Download Automated All in One TDS on Salary for Govt & Non Govt Employees for F.Y.2018-19 with Union Budget 2018: No bills required to claim Rs 40,000 standard deduction

       The new measure will benefit all salaried employees and pensioners without the hassle of filing supporting documents or bills.

      Till now, taxpayers had to furnish medical bills and an undertaking for conveyance expenses to get the benefit of Rs 19,200 under transport allowance and Rs 15,000 under the medical allowance.

Salaried taxpayers and pensioners need not have to furnish any bills or documents to claim the standard deduction of Rs 40,000 announced in the budget 2018-19 Financial Year.

“The budget, this time, has given a large benefit of flat Rs 40,000 as a standard deduction to the salaried class of taxpayers and pensioners.

Click to Download Automated All in One TDS on Salary for Government & Non- Government employees for the Financial Year 2018-19. [ This Excel Utility can prepare at a time Income Tax Computed Sheet + Salary Sheet + Salary Structure + Automated H.R.A. Exemption Calculation U/s 10(13A) + Automated Arrears Relief Calculation with Form 10 E From F.Y.2000-01 to F.Y.2018-19 + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2018-19]

“Earlier, some people were getting conveyance allowance and some medical allowance on the basis of production of bills, but now we have removed all individual allowances on a production of certain bills among others. It is flat Rs 40,000 to every salary earner. You can straightaway claim it,” Chandra said.

The Central Board of Direct Taxes (CBDT) is the policy-making body of the Income Tax department.

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Download Automated Income Tax 50 employees Form 16 Part B for F.Y.2018-19 with Budget 2018 Highlights – Major changes you must know

Budget 2018 Highlights – Major changes you must know

$ No Change in Income Tax Slab Rates for FY 2018-19  or AY 2019-20

There is no change in IT Slab Rates for individuals. Hence, the applicable tax slab will be as below.

$ EPF Contribution by Government for new employees and women

The government will contribute 8.33% of Employee Provident Fund (EPF) for new employees by the Government for three years.

Women employees contribution to EPF now reduced to 8% from the earlier 12%. This reduced contribution will be for the first 3 years of employment.

Both these moves will bring in more take home for both new employees and women.

Along with this, Government will contribute 12% to EPF for new employees for three years by the Government in sectors employing the large number of people like textile, leather, and footwear.

Also, paid maternity leave is now increased from 12 weeks to 26 weeks, along with the provision of crèches.

$ Rs.40,000 Standard Deduction for Salaried individuals and pensioners

Rs.40,000 standard deduction is available for all salaried individuals in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses.

This is I think a big relief many as it will rejoice the salaried individuals.

$ TDS limit raised for Senior Citizens

Exemption of interest income on deposits with banks and post offices to be increased from Rs.10,000/- to Rs.50,000/- and TDS will not be required to be deducted on such income, under section 194A. This benefit shall be available also for interest from all fixed deposits schemes and recurring deposit schemes.

But do remember one thing that AVOIDING TDS DOES NOT MEAN AVOIDING TAX.

$ Sec.80D limit raised to Rs.50,000 for Senior Citizens

limit of deduction for health insurance premium and or medical expenditure from Rs.30,000/- to Rs.50,000/-, under section 80D. All senior citizens will now be able to claim the benefit of the deduction up to Rs.50,000/- per annum in respect of any health insurance premium and/or any general medical expenditure incurred.

This I think a much-awaited relief to many senior citizens. Because the premium of health insurance will increase as you grow older. Hence, by increasing Sec.80D limit, Government really helped this class.

Download Automated Master of Form 16 Part B for 50 employees for F.Y.2018-19 & A.Y.2019-20 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B as per the New Budget 2018-19 including the New Standard Deduction Rs. 40,000/-]

$Limit of deduction on medical expenditure critical illness for senior citizens raised

The limit of deduction for medical expenditure in respect of certain critical illness from, Rs.60,000/- in case of senior citizens and from Rs.80,000/- in case of very senior citizens, to Rs.1 lakh in respect of all senior citizens, under section 80DDB.

