

This allowance is paid to employees who are transferred to big metros like Mumbai, Delhi, and Chennai where the cost of living is higher than other cities.

Overtime Allowance

Any allowance paid for working over and above the prescribed hours is called overtime allowance and is fully taxable

Other Allowances

There are many other allowances that are taxable such as deputation allowance, servant allowance, etc.

Partly Taxable

Partly taxable allowances are as under:

House Rent Allowance (HRA) Calculate your HRA Exemption U/s 10(13A)

This allowance is paid to the employee to meet the rental expenses for residential accommodation for self. If the employee lives in his own house, then the HRA is completely taxable. The exemption amount of HRA for rental property is least of the following:

  • Actual HRA
  • Additional rent paid over and above 10% of salary due to him
  • An amount equal to 50% of salary due to him if living in metros (40% of salary if living in other places)

Entertainment Allowance

This allowance is first included in the salary and is then allowed as an exemption only to Central and State Government employees.

Special Allowance

This allowance is given to the employee for carrying on his official duties and is exempt to the extent it is actually incurred. This includes uniform allowance, travel allowance, research allowance, etc.

Special Allowance to meet personal expenses

A fixed allowance is paid to the employee to meet his personal expenses. This allowance is fixed and a reimbursement of the entire expenditure incurred. Eg: Children Education Allowance, Children Hostel Allowance, etc.

Fully Exempt Fully exempt allowances are as under:

Perquisites

Perquisites are emoluments received by an employee by virtue of holding the position and office over and above his salary. They benefit the employee and are not just reimbursement of expenses. These benefits are also in kind and can be valued. Perquisites can be again classified under three heads:

Perquisites that are taxable for all employees: Some perquisites that are taxable for all employees are:

  • Rent free accommodation
  • Concession in rent of accommodation
  • Interest free loans or subsidized loans
  • Movable assets or transfer of assets
  • Payment of club fees
  • Payment of educational expenses
  • Payment of insurance premium, on behalf of employees

Perquisites that are taxable only for specified employees

Specified employees are employees who are either directors in the organization or have substantial interest in the organization or their salary was over Rs.50000/- in the previous year:

  • Free gas, electricity, water supply for domestic purposes
  • Free or concessional educational expenses
  • Gardener, sweeper, attendant
  • Free or concessional transport facility
  • Any other benefit or amenity

Perquisites that are exempt from tax

Some perquisites are notified by the Income Tax Department where fringe benefit tax has to be paid by the employer on the expenses incurred by them on the perquisites. These fringe benefits are absolutely exempt from tax in the hand of the employee. These include:

  • Medical Benefits
  • Leave Travel Concession
  • Health Insurance Premium
  • Car, laptop, computers for personal use
  • Staff Welfare Schemes
  • The perquisites which are taxable are valued as per the rules laid down in the Income Tax Act.

Retirement Benefits

These benefits are provided either at the time of retirement or during the period of the service. Each benefit has a different tax treatment. The various benefits are:

Pension

Pension is a reward for the services rendered by the employee> It is usually disbursed as a monthly payment, but sometimes the employee may opt for a lumpsum payment. The tax treatment depends on the option chosen and on the category of employee.

Gratuity

Gratuity is a payment received in appreciation of past performance. It is received on retirement. It is exempted upto a certain limit and also dependent on the type of employee.

Leave Salary

Privilege leave is accumulated in the account of the employee. The employee may avail of leave or may opt for encashment of leave accumulated. This is permitted either during the tenure of service or at the time of retirement. The tax treatment will depend on the option chosen and on the category of employee.

Provident Fund

Contribution towards Provident fund is deducted on a monthly basis from the salary of the employee. An equal amount is also contributed by the employer. At the time of retirement the accumulated balance in the Provident fund account along with the interest is given to the employee. The tax treatment of the proceeds depends on the type of provident fund maintained by the employer.

Deductions allowed from Salary: The following deductions are made from the salary income to reach the net salary income:

Standard Deduction: This deduction has been discontinued from Assessment year 2006-07 [ As per the new Tax Slab for FY 2014-15 up to Rs. 2.5 Lakh is NIL]

Entertainment Allowance: This is first included in the salary and then allowed as a deduction to the State and Central Government employees. The deduction amount is the least of

  • Rs.5000/-
  • Entertainment allowance actually received
  • 20% of basic salary

Professional Tax: Professional tax also known as tax on employment is first paid by the employer and then allowed as a deduction from salary. It is allowed only in the year in which it is actually paid.

Computation of Net Salary of an Employee

 Particulars  Amount (Rs)
 Basic Salary X
 Fees Commission and Bonus X
 Allowances X
 Perquisites X
 Retirement Benefits X
 Gross Salary            XXXX
 Less: Deductions from Salary X
            Entertainment Allowance X
            Professional Tax X
Deduction Chapter VIA ( including 80C) X
 Standard Deduction X
Net Salary XXXX

Download and prepare at a time Tax Compute Sheet + Individual Salary Structure + Arrears Relief Calculation + Form 10E + HRA Exemption Calculation + Form 16 Part B and Form 16 Part B for the Financial Year 2014-15 and Assessment Year 2015-16 with the all of above Income Tax Section

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