Taxpayee Employee should submit Tax Saving Proofs to Employer for Stop Excess TDS Deductions.

Submit tax saving proofs to your employer to prevent excess TDS

With your company’s accounts department knocking on your door to submit income-tax saving proofs, it’s time for you to gather all the relevant papers in one place.

Since April 2016, the department would have been computing taxes on your salary based on the proposed investment declaration submitted by you earlier.

The taxes deducted at source (TDS) are covered under Section 192 of the Income-tax Act, 1961 making it the obligation of the employer to withhold taxes at the time of payment of salaries.

Once the actual proof is submitted, the accounts department will compute the taxes based on the proofs of the actual investments made by you. And for that you will have to furnish the documentary evidence of having actually made the investments as per the investment declaration made earlier You can make tax-saving investments different from those declared by you earlier but the deduction from taxable income will be given only on the basis of the actuals submitted and not on the basis of the proposed declaration made earlier.

The last date for such submissions varies, but most organisations would expect you to submit them by March 10, 2017. However, employers start asking for them in January (in this case Jan 2017) itself as they would like to start deducting tax at source on the basis of tax calculations based on actual investments from January.. This will also enable the employee to finalise tax adjustments, if any, in the balance months of the current financial year (2016-17).If taxes have been deducted in excess or less, accordingly, they will get deducted in the last 3 months of the FY. Do not wait till March as then there wont be any scope for finalising and one could see a huge tax burden in that month and less of take-home pay.

The documents need not be attached or sent to Income-tax Department at the time of tax filing. Instead, it’s the employer who has to receive them from employees and deduct tax accordingly.

At times it is found that after taking into account the tax saving investments/expenditures, the tax already deducted by one’s employer is in excess and cannot be adjusted in subsequent months. In such cases the excess TDS will reflect in the Form 16 and the refund will have to be claimed by you from the I-T Department by filing the appropriate income tax return.

The important tax saving investment/expenditure proofs include:

Investments – Under Section 80C

When it comes to investments such as Equity Linked Savings Schemes (ELSS) of mutual funds (MFs), life insurance, submit the ELSS fund statement, premium paid receipts respectively. For Public Provident Fund (PPF), if it is maintained with a bank or a post office, submit photocopies of the passbook showing all the transactions and the account details. In case you are maintaining PPF online, take a printout of the e-receipt showing transactions and the account details. In case of Sukanya Samriddhi Scheme and 5-year tax saving fixed deposit, the deposit receipt or a certificate from the bank has to be submitted to the employer.

Tuition fees

In case of tuition fees, submit photocopies of the school receipt carrying the schools’ seal and signature of the receiver.

First-time home buyers

For the current financial year, Section 80EE allows tax benefits for first-time home buyers under which the benefit can be claimed on home loan interest. This deduction is over and above the Rs 2 lakh limit under Section 24 of the Income-tax Act. Hard copies of all the relevant documents have to be submitted.

House Rent Allowance Exemption

For those who claim HRA relief, the Permanent Account Number (PAN) of the landlord is mandatory. This condition is not applicable for those whose rent payment is less than or equal to Rs 1 lakh per annum, i.e., Rs 8,333 per month.

A copy of the lease rent agreement or declaration by the landlord in a prescribed format is to be submitted. Further, ownership proof of landlord of rented premises, which can be house tax receipt or the latest electricity bill or share certificate in case of co-operative society houses have to be submitted. The original rent receipts for the period April 2016 till date have to be provided.

Housing loan repayment (principal)

The certificate from a financial institution specifying the principal paid during April 2016 to March 2017 needs to be submitted. Ask the institution to mention the provisional amount for the last 2-3 months of the current financial year as equated monthly instalments (EMIs) would still be pending.

Loss from housing property – interest on housing loan – self occupied

The interest certificate from the bank or financial institution, specifying the break-up of interest and the principal amount for FY 2016-17 would be required. Possession/construction completion certificate are a must for availing the relief by some employers. Further, the date of loan taken and the date of possession are mandatory to avail the benefit.

Loss from housing property – interest on housing loan – let out on rent

If the house for which loan has been availed is let out, the same should be submitted with certificate from a financial institution specifying principal and interest paid during April 2016 to March 2017 (FY 2016-17).