$ Pradhan Mantri Vaya Vandana Yojana extended to March 2020

Pradhan Mantri Vaya Vandana Yojana is the 10 years 8% guaranteed pension scheme meant for senior citizens. The earlier deadline for the closure of this scheme was 3rd May 2018. Now, this is extended to until March 2020.

Also, the good news is that the earlier limit under this scheme was Rs.7,50,000, which is now increased to Rs.15,00,000.

$ Long-Term Capital Gain Tax (LTCG) levied on Stocks and Equity Mutual Funds

The biggest jolt to equity investors is the introduction of LTCG regime. Govt now introduced  LTCG on the income exceeding Rs.1 lakh at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31st January 2018 will be grandfathered.

Do remember that the time horizon to measure the STCG and LTCG will remain same. There is no change in STT rates. Hence, STCG on equity and equity mutual funds will continue at 15% rate.

Let us assume that your purchased price of the stock is at Rs.100 (purchased before 31st January 2018) and the highest price traded price on 31st January 2018 is at Rs.120. This Rs.20 will be tax-free for you. There is no tax on this Rs.20 gain as Rs.120 is considered as the holding price.

Now let us assume that you sold the stock after a year at Rs.150, then only Rs.30 is taxed at 10% but not the whole Rs.50. Hence, any gain up to 31st January 2018 is still tax-free for all investors.

Refer my latest post in this regard in detail-Budget 2018 LTCG Tax on Stocks and Mutual funds

9) Dividend Distribution Tax (DDT) on Equity Mutual Funds

Up to now dividend you receive from equity mutual fund was tax-free. However, now be ready to pay the 10% DDT on such income.

10) Education and Health Cess increased to 4%

Currently, there is 3% cess on personal income tax consisting of 2% for primary education and 1% for secondary and higher education.

Now this 3% existing educational and higher education cess is replaced to 4% HEALTH AND EDUCATION CESS.

Other important proposals of Budget 2018 Highlights are as below.

a) National Health Protection Scheme

The government will launch the National Health Protection Scheme. In this scheme, each family will be covered for Rs.5 lakh of health insurance per year. This will be for secondary and tertiary care hospitalization.

This will be the world’s largest government-funded health care programme. This is mainly to the poor and vulnerable families.

Along with this, Government will provide nutritional support to all TB patients at the rate of Rs.500 per month for
the duration of their treatment.

b) E-Assessment is made mandatory

Now no more physical IT return filing allowed. From now onward you have to file IT Returns only through online mode. This will actually reduce the time taken to process your IT returns.

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NPS Tax Benefit u/s 80CCD(1), 80CCD(2) and 80CCD(1B),With Automated All in One TDS on Salary for Govt & Non-Govt employees for F.Y.2018-19

Tax Benefit on NPS Tier 1 and/or 2?

NPS has two Tiers – 1 and 2.

NPS Tier 1 is the long-term investment, which has restricted withdrawals and meant primarily for retirement planning. On maturity, you can withdraw a maximum of 60% of the corpus as lump sum and rest has to be used for annuity purchase.

NPS Tier 2 is for managing short to medium term investment. You can invest and withdraw anytime as per your wish. This is an optional feature and you are asked if you need Tier 2 account while opening NPS.

All the tax benefit related to NPS is available to invest in NPS Tier 1 account only.

NPS Tax Benefits:

NPS tax benefits are available through 3 sections – 80CCD(1), 80CCD(2) and 80CCD(1B). We discuss each below:

1. Section 80CCD(1)

Employee contribution up to 10% of basic salary and dearness allowance (DA) up to 1.5 lakh is eligible for tax deduction. [This contribution along with Sec 80C has 1.5 Lakh investment limit for tax deduction]. Self-employed can also claim this tax benefit. However, the limit is 10% of their annual income up to a maximum of Rs 1.5 Lakhs.

2. Section 80CCD(1B)

Additional exemption up to Rs 50,000 in NPS is eligible for income tax deduction. This was introduced in Budget 2015.

