What is Form 16: Meaning of Part A and Part B with Auto fill Income Tax Form 16 in Excel for the F.Y.2021-22

 What is Form 16 - Meaning of Part A and Part B | Form 16 is an indispensable certificate issued by

 employers to their employees. Provides confirmation that the TDS has been deducted and filed with

 government agencies on behalf of the employee. Provides a detailed report of the compensation paid to

 the employee and the number of TDS deducted from the employee.

 

What is Form 16? -

Basics

 

Form 16 contains the informationyou need to prepare and file your tax return. Shows a breakdown of payroll income and the number of TDS deducted by the employer. It is divided into two parts: Part A and Part B (discussed in detail below).

Download and Get ready at a time 50 Employees Form 16 Part A&B for the Financial Year 2021-22 with new and old tax regime U/s 115 BAC

The employer must issue it annuallyno later than June 15 of the following year, immediately after the year in which the tax is withheld.

 

Part A of form 16

 

Part A of Form 16 contains details of deducted TDS and reported quarterly employer PANs and TANs, among other information.

 

The employer can create and upload this part of Form 16 through the TRACES Portal (https://www.tdscpc.gov.in/app/login.xhtml). Before issuing a certificate, the employer must certify its contents.

 

It is important to note that if you change jobs during the financial year, each employer will issue a separate Part A of Form 16 for the period of employment. Some of the components of Part A:

Name and address of the employer

TAN and TIN of the employer

PAN of the employee

A summary of taxes withheld and filed quarterly, certified by the employer.

Part B of module 16

Download and Get ready at a time 50 Employees Annual Tax RevisedForm 16 Part B for the Financial Year 2021-22 with new and old tax regime U/s115 BAC.

 

Part B in Form 16 has an attachment to Part A. Part B is to be prepared by the employer for its employees and contains details of the wage breakdown and deductions approved under Chapter VI-A.

 

If you change jobs during the financial year, you must obtain a Form 16 from both employers. Here are some of the recently announced Part B components:

Detailed salary breakdown

A detailed breakdown of allowances exempted under Section 10

 

Deductions allowed under the IncomeTax Act (under chapter EIA):

 

The list of deductions mentioned is as follows:

Deduction for L.I.C. premium paid, PPF contribution, etc. pursuant to section 80C.

Deduction for contributions to pension funds in accordance with Section 80CC

Deduction of an employee's contribution to a pension scheme pursuant to section 80CCD(1)

Deduction for a taxpayer's own contribution to a claimed pension scheme under Section 80CCD (1B)

Deduction of an employer's contribution to a pension scheme pursuant to Section 80CCD(2)

Deduction of health insurance premiums paid pursuant to Section 80D

Section 80E Higher Education Loan Interest Deduction

Deduction on interest income on savings accounts in accordance with Section.80 TTA

Download and Get ready at a time 100 Employees Revised Form 16 Part A&B for the Financial Year 2021-22 with new and old tax regime U/s 115 BAC.

 

Information required in Form 16 when submitting a declaration

With the link to the image below, here you can find some information for filing your Fiscal Year 2021-22 (The fiscal Year 2022-2223) tax return.

 

Reimbursement Exempted Under Section 10

Breach of deductions under section 16

Taxable salary

Housing income (or acceptable loss) reported by an employee and proposed for TDS

Enter the "Other Sources" section offered for TDS.

Violation of Section 80C Deductions

The aggregate of Section 80C Deductions (Total and Deductible)

 

Form 16 - Part B

Enter your name (taxpayer), address and TAN. You can also get additional information regarding your employer in Form 16 when filing your annual return, such as:

TDS is held by the employer

TAN of the employer

TAN of the employer

Name and address of the employer

Current assessment year

Your personal number

 

What are the eligibility criteria for Form 16?

 

In these rules made by the Ministry of Finance of the Government of India, any employee income over the tax bracket can apply for a Form 16.

Download and prepare at a time 100 Employees Revised Form 16 Part B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC.

 

Read More

Tax Planning for the F.Y.2021-22 A.Y.2022-2023 with Automated Income Tax Form 16 for the F.Y.2020-21

 

Tax Planning for the F.Y.2021-22 A.Y.2022-2023

 

There are certain investments and expenses under Section 80C of the Income Tax Act which helps the taxpayer to reduce tax liability.

If you want to continue existing or outdated tax discipline while filing your Income Tax Return (ITR) for F.Y 2020-21, you can avail several exemptions under the Income Tax Act, 1961. However, to be sure, you must Assume that you have compared the taxes payable under the old and new tax systems.

