What is Form 16 (TDS Certificate)? Plus Automatic Excel Based Form 16 for Financial Year 2014-15

Download One by One Preparation Automatic Form 16 Part B for Financial Year 2014-15

When it comes to online filing of income tax, it becomes focal to ensure that Form 16 is maintained with the assessee for simplifying the return filing procedure. Form 16 is also known as Salary TDS Certificate. The TDS certificates have to be issued within the prescribed time in the prescribed forms as under: - See more at:           
              1)         Form No.16 : For salaries (Salary TDS Certificate)                         
                     2)         Form No.16A : For all other payments (TDS Certificate)
 But we will discuss about Form No.16 (Salary TDS  Certificate) only.  A further insight in of Form 16 has been furnished below:

What is form 16?

Form 16 is a documentary proof for the purpose of filing online return and is available for all people belonging to the salaried class. The Form 16 represents a complete analysis of the income details of an assessee along with necessary adjustments for income tax (Tax Deducted at Source).  However, it is only applicable for people who belong to the salaried class.
In other words you can say it is the proof of tax payment which we have paid advance to employer and employer has paid it to the Government on our behalf.

Download Master of Form 16 Part B for FY 2014-15 [ This Excel Utility can prepare at a time 100 employees Form 16 Part B ]

Why it is used for?

Form 16 is used only as a proof for people’s accuracy while filing online income tax returns. Since, the form carries all information with respect to the salary of a person along with various tax deductions; it becomes easier for the assessee to file his return on the basis of furnished data in Form 16. One can also use Form 16 for personal verification purpose by way of matching the TDS details mentioned in the form with Form 26AS such that there are no disparities in the amount mentioned in the two forms.

Why it is so popular?

Popularity of Form 16 mainly comes in from the ease which it provides to the assessee with its pervasiveness. Since every single detail with respect to income of the assessee is mentioned in the form along with provisions and tax deductions, the task of filing online income tax becomes very simple. Additionally, the validity of Form 16 can also not be questioned as it not generated by the employees themselves. Rather, it is furnished to them by their employers as a statement of income that justifies their current salary.

Download Automated Master of Form 16 Part A&B for FY 2014-15 [ This Excel Utility Can prepare at a time 100 employees Form 16 Part A&B ]

From where I have to obtain form 16?

Form 16 is usually provided by the employer themselves. When people collect their salary, they are also furnished with this form that depicts their distribution of salary and other adjustments such as TDS (Tax Deducted at Source). If the same phenomenon does not exists, then make sure you contact your employer and ask for Form 16 at the earliest. You may also take assistance from professionals if desired so.

Download and Prepare Automated Form 16 Part B for FY 2014-15 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B ]

Time-Limit for Issue of Form 16

The TDS certificate in form 16 shall be issued annually by 31st Day of May of the financial year next following the financial year in which the income was paid and tax deducted.

What should I do if employer is not giving form 16?


The employer has time-limit to issue form 16/ TDS certificate. There may arise a situation where people may not be provided with their Form 16 by their employers. When this situation persists, it should be understood that though, the employer has deducted TDS from the salary of their employees but has not submitted the same with the IT Department. Under such context, firstly check your Form 26 AS, which should also have details with respect to your TDS. If the other form also is clueless about your TDS deduction, then it is time to demand the same from the employer and if the same is still denied, then one can sue his employer for the same.
Download Automated Master of Form 16 Part B+ 12 BA for FY 2014-15 [ This Excel Utility Can Prepare at a time 50 employees Form 16 Part B + 12 BA ]

At a Glance Income Tax Section 80 Deductions, Plus Master of Form 16 Part A and B for Financial Year 2014-15

Download Automated Master of Form 16 Part A&B for the Financial Year 2014-15     [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B with all up dated Tax Section and Tax Slab]

Deductions on Section 80C, 80CCC & 80CCD

Section 80C

The deduction under section 80C is allowed from your Gross Total Income. These are available to an Individual or a HUF.
Broadly speaking, this section provides deduction from total income in respect of various investments / expenditures / payments. Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2014-15.
Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer
This section provides deduction to an Individual for any amount paid or deposited in any annuity plan of LIC any other insurer for receiving pension from a fund referred to in Section 10(23AAB).
In case the annuity is surrendered before the date of its maturity, the surrender value is taxable in the year of receipt.