3. Section 80CCD(2)

Employer’s contribution up to 10% of basic plus DA is eligible for deduction under this section above the Rs 1.5 lakh limit in Sec 80CCD(1). This is also beneficial for the employer as it can claim tax benefit for its contribution by showing it as a business expense in the profit and loss account. Self-employed cannot claim this tax benefit.

 Click to Download the Automated All in One TDS on Salary for Govt & Non-Govt Employees for the Financial Year 2018-19 & Ass Year 2019-20 [ This Excel Utility can prepare at a time your Tax Computed sheet + Individual Salary Statement + Individual Salary Structure as per Salary Pattern of Govt and Non-Govt Concerned + Automated Arrears Relief Calculation U/s 89(1) with Form 10E from F.Y.2000-2001 to F.Y.2018-19 +Automated Income Tax Form 16 Part A&B and Form 16 Part B for as per the Finance Budget 2018-19]

Tax Benefit for Compulsory NPS deduction:

The earlier pension structure was replaced by NPS in most central and state government jobs since 2004. So anyone who joined after that has a compulsory deduction for NPS. The deduction is 10% of basic salary and dearness allowance (DA) and the employer to contributes the matching amount. The confusion for most employees is how they take tax benefit on their compulsory NPS deduction?

The employee has a choice as to which section [80CCD(1) or 80CCD(1B)] he wants to show his contribution.  Ideally he should show Rs 50,000 investment in NPS u/s 80CCD(1B). The tax deduction on rest Rs 12,000 can be claimed u/s 80CCD(1). The section 80CCD(1) along with Section 80C has investment limit eligible for tax deduction as Rs 1.5 lakhs. So he should make an additional investment of Rs 1,38,000 in Section 80C to save maximum tax. In all, he can save Rs 2 lakhs tax u/s 80C and 80CCD(1B).

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The Key Features In Tax Rules To Come Into Effect From April 1,2018 with Automatic All in One Income Tax Calculator for F.Y.2018-19 & A.Y. 2019-20

April 1, the beginning of the new fiscal 2018-19, brings in some major changes in the tax structure which were announced by Finance Minister Arun Jaitley while presenting the Union Budget 2018. The tax reforms will impact individual taxpayers in a number of ways, such as the standard deduction of Rs 40,000 instead of the transport allowance and medical expenses.

Standard Deduction

Though the tax slabs were not changed this year, the finance minister reintroduced the standard deduction method. A standard deduction of Rs 40,000 will be effective in lieu of transport allowance and medical reimbursement.

Around 2.5 crore salaried employees and pensioners will gain from the new rule.

The Central Board of Direct Taxes had previously said that the standard deduction can be claimed directly and would not require any proofs or bills to avail it.

Medical, travel allowances will be taxed(Abolished)

With the induction of standard deduction, medical and travel allowances will be taxed from next fiscal. Medical allowances up to Rs 15,000 and travel allowance till Rs 1,600 per month used to be tax-free and could be claimed by furnishing bills.

Cess now 4%

Finance Minister Arun Jaitley has hiked the educational cess on income tax and corporation tax to 4 percent. At present, individual taxpayers shell out a 3 percent cess – 2 percent cess for primary education and 1 percent cess for secondary and higher education.

For senior citizens
Tax exemptions were announced on deposits with banks and post offices for senior citizens only. Interest income will now be increased five times from Rs 10,000 to Rs 50,000.
TDS (tax deducted at source) under section 194A will not be applicable to any fixed deposit scheme or recurring deposit schemes for the senior citizens.

Breather for the senior citizen on medical expenses

The deduction limit for health insurance premium or medical expenditure was increased from Rs 30,000 to Rs 50,000 under section 80D.

The deduction limit for medical expenses for critical illness was also hiked from Rs 60,000 (for senior citizens) and Rs 80,000 (for very senior citizens) to Rs 1 lakh, under section 80DDB.

Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana was extended up to March 2020, under which senior citizens can invest up to Rs 15 lakh. The current limit is Rs 7.5 lakh per senior citizen.