 

Initially, the old tax duty includes 4 basic income tax exemptions for the taxpayer for tax assessment and earnings for the assessment year 2021-22. In addition to Section 80C, the taxpayer has a few more exemptions.

Download Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 with the new and old tax regime[This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

Tax benefits under section 80C

 

Some investment under Section 80C of the Income Tax Act which helps the taxpayer to reduce the tax payable. However, the maximum limit is up to Rs 1.5 lakh per annum which can be in any of these investments or expenses. Fixed investments include five-year notified tax-savings bank deposits, life insurance premiums, Employees Provident Fund(EPF), Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Equity Linked Savings Scheme. (ELSS). There is also an 80C tax benefit on home loans (principal amount) for EMI providers. Children's tuition fees paid as school fees fall under section 80C.

 Tax benefits under section 80D

 

The premium paid for health insurance brings a tax benefit. The premium can be purchased as a separate plan, family floater plan, critical illness plan as a separate plan or as a rider from life and in favour of health insurance providers or general insurance companies.

 

Currently, the limit for those under the age of 60 is Rs 25,000. This includes self, wife and children and the health cover can be Mediclaim, Family Floater, Critical Illness etc. The premium paid for any of these projects will be deducted from the total income under section 80D. The limit is Rs 50,000 for those above 60 years of age. If both the individual taxpayer and the parent are over 60 years of age, the exemption can be taken up to Rs one lakh. Any payment up to Rs 5,000 for a preventive health check-up is also eligible for tax benefits but it has to be within the overall limit.

 Download Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 with the new and old tax regime[This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B]

 

 National pension system tax savings

 

Section 80 CCD (1): Under Section 80 CCD (1), the employer and the employee can contribute to NPS. The discount should not exceed 10 % of the basic salary, except for all other allowances and permits. In the case of self-employment, under 80 CCD (1) of the Income Tax Act, 20 per cent of the total income contribution can be deducted from the taxable income, subject to a ceiling of Rs 6,000. 1.50 lakh under 60 CCEC.

Section 80CCD (1B): Under Section 80CCD (1B), the taxpayer will be allowed a rebate of ৫০ 50,000 for either employee or self-employed NPS. Exemption under Section 80CCD (1B) is exempt from exemption under Section 80CCD (1), but the same amount cannot be claimed under both sections.

 

Download Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 with new and old tax regime [This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

 

Section 80 CCD (2): Salary employees get tax benefit on the employer's contribution to his or her NPS account. Contribution of ten per cent of the employer's salary (Basic Plus Dearness Allowance) may be claimed as exemption from taxable income under Section 80CCD (2) of the Income Tax Act, 1961. There is no high cap on the amount of this tax deduction. This exemption exceeds the ceiling limit of Rs 1.5 lakh given under Section 80C and the limit of Rs 50,000 under Section 80CCD (1B). Under the new tariff system, benefits under section 80CCD (2) are still available for the benefit of taxpayers.

Education loan repayment

 

When higher education is for higher education, tax income on interest paid in an educational institution qualifies for an income tax deduction.

 

The interest earned on higher education is exempt from gross income under Section0EE, there is no financial ceiling on that interest that can be claimed as a discount. In order to educate yourself, your child or even your spouse, you should take it from a financial institution or an approved educational institution. This waiver will be granted at any time prior to the year of initial assessment and the seven immediate assessment years until the initial assessment year is successful or full interest is claimed.

 

Download Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 with new and old tax regime [This Excel Utility can prepare at a time 100 Employees Form 16 Part B]

Read More

What is the requirement of Income Tax Form 16 to salaried persons? With Automated Master of Form 16 Part B for F.Y.2017-18 and A.Y.2018-19

What is Form 16?

Form 16 is an Income Tax form used by companies to provide their salaried individuals in India. This form carries all the required details that help the employee in filing their tax returns with the Income Tax department in India. The Income Tax Act of 1961 and the Income Tax rules of 1962 are the laws that are prevailing in India. When Form 16 is provided to an employee by their employer it’s a source of proof of filing their Income Tax Returns, the form has various components such as Salary Income components of the employee. Every employer should provide their employees with the Form 16 who fall under the tax brackets set up the Finance Ministry of the Government of India. If an employee doesn’t fall under the tax brackets set, then he/she doesn’t receive the Form 16 as he/she will not need to pay taxes neither will they need to have Tax Deducted at source or TDS.