Section 80CCD: Deduction in respect of Contribution to Pension Account

Total Deduction under Section 80C, 80CCC and 80CCD(1) cannot exceed Rs 1,50,000. From assessment year 2012-13, employer’s contribution under section 80CCD(2) towards NPS is outside the monetary ceiling mentioned above.

Deductions on Savings Bank Account

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 1st April 2012 (Assessment Year 2013-14).

Deductions on House Rent

Section 80GG: Deduction in respect of House Rent Paid

Deduction available is the least of
  1. Rent paid minus 10% of total income
  2. Rs. 2000/- per month
  3. 25% of total income, provided
    • Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
    • He should not be in receipt of house rent allowance.
    • He should not have self occupied residential premises in any other place.

Deductions on Loan for Higher Studies

Section 80E: Deduction in respect of Interest on Loan for Higher Studies

Deduction in respect of interest on loan taken for pursuing higher education. The deduction is also available for the purpose of higher education of a relative w.e.f. A.Y. 2008-09.

Deductions on Rajiv Gandhi Equity Saving Scheme (RGESS)

Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)

The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose annual income is less than Rs. 10 lakhs can invest in this scheme (up to Rs. 50,000) and get a deduction of 50% of the investment.
So, if you invest Rs. 50,000 (maximum amount eligible for income tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).

Deductions on Medical Insurance

Section 80D: Deduction in respect of Medical Insurance

Deduction is available up to Rs. 20,000/- for senior citizens and upto Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

Deductions on Medical Expenditure on Self or Dependent Relative

Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Deductions on Medical Expenditure for a Handicapped Relative

Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative

Deduction of Rs. 50,000/- is available on:
  1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
  2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Further, if the dependant is a person with severe disability, a deduction of Rs. 100,000/- is also available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.
Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

Deductions on Person suffering from Physical Disability

Section 80U: Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 100,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Deduction for donations towards Social Causes

Section 80G: Deduction for donations towards Social Causes

The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.

Donations with 100% deduction without any qualifying limit:

  • National Defence Fund set up by the Central Government
  • Prime Minister’s National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National eminence
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a State Government for the medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or to any State Blood Transfusion Council
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
  • National Sports Fund
  • National Cultural Fund
  • Fund for Technology Development and Application
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund in respect of any State or Union Territory
  • the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
  • The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6,1993
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
  • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions — India) Fund

Donations with 50% deduction without any qualifying limit.

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • National Children’s Fund
  • Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation

Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income

  • Government or any approved local authority, institution or association to be utilised for the purpose of promoting family planning
  • Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.

Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

  • Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
  • Government or any local authority to be utilised for any charitable purpose other than the purpose of promoting family planning
  • Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
  • Any corporation referred in Section 10(26BB) for promoting interest of minority community
  • For repairs or renovation of any notified temple, mosque, gurudwara, church or other place.

Download Automated Master of Form 16 Part A&B for the Financial Year 2014-15     [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B with all up dated Tax Section and Tax Slab]

CBDT has already notifies mandatory to Download of Part A of Form No. 16, Plus with Automated Form 16 Part B for FY 2014-15

  

1) Click here to Download Master of Form 16 Part B for F.Y.2014-15 ( This can prepare at a time 50 employees Form 16 Part B)


2) Click here to Download Master of Form 16 Part B for F.Y. 2014-15 [ This Utility can prepare at a time 100 employees Form 16 Part B]


3) Click here to Download Master of Form16 Part B with Form 12 BA for F.Y. 2014-15 (This can prepare at a time 50 employees Form 16 Part B with Form 12 BA)


4) Click here to Download One by OnePreparation Form 16 Part B for Financial Year 2014-15 (This Excel Utility can prepare more than 500 employees Form 16 Part B One by One)



  The CBDT has  recently notified that Form 16 had two parts – Part A and Part B. Part A contains details of tax deducted and remitted and Part B contains details of income. The Central Board of Direct Taxes (CBDT) has now notified that Part A of Form 16 containing the Unique Identification Number will be issued by the employer by generating and subsequently downloading the same from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) Portal.               ( www.tdscpc.gov.in)

      Employer to download Part A of the Form 16 from the TRACES Portal and authenticate the correctness of the contents mentioned therein before issuing to the employee. Part B of the Form 16 will be prepared manually and issued to the employee after due verification. Part A and B can be either digitally or manually signed.

