November-2016 Advance Salary to CG Employee - MF instructed to Banks

Government of India

Department of Expenditure

Office of Controller General of Accounts

Mahalekha Niyantrak Bhawan

Block-E, G.P.O. Complex, I.N.A., New Delhi-110023

Ph:No.011-24665337-40/Fax No.011-24627678

No.S-11012/1(6)/Banks/2016-17/RBD/1815-47

Dated: 18.11.2016

To
Shri P.Vijaya Kumar,
Chief General Manager,
Reserve Bank of India
Department of Currency Management,
Central Office, 4th Floor, Amar Building,
Sr.P.M.Road, P.B.No.1379,
MUMBAI – 400001

FAX NO:022-22662442

Sir,

This is with reference to Ministry of Finance, Department of Expenditure OM No.25(30)/E.Coord/2016, dated 17th November 2016 regarding release of Part Salary in advance amounting to Rs.10000/- form the salary for the month of November 2016 in the form of Cash Pay-out to all Non Gazetted Employees of Central Government. Also refer your office letter dated 11.11.2016 which mentions that Government Departments may be allowed to draw cash beyond the stipulated limit of Rs.10,000/- in exceptional cases only on production of evidence justifying their cash requirements in writing.

Necessary instructions may please be issued immediately to all the banks in view of the Ministry of Finance OM dated 17.11.2016 referred above to enable Govt. offices to release advance salary as per above mentioned OM.

Yours faithfully,

sd/-

(Dr.Shakuntla)

Joint Controller General of Accounts

For More Details Click Here

Read More

Salary and Pension of October-16 before Diwali Festival.

Recently Maharashtra Government issued a resolution dated 20/10/16 to All departments to disbursed the Salary and Pension for the month of October, 2016 before Diwali Festival.

We all are well-known about Diwali Festival of this year.  It is coming soon at the end of Day of Current Month i.e. October.  As per Government Resolution issued by Finance Department dated 20/10/16, disbursement of Salary/Pension for the month of October, 2016 should make before 25th October, 2016 along will all eligible Allowances.

October-16 Salary before 25/10/2016 GR

Read More

TDS on Salary ­ Key points an employee should know

Recently this article published in www.caclubindia.com by CMA Ramesh Krishnan.  This article is specialy for salaried Employee, which is as under :

Introduction: Taxation on salary is the vital area which should know not only by the employer but also employee should aware about this area. Section.192 of the Income tax act is crucial section under TDS which deals with the TDS deduction on Salary. This section describes the complete process of tax deduction from salary of employees. In this article, I will try to highlight some major points which a person as an employee should know and cooperate with employer to comply with the requirement of section 192 and ensure the correct deduction of tax from his/her salary.

1. Declaration of the Income details: Every employer need to collect the declaration from each employee about the income other than his/her salary income from their organization. This declaration needs to be given by the employee either beginning of the every financial year (April) or at the time of joining with new employer whichever is earlier. This declaration should be in the form 12C as per rule 26B and it should contain-

a. Employee name/PAN/Residential status

b. Income other than Salary like House property/Business/Capital gain/ Other sources

c. TDS or advance tax payment paid or deducted if any

2. Declaration of Investments and other deduction: Apart from the income details the employee has to declare his/her investment/savings details which eligible under chapter VI­A , such as various section like 80C/80D/80DD/80DDB/80E/80G/80U/80TTA etc. This will be declared in the form of 12B, In this form employee has to declare the following details-

a. Income from his/her previous employment (if he joining mid of the financial year)

b. Projected investment which eligible for chapter VI­A for the financial year

c. House property interest details (self occupied/let out)

d. Rent payment in case of claiming HRA exemption u/s.10(13A)

e. Children with education details for claiming Children education & hostel expenses allowance u/s.10(14)

This declaration also needs to submit with employer in the beginning of the financial year or at the time of joining whichever is earlier.

This above 2 declarations is the responsibility of the employee to give without fail with the employer to ensure proper & correct TDS deduction from the salary of an employee. 

After receiving those declarations, responsibility starts with employer. from here I will continue the article in Frequently asked questions (FAQ) mode-

How the employers calculate the tax of employee?