Prepare at a time 100 employees Automated Income Tax Form 16 Part B for F.Y.2017-18 & A.Y.2018-19 [This Excel Utility can be prepared at a time 100 Employees Form 16 Part B for F.Y.2017-18 Click to Download  

These components are:

·                          The personal details of the employee, like name, Permanent Account Number (PAN) etc.

·                          The employer details, name, PAN, Tax deduction and collection Account Number (TAN), etc.

·                          An acknowledgment number of the taxes paid by the employer.

·                          Details of the salary; Gross salary, net salary, deductions, perks etc.

·                          Total income and tax deductions.

·                          Education cess and surcharge details.

·                          Taxes deducted as per sections 191A.

·                          Declaration of tax payments from the employer.

·                          Refunds in any to the employee, or balance of taxes payable by the employee.

·                          Receipt of the TDS paid.

·                          All details of the Tax Payment, like Challan number, cheque number, Demand Draft number etc.

Prepare at a time 100 employees  Automated Income Tax Form 16 Part A&B for F.Y.2017-18 & A.Y.2018-19 [This Excel Utility can be prepared at a time 100 Employees Form 16 Part A&B for F.Y.2017-18] Click to Download  

Form 16 has 2 parts, Part A and Part B:

The Part A of Form 16 contains the TAN of the employer and PAN of the employer and the employee. The addresses of both the employee and employer. This will contains all details of the pay-outs from the employer and employee during the current financial assessment year. This part of Form 16 also contains the TDS filed by the employer, the taxes deducted from your income and paid to the government every quarter. This also contains a monthly statement of the same.

The Part A of the Form must include:

·                          TDS deducted by the employer.

·                          PAN of the employer.

·                          The current financial assessment year.

·                          The employee PAN.

·                          TAN of the employer.

·                          The employee/tax payer's name, address etc.

·                          Name and address of the employer.

The Part B of Form 16 contains the consolidated details of the salaries paid to the employee during the financial assessment year. The salary must be broken down, with details of deductions made by the employee under section 80C. The deductions that can be made under this section is EPF, NSC, Life insurance premiums, PPF, etc. If in one financial assessment year employee has changed jobs then the employee needs to be provided Form 16 of both companies.

Download Automated Income Tax Form 16 Part B with 12 BA for F.Y.2017-18 & A.Y.2018-19 [This Excel Utility can be prepared at a time 50 Employees Form 16 Part B with 12 BA for F.Y.2017-18Click to Download  

The Part B of the Form must include:

·                          Taxable salary of the employee.

·                          TDS by the employer.

·                          Breakup of the deductions of sections 80C.

·                          Aggregate of the section 80C with a gross and deductible amount.

·                          Tax refund or any payables due.

Read More

Tax Section 80DDB Tax Rebate from sever diseases, Plus Automatic Master of Form 16 Part B for the Financial Year 2017-18

Most of the salaried person has known only medical insurance U/s 80D where can get tax relief up to Rs. 15,000/- for below 60 years and Rs. 20,000/- for Sr. Citizen. But as per the Tax Section, 80DDB can get extra benefits regarding the treatment of various diseases, as per the noted by the Income Tax Act 1961. As per the Central Finance Budget 2014-15 have no change in this section. The rebate of section 80DDB is given below:-

Download Automatic Master of Form 16 Part A&B for the Financial Year 2017-18 [This Excel Based Software can prepare at a time 50 employees Form 16 Part A&B]

If you or a dependent undergoes medical treatment for diseases like cancer, kidney failure, thalassemia, etc you can get income tax deduction for the amount you have spent for the treatment. Section 80DDB deals with this.

Eligibility for 80DDB

This tax rebate is applicable for individuals and HUFs resident in India. Medical treatment for the following diseases should be undergone and you should have paid the expenses for yourself, spouse, children, parent, brother or sister:

i) Neurological Diseases with disability of at least 40%

    a Dementia

    b Dystonia Musculorum Deformans

    c Motor Neuron Disease

    d Ataxia

    e Chorea

    f Hemiballismus

    g Aphasia

    h Parkinsons Disease

 ii) Malignant Cancer

 iii) AIDS

 iv) Chronic Kidney failure

 v) Hematological disorders

    a) Hemophilia

    b) Thalassaemia

You would have to produce the certificate from specialist government doctors in Form 10-I. They have to be certified by a Neurologist for diseases in (i), Oncologist for (ii), Nephrologists for (iv) and a specialist with the degree in Hematology for diseases in (v). You can get a certificate from a specialist even if the treatment is being undergone in a private hospital.