National Pension System is tax-free

The withdrawal of pension money was made tax free for non-employee subscribers. There is no such provision at present.

Click here to Download Automated TDS on Salary for Govt & Non- Govt employees for F.Y.2018-19 and A.Y.2019-20 with Automated Arrears Relief Calculator with Form 10E from F.Y.2018-19 and A.Y. 2019-20 as per new Finance Budget 2018 [ This Excel Based Software can prepare at a time Tax Computed Sheet + Individual Salary Structure as per Govt & Non-Govt Salary Pattern + Automated H.R.A. Calculation U/s 10(13A) + Automated Form 16 Part B + Automated Form 16 Part A&B + Automated Arrears Relief Calculation from F.Y.2000-01 to F.Y.2018-19 with Form 10E]

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All in One TDS on Salary for Govt & Non-Govt Employees for F.Y.2018-19 & A.Y. 201920 with Budget 2018: Impact on the Salaried Class

Budget Impact on the Salaried Class

Budget 2018 is rolled out and how! Mixed feelings for most people, except for the salaried class. The budget has not made any changes to the tax slabs of salaried individuals, leading them to sing the blues, in a chorus. Given the pattern from the last few years, there were similar expectations this year too. Even though that did not happen, the Finance Minister has proposed to reintroduce the “standard deduction” from the gross salary of individuals.

The amount of standard deduction proposed to be Rs 40,000, will replace the existing transport allowance of Rs 1600 per month and medical allowance of Rs 15,000 per annum which are usually deducted from the gross salary and claimed as an exemption. So, no changes in tax slabs is not a total loss, since the standard deduction of Rs 40,000 will replace medical allowance of Rs 15,000 and transport allowance of Rs 1600 per month i.e. Rs. 19,200 per annum, so the effective additional benefit would be an additional income exemption of Rs 5,800.

Furthermore, FM Jaitley proposed to hike the cess by 1%, in the name of Health Cess, making it effectively 4% ‘Health and Education Cess’. As of now, an education cess of 3% was levied on personal income tax, after the budget announcement it soared high to a 4%. While this move may help the government in meeting the healthcare and education needs of the rural families, it is certain that the tax liability of both individuals and corporate will increase.

Let’s have a look at the tax proposals made in the Budget 2018 for the Salaried Class

The Income Tax Slabs for the Assessment Year 2019-20 would continue to be as follows

For Individuals (resident or non-resident) upto 59 years
Upto 2,50,000	NIL
2,50,001 – 5,00,000	5%
5,00,001 – 10,00,000	20%
10,00,001 & Above	30%

For resident individuals who are 60 years and above but below 80 years
Up to 3,00,000	NIL
3,00,001 – 5,00,000	5%
5,00,001-10,00,000	20%
10,00,001 & Above	30%

For resident individuals who are 80 years and above
Up to 5,00,000	NIL
5,00,001 – 10,00,000	20%
10,00,001 & Above	30%

Surcharge too has not undergone any change from that of AY 2018-19

Income from Rs 50,00,001 – 1,00,00,000	10% of tax
1,00,00,001 & Above	15% of tax

In a nutshell:

• A resident individual is entitled to rebate u/s 87A if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less

• ‘Health and Education Cess’ charged at 4% replaces ‘Education Cess’ and ‘Higher & Secondary Education Cess’ earlier charged at 3%

• A Standard deduction of Rs 40,000 from the taxable Salary replaces the transport allowance and the miscellaneous medical Reimbursement. This will result in an additional income exemption of up to Rs 5,800/-

Click here to Download Automated TDS on Salary for Govt & Non- Govt employees for F.Y.2018-19 and A.Y.2019-20 with Automated Arrears Relief Calculator with Form 10E from F.Y.2018-19 and A.Y. 2019-20 as per new Finance Budget 2018 [ This Excel Based Software can prepare at a time Tax Computed Sheet + Individual Salary Structure as per Govt & Non-Govt Salary Pattern + Automated H.R.A. Calculation U/s 10(13A) + Automated Form 16 Part B + Automated Form 16 Part A&B + Automated Arrears Relief Calculation from F.Y.2000-01 to F.Y.2018-19 with Form 10E]

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Automated Advance Tax Calculator for F.Y.2018-19 & A.Y.2019-20 with Budget 2018 Highlights

Budget 2018 Highlights – some  changes you must know

1) No Change in Income Tax Slab Rates for FY 2018-19  or AY 2019-20

There is no change in IT Slab Rates for individuals. Hence, the applicable tax slab will be as below.