New Pension Scheme (NPS)

There is no need to submit proof of actual Investments in case the investments in NPS is through Corporate Model or Employee Model as the same are recovered and deposited by company in your PRAN (Permanent Retirement Account Number) account. However, if you have opted for investment of Rs 50,000 under NPS on your own, i.e., outside salary, then submission of copies of PRAN card, NPS Transaction Statement for Tier 1 Account is necessary.

Mediclaim premium

Call up the insurer and ask him to send the statement for tax purpose under Section 80D. The premium should not be paid by cash and should be paid by cheque or digital transfer from the bank account.

Conclusion

It’s better to get a confirmation on the actual requirement from your accounts department. Not all will be asking for all the above mentioned documents, while few others might have their own set of requirements. The documents, if not submitted within time, may make you end up with excess TDS which would have to be claimed as refund. Also, as a precaution, retain the original copies for personal income-tax assessment.

Source: The Economic Times

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Most Important 10 Things on Salary TDS Deduction SMS Alert

10 Things about SMS alerts on Salary TDS Deduction

Here are 10 things to know about sms alerts on Salary TDS Deduction:

1) As many as 2.5 crore salaried taxpayers will now receive SMS alerts from the Income Tax Department regarding their quarterly TDS deductions. The tax department plans to offer this facility on a monthly basis and extend the service to 4.4 crore non-salaried tax payers. 

2) The tax department has asked taxpayers to update their mobile numbers in their tax e-filing accounts so that they can receive this service.

3) Tax experts have welcomed this initiative, saying that it will help increase transparency. “A common case is when TDS is deducted from your salary but deposited with an incorrect PAN. Or employer fails to deposit TDS and hence the employee cannot take credit of it. Many a times when people switch jobs, TDS deducted by two employers falls short of their actual tax liability,” said Preeti Khurana, chief editor of portal ClearTax.

4) TDS mismatch is one of the most common reasons for incorrect tax returns being filed, say tax experts.

5) “The new service will benefit the employees as any such inconsistency can be traced well in advance and the employee can approach the employer to rectify those. Earlier, the employee would have to wait till the year end to get the Form 16 and check if all the TDS credits are duly recorded particularly when the employees are not aware that they could view the Form 26AS on a real time basis,” said Sandeep Sehgal, director tax and regulatory at Ashok Maheshwary & Associates LLP.

6) TDS deducted on your salary as well as other payments can also be viewed by downloading Form 26AS from the tax department’s website.

7) Under TDS, tax is deducted at the origin of income. For the salaried class, the tax is deducted by the employer and is remitted to the government on behalf of the employee.

8) The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc.

9) The employer is required to compute at the beginning of the financial year, the total salary income payable to an employee during the financial year. After considering the exempted incomes, deductions and relief, the tax liability of the employee is determined on the basis of tax rates in force for the financial year. Every month, 1/12th of this net tax liability as computed above is required to be deducted as part of TDS.

10) The responsibility to deduct tax from salaries arises only at the time of payment. Thus, when advance salary and arrears of salary are paid, the employer has to take the same into account while computing the tax deductible. Similarly, if the employee makes certain investments which qualify for deduction or rebate and furnishes the required proof which reduces the tax liability, the employer can accordingly reduce the quantum of TDS. From this year, the tax department has introduced a new form – Form 12BB – which will be used by employees to declare their investments and claim tax deductions.

Sourse: TDS Man

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All Taxpayers Tax Calculations for Asstt. Year 2017-18

No.30011/1/2016-­Cash

Government of India

Ministry of Corporate Affairs

*******

Shastri Bhawan, 5th Floor,

‘A’ Wing, New Delhi

Dated 13th October, 2016

CIRCULAR

Subject:­ Income Tax calculations for the financial year 2016­17.

Cash Section is in the process of calculation of Income Tax for the financial year 2016­17. In view of this, all the officers/members of the staff, whose annual income exceeds Rs.2,50,000/­ are requested to furnish the information in the enclosed proforma (Annexure­I,II &III) relating to the investments/savings proposed to be made during the current financial year 2016­17 (any individual who attains the age of 60 during the current financial year is considered as Senior Citizen and the exemption limit is Rs.3,00,000/­). The required information may please be furnished to Cash Section as early as possible but in any case not later than 25th October, 2016. In case no information is received by the due date, it would be presumed that the officer has no savings other than GPF, CGEGIS and CGHS available in this Section.