80DDB tax deduction on medical treatment is not available for NRI taxpayers

Maximum deduction limit under 80DDB

The actual expense or Rs 40,000, whichever is lesser can be claimed for income tax deduction under section 80DDB. If the person undergoing treatment is a senior citizen and resident of India the exemption limit is Rs 60,000.

How to get 80DDB tax benefit

You can submit the required certificate to your HR in the relevant year to get this deduction on salary TDS or if you miss it you can still put this amount in a cell for 80DDB under Chapter VI-A deductions in ITR form in the section Income & Deductions.

Though certificate is not required to be attached with ITR form you should keep it you for record sake. Your taxable income reduces the amount you claim as the 80ddb deduction.

Read More

Automated Income Tax Master of Form 16 Part A and B for F.Y.2016-17 + Additional Deduction of Housing Loan Interest under Section 80EE for F.Y.2016-17

Housing Loan Interest Deduction under Section 80EE – Profit & Gains from Housing Project Sec 80-IBA, Time Limit u/s Section 24: Provision in Budget 2016-17

Budget 2016-17 analysis on Housing Loan Interest Deduction in IT Section 80EE, Profit & Gains from Housing Project Sec 80-IBA, Time Limit u/s Section 24: Provision

Download Automated Master of Form 16 Part A&B for F.Y.2016-17 [ This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B for F.Y.2016-17]

Incentives for Promoting Housing for All

With a view to incentivise affordable housing sector as a part of larger objective of ‘Housing for All’, it is proposed to amend the Income-tax Act so as to provide for hundred per cent deduction of the profits of an assessee developing and building affordable housing projects if the housing project is approved by the competent authority before the 31st March, 2019 subject to certain conditions which inter alia, include:-

(i) The project is completed within a period of three years from the date of approval,

(ii) The project is on a plot of land measuring not less than 1000 sq. metres where the project is within 25 km from the municipal limits of four metros namely Delhi, Mumbai, Chennai & Kolkata and in any other area, it is measuring not less than 2000 sq. metres where the size of the residential unit in the said areas is not more than thirty sq. metres and sixty sq. metres, respectively,

(iii) where residential unit is allotted to an individual, no such unit shall be allotted to him or any member of his family, etc

The existing provisions of section 80EE provide a deduction of up to 1 lakh rupees in respect of interest paid on loan by an individual for acquisition of a residential house property. This benefit is available for the two assessment years beginning on the 1st day of April 2014 and on the 1st day of April 2015.

In furtherance of the goal of the Government of providing ‘housing for all’, it is proposed to incentivise first-home buyers availing home loans, by providing additional deduction in respect of interest on loan taken for residential house property from any financial institution up to Rs. 50,000. This incentive is proposed to be extended to a house property of a value less than fifty lakhs rupees in respect of which a loan of an amount not exceeding thirty five lakh rupees has been sanctioned during the period from the 1st day of April, 2016 to the 31stday of March, 2017. It is also proposed to extend the benefit of deduction till the repayment of loan continues.

The deduction under the proposed section is over and above the limit of Rs 2,00,000 provided for a self-occupied property under section 24 of the Act.

These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years.

[Clause 37 & 43]

Substitution of new section for section 80EE. Deduction in respect of interest on loan taken for residential house property.
Clause 37. For section 80EE of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2017, namely:—

’80EE. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property.

(2) The deduction under sub-section (1) shall not exceed fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on (3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—

(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2016 and ending on the 31st day of March, 2017;

(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees;

(iii) the value of residential house property does not exceed fifty lakh rupees;

(iv) the assessee does not own any residential house property on the date of sanction of loan.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the
same or any other assessment year.

(5) For the purposes of this section,—

(a) “financial institution” means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act or a housing finance company;

(b) “housing finance company” means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.’.

Insertion of new section 80-IBA. Deductions in respect of profits and gains from housing projects.

43. After section 80-IB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2017, namely:—

’80-IBA. (1) Where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to the provisions of this section, be allowed, a deduction of an amount equal to hundred per cent. of the profits and gains derived from such business.