Ans: Employer will follow the steps like

a. Employer first arrive the Salary income of the employee in working organization with considering the eligible deductions/exemptions/allowance under the head Salaries.

b. Second step, in case employee joined mid of the financial year, employer adds the salary income of the employee from their previous employment.

c. After that employer will add the Income other than salary declared by the employee in form 12C with considering the deductions mentioned in the form.

d. Then they will arrive the eligible deduction under chapter VI­A as per employee declaration

e. Finally employer need to calculate the employee`s total tax liability for the year. During final liability, employer need to consider the any tax deducted from his income already during the financial year from any source and any advance tax paid by employee on his/her own. This TDS/advance tax only consider based on the payment proof or certificate from the deductor.

Based on the arrived tax liability, employer starts deduct the TDS from the employee`s salary in the equal monthly installment for the year or remaining period incase joined during mid of the year. 

What will happen if the employee fails to declare these forms? 

Ans: If employee fails to declare these forms, employer will consider the Salary income for the

present employment without giving the exemptions/deductions to arrive the tax liability. It will lead

the more or excess TDS deduction from the employee`s salary.

What is the consequence if the employee not declaring the Other Incomes and previous employment income to employer?

Ans: If the employee not declaring the other income details and previous employment details, there will not be any problem for the employer because employer has responsibility to ensure the TDS deduction from the salary paid from their company only. However, employee may get the huge tax burden and interest liability u/s.234B & 234C in the year end or at the time of filling the income tax return. If the employee fails to declare the previous employment income details, there may be chance of considering deduction under Chapter VI­A and basic exemption and house property interest deduction double time by the both employer and finally while consolidating salary from the both employer, it will be allowed one time and end up the employee with huge tax liability.

What is the consequence if employee declares wrong details in the declaration?

Ans: Giving incorrect or wrong information in the declaration will lead the excess or short deduction of tax and put the employee in to trouble during year end or income tax filling stage.

What are the documents need to be submitted with employer along with declaration?

Ans: Declarations need to be submitted first however supporting documents for other incomes and deductions during the year end to finalise the tax workings mostly by Jan/Feb/Mar, because employer responsibility to ensure to collect the proper documents for any deductions/exemptions.  Incase employee declared the details and not produce the documents with the employer also will lead the huge tax liability at the year end and gives the burden to employee.

Whether employee needs to produce the Original proof with employer?

Ans: Yes. Employee needs to submit the original proof of documents with employer for his all exemption and deductions claim to avoid the double deductions in multiple time.

Whether rent receipts & agreement is mandatory to claim the HRA exemption?

Ans: Yes. Original rent receipts are mandatory to claim the HRA exemption, rental agreement can be provided as optional but receipts are the base for claiming the exemption

What will deduction for rent if salary structure not having HRA portion?

Ans: Incase salary structure not having HRA component, then employee can opt the deduction u/s.80GG of rent paid subject to maximum of Rs.2500 per month deduction

Whether original medical bills required claiming the medical reimbursement?

Ans: Yes. Medical reimbursement of Rs.15000 per annum maximum exemption allowed, to avail this employee has to submit original medical bills with employer .However fixed medical allowance is fully taxable.

Whether proofs are require for claiming Leave Travel Allowance?

Ans: Previously it is mandatory to submit the document proofs but after the Supreme Court judgment in case of CIT vs Larsen & Toubro Ltd in 2009, for claiming LTA, proofs are not required only declaration if enough to claim the same.

What is the solution after submit the proofs also employer missed to consider or fail to submit the proofs but employee has the original documents?

Ans: Incase employee submitted all the documents but employer not consider or missed to consider the deductions and exemptions or employee fail to submit the documents before employer deduct the tax, then employee can claim the exemption and deductions based on the proof available with him/her in their Income tax return. However Leave Travel Concession or Allowance cannot claim by employee on their own in the income tax return since that need employer confirmation about the leave details etc.

Whether the employer can allow the 80G deduction during tax calculation?

Ans: Employer can allow the donations which are eligible for 100% deduction such as Government scheme like National defence fund, Prime Minister relief fund, Earth quake relief fund etc. but other donations which are comes under 50% eligibility need to be claimed by the employee in the income tax return directly.

How employee can ensure the TDS deducted from the employer has been deposited?