      Form 16 to be issued by the employer containing both Part A and B by 31 May 2013. Form 16 issued in the manner prescribed and containing Unique Identification Number will only be considered to be valid.

The Director General of Income-tax (Systems) will specify procedure, formats and standards for downloading Part A of Form 16 and will be responsible for the day to day administration.
      
      It is also Mandatory by the CBDT that the Form 16 Part B which contain the employee's Salary Details which must be prepare by the Employer. Now you have to need the prepare Form 16 Part B and the Form 16 Part A Download from the TRACES Portal. 

Below given the Automated Preparation of Form 16 Part B ( Excel Based Software) which can prepare automatic Form 16 Part B after filling the employees data in data input sheet, for the Financial Year 2013-14

1) Click here to Download Master of Form 16 Part B for FY 2014-15( This can prepare at a time 50 employees Form 16 Part B)

2) Click here to Download Master of Form16 Part B with Form 12 BA for FY 2014-15 (This can prepare at a time 50 employees Form 16 Part B with Form 12 BA)


3)Click here to Download One by One Preparation Form 16 Part B for F.Y. 2014-15 (This Excel Utility can prepare more than 500 employees Form 16 Part B One by One)

Understanding Value of Perquisites U/s 17(2),with Value of Perquisite Calculator and Form 16 Part B with 12 BA in Excel

For person earning income from Salary , documents Form 16, and Form 12BA provided by employer are needed. We looked into details of Form 16. Form 12BA give details of Perquisites given by the employer to employee in the financial year. Before we look at Form 12BA lets try to understand Perquisites, also known as perks.

Download Automated Master of Form 16 Part B with Form 12 BA for FY 2014-15[ This Excel Utility can prepare at a time 50 employees Form 16 Part B with 12 BA]

What are Perquisites?

Perquisites are benefits provided by the employers in addition to the normal salary at a free of cost or concession rates. Income tax act defines Perquisite as any casual emolument or benefit attached to an office or position in addition to salary or wages. Value of these perquisites is added to the income of employees. Hence Perquisites are taxable. There are rules for valuation of perquisites.  Some of the perquisites are given below:

1
2
3
Sweeper, gardener, watchman or personal attendant
4
5
Interest free or concessional loans[ Download Loan Value Calculator]
6
Holiday expenses
7
Free or concessional travel [ Download Travel Value Perquisite Calculator]
8
9
10
11
12
13
Use of movable assets by employees [ Download Value of Perquisite of l calculator]
14
Transfer of assets to employees [ Download Value of Perquisite of meal calculator]
15
Value of any other benefit/amenity/service/privilege [ Download Value of Perquisite of  calculator]
A  perquisite can be provided both by way as:-
·                                 Monetary payment : Employer either reimburses the expenses incurred by the employee for such facilities or pays on behalf of the employee. Ex:personal gas bills of the employee are in the name of employee and the employer reimburses the amount of such gas bills to him or pays on his behalf to the gas agency, it is in monetary terms and taxable in case of all employees; on the other hand, if such bills are in the name of employer, it will be perquisite in case of specified employee only.
 OR
·                                 Non-monetary payment/benefit : Payments which can be called non-monetary payments are car facility,  benefit on account of interest-free loans, rent-free accommodation, furniture provided to employees etc.
As defined earlier, Perquisite as any casual emolument or benefit attached to an office or position in addition to salary or wages, Mostly perquisites are associated with position or office. Often distinction is made between employees and specified employees. A Specified employee is the one who satisfies any of the following cases:
·                                 He is a director of the company,
·                                 He has a substantial interest in the company, ie he is the beneficial owner of equity shares carrying 20% of voting power in the employer company.
·                                 His monetary income under the head “Salaries” for the year exceeds Rs.24,000. The amount considered here includes amounts due from, paid or allowed by one or more employers. It excludes all non-monetary benefits.

The perquisites and allowances, as aforesaid, shall include accommodation (furnished or otherwise) or house rent allowance in lieu thereof; house maintenance allowance together with reimbursement of expenses and / or allowances for utilisation of gas, electricity, water, furnishing and repairs; medical reimbursement; leave travel concession for self and family including dependents; medical insurance and such other perquisites and / or allowances.

