Updated Form-15G and 15H for Asstt. Year 2017-18 with detailed information.


The Income Tax department has been modified the Form No. 15G & 15G as per amended notification No. 11/2013 [F.NO.142/31/2012-SO(TPL)]/SO 410(E) Dated 19.02.13 for the assessment year 2013-14. The New Form No. 15G & 15H is applicable to all Taxpayee who do not want TDS Deduction on their Income  or other under section 203 of the Income-tax Act, 1961.

  • No TDS to be deducted by bank in case of –
Interest on saving bank account.
Recurring deposits.
  • Bank deducts TDS on interest payment of fixed deposit u/s 194 A.
(As per sec 194 A for payment of interest other than on securities, bank deducts 10% TDS, if payment exceed Rs. 10000 p.a.)
  • Form no. 15G and 15H are to be submitted every year with bank. These forms are valid only for the financial year in which you have furnished these forms. If you want to apply for nil TDS in the new financial year, then you will have to resubmit these forms. Form 15H or 15G are meant to prevent TDS and not to avoid tax or file your tax return. You may be required to file your tax return if your total income before the deductions is above the basic tax exemption limit.
  • Form 15G/15H is a self declaration form, which is provided by a person resident in India (not being a company or firm) to their deductor that the tax on his estimated total income for the previous year will be NIL.
  • Assessee should submit these forms before the end of financial year or before first payment of interest whichever is earlier.
  • All banks and financial institutions will deduct TDS if payment of interest on fixed deposits exceeds Rs. 10000 during the financial year.
  • Bank will issue TDS certificate also called form 16A which mentions the details of TDS payments with the government.
  • The limit of Rs. 10000 is applicable for each branch of a bank. So each branch of the bank will see whether the interest of the whole year on all the FDs exceeds the threshold of 10000.
  • If a person is making FD in different branches of same bank then these forms should be deposited at each and every branch where the deposit has been made. For example, if Mr. Ashish has made deposits at three different branches of SBI, then he has to submit the Forms at each branch separately.
  • In case of FDs made for longer duration where interest on the FD to be paid on maturity, bank will deduct TDS on interest accrued for the year.
  • Please ensure to mention Permanent Account Number (PAN) on the forms while submitting form No. 15G or 15H. In case, taxpayer fails to provide PAN to the deductor, the tax would be deductible @ 20%.
  • These Forms are to be submitted in duplicate, one of which is forwarded to the IT department.
  • These Forms can only be used for payments like dividends, interest on securities, interest other than interest on securities, national saving schemes, interest on units. For other types of payments (like brokerage, rent etc), these forms cannot be used.
  • A bank can track you using unique customer ID. If the combined interest in all the branches of bank exceeds the threshold limit of Rs. 10000, TDS will be deducted if you have not filed form 15G/15H. Therefore, it is best to provide the form then to risk TDS. They can then reclaim the amount by filing their tax returns. The second option is to split fixed deposit across several banks and branches so that TDS exemption limit is not breached.
FORM NO. 15G is used to Declaration under section 197A(1) and section 197A(1A) of the Income-tax Act, 1961 to be made by an individual or a person (not being a company or firm claiming certain receipts without deduction of tax.

FORM NO. 15H is applicable to Declaration under section 197A(1C) of the Income-tax Act, 1961 to be made by an individual who is of the age of sixty years or more claiming certain  receipts without deduction of tax.

Difference between Form 15G and Form 15 H
Form 15G
Form 15H
Submitted by individual below the age of 60 years.
Submitted by senior citizens(60 or above 60 year)
Can be submitted by HUF also.
By individuals only (senior citizens).
Two conditions:
  • The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and
  • The aggregate amount of interest income etc. received during the financial year from all sources should not exceed the basic exemption limit for that relevant year.
One condition:
  • The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and
Can be submitted by the senior citizen even though the total interest amount from the payer may exceed Rs. 3.0 Lacs (i.e., the limit of basic exemption limit).
Can be submitted by residents only.
Can be submitted by residents only.

Download Form 15G

Latest Updates on Income Declaration Scheme, 2016

The Income Declaration Scheme, 2016 (hereinafter referred to as ‘the Scheme’) came into effect on 1st June, 2016.  This "the Scheme" is recently amended by CBDT i.e. these rules may be called the Income Declaration Scheme, (Third Amendment) Rules, 2016 and Clarifications on the Income Declaration Scheme, 2016.  The CBDT has issued three sets of FAQs vide Circular Nos. 17, 24, 25 & 27 of 2016.