Only on the basis of the above details Cash Section will be in a position to compute the correct income tax liability for effecting TDS from the salary for the remaining months of the current financial year. For availing the rebate on LIC/NSCS/BANK TERM DEPOSIT SCHEME/ TUITION FEE etc. photocopy of the receipts may please be submitted to this Section positively by 31′ December, 2016. Rebate on savings made after 31.12.2016, if any, may be obtained from the Income Tax Department directly through their returns.

2. Quoting of PAN is mandatory u/s 139A of the Income Tax Act. The same may be provided in the Annexure­I. If the PAN is not provided, the TDS shall be deducted @20% or at the applicable rate, whichever is higher (section 206AA).

(Deen Dayal Singh)

Drawing & Disbursing Officer

Tel No. 23385382

To,
1. All Officers/Staff– Office of CAM, MOS
2. All Officers/Staff of MCA, HQ, Shastri Bhawan (5th Floor, 4th Floor & 3rd Floor)
3. All Officers/Staff of Cost Audit Branch, MCA, Paryavaran Bhawan, CGO Complex.
4. All Officers/Staff of R&A Division, MCA Paryavaran Bhawan, CGO Complex.
5. Cash Section (50 spare copies)

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Impact of Finance Act, 2015 Changes in Sec. 194C w.e.f. 01.06.2016

Changes in TDS from payments to transporters

Previously, payment to transporters carrying on the business of plying, hiring, or, leasing of goods carriages is not liable to withholding tax if the transporter furnishes her/his permanent account number to the payer. It seems that the intention of having this provision was to exclude small transporters from the rigours of TDS provisions. But because of the way the section was drafted, all transporters were excluded from the TDS provisions if they had a PAN.

With a view to bring back the big transporters back into the TDS fold, from 1st June 2015 onwards, this exemption will be available only to those transporters who own ten or less goods carriages at any time during the previous year. Such a transporter would also need to furnish a declaration to that effect to the payer along with the PAN.

There was also some bit of confusion in the minds of a few people as to whether the said section (and exclusion) applied to payers engaged in the business of transport or to payees engaged in the business of transport. To remove this confusion, it has now been clarified in the Memorandum to the Finance Bill that this exemption is available whether such amount is paid by a person engaged in the business of transport or otherwise.

Source: www.tdaman.com

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Salaried Employee caclulate Tax Liability to deduct as TDS from Monthly Salary, How?

Salaried Employee after Union Budget 2014-15 project their saving and calculate tax to deduct as TDS from his monthly salary. For this many website has published free tax calculation utility but, apart from this here is simple and easy method to calculate Income Tax for Fin. Year 2014-15 i.s. Asstt. Year 2015-16 for specially Salaried Employee with Monthwise Salary Statement.  This utility calculates Annual Income Tax Liability and suggest to deduct TDS from August-2014.

TDS / TAX CALCULATION UTILITY

Download Latest TDS / TAX Calculation Utility for
Asstt. Year 2015-16

Exemption Limit of Income Tax for Asstt. Year 2015-16, Click Here.

Simple Method for Calculation of Income Tax with all exemptions  Click Here.

Latest TDS amendments applicable w.e.f. 01.10.2014 & TDS Rate for Asstt. Year 2015-16.

Penalties and prosecution, Click Here.

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Online Income Tax Calculator for All Taxpayee for Asstt. Year 2015-16 & More.

Finance Minister announced Union Budget-2014 with little changes in Income Tax Exemption regarding Allowances & Perquisites, Deductions u/s. 80C & Others. Income Tax Department has developed Income Tax Calculator for Asstt. Year 2015-16 for all Taxpayee.

