Income Tax Calculator for Fin. Year 2015-16 (Salaries).

Recently, Mr. Vijaykumar has developed Income Tax Calculator for Fin. Year 2015-16 for Salaried Employee on Monthly Salary Basis. This utility for salaried individuals to compute Income Tax on salaries in simple way.  

Efficient tax planning enables you to reduce tax liability to the minimum. This is done by legitimately taking advantage of all tax exemptions, deductions & rebates. Tax Planning is NOT tax evasion which is illegal under laws. It involves planning of income & investments. Tax Planning can be practiced easily. Often staff gives estimated declaration at FY starting to minimize tax liabilities but could not save till FY end; and faces burden in last months. Better start investing from the beginning of FY to get interest & appreciation from April.

Tax deduction on monthly basis (employer's corner): Normally employer estimates total income of employee & calculates I-Tax, estimated tax is to be divided by 12 months & avg tax from monthly salary is to be deducted. Hence raise saving plans in advance considering the pay hike & send the correct proofs to payroll. Ensure the document delivery within the pay roll's time frame.


If employee resigns: An employee resigns or otherwise leaves the service, only the salary due and payable up to the date on which he leaves service shall be considered and tax shall not be deducted from the future salary.

Download Income Tax Calculator FY 2015-16

Things to note before you deduct TDS from 1st June.

Amendments.. Amendments in our Indian Tax Laws… these days we encounter it very frequently. Till the time we understand the law properly… law changes. Though coping up with the amendments is very difficult but now, it has become an integral part of our tax life.   images

Throughout the financial year, we come across various amendments. It is to note that occasionally we even miss out few either due to unawareness or due to misunderstanding of its effective date. Sometimes we desire these amendments and sometimes we are forcefully made to desire it.

Till now, you must be aware of new service tax rate getting effective from 1st June, 2015. Today, we are here, again to lay out some amendments that will be effective from 1st June, 2015. These are related to TDS/ TCS.

Things to note before you deduct TDS from 1st June:
1. Section 192- TDS from Salary
   The employer has to obtain evidence or proof or particulars of prescribed claims (including claim for set-off of loss) in such manner and form prescribed.

2. Section 192A- TDS from amount paid from Recognized Provident Fund
   The trustees of the Employees’ Provident Fund authorized to make payment of accumulated balance due to employees shall deduct tax @10 per cent. No tax shall be deducted where aggregate amount of such payment due to payee is less that Rs. 30,000.
   Note: Form No. 15G/15H available for non deduction. Deduct tax at the Marginal Rate if no PAN furnished.

3. TDS from interest (other than interest on securities)–Section 194A- TDS from Recurring deposit-TDS from deposit in cooperative Banks- Interest from all branches of a Bank is to be considered to check cut off amount of Rs 10000.

4. Section 194C- TDS on payment to contractor or sub-contractor

Till 31st May- If recipient is a transport operator and he furnishes PAN to the deductor then TDS is not to be deducted. Such deductors will be required to intimate PAN details to the Income tax Department in the prescribed format.

From 1st June- Only transport operators who owns ten or less goods carriages at any time during the financial year is allowed for such exemption. Transport operator has to furnish a declaration to this effect to the person paying him to get such exemption.

5. Section 203A- Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons.

6. Section 206CB- Processing of TCS statements on the same lines as TDS statements.

7. Sections 194DA and 197A- Self-declaration in the prescribed Form No. 15G/15H made applicable.

8. Section 194LD- Concessional rate of tax on Interest on certain bonds and Government securities earned by FIIs is proposed to be extended up to 30th June 2017.

9. Sections 195 and 271- The obligation to furnish Form 15CA (also Form 15CB) will have to be complied with.

If the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information then penalty of Rs. 100000 shall b levied.

Thorough up these amendments as these are effective from 1st June, 2015.

Source: www.taxmantra.com

How to download Form 16/16A from TRACES ? FAQs.

Recently, we observed that many TDS Deductors can't download TDS Certificate i.e. Form-16 or Form-16A from TRACES only due to not understanding the procedure.  Therefore, TRACES can placed some questions to solve that difficulties, which are as under :

How can I request for Form 16 / 16A?
Login to TRACES as deductor and submit download request for Form 16 / 16A under ‘Downloads’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.

Text file will be provided containing details of all requested PANs. User must convert this text file to PDF using ‘TRACES PDF Generation Utility’. This utility will convert the text file into individual PDFs for each PAN. Deductor can also opt to digitally sign the PDFs while converting.

Can deductor download Form 16 without being registered on TRACES?
No, only registered user (deductor) on TRACES can download Form 16 / 16A.