Ans: In the normal course the employer has to deposit the TDS deducted from the employee`s salary within 7th of the following month except March deduction (March deduction can be paid within 30th of April) every month employee cannot check whether paid or not however quarterly once employer has to submit the TDS return the same will be reflect in to employee`s form 26AS, So employees can login in their form 26AS and check whether TDS deducted from their salary has been deposited or not. If not, they can check with their employer accordingly.

Conclusion: The above points and information are very basic information to know as an employee to ensure their TDS from salaries. Basically the cooperation between the employer and employee in the TDS deduction will make more effective to minimize the error and ensure the proper deduction.

Souce: www.caclubindia.com

Read More

Salary paid to Indian Branches Employee's by overseas HO is fully deductible.

Where assessee, a bank incorporated in Japan, paid salaries abroad to its expatriates working in Indian branch constituting PE, in view of fact that said expenditure had been incurred wholly and exclusively for Indian branch and, no part of those expenses could be allocated to any other branch by head office, provisions of section 44C did not apply to said expenditure and thus, assessee's claim for deduction of salary expenses was to be allowed.

Where PE of assessee received interest on deposits kept with HO, it was opined that once interest received by PE was deemed to be income of PE and there was no bar in India-Japan treaty on its taxability, then it could not be excluded from computation of income earned by PE.

MAT provisions are applicable only to domestic companies and not to foreign companies.

Where assessee-bank claimed that provisions of section 115JB were not applicable to its case, in view of provisions of section 90(2), assessee's claim for lower impostion of tax in terms of article 7(3) of India-Japan DTAA had to be accepted because provisions of section 115JB are subordinate to section 90(2) and have no overriding effect on said section.

Source: www.taxmann.com

Read More

Wife has right to know husband’s salary.

New Delhi: Wives of government servants have a “right” to know salary particulars of their husbands and these details should also be made public by their offices as mandated under suo-moto disclosure clause of the RTI Act, the Central information Commission has held.

Information Commissioner M Sridhar Acharyulu said every spouse has a right to information about the salary particulars of the other especially for the purpose of maintenance.

“More so, wife has a right to know the salary particulars of the husband, who is an employee of the public authority,” he said.

The commissioner further said that the details about a government employee’s salary is no third party information and these have to be voluntarily disclosed under Section 4(1)(b)(x) of the RTI Act.

He said the salary paid to the public authority is sourced from the tax paid by the people in general and it has to be disclosed mandatorily under the RTI section.

“The information about the salary of employee or an officer of the same public authority cannot be considered as a third party information… Public authorities cannot reject such RTI applications about salary under the pretext of the third party information,” he held.

Acharyulu warned the Home Department of Delhi government that such denial of information will be wrongful and could incur penalty. The warning was in context of an application filed by Jyoti Seherawat seeking salary slip of her husband who is employed at the Home (General) department.

The information was denied as her husband gave in written to the department that such an information should not be provided to anyone.

Source : PTI

Read More

Broad Scheme of TDS from "Salaries" For Asstt. Year 2014-15.

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 2013-14. 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. 2,00,000/- or Rs.2,50,000/- or Rs. 5,00,000/-, as the case may be, depending upon the age of the employee.(Some typical examples of computation of tax are given at Annexure-I).

Payment of Tax on Perquisites by Employer:
An option has been given to the employer to pay the tax on non-monetary perquisites given to an 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.

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.

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”      = 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.

Read More

Which investments are eligible for deductions u/s 80C for Asstt. Year 2014-15?

There are different tax deductions available to an individual under different Sections of the IT Act. Section 80C for example has a deduction limit of Rs. 1 lakh per annum.

You can save tax by making use of the various deductions available to you under different sections of the IT Act i.e. investing in these instruments.

The maximum deduction under (80C, 80CC, 80CCD), 80CCF and 80D put together is Rs. 150000 that is Investment limit for financial year 2011-12 under section 80C (Rs.1,00,00)+ (80CCF) 20,000 + (80D)30,000.  The season of tax has arrived. Therefore , there is need for easy chart of all tax deduction u/s 80c to 80U for an Individual taxpayer?Under Income tax, deduction u/s 80C, 80CCC, 80D, 80DD, 80DDB, 80G, 80GG, 80GGA, 80GGC, 80IAB, 80IB, 80IC, 80ID, 80IE, 80JJA, 80QQB, 80RRB, 80U etc.