2) EPF Contribution by Government for new employees and women

The government will contribute 8.33% of Employee Provident Fund (EPF) for new employees by the Government for three years.

Women employees contribution to EPF now reduced to 8% from the earlier 12%. This reduced contribution will be for the first 3 years of employment.

Both these moves will bring in more take home for both new employees and women.

Along with this, Government will contribute 12% to EPF for new employees for three years by the Government in sectors employing the large number of people like textile, leather, and footwear.

Also, paid maternity leave is now increased from 12 weeks to 26 weeks, along with the provision of crèches.

3) Rs.40,000 Standard Deduction for Salaried individuals and pensioners

Rs.40,000 standard deduction is available for all salaried individuals in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses.

This is I think a big relief many as it will rejoice the salaried individuals.

4) TDS limit raised for Senior Citizens

Exemption of interest income on deposits with banks and post offices to be increased from Rs.10,000/- to Rs.50,000/- and TDS will not be required to be deducted on such income, under section 194A. This benefit shall be available also for interest from all fixed deposits schemes and recurring deposit schemes.

But do remember one thing that AVOIDING TDS DOES NOT MEAN AVOIDING TAX.

5) Sec.80D limit raised to Rs.50,000 for Senior Citizens

limit of deduction for health insurance premium and or medical expenditure from Rs.30,000/- to Rs.50,000/-, under section 80D. All senior citizens will now be able to claim the benefit of the deduction up to Rs.50,000/- per annum in respect of any health insurance premium and/or any general medical expenditure incurred.

This I think a much-awaited relief to many senior citizens. Because the premium of health insurance will increase as you grow older. Hence, by increasing Sec.80D limit, Government really helped this class.

6) Limit of deduction on medical expenditure critical illness for senior citizens raised

The limit of deduction for medical expenditure in respect of certain critical illness from, Rs.60,000/- in case of senior citizens and from Rs.80,000/- in case of very senior citizens, to Rs.1 lakh in respect of all senior citizens, under section 80DDB.

7) Pradhan Mantri Vaya Vandana Yojana extended to March 2020

Pradhan Mantri Vaya Vandana Yojana is the 10 years 8% guaranteed pension scheme meant for senior citizens. The earlier deadline for the closure of this scheme was 3rd May 2018. Now, this is extended to until March 2020.

Also, the good news is that the earlier limit under this scheme was Rs.7,50,000, which is now increased to Rs.15,00,000.

8) Education and Health Cess increased to 4%

Currently, there is 3% cess on personal income tax consisting of 2% for primary education and 1% for secondary and higher education.

Now this 3% existing educational and higher education cess is replaced to 4% HEALTH AND EDUCATION CESS.

Other important proposals of Budget 2018 Highlights are as below.

a) National Health Protection Scheme

The government will launch the National Health Protection Scheme. In this scheme, each family will be covered for Rs.5 lakh of health insurance per year. This will be for secondary and tertiary care hospitalization.

This will be the world’s largest government-funded health care programmed. This is mainly to the poor and vulnerable families.

Along with this, Government will provide nutritional support to all TB patients at the rate of Rs.500 per month for

the duration of their treatment.

b) E-Assessment is made mandatory

Now no more paper filling IT return allowed. From now onward you have to file IT Returns only through online mode. This will actually reduce the time taken to process your IT returns.

Click here to Download the Automated Advance Tax Calculator for F.Y. 2018-19 & Assessment Year 2019-20

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