I have submitted download request for Form 16 for all employees. All forms have been successfully downloaded except one. What should I do?
Form 16 is generated only for valid PAN. In case of invalid PAN or if the PAN is not reported in TDS statement, Form 16 will not be generated.

While submitting request to download Form 16 / 16A, deductor has entered details correctly in Part 1 and Part 2 in validation details screen, yet it shows error as 'Invalid Details' in Part 1 and Part 2. What should deductor do?
Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement..

Is there any data downloading limit for Form 16 / 16A?
There is no such limit.

I am unable to download Form 16 / 16A as the number of PANs for which Form 16 / 16A were submitted was higher, however the PDFs generated were less. What should I do?
Check the status of the PANs for which Form 16 / 16A has not been generated. These PANs might be with inactive status or not present in the TDS statement filed.

What is the password for opening Form 16 / 16A text file?
The password for opening Form 16 / 16A will be your TAN in capital letters, i.e., AAAA11111A.

Registered user on TRACES has updated the communication and address details on TRACES. However while downloading Form 16A, it shows a different address. How can deductor edit address details in Form 16A?
Details updated in 'Profile' section of your TRACES account will be saved only in TRACES and will not be updated in TAN database. To change details in TAN database, submit TAN change request form (Form 49B) at www.tin-nsdl.com.

CBDT issues Circular for Early & Satisfactory Resolution of Taxpayers’ Grievances

The Income Tax Department has taken note of grievances of taxpayers arising on account of outstanding tax demand which may be inaccurate due to non-reporting or delayed reporting of TDS by deductors leading to mismatch between the claim and data available with the Department, non-posting of challans, non-disposal of rectification applications, incorrect details of income or pre-paid taxes reported by taxpayer etc.

In order to swiftly and accurately resolve such grievances, the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance has issued a comprehensive Circular No. 8 of 2015 dated 14.05.2015 which is available on the websites of the Department http://www.incometaxindia.gov.in & www.incometaxindiaefiling.gov.in. The Circular explains the various steps to be taken by the taxpayers to view and submit their response with regard to their outstanding tax demand. The Circular elucidates the range of facilities available and the responsibilities of the Assessing officers to verify and take corrective actions. Demand up to Rs. 1,00,000/- for an Assessment year in case of an Individual or HUF which has already been paid but is shown as outstanding due to mis-match etc. can be rectified on the basis of evidence of tax paid as submitted by the taxpayer.

The taxpayers may view their outstanding tax demand on their e-filing account at www.incometaxindiaefiling.gov.in and follow the steps elucidated in the Circular to submit their response either agreeing with or disputing the demand.

The Income Tax Department is committed to early and satisfactory resolution of taxpayers’ grievances. About 95% of entries of Demand involve demand up to Rs. 1 lakh and about 90 % of such assessees are Individuals and HUFs. It is expected that majority of the grievances of small taxpayers can be redressed by following the procedure prescribed in the circular.


Updated New ITR Form ITR-1, ITR-2, ITR-4S with Acknowledgment and New Instructions for Asstt. Year 2015-16

Income Tax Department has been released New Income Tax Return Form ITR-1, ITR-2, ITR-4S vide Notification 41/2015 dated 15.04.2015 in ".PDF" format for offline Income Tax Return Filing and by this Notification CBDT mandates e-filing for Individuals & HUFs who are claiming Income Tax Refund and for ordinarily residents earning overseas income.

Download Updated New Income Tax return Form Asstt. Year 2015-16 from below Link.

1. Income Tax return form SAHAJ ITR-1 (INSTRUCTIONS)
4. ITR-V (Acknowledgement)

There are a few diffrences in old ITR and New ITR forms which is applicable for Asstt. Year 2015-16.  The details regarding ITR form we will inform you soon before this you must check all the above forms and send us your comments, suggestions, views and quries by email to gsoftnet@rediffmail.com or give comments in comment section below.

Change in Service Tax Rate will effect on expesnes from 1st June, 2015.

Recently, Department of Revenue has been issued a notification about change in service Tax Rate i.e. 14% w.e.f. 1st June, 2015. This new rate of service tax i.e., 14% definately increases expenses from 1st June.  The detailsed Notification is as under:

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

NOTIFICATION

New Delhi, the 19th May, 2015
No. 14/2015-Service Tax

G.S.R. ---(E).- In exercise of the powers conferred by clauses (a), (c) and (f) of section 107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the Finance Act, 2015 (No. 20 of 2015), the Central Government hereby appoints the 1st day of June, 2015 as the date on which the provisions of clauses (a), (c) and (f) of section 107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the said Act shall come into force.