The following investments/payments are inter alia eligible for deduction u/s 80C:-

Nature Of Investment	Remarks
Life Insurance Premium	For individual, policy must be in the name of self or spouse or any child’s name. For HUF, it may be on life of any member of HUF.
Sum paid under contract for deferred annuity	For individual, on life of self, spouse or any child of such individual.
Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self, spouse or child	Payment limited to 20% of salary.
Contribution made under Employee’s Provident Fund Scheme	-
Contribution to PPF	For individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
Contribution by employee to a Recognised Provident Fund.	-
Subscription to any notified securities/notified deposits scheme.	-
Subscription to any notified savings certificates.	e.g. NSC VIII issue.
Contribution to Unit Linked Insurance Plan of LIC Mutual Fund	e.g. Dhanrakhsa 1989
Contribution to notified deposit scheme/Pension fund set up by the National Housing Bank.	-
Certain payment made by way of instalment or part payment of loan taken for purchase/ construction of residential house property.	Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
Subscription to units of a Mutual Fund notified u/s 10(23D)	-
Subscription to deposit scheme of a public sector company engaged in providing housing finance.	-
Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.	-

Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education.	Available in respect of any two children.
Any term deposit for a fixed period of not less than five years with the scheduled bank.	This has been included in Section 80C by the Finance Act 2006.
Subscription to notified bonds issued by NABARD	This has been included in Section 80C by the Finance Act 2007 and has come into effect from 1.4.2008.
Payment made into an account under the Senior Citizens Savings Scheme Rules, 2004	This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.
Payment made as five year time deposit in an account under the Post Office Time Deposit Rules, 1981	This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.

It may be noted that the aggregate amount of deductions under sections 80C, 80CCC and 80CCD are subject to an overall ceiling of Rs.1 lakh.

Read More

Salary Calculator for all employee who works in Private Sector.

Many Employee are works with Public Private Sector i.e. they are employee of Company or any Private Firm or Small Scale Industries etc. In the Private Sector salary of Employee calculates on Hour Base or only on working days and it is more difficult to calculate salary manually in other words we can say it is west of time. As the need to pay the salary, we can develop the Excel Base Hour Basis Salary Calculator, it solve there salary problem and which can calculate the salary of full month. Because calculating manual salary is full of waste of time as well as it requires a lot of energy. Therefore, I presenting a excel based salary calculator for Company, private firms or Small Scale Industries with no headache of calculating overtime or basic salary. One need to just enter the hours of work in a day and it will calculate the pay automatically.

Features of this calculator :

1. It is Spreadsheet/Excel based.
2. It will work offline or Online as you required.
3. No need to enter duty and overtime separately.
4. Unlimited persons Calculate salary
5. On the Basic of Duty Hours is 8, it will calculate salary along with all Incentives.
6. It provides Attendance Sheet.

To Calculate Hours Basis Salary Click Here.
To see More Salary Calculator Click Here
To Calculate Online Salary Click Here

Read More

Exemptions from Salary Income u/s. 10 of the Income Tax Act.

Section 10 of the I.T.Act provides for certain categories of payments to be exempt from taxation, either wholly or partly.  Such payments are not to be included under the head ‘salary’ for computing the tax deductible. Some of these are listed below and are discussed in detail in Chapter-5 of this booklet.

Death cum retirement gratuity or any other gratuity: Exempt to the extent specified u/s 10(10).
Commutation of pension:  Exempt to the extent as provided in Sec 10(10A)
Leave encashment:  Exempt to the extent provided in Sec 10(AA).
Retrenchment Compensation:  Exempt to the extent provided by Section 10(10B).
Compensation on voluntary retirement:  Exempt to the extent provided by Sec 10(10C)
Payment from provident fund:  Exempt to the extent provided in Sec. 10(11) & Sec 10(12).
Payment from approved superannuation fund:  Exempt under Section 10(13).
Interest income & investments:  As provided u/s 10(15).
Exemption of pension/family pension to awardees of PVC, MVC and VC: Clause (18) of section 10 provides for exemption of any income by way of pension received by an individual or family pension received by any member of the family of an individual who has been in the service of the Central Government or State Government and has been awarded “Param Vir Chakra” or “Maha Vir Chakra” or “Vir Chakra” or such other gallantry award as may be specifically notified by the Central Government.

Read More

Salary and Tax Reliefs FAQs.