To provide relief to small and marginal tax payers, personal income tax exemption limit is being raised from Rs. 2 lakh to Rs. 2.5 lakh. For senior citizens, the exemption limit will be Rs. 3 lakh. Further, the investment limit under Section 80C of the Income-tax Act is being raised from Rs. 1 lakh to Rs. 1.5 lakh. Deduction limit for interest on housing loan (for self-occupied house property) goes up from Rs. 1.5 lakh to Rs. 2 lakh.  These changes is applicable for Fin. Year 2014-15 & Asstt. Year 2015-16.  The Online Income Tax Calculator for Asstt. Year 2015-16 for all Taxpayers is as under :

ONLINE INCOME TAX CALCULATOR FOR ALL TAXPAYEE

Free Download Updated Income Tax Calculator with Income Tax Slab for A.Y. 2015-16 (Click Here)

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Updated TDS Calculator after Budget 2014-15 for Asstt. Year 2015-15

The Finance Minister had placed union Budget 2014-15 by rising Tax Exemption Limit for Salaried Class Employee by Rs. 50000/- for Male and Female as well Pensions. By this extended exemption Salaried Employee can get relief in Tax by Rs. 5150.00 whose Taxable Salary below Rs. 500000/-.  It is great benefit for middle class Taxpayee Salaried Employee.  The Finance Minister further told that “I propose not to make any changes in the tax rate. However, with the view to provide relief to small and marginal and senior citizen, I propose to increase the personal income tax exemption limit by Rs 50,000 from Rs 2 lakh to Rs 2.50 lakh in case of all individual tax payer who are below the ago of 60 years,”.  As per Budget 2014-15 the Income Tax Slab is as bellow:

UPDATED INCOME TAX SLABS

1. Tax Slab for an Individual (resident & below 60 years) or HUF/AOP/BOI/AJP

Income Slabs	Tax Rates
Total income up to Rs. 2.5 Lac	0% Tax
Total income above Rs. 2.5 Lac and below Rs.5 Lac	10% on amount exceeding Rs. 2.5 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac	20% on Income exceeding Rs. 5 Lac + Rs. 25,000
Total income more than Rs. 10 Lac	30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000

• u/s 87A the Individual having taxable income up to Rs. 5 Lac , can claim rebate, on the Actual Tax amount subject to a maximum of Rs.2,000
• Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

2. Tax Slab for an Individual (resident & above 60 years but below 80 years)

Income Slabs	Tax Rates
Total income up to Rs. 3.00 Lac	0% Tax
Total income above Rs. 3.00 Lac and below Rs.5 Lac	10% on amount exceeding Rs. 3.00 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac	20% on Income exceeding Rs. 5 Lac + Rs. 20,000
Total income more than Rs. 10 Lac	30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000

• u/s 87A the Individual having taxable income up to Rs. 5 Lac , can claim rebate, on the Actual Tax amount subject to a maximum of Rs.2,000
• Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

3. Tax Slab for an Individual (resident & above 80 years)

Income Slabs	Tax Rates
Total income up to Rs. 5 Lac	0% Tax
Total income above Rs. 5 Lac and below Rs.10 Lac	20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac	30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

• Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

EDUCATION CESS

• The amount of Income-tax shall be increased by Education Cess of 3% on Income-tax.

 Main Changes regarding Income Tax  are as follows by this Budget :

• There is no change in income tax rates in Surcharge and educational cess.
• Kissan Vikas patra Reintroduced
• PPF Limit Increased to Rs 150000/-
• 2 % TDS on payment of Taxable Life insurance maturity amount.
• Dividend distribution tax Increased

Free Download Updated TDS (TAX) Calculator for Asstt. Year 2015-16

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How to Calculate Income-Tax to be deducted from Salary for Asstt. Year 2014-15.

CIRCULAR NO : 08 /2013
F.No. 275/192/2013-IT(B)
Dated 10th October, 2013

Salary income for the purpose of section 192 shall be computed as follow:-

• First compute the gross salary as mentioned in para 5.1 including all the incomes mentioned in para 5.2 and excluding the income mentioned in para 5.3.
• Allow deductions mentioned in para 5.4 from the figure arrived at (a) above and compute the amount to arrive at Net salary of the employee
• Add income from all other heads- House property, Profits & gains of Business or Profession, capital gains and Income from other Sources to arrive at the Gross

Total Income as shown in the form of simple statement mentioned para 3.5. However it may be remembered that no loss under any such head is allowable by DDO other than loss under the Head “Income from House property”.