Perquisites and Indian Income tax Act

Definition of Perquisites: Perquisites are defined in the section 17(2) of the Indian Income-tax Act of 1961.
Section 10(10CC) – Exemption on Non monetary perquisites: With effect from 01.06.2002, employer has given a option to deposit the tax on non monetary perquisites on behalf of employee without deducting the same from the employee {section 192(1A) &192(1b)} As per section 10(10CC), the amount of tax actually paid by an employer, at his option, on non-monetary perquisites on behalf of an employee, is not taxable in the hands of the employee. Such tax paid by the employer shall not be treated as an allowable expenditure in the hands of the employer under section 40. The tax so paid by the employer shall be deemed to be TDS made from the salary of the employee.

Statement of Perquisites: 192 (2C) lays down employer, shall furnish to employee  a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof in form no. 12BA. The form and manner of such particulars are prescribed in Rule 26A, Form 12BA and Form 16 of the Income-tax Rules . Information relating to the nature and value of perquisites is to be provided by the employer in Form no. 12BA in case of salary paid or payable is above Rs.1,80,000/-. In other cases, the information would have to be provided by the employer in Form 16 itself.

Type of perquisites, valuation of perquisites are defined in every Finance Act (popularly known as Budget presented by Finance Minister).

Valuation of Perquisites

Perquisites are taxable in the hands of employees. There are rules for valuation of perquisites. Let’s look at some of the rules. Please note that these rules keeps changing and are notified by Central Board of Direct Taxes (CBDT). For the financial year 2011-12 or Assessment Year 2012-13 Circular No.08/2010 dated 13.12.2010 . Valuation of some of the perquisites are discussed below:

Accommodation :- For purpose of valuation of the perquisite accomdation is divided into various categories like: Rent free Unfurnished Accommodation, Rent-Free Furnished Accommodation, Concession in Rent etc.  is explained below:
Description
Perquisite Value
Where Government provides the accommodation to a person holding an office or post in connection with the affairs of the Union or State or serving with any body or undertaking under the control of such Government on deputation.
Licence fee determined by Union or State Government in respect of accommodation in accordance with the rules framed by that Government.
Where any other employer provides such accommodation.
Where accommodation is owned by employer. Perquisite Value is -
·                                 15% of the salary in cities having population more than 25 lakhs as per 2001 census.
·                                 10% of the salary in cities having population more than 10 lakhs but up to 25 lakhs as per 2001 census.
·                                 7.5% of salary in other cities.
Where accommodation is taken on lease or rent by the employer. Perquisite Value is least of the following -
·                                 Actual amount of lease rental paid or payable by the employer
·                                 15% of the salary.
Interested readers can find about more about Taxable value of Rent-Free Furnished AccommodationTaxable value of Concession in Rent
Gift or Voucher or Token: [Rule 3(7)(iv)]: The value of any gift or voucher or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise shall determined as equal to the amount of such gift.
However, where the value of such gift, voucher or token, as the case may be, is below Rs.5,000 in the aggregate during the previous year, the value of perquisite shall be taken as Rs.Nil.
Medical Reimbursement by the employer exceeding Rs. 15,000/- p.a. u/s. 17(2)(v) is to be taken as perquisites.
·                                 Links to details about  other perquisites from website accounting-n-taxation are given

 Exempted Perquisites:- Some of the perquisites are exempted from income tax (free) such as:

·                                 Tea, coffee(non-alcoholic beverages), snacks provided during working hours.
·                                 Free Meals provided at the office or business premises during office hours or through paid non-transferable vouchers usable only at eating joints. If the value is up to Rs.50 per meal, it is not taxable. Otherwise, taxable.  Assuming 2 meals per day and 22 working days in a month, it works out to Rs. 2200/- p.m which at times is given in form  food coupons  or Sodexo coupons.
·                                 Recreational facilities provided.
·                                 Good manufactured by employer and sold by him to employees at the concessional (not free) rates. Ex: Motorola providing his employees Motorola mobiles at less than market value or Hindustan Lever giving its products(Surf, Knorr soup) at lesser than market value.
·                                 Amount spent on training of employee including the boarding and lodging expenses of the employees on such a training.
·                                 Telephone and mobile phone facility.
·                                 Computer or laptop whether to use at home or office (ownership is not transferred to employee)
·                                 Loan given at nil or concessional rate of interest by the employer provided the aggregate amount of loan does not exceed 20,000.

·                                 Health club, sports facility.

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