Q1. When arrears of salary pertaining earlier years are received in one year, what is the relief available to the assessee?
Ans :    The arrears of salary are to be taxed in the year of receipt along with the regular salary. However, the employee will be entitled to certain relief under section 89(1) as computed in accordance with Rule 21A.

Q2. Can the employer take into account the relief admissible under section 89(1) while deducting tax at source from salary?
Ans :    Yes, in respect of Govt. servants or employees in a company, co-operative society, local authority, university, institution, associations or body, the employer may take into account the relief admissible under section 89(1) provided the employee furnishes the particulars in form No.10E to the employer.

Q3. If an employee has also income from other sources apart from salary, can the employer take these into account while deducting tax from salary?
Ans :    Yes, if the employee furnishes the required particulars in form No.12C to the employer. This is subject to the condition that the income under any of the other heads except 'Income from House Property' is not a loss. If the employee has incurred a loss under the head 'Income from House Property', he may furnish details thereof to the employer in form No.12C and the employer may then take into account the said loss while deducting tax from salary.

Q4. Is pension treated as salary ?
Ans :    Yes, pension is also treated as salary and is accordingly entitled to the standard deduction.

Q5. Is family pension also treated as salary?
Ans :    No. As there is no employer-employee relationship between the recipient of the family pension and the payer, family pension is not salary. It is taxed under the head 'Income from Other Sources'. In respect of family pension received from the employer by a person belonging to the family of the employee in the event of the employee's death, a standard deduction of 1/3rd of the family pension or Rs.15,000 whichever is less is allowed as a deduction.

Read More

Income Tax and Tax Relief on Salary and Salary Arrears.

When arrears of salary pertaining earlier years are received by Taxpayee (Employee) in one year.  The the Taxpayee want relief u/s. 89(1). In accordance of Tax Relief u/s. 89(1) it must to furnish 10E by Taxpayee (Employee).  In this regard some quries and questions are as under:

Q1. When arrears of salary pertaining earlier years are received in one year, what is the relief available to the assessee?
Ans :    The arrears of salary are to be taxed in the year of receipt along with the regular salary. However, the employee will be entitled to certain relief under section 89(1) as computed in accordance with Rule 21A.

Q2. Can the employer take into account the relief admissible under section 89(1) while deducting tax at source from salary?
Ans :    Yes, in respect of Govt. servants or employees in a company, co-operative society, local authority, university, institution, associations or body, the employer may take into account the relief admissible under section 89(1) provided the employee furnishes the particulars in form No.10E to the employer.

Q3. If an employee has also income from other sources apart from salary, can the employer take these into account while deducting tax from salary?
Ans :    Yes, if the employee furnishes the required particulars in form No.12C to the employer. This is subject to the condition that the income under any of the other heads except 'Income from House Property' is not a loss. If the employee has incurred a loss under the head 'Income from House Property', he may furnish details thereof to the employer in form No.12C and the employer may then take into account the said loss while deducting tax from salary.

Q4. Is pension treated as salary ?
Ans :    Yes, pension is also treated as salary and is accordingly entitled to the standard deduction.

Q5. Is family pension also treated as salary?
Ans :    No. As there is no employer-employee relationship between the recipient of the family pension and the payer, family pension is not salary. It is taxed under the head 'Income from Other Sources'. In respect of family pension received from the employer by a person belonging to the family of the employee in the event of the employee's death, a standard deduction of 1/3rd of the family pension or Rs.15,000 whichever is less is allowed as a deduction.

Read More

Salary Income and Tax Liability, FAQ's.

FAQ's of Salary Income and Tax Liability.

Q1. When arrears of salary pertaining earlier years are received in one year, what is the relief available to the assessee?
Ans : The arrears of salary are to be taxed in the year of receipt along with the regular salary. However, the employee will be entitled to certain relief under section 89(1) as computed in accordance with Rule 21A.

Q2. Can the employer take into account the relief admissible under section 89(1) while deducting tax at source from salary?
Ans : Yes, in respect of Govt. servants or employees in a company, co-operative society, local authority, university, institution, associations or body, the employer may take into account the relief admissible under section 89(1) provided the employee furnishes the particulars in form No.10E to the employer.