• Allow deductions mentioned in para 5.5 from the figure arrived at (c) above ensuring that the relevant conditions are satisfied. The aggregate of the deductions subject to the threshold limits mentioned in para 5.5 shall not exceed the amount at
• above and if it exceeds, it should be restricted to that amount.

This will be the amount of Total income of the employee on which income tax would be required to be deducted. This income should be rounded off to the nearest multiple of ten rupees.

Income-tax on such income shall be calculated at the rates given in para 2.1 of this Circular keeping in view the age of the employee and subject to the provisions of sec. 206AA, as discussed in para 4.8. Rebate as per Section 87A upto Rs 2000/- to eligible persons (see para 6) may be given. Surcharge shall be calculated in cases where applicable (see para 2.2).

The amount of tax payable so arrived at shall be increased by educational cess as applicable (2% for primary and 1% for secondary education) to arrive at the total tax payable.

The amount of tax as arrived at para 9.3 should be deducted every month in equal installments. Any excess or deficit arising out of any previous deduction can be adjusted by increasing or decreasing the amount of subsequent deductions during the same financial year.

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All Salaried Employee Calculate Income Tax for Assessment Year 2014-15

As you know very well the Finance Minister cleared the Income Tax Exemption Limit in the Budget and thus I develop for you updated TDS & Income Tax Calculator for Assessment Year 2014-15 i.e. Financial Year 2013-14 along with Salary Statement Month-wise. Now a days 80% Dearness Allowance rate is applicable and upcoming Dearness Rate may be comes by 10% from July-2013, thus I already cleared in our TDS/Income Tax Calculator. This calculator benefited you to calculator your Income Tax and Deduct the TDS Monthly from your Salary as per Income Tax Rules.

Income Tax Liability For Asstt. Year 2014-15

Download Tax Calculator For. A. Y. 2014-15  (Click Here)
Form 16 Utility (A.Y. 2013-14) Free Download (Click Here)

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Income Tax Slab for Asstt. Year. 2014-15, Tax & TDS Calculator for All Employee Free Download.

It is very disappointing Union Budget-2013 for Salaried Employee announced by Finance Minister yesterday. The tax slab should be appropriately raised for more domestic saving and expenditure without which demand cannot be increased. Further Finance Minister told that the tax relief is increased only in respect of housing loan interest in cases of loans during the financial year 2013-14 and that too for fresh loans. Besides the yesterday budget-2013 has many expenditure proposals without balancing it with income. Therefore a question is arrise in this regard that Why no income tax relief to common man? who is looking after his old parents, wife and two children, inspite that every common man is paying taxes to Government on every product?

By this budget-13 announced by Finance Minister that no revision in Income tax structure for the year 2013-14 (Assessment year 2014-15), the income tax structure for the year 2012-13 to continue which given below:

I. In case of individual (other than II and III below) and HUF
*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

Download Tax Calculator (Click Here)
Form 16 (Click Here)

• Education Cess: 3% of the Income-tax.
• New Rs 50,000 tax exemption for retail equity investments
• Sale of residential property exempt from Capital Gains tax if invested in equity or equipment of an SME.
• Implementation of Direct Tax Code (DTC) deferred. GST to be operational by August 2012.
• Surcharge of 10% on income more than Rs. 1 crore
• Tax credit of Rs.2000 for annual income of Rs. 5 lakh
• Home Loan Income tax Exemption limit increased from Rs.1.5 lakhs to Rs.2.5 lakhs for loan up to Rs.25 lakhs
• Rajiv Gandhi Equity Savings Scheme extended to mutual funds.
• Rajiv Gandhi Equity Savings Scheme to be liberlised.
• Rajiv Gandhi Equity Savings Scheme limit increased.

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Multy Year Income Tax Calculator for Individuals, HUFs, Sr. Citizens and Any Other by Income Tax Department.

Income Tax Department has been published multy years Income Tax for Individuals, HUFs, Sr. Citizens and Any Other Taxpayee from Assessment Year 2002-03 to 2013-14.  This Calculator calculate Income Tax on Net Taxable Income Amount after All Deductions i.e. Under Chapter VI-A and other.