[F.No. 334/5/2015 - TRU]

(Akshay Joshi)
Under Secretary to the Government of India

Important Information - TDS Return - Resons to reject the correction in Salary Details and Deductee Records by TDS (CPC).

Recently TDS (CPC) has clarify that reasons to reject the correction in salary detail records and Reasons to reject the correction in deductee records are as follows respectively:

Rejection reasons pertaining to salary details are as follows:

  • In case of salary detail PAN update or delete of salary detail record, last total gross income should match with corresponding value in regular / previous statement
  • Salary detail record on which correction is filed does not exist in the regular / previous return
  • In case of addition of salary detail record, the record number should be unique and in sequence with the existing records in regular / previous return.

Rejection reasons pertaining to deductee details are as follows:

  • In a correction statement that updates / deletes deductee rows, verification keys from deductee data that should match with corresponding fields in regular / previous return are – Last PAN, Last total amount deducted at source, Last total amount deposited
  • Updation / deletion on deductee record is submitted in a correction statement but this deductee record does not exist in previous/ regular return
  • Valid PAN to invalid PAN update is not allowed for a deductee row
  • Deductee detail record number should be unique in case of addition of deductees
  • If value of Reason for non-deduction / lower deduction / higher deduction / threshold field as per regular or last correction statement is ‘C’ , then update can be performed only on ‘PAN’, ‘Amount of Payment’ and ‘Date of Payment’
  • Deletion of deductee record having value C in Reason for non-deduction / lower deduction/ higher deduction / threshold field, is not allowed
  • Valid PAN to another valid PAN update can be done only once for a given deductee row.


Source: www.tdsman.com

Don't misuse Forms 15G, 15H to avoid TDS

Imprisonment and fines await those who wrongly file the two forms to avoid tax on interest income.

Getting a tax refund can be cumbersome as delays by the Income Tax Department are common. It makes sense to plan your taxes at the beginning of the year, to avoid overpayment and the refund process. Submitting investment declaration with your employer on time and filling form 15G15H will save you half the hassles. However, you cannot randomly submit forms 15G and 15H.

If your interest income exceeds `10,000 a year, the bank will deduct 10% tax at source.If you do not furnish PAN details, the TDS rate will be higher at 20%. However, you can submit a Form 15G and 15H to avoid TDS on interest income. While Form 15G is for Indian residents below 60 years of age, HUFs and trusts, Form 15H is for those above 60.

The repercussions of wrong filing is stiff.A false or wrong declaration in Form 15G attracts penalty under Section 277 of the Income Tax Act. "Prosecution includes imprisonment ranging from three months to two years, and a fine. The term can be extended to seven years and fine, where tax sought to be evaded exceeds `25 lakh," says Sudhir Kaushik, CA and CFO, Taxspanner.Keep in mind the following points.

Eligibility:

The basic conditions for filing 15G are--the final tax on estimated total income computed as per the Income Tax Act should be nil; and, the aggregate of the interest (excluding interest earned on securities) received during the financial year should not exceed the basic exemption slab of `2.5 lakh. If these criteria are met, you can submit Form 15G and the entire interest income would be credited without any tax cut.

You need to meet both criteria. Even if the interest income is less than the basic exemption allowed during that financial year, but your total tax liability is not nil, you will not be eligible for filing Form 15G. The reverse is also true. Say your income is `4 lakh, of which `3 lakh is earned as interest from the bank. You might invest `1.5 lakh in PPF and be out of the tax net, but you are not eligible for Form 15G as though your tax liability is zero, the interest income is high er than the basic exemption of `2 lakh. The refund route is your only recourse.

Form 15H can be only filed by individuals above 60. This form imposes only the first condition--the final tax on the investor's estimated total income should be nil. So, if you are above 60, your taxable income for the financial year can be up to `3 lakh for you to be eligible for 15H. For super senior citizens above 80 years, this limit is `5 lakh.

Important Information about TDS Statement by TRACES and Basic principles of TDS Compliance.

An important information regarding TDS statement has been displayed at TRACES website which states as follows:

Considering peak statement filing time, processing of statements might take 7 to 10 working days from date of filing. 97.5% of the statements filed till 29th Apr 2015 have been processed for 26AS. Please wait for 24 hours after receiving a communication to submit Online Corrections at TRACES. 

Basic principles of TDS compliance:

  • Deduction/ Collection of Tax at Correct Rates
  • Timely Deposit of Tax Deducted at Source
  • Accurate Reporting of data related to tax deductions/ collections made
  • Submission of TDS Statements within the due dates
  • Verification and Issuance of TDS Certificates within time
  • CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
  • User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
  • Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action
  • The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
  • Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
  • PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
  • The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.
Source: www.tdsman.com