Q3. If an employee has also income from other sources apart from salary, can the employer take these into account while deducting tax from salary?
Ans : Yes, if the employee furnishes the required particulars in form No.12C to the employer. This is subject to the condition that the income under any of the other heads except 'Income from House Property' is not a loss. If the employee has incurred a loss under the head 'Income from House Property', he may furnish details thereof to the employer in form No.12C and the employer may then take into account the said loss while deducting tax from salary.

Q4. Is pension treated as salary ?
Ans : Yes, pension is also treated as salary and is accordingly entitled to the standard deduction.

Q5. Is family pension also treated as salary?
Ans : No. As there is no employer-employee relationship between the recipient of the family pension and the payer, family pension is not salary. It is taxed under the head 'Income from Other Sources'. In respect of family pension received from the employer by a person belonging to the family of the employee in the event of the employee's death, a standard deduction of 1/3rd of the family pension or Rs.15,000 whichever is less is allowed as a deduction.

Read More

Form 16, Monthwise Salary Statement Software For Assessment Year 2012-13 with Tax Calculation.

Friends, it is a general demand to know about Income tax, how to deuduct monthly from salary . Normally an Employee needs to check their Income Tax. There we developed Excel Base Easy Calculator to Calculator your Tax for Deduct from Monthly salary bill.

Remember: Download facility are available for all but Installation and Key features are available only for those who is registered with us alongwith activation.
Process of Free Registration: Simply Click Here and entered your Email ID and followed procedure to subscribe.
How & Where check Activation Link: Open your Mail Box, there is a link of Activation Click There.

Requirement of Software:-
Microsoft Office Excel-2007 or greater is required for running this software.

How to Install :-
Simply download zip file and run.

How to use :-

• Enter Employee data in only "EmployeeData" Tab.
• Enter Monthwise Salary Data in "Salary Data Entry" Tab.
• Enter personal deducations in "Tax Plan" Tab.

Features :

• It Calculate Tax and Refund (if, any) & Suggest to Deduct Tax Amount For Nest 3 Months (TDS) for Male, Female, Sr. Citizen.
• Generate Monthwise Salary Statement
• Generate Form 16 with Annexure "A" or "B" whichever applicable.
• Save Information of All Taxpayee.

Facility :

• A4 Size Printing Format.

Download Now (Click Here)

Free Download link will be provided through SMS to only registered email at www.gsoftnet.blogspot.com Request can be done by email at ieasypoint@gmail.com or gsoftnet@rediffmail.com (with your activate Mobile No.)

Click Here to Online Tax Calculations
Click Here to See Updated Income Tax Slab For Fin. Year 2011-12 (A.Y. 2012-13)

Read More

Salary on Hourly Basis, How to Calculate ?

As you know, in the Company or any Private Firm or Small Scale Industries, where the numbers of employees are working. As the need to pay the salary, we can develop the Excel Base Hour Basis Salary Calculator, it solve there salary problem and which can calculate the salary of full month. Because calculating manual salary is full of waste of time as well as it requires a lot of energy. Therefore, I presenting a excel based salary calculator for Company, private firms or Small Scale Industries with no headache of calculating overtime or basic salary. One need to just enter the hours of work in a day and it will calculate the pay automatically.

Features of this calculator :

1. It is Spreadsheet/Excel based.
2. It will work offline or Online as you required.
3. No need to enter duty and overtime separately.
4. Unlimited persons Calculate salary
5. On the Basic of Duty Hours is 8, it will calculate salary along with all Incentives.
6. It provides Attendance Sheet.
   

To Calculate Hours Basis Salary Click Here.
To see More Salary Calculator Click Here
To Calculate Online Salary Click Here

Read More

Excel Base Hour Basis Salary Calculator for Company, Private Firm and Small Scale Industry.

As you know, in the Company or any Private Firm or Small Scale Industries, where the numbers of employees are working. As the need to pay the salary, we can develop the Excel Base Hour Basis Salary Calculator, it solve there salary problem and which can calculate the salary of full month. Because calculating manual salary is full of waste of time as well as it requires a lot of energy. Therefore, I presenting a excel based salary calculator for Company, private firms or Small Scale Industries with no headache of calculating overtime or basic salary. One need to just enter the hours of work in a day and it will calculate the pay automatically.

Features of this calculator :

1. It is Spreadsheet/Excel based.
2. It will work offline or Online as you required.
3. No need to enter duty and overtime separately.
4. Unlimited persons Calculate salary
5. On the Basic of Duty Hours is 8, it will calculate salary along with all Incentives.
6. It provides Attendance Sheet.
   