The Highlights from such changes are as under:

  • The CBDT has amended the valuation rules to determine fair value of property declared under IDS on basis of stamp duty valuation.
  • Where loans, creditors, advances received, share capital, payables etc. are disclosed in the audited balance sheet but are fictitious in nature and cannot be directly linked to acquisition of a particular asset, then such fictitious liabilities can be disclosed under the IDS as such without linking the same with the investment in any specific asset.
  • The income declared under the IDS for an earlier assessment year can be taken into account to explain the related transactions of the subsequent assessment years in assessment proceedings pending before the Assessing Officer provided there is a nexus between the two.
  • No adverse action shall be taken against the declarant by the income-tax department solely on the basis of cash deposits made in banks consequent to the declaration made under the Scheme.
  • The period of holding of immovable property declared under the IDS shall be taken on the basis of its actual date of acquisition and not from 1.6.2016.
  • Payment made under the IDS can be made in cash to the banks. Thus, RBI has been requested to issue instructions to banks to allow payment of tax under the IDS in cash.

Click Here to view All about IDS, 2016

How to skip TDS on bank fixed deposits ?

Banks have instructions to deduct tax at source on your fixed deposits, should they earn more than Rs.10,000 in a financial year. Here's how you can avoid it altogether.

A bank fixed deposit (FD) is the most popular Indian investment. It’s safe and the 9-10% returns we’ve seen for the past few years are great. But at the end of the day, all your returns are taxed. And if the interest you earn is over Rs.10,000 in one financial year (April to March), it is eligible for tax deduction at source 10.3 per cent of the interest earned. This is regardless of whether you should be paying any tax on it at all. But there are four ways around this:

Distribute the money: The banks can only tax your deposits at source if the interest earned over a financial year is Rs.10,000. The easy way around paying the tax, therefore, is to split the deposits between two banks. It is easy to open an FD in any bank now-a-days, so this is not as inconvenient as it may seem. So long as your interest is less than Rs.10,000 in one bank, you’re safe. Public sector banks do have a problem with you opening an FD if you don’t already have a savings account, but most private ones don’t.

Submit form 15G/15H: If your income is not taxable, the government says your income should not be taxed at source. For this, you need to submit a declaration. If you aren’t a senior citizen, you should submit 15G. This is a simple form that tells the bank that you aren’t liable to pay any tax on the FD, regardless of the amount of interest earned. If you’re a senior citizen without taxable income, the form you’ll need to submit is 15H.

Spread it over two years: In case of a one-time large fixed deposit, one option would be to split the interest over two years. For this, two things are essential – the first is that you would need to have the interest from the FD paid out cumulatively (every quarter or bi-annually). The second is that the investment should be made mid-year, if possible. Consequently, with the interest accrued over two financial years, TDS would not be deducted.

Accounts with different heads: This is one of the many tax advantages of having an HUF account. Despite investing your money here, it is treated as being under another head. Therefore, the two will be treated as separate, even if both are accounts at the same bank.

Source: CA Club India

Expected 7th Pay for Maharashtra State Government all Employee.

As per Central Government 7th Pay commission Report, Maharashtra State Government also in process to implement 7th Pay to their all Employee’s.  Therefore, the Maharashtra State Government instructed to all Departments who are under the department of Finance Department of Maharashtra State provides information in proforma A,B,C and D immediately in the year 2015.  The major contains of that information is that the Pay Scale in 3rd Pay, 4th Pay,5th Pay and 6th Pay Commission along with post Name and Post Category, Information about Aided Institutions, Expenditure on Salary during the year 2013-14, 2014-15 and 2015-16 as well as expected position of retirement during the year 2015-16, 2016-17 and 2017-18.

Now, the Central Government has been implemented 7th Pay Commission to their employee w.e.f. 01.01.2016 and assure them to pay salary as per 7th Pay for the month of August 2016 which is payable in the month of September 2016.  The balance arrears will be paid during the same financial year.

Thus, as per the 7th pay Commission report of Central Government Maharashtra State Government all Employees are expected to pay as the same.  Therefore, we develops Expected 7th Pay Calculator for Maharashtra State all Employee.

Register for -
Free Download
Expected 7th Pay for Maharashtra State

Enter your email address:

Delivered by FeedBurner

Download Expected 7th Pay for Maharashtra State

How to Download TDS Certificate in Form 16B?

Government has made it mandatory w.e.f 01.06.2013 on buyer of property to deduct TDS @ 1% on payment made after 01.06.2013 if Purchase Consideration of the Property exceeds Rs. 50 Lakh. 

Deductor can pay such TDS by any of the following mode:-

Either make the payment online (through e-tax payment option) immediately or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on www.tin-nsdl.com.