Procedure to Calculate Income Tax:

Step 1:
Select assessment year    

Step 2:
Select type of Assessee    

• Income of Individuals as
• Resident - Female
• Resident - Senior Citizen (60 years or more but less than 80 years)
• Resident - Very Senior Citizen (80 years or more)
• Any Other

Step 3:
Enter Net Income

All Instructions on Below Pic.

To Calculate Your Income Tax (Click Here)

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How to save Income Tax? 10 Important Tips.

Check your expenses and adhere to your budget

People tend to forget that good times don’t last forever. If you spend lavishly during good times and continue the trend without adapting to changes in circumstances, very soon you will land in financial trouble. Hence to ensure you lead a consistent lifestyle, always draw out a budget and ensure you stick to it religiously. E.g. if you have allocated Rs 500 per month towards your entertainment expenses, don’t spend a rupee more than Rs. 500. It will not only help you handle your finances better but will develop your willpower by delaying instant gratification.

Don’t rely on future income

Depending on future income in order to spend today, is one of the biggest mistakes we make. This has been evident during a job crisis, where youth racked up a huge credit card debt and took heavy loans. But when the salary cuts and job losses occurred, they were unable to pay off their debt. E.g. if your monthly income is Rs. 20,000 always ensure you spend well within Rs. 20,000 as pay cut or job loss may land you in trouble.

Reduce your debt

Got a bonus? Then pay off any loans that you have taken. If you have multiple loans, first pay off the loans with the highest interest rate, then the one with second highest rate and so on. E.g. if you have a credit card debt, personal loan and home loan, first clear off the credit card debt, then personal loan and finally home loan. For this you will have to plan out your debts and then go on following it systematically and steadily. It will not only save you money but will also give you mental peace.

Opt for strategic asset allocation

Though experts have consistently stated the importance of asset allocation, many investors tend to overlook this fact and invest only in the hottest asset. But remember market conditions do change and what is hot today may be out in the cold later on for a long time. So ensure you divide your portfolio amongst stocks, bonds, gold and real estate to get the maximum returns from your portfolio. Though your portfolio may under perform for some time, it will end up protecting you when the things get rough.

Keep emergency cash

You never know when a crisis can strike your family. Death, disease or job loss can end up upsetting your investments. You might be forced to sell your investments though they have not been given you any profits. Hence it is advisable to keep at least 3-6 months of your household expenses aside as emergency cash.

Sort out Your Finances

Agreed, keeping tabs on and handling your finances closely, may not sound like an interesting job, but it is a necessity. However you can reduce the boredom by putting a system in place. Once it is done, you can spend a few hours a month on this job. E.g. on Sunday, you can spend 1-2 hours to find out how your investments are performing, reading up any news concerning them or talking with your financial planner about the performance of your investments.

Plan in advance

One of the reasons many people land in financial mess is that they don’t plan their finances ahead. So it is imperative to plan your finances properly. Find out your current position, where you intend to go and set up a feasible plan to achieve your objectives. Unforeseeable events may occur and make you stray away from your plan for a short time, but ensure you get back on track at the earliest. Always remain focused and keep a watch on your progress. E.g. you are saving to buy a home and have started investing for the same. But 6 months after you started investing, you lose your job. If that happens, stop your investment, get a new job and again restart your investment.

Invest systematically and gradually

The biggest problem is that most people don’t bother saving till it is quite late. So they don’t have any money to fall back on in case of emergency. Hence it is essential to start small, but regularly and then increase the amounts later on. E.g. you can start a SIP, in which a particular sum is debited from your bank account and invested in a mutual fund. Or you can open a recurring deposit, which acts like a SIP, initiated by the bank. All this will occur automatically, so you have no excuse not to save.

Be in charge of your investments

The markets have crashed, the realty is down in dumps. What do you do? Sell off? Wrong. Unfortunately, this is what most investors do. In this situation, it is advisable to hold on to your portfolio as selling will just end up causing you financial loss. Instead increase your emergency cash reserves and periodically review your asset allocation of your portfolio.

Set a realistic outlook

The days of stocks giving a return of over 40% are over. While it is possible some of them may give you those types of returns, it is setting yourself up for disappointment if you keep your outlook very high. Instead keep a practical outlook of earning 12-15% returns from your investments.