(2) For the purposes of sub-section (1), a housing project shall be a project which fulfils the following conditions, namely:—

(a) the project is approved by the competent authority after the 1st day of June, 2016, but on or before the 31st day of March, 2019, in accordance with such guidelines as may be prescribed;

(b) the project is completed within a period of three years from the date of approval by the competent authority:

Provided that,—

(i) where the approval in respect of a housing project is obtained more than once, the project shall be deemed to have been approved on the date on which the project was first approved by the competent authority; and

(ii) the project shall be deemed to have been completed when a certificate of completion of project as a whole is obtained in writing from the competent authority;

(c) the built-up area of the shops and other commercial establishments included in the housing project does not exceed three per cent. of the aggregate built-up area;

(d) the project is on a plot of land measuring not less than one thousand square metres where such project is located within the cities of Chennai, Delhi, Kolkata or Mumbai or within the area of twenty-five kilometres from the municipal limits of these cities, or two thousand square metres within the jurisdiction of any other municipality or cantonment board;

(e) the residential units comprised in the housing project does not exceed thirty square metres where such project is located within the cities of Chennai, Delhi, Kolkata or Mumbai or within the area of twenty-five kilometres from the municipal limits of these cities, or sixty square metres, where such project is located within the jurisdiction of any other municipality or cantonment board;

(f) where a residential unit in the housing project is allotted to an individual, no other residential unit in the housing project shall be allotted to the individual or the spouse or the minor children of such individual;

(g) the project utilises—
(i) not less than ninety per cent. of the floor area ratio permissible in respect of the plot of land under the rules to be made by the Central Government or the State Government or the local authority, as the case may be, where the project is located within the cities of Chennai, Delhi, Kolkata or Mumbai or within the area of twenty-five kilometres from the municipal limits of these cities, or

(ii) not less than eighty per cent. of such floor area ratio where such project is located in any area other than the areas referred to in sub-clause (i); and (h) the assessee maintains separate books of account in respect of the housing project.

(3) Nothing contained in this section shall apply to any undertaking which executes the housing project as a works-contract awarded by any person (including the Central Government or the State Government).

(4) Where the housing project is not completed within the period specified under clause (b) of sub-section (2) and in respect of which a deduction has been claimed and allowed under this section, the total amount of deduction so claimed and allowed in one or more previous years, shall be deemed to be the income of the assessee chargeable under the head “Profits and gains of business or profession” of the previous year in which the period for completion so expires.

(5) Where any amount of profits and gains derived from the business of developing and building housing projects under any scheme for the housing is claimed and allowed under this section for any assessment year, deduction to the extent of such profit and gains shall not be allowed under any other provisions of this Act.

(6) For the purposes of this section,—
(a) “built-up area” means the inner measurements of the residential unit at the floor level, including projections and balconies, as increased by the thickness of the walls, but does not include the common areas shared with other residential units, including any open terrace so shared;

(b) “competent authority” means the authority empowered by the Central Government;

(c) “floor area ratio” means the quotient obtained by dividing the total covered area of plinth area on all the floors by the area of the plot of land;

(d) “housing project” means a project consisting predominantly of dwelling units with such other facilities and amenities as the competent authority may specify subject to the provisions of this section;

(e) “residential unit” means an independent housing unit with separate facilities for living, cooking and sanitary requirements, distinctly separated from other residential units within the building, which is directly accessible from an outer door or through and interior door in a shared hallway and not by walking through the living space of another household.’.

Increase in time period for acquisition or construction of self-occupied house property for claiming deduction of interest
The existing provision of Clause (b) of section 24 provides that interest payable on capital borrowed for acquisition or construction of a house property shall be deducted while computing income from house property. The second proviso to the said clause provides that a deduction of an amount of two lakh rupees shall be allowed where a house property referred to in sub-section (2) of section 23 (self-occupied house property) has been acquired or constructed with capital borrowed on or after the 1stday of April, 1999 and such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed.

In view of the fact that housing projects often take longer time for completion, it is proposed that second proviso of clause (b) of section 24 be amended to provide that the deduction under the said proviso on account of interest paid on capital borrowed for acquisition or construction of a self-occupied house property shall be available if the acquisition or construction is completed within five years from the end of the financial year in which capital was borrowed.

This amendment will take effect from 1st day of April, 2017 and will, accordingly apply in relation to assessment year 2017-2018 and subsequent years.
[Clause 10]

Amendment of section 24.

Clause 10. In section 24 of the Income-tax Act, in clause (b), in the second proviso, for the words “three years”, the words “five years” shall be substituted with effect from the 1st day of April, 2017.

Source : budgetindia.nic.in

Read More