Once the Payment is made now the dedcuctor is required to issue TDS certificate in form 16B to the seller of the Property. Now the question is how to prepare or from where deductor can get such certificate for the purpose of issue to the seller? Answer is deductor can download such certificate from Traces website and issue to the seller.

Procedure to Download TDS certificate in form 16B is as follows:-

1. Login to:

https://www.tdscpc.gov.in/en/deductor-home.html

2. Click on Register New User and you will be asked to provide basic details such as your
  • PAN
  • Date of Birth
  • Last, Middle and First Name and would also be required to further validate details of either tax deducted (option 1) or tax paid by you (option 2).
3. On Validation of details, your account will be created.  User ID by default would be your PAN, You would have the option of providing Pass word of your choice.  A email would be automatically generated providing you an activation link with a second code being text on your mobile.  Having activated your account, it is now ready to be used.  Services currently available are view 26AS statement and down load Form 16B in case you are the buyer of immovable Properties.  May be in near future you are able to download your Form 16 or 16A also through this window.

To download form 16B, go to download, click on request for form 16B, validate details and submit your request.  After some time the same shall be available under download menu. Click on download, click of available and download and save it your computer.

Print, sign and deliver it to the seller.

Source: TDSMAN

How to boost Take Home Salary by Best Tax Planning Tips for Salaried Employee for Asstt. Year 2017-18 ?

Tax planning for the salaried employees is a matter of planning and discipline. Planning involves making a set of decisions at the start of the financial year and discipline comes in when you are required to adhere to the plan come what may.
If an Individual has done proper Tax Planning to save tax, such deductions would be subtracted from the gross total income and income tax would be levied on the balance income as per the income tax slabs in force -

USE THESE BENEFITS TO BOOST YOUR TAKE HOME SALARY
Irrespective of whether it is your first job or whether you have conquered the corner office, income-tax duly deducted from your monthly salary pinches. The key CTC components which could help reduce your tax liability and boost your take home pay are outlined below. These apply to all non-government employees.
1. House Rent Allowance (HRA)
HRA is the most common CTC component. Those staying in rented accommodation can avail of an exemption against the HRA received and only the balance would be taxable. The exemption is limited to (a) rent paid less 10% of basic salary or (b) 50% of basic salary where the house is situated in any of the four cities of Delhi, Mumbai, Kolkata or Chennai, and 40% of basic salary in other cities or (c) actual HRA received, whichever is the lowest.
If your CTC doesn't contain an HRA component, deduction for rent paid is available from gross taxable income, subject to various limits (maximum deduction Rs 5,000 per month or Rs 60,000 per annum).
Caution point:
For claiming HRA exemption, if your annual rent exceeds Rs 1 lakh, you should obtain not just the rental receipts but a copy of your landlord's PAN card for submission to your accounts department.
2. Leave travel concession (LTC):
It's more than a vacation, it's a tax break -
Your annual holiday within India can get you a tax break. The tax exemption on any reimbursement of your travel expense while on leave is limited to the economy class air fare for the shortest route available to your vacation destination. No exemption is available for expenses such as hotel, local conveyance, etc. Keep the travel bill handy to submit to your accounts department to claim the exemption.
Hot tip:
LTC is allowed to you as a salaried employee in respect of two journeys performed in a block of four calendar years. The current block of four years commenced on January 1, 2014. So if you haven't taken that much-needed break last year, do so now. Keep proper tabs, retain relevant travel bills and claim your LTC.
Caution point:
Your travel expenses for a holiday abroad are not eligible for a tax break. If you are planning a long vacation covering destinations in India as well as a foreign country with one air-ticket, the tax man may not allow a tax break even for your cost of journey within India.
3. Medical Allowance:
Medical Allowance is levied up to Rs.15,000 provided all bills for the same are furnished by the employees to the employer.
4. Conveyance Allowance:
For conveyance allowance to be made tax free you need to do nothing to prove. Attending work is good enough we guess!
INVESTING/SAVINGS FOR TAX BENEFITS.
You can plan to maximize your tax savings and reduce income tax liability by availing the benefit of provisions relating to deduction from taxable income under various sections of Income Tax Act.
Income Tax Deductions for Fin. Year 2016-17, this list can help you in planning your taxes