Sourse: bankbazar.com

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All Salaried Employee Calculate Income Tax for Assessment Year 2013-14

As you know very well the Finance Minister cleared the Income Tax Exemption Limit in the Budget and thus I develop for you updated TDS & Income Tax Calculator for Assessment Year 2013-14 i.e. Financial Year 2012-13 along with Salary Statement Month-wise. Now a days 72% Dearness Allowance rate is applicable and upcoming Dearness Rate may be comes by 10% from January-2013, thus I already cleared in our TDS/Income Tax Calculator. This calculator benefited you to calculator your Income Tax and Deduct the TDS Monthly from your Salary as per Income Tax Rules.

See Below Pic. of TDS Tax Calculator

Download Tax Calculate (Click Here)
Income Tax Slab For A.Y. 2012-13 (Click Here)
All Condition Income Tax (Excel Base) Calculator (Click Here)

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For Tax Calculation/Deduction submit proof of Savings by Taxpayee.

The government of India imposes an income tax on taxable income of individuals. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. The Indian Income Tax Department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public.

The Statute requires deduction of tax by the employer from the income under the head salary disbursed by him during a financial year on monthly basis and to deposit with the Govt. account within stipulated period.

PAN and address are mandatory. If not furnished, tax at source is to be deducted at the prescribed rates or 20% whichever is higher without giving any rebate/deduction.
 

The proof of savings under various sections of Income Tax Act be submitted as per the following arrangements:

Arrangements	By 30th November 2012	By 15th February 2013
Annexure	I & II along- with proof of the savings (Self-attested) till Nov. 30th 2012.	Only the documentary proof (Annexure need not be sent again) of the proposed savings (self- attested) declared in annexure II.
Declaration	Declaration of Proposed savings in the prescribed column in annexure II which are proposed to be made after 30th November 2012 for 2012- 2013.	Proposed saving s or proof o f the savings will not be considered after this date, even if submitted.
Last Date	30th November 2012	15th February 2013

In case, no declaration is received by November 30t h 2012, due tax will be de ducted as per the current tax structure.

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Register for Free TDS and Tax Calculation Software For Asstt. Year 2013-14.

Many Employee searches that How to save tax?, How to Calculate Income Tax? and How to Generate TDS Certificate (Form 16)? etc. without any hard labour work.  In this regard Income Tax Department issued a new amended Notification u/s. 192 for Salaried Employee dated 05.10.2012.  Keeping in view of this notification many TDS & TAX Calculation Software are in the market but they are all not without cost. This Software available only for Registered Members.

Registration is Free Click Here

This TDS & Tax Software is fully developed u/s. 192 for Salaried Employee for Assessment Year 2013-14 with following features.

O.S. Requirement:

• It works in Windows-2000, XP, Vista, Windows-7 etc.
• It requires Min. MS Office-7 Ver. or Above.
• Printing Facility Provides in Inkjet or Ledger Printer etc.

How to Use this Software?

• Enter Data only in "White" Cells.
• Press Button for operation.

 Software Key Features:

• It maintain Each Employee Data.
• It Calculate Gross Income as per current D.A. Rates automatically as per Government D.A. Rates.
• It Provides Facility to Enter Data Manually along with all Arrears etc.
• It Calculate Tax Liability.
• It Display Monthwise Salary Statement for Asstt. Year 2013-14.
• It Generate TDS Certificate (Form 16) Automatically with Annexure "B".

TDS and TAX Calculation Software

Click Here to Download TDS & Tax Calculation Software

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How to calculate Average Income Tax under head of "Salary" as per Finance Act, 2012

The finance Act, 2012 declared the Income Tax Slab for A. Normal Rates of tax, B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year and C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year.

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 2012-13. The income-tax is required to be calculated on the basis of the rates given above subject to provisions of section 206AA of the Act and shall be deducted at the time of each payment. No tax will, however, 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 Non-monetary 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 his option, make payment of the tax on such perquisites himself without making any TDS from the salary of the employee. The employer will have to pay such 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:
Suppose that 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 above para.

Income Chargeable under the head "Salaries" inclusive of all perquisites	Rs. 4,50,000/-
Tax on Total Salaries(including Cess)	Rs. 25,750/-
Average Rate of Tax [(25,750/4,50,000) × 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) (=2061/12)

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

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