To Calculate Hours Basis Salary Click Here.
To see More Salary Calculator Click Here
To Calculate Online Salary Click Here

Read More

What does "Salary" includes and the "Deductions from Salary Income" for Assessment Year 2012-13

The salaried employee (Taxpayee) alwaays search for Salary Income Deductions in each assessment year. In the Current Assessment year i.e. 2012-13 we suggest to know all Salaried employee about Deductions from Salary Income.

What is Salary?
As per Income Tax u/s. 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to recognized provident fund (vii) Contribution of employer to a Recognised Provident Fund in excess of the prescribed limit (viii) Leave Encashment (ix) Compensation as a result of variation in Service contract etc. (x) Contribution made by the Central Government to the account of an employee under a notified pension scheme.

What are the Deductions from Salary Income?
The following deductions from salary income are admissible as per Section 16 of the Income-tax Act.

• Professional/Employment tax levied by the State Govt.
• Entertainment Allowance- Deduction in respect of this is available to a government employee to the extent of Rs. 5000/- or 20% of his salary or actual amount received, whichever is less.
  

It is to be noted that no standard deduction is available from salary income w.e.f. 01.04.2006 i.e. A.Y.2006-07 onwards.

Read More

INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2011-2012 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Reference is invited to Circular No.08/2010 dated 13.12.2010 whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961 (hereinafter ‘the Act’), during the financial year 2010-2011, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2011-2012 and explains certain related provisions of the Income-tax Act. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department.

www.incometaxindia.gov.in.

Government of India, Ministry of Finance, Department of Revenus, Central Board of Direct Taxes has issued the circular regarding Deduction of Tax at Source- Income Tax Deduction from Salaries under Section 192 of the Income Tax Act, 1961 for the Financial Year 2011-12. It is the responsibility of each and every person who is responsible as Drawing and Disburssing Officer (D.D.O) to deduct tax at source as per rules on any payments paid under the Head "salaries". The Income Tax should be calculated on estimated income during the financial year and perportionate tax is to be deducted.

Read More

What is Salary perquistites Section-17(2) ?

Friends, Salary Perquisites means any casual emoluments, fees or profit attached to an office in addition to salary and wages. In simple words, it’s a personal advantage. It does not cover a mere reimbursement of any expenditure incidental to the employment.

Like if an employee is provided with a watchman for official use there is no personal advantage to the employee, hence there is no perquisites. If the watchman is provided for personal as well as official use, the value of the perquisites only relating to personal use is taxable. Similarly if the travelling bills for official duties are reimbursed to the employee, there is no advantage to the assesse, so it is not a perquisite.

The perquisites may be in cash or in kind or in the money or money’s worth and also in amenities which are not convertible to the money.

All cash allowance is included in the ordinary meaning of perquisites: - all cash allowance is included and hence taxable under section 17(2) of income tax act. City compensatory allowance, bad climate allowance, shift allowance and incentive bonus are included as perquisites under section 17(2) of income tax act.

A perquisite is taxable as salary only when it is provided by the employer during the continuance of employment: - any perquisites allowed by a person other than employer is taxable as income from other sources. For example tips received by hotel waiters from customers are taxable as income from other sources

Non user of the perquisites by an assesse is of no consequences unless the right to perquisites is foregone before it accrues to him: - there may be circumstances under which the employee may not make use of the perquisites provided by the employer. Where the income is accrued or received but it is subsequently given up, it remain the income of the recipient [CIT vs. Shoorji Vallabhdas and co. (1962) 46 ITR 144 (SC)]. The voluntary forgoing by the employee of the salary due to him is normally a mere application of income and the salary is nonetheless taxable. Unless the assesse forgoes his right of the provision of such perquisites before the income accrues, the notional income has to be brought to charge as perquisites equitant to the value of rent free accommodation [CIT vs. Bawa Singh Chauhan (1984) ITR 8].

Wide scope of the inclusive definition of perquisites: - the definition of the perquisites is inclusive but not limited to them only. The scope of an inclusive definition cannot be restricted only to those words which accrue in definition, but with extend to many other things not mentioned in it. Therefore, any other item not listed in the definition of perquisites will have to be evaluated in accordance with the general and commercial meaning of the word perquisites.
Section 17(2) of income tax perquisites includes.