1. Section 80C
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80C are as Insurance, PPF, Mutual Funds, 5 years Tax saving Deposits, Tuition Fees, Housing loan repayments Etc.
2. Section 80CCC
Contribution to annuity plan of Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
3. Section 80CCD
Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015. Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
4. Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).
5. Section 24 (B)
The interest component of home loans is allowed as deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as tax deduction. (Read: Understanding Tax Implications of Income from house property)
6. Section 80EE
This is a new proposal which has been made in Budget 2016-17. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
1. The home loan should have been sanctioned in FY 2016-17.
2. Loan amount should be less than Rs 35 Lakh.
3. The value of the house should not be more than Rs 50 Lakh &
4. The home buyer should not have any other existing residential house in his name.
7. Section 80GG
As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
Conclusion:
It is prudent to avoid last minute tax planning. Do not invest in unwanted life insurance policies or in any other financial products just to save taxes. It is better you plan your taxes based on your financial goals at the beginning of the Financial Year itself. Plan your taxes now, instead of waiting until late December 2016 (or) January 2017.
It is OK to pay some taxes when you cannot save or cannot invest in right financial products.  But, do not invest just to save TAXES. The cost of buying wrong financial products may outweigh the cost of taxes. Tax Planning is not a goal but a tool. Remember “Tax Planning alone is not Financial Planning.” Also, kindly understand the tax treatment of the selected investment products across the different investment stages (i.e., investment, accrual & withdrawal) and then invest.  I believe that the above list is useful for your Tax Planning purposes. The above ‘Income Tax Deductions 2016-17’ are applicable for financial year 2016-2017 (Assessment Year 2017- 2018).
Note:
The above stated exemptions/deductions for salaried employees are the most useful exemptions. However, there are various other exemptions as well but are not commonly used.

Source: CAclubindia

7th Pay Salary Basic Pay Calculations - Simple & Easy Method.

As per Office Memorandum of Government regarding 7th Pay Commission implementation, the salary for the month August, 2016 paid in the month of September, 2016 to CG Employee by 7th Pay Commission. Therefore, as per report of 7th Pay Commission some Easy and Simple method are as follows:

How to calculate for Pay fixation from 6th Pay to 7th Pay in new Pay Scale ?

We here illustrate the easy and simple method through 6 Steps to calculate our 7th CPC New Pay and Allowances to know your self.

If X currently drawing Grade Pay Rs. 4200 and his Pay in the Band Pay Rs. 10890 as on 01.01.2016. To calculate your Basic Pay and Allowance follow the steps given below.

Step-I
Calculate your sixth CPC basic Pay
(Grade Pay + Band Pay) = 4200 + 10890 = 15090.00

Step-II
Multiply the above figure with 7th CPC Fitment Formula 2.57
15090 x 2.57 = 38781.30
(Paisa to be rounded off to the nearest Rupee)
The Ans. is = Rs.38781

Step-III
Match this Answer with Matrix Table (Given Below) Figures assigned in Grade Pay column Rs.4200



There is no matching figure we arrived above in this matrix, so the closest higher figure assigned in the Grade Pay column can be chosen ie is Rs. 39900


So your New 7th CPC Basic Pay is Rs. 39900.

Step-IV
Identify your HRA [See : 7th Pay commission recommendation on HRA]

HRA has been revised as 24%, 16% and 8% for 30% , 20% and 10% respectively
So if you are in 30% HRA Bracket, your HRA in 7th CPC is 24% viz.

If you are taking HRA in Slab 30%, your revised HRA is 24%.

Find the 24% of the Basic Pay = 39900 x 24/100 = 9576

Your new HRA is Rs. 9576

Step-V
Identify your TPTA (Transport Allowance)

7th CPC Recommends Transport Allowance for three Category of Employees for Two Types of Places

If you are living in A1 and A classified cities, the T.A. as per below chart :

Grade Pay 1800 to 1900   - Rs. 1350 + DA
Grade Pay 2000 to 4800   - Rs. 3600 + DA
Grade Pay 5400 and above - Rs. 7200 + DA

If you are living other than A1 and A Classified Cites, the T.A. as per blow chart :
Grade Pay 1800 to 1900   - Rs. 900 + DA
Grade Pay 2000 to 4800   - Rs. 1800 + DA
Grade Pay 5400 and above - Rs. 3600 + DA

And since your Grade Pay is 4200 you fall in Second category

i.e. Grade Pay 2000 to 4800 – Rs 3600 + DA
Your TPTA is Rs. 3600/- + (D.A. is Nil as on 1.1.2016)
Step-VI
(Sine DA will be Zero from 1.1.2016 So no need to calculate the DA to calculate 7th Pay and Allowances from 1.1.2016)

Count your Gross Salary as on 01-01-2016

New Basic Pay + HRA+TPTA = 39900+9576+3600 = 53076

Your revised 7th CPC Grass pay as on 1.1.2016  =  Rs.53076