• Rent free accommodation under section 17(2) 1
• Accommodation in concessional rate of rent under section 17(2) 2
• Any benefit or amenity to the specified employee who is either a director of has a substantial interest in the company or whose income under salaries exceeds Rs. 50000 under section 17(2)3
• Obligation of the employee paid or reimbursed by the employer under section 17(2)4
• Any sum payable by the employer to effect an assurance on the life of the assesse or to effect a contract of annuity under section 17(2) 5
• Prescribed fringe benefits or amenity under section 17(2)6
  

Tags-perquisites meaning,perquisites tax calculation,perquisites tax,perquisites income tax,perquisites value,perquisites value of car,perquisites us 17,perquisites u/s 17(2),perquisites u/s 17 2,section 17(2) of income tax act,section 17 2 of income tax,salary perquisites,salary perquisites and deduction,salary perquisites tax,salary perquisites in india,salary perquisites tax planning.

Read More

Calculate Online Salary of August-2011 As per Current Dearness Allowance

Dear Friends, save your labour work and calculate your salary for the month of August-2011 with latest D.A. Rates automatically with "Gsoftnet". This is very easy and user friendly to operate. This online salary calculation sheet is made as per Maharashtra State Government Salary Format as well as Central Government Salary Format. The Employee should have to calculate their Salary via export Excel Facility. This calculation sheet calculates i.e. Basic Pay, Grade Pay, Dearness Allowance, House Rent Allowance, Convenience Allowance, Special Pay, Notional House Rent, Naxal Allowance and Other Allowance which is applicable etc. called "Gross Salary" & convenient Employee's Personal Deduction (i.e. G.P.F./G.P.F. Loan Installment, Prof. Tax., Income Tax, Group Insurance, Bank Deductions, any type of recovery etc.) this called "Net Payable Salary". Enter in White Field to count your Salary For the Month of August - 2011.

DOWNLOAD FREE
August-2011
SALARY CALCULATOR

If you are Registered Member your suggestions , Comments, Inquiry is highly appreciated for better works.

51% Dearness Allowance Notification Click Here

Read More

How to earn Tax Benefit on the part Salary Arrears ?

Any income due or received by an employee from his employer or former employer is taxable under the head `salaries’ as per the provisions of the Income Tax Act, 1961. It is pertinent to note that the salary earned in respect of a particular financial year is subject to tax as per the tax rates applicable for that financial year.

There are occasions when an employee may receive income in a particular financial year, which relates to earlier financial years, i.e., as arrears of salary or he may receive certain payments in advance for future financial years, i.e., as advance salary.

In such an event, it is possible that if the entire income is added to the salary income of that financial year, then the tax payer may have to pay tax at a higher rate depending on the slab rates under which his income is otherwise taxable.In such a case, there is a relief provided under the Act to ensure that the employee is not worse off. Email me in case of queries.

Do you know what is Arrears and Advance Salary?
Where a tax payer receives a sum in the nature of salary being paid in arrears or in advance or receives in any financial year salary for more than twelve months or receives profits in lieu of salary or family pension paid in arrears due to which his total income is taxable at a rate more than the rate at which it would otherwise had been taxable then he may claim relief in respect of tax rates. Besides, certain other receipts like gratuity received for past services, compensation received from the employer or former employer on termination of the employment, payment received in commutation of pension, etc are also eligible for the purposes of said relief, subject to certain conditions.

The said relief is to be claimed in the financial year in which the extra payment by way of arrears, advance is taxed. Broadly, the tax relief under these provisions is arithmetic in nature, as it involves finding out two rates of taxes. The first is the rate of tax applicable to the total income including the extra amount in the year of receipt. Second is finding out the rate by adding the arrears to the total income of the year to which they relate.

What is you did not claim ?
No such relief can be availed in respect of the amount received by the tax payer on his voluntary retirement or termination of service if an exemption in respect of the same has been claimed otherwise by the tax payer under some other provision.

Claim Relief Procedure:
The tax payer is required to furnish the particulars in Form 10E supplied by Income Tax dept. which has annexures for arrears in salary,gratuity etc. fill it up, compute the tax relief going back to your respective financial years return data and tax slab rates and submit to employer fo him to make tax calculations.

Read More