What is the Difference between E.P.F. and G.P.F. Plus Automated G.P.F. Calculator

Difference between Employees Provident Fund (E.P.F) and Public Provident Fund (P.P.F) And the (G.P.F.) General Provident Fund

The Government with a view to secure post retirement life of employees formed an organization named Employees Provident Fund Organization (EPFO). This organization is responsible to manage Provident fund which aims to secure future with stable returns after retirement or certain age.

But EPFO is only for salaried individuals, for other professionals there is a scheme called Public Provident Fund (PPF) which is maintained by Post Office or few specified banks.
In India there are three types of provident fund
Employee Provident Fund (E.P.F)
Public Provident Fund (P.P.F)
General Provident Fund (G.P.F./V.P.F)
Each type of fund has different features but with same motto of providing retirement benefits to the contributor.

Let’s see the each scheme individually:

What is Employee Provident Fund (E.P.F)?
The Employee Provident Fund, or provident fund as it is normally referred to, is a retirement benefit scheme that is for organized and unorganized sector (Private Sector) employees.
In case employee wishes to contribute more than the mandatory amount, he can do so by opting for Voluntary Provident Fund (V.P.F). This is beyond employee EPF contribution of 12%. Also Employee contribution towards VPF does not bound employer to contribute to this VPF. Maximum contribution into VPF can be upto 100% of Basic Salary including Dearness Allowances. This would carry same rate of interest of E.P.F. The amount would be credited to E.P.F account and there is no separate account for V.P.F.

What is Public Provident Fund (P.P.F)?

PPF is established by central government to secure future of non-salaried employees, such as consultant, freelancer, contractor etc, even an unemployed person can open P.P.F account with a nominal amount of Rs.100.

What is General Provident Fund (G.P.F)?

General Provident Fund is only for Government Employees. Under this scheme government employees contribute a specific amount which is decided by the Government but there is no contribution from Government side. As per the Govt Service Rules the G.P.F Contribution not less than 6.5% of the total salary ,which can contribute by the employee from his side.

Free download G.P.F. Calculator in Excel.

How to download Form 16 Part A from the TRACES PORTAL,Plus download Automated All in One TDS on Salary for FY 2014-15

As per the CBDT Notification that the Form 16 Part A is mandatory to download from the TRACES PORTAL ( www.tdscpc.gov.in) . Most of Deductor have not yet know know how to download the Form 16 Part A from the TRACES Portal. It is most easy to download the Part A of Form 16 and Form 16 A.
First Log In  the TRACES Portal as a Deductor. If you yet not Register your TAN by this TRACE Portal then you first Register your TAN in this Portal and after Register Log in  as a Deductor. After Log In you should download the Form 16 Part A. Below given the Picture of the TRACES Portal. But the Form 16 Part B is mandatory to prepare by the Deductor. Part A can you Download from the Portal but the Part B must be prepare by the deductor which Part B have in the all details of Salary of an employee. 

If you have need Excel Based Income Tax preparation Software for the Financial Year 2014-15, which can prepare at a time Tax Computed Sheet + Individual Salary Sheet + Automatic Form 16 Part B + Automatic Form 16 Part A&B + Automatic Arrears Relief Calculator + Form 10E + Automatic HRA Exemption Calculation in a single File. 

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What is the Procedure of Calculation of Arrears Relief Calculation U/s 89(1) with Automatic Arrears Relief Calculator with Form 10E


Below given the method of calculation u/s 89(1)as per the Income tax rules.


Scope of relief under the section in five situations explained

1. Section 89(1) authorises grant of relief in a case where an employee receives salary in arrears or in advance or has received in any financial year salary for more than twelve months, a payment which under the provisions of section 17(3)(ii) is a profit in lieu of salary.  The effect of such increase is that the income will be assessed at a higher rate than it otherwise would have been assessed and it is for this reason that section 89(1) authorises relief to be allowed.  The relief is to be allowed in terms of rule 21A of the Income-tax Rules, 1962.

2. Rule 21A(1) enumerates the following five different situations wherein the assessees will be entitled to relief (four of these are specific situations while the fifth is a residuary one) :

   a.  salary being received in arrears or advance;
   b.  where the payment is in the nature of gratuity in respect of past services extending over a period of not less than five years is received;
   c.  where the payment is in the nature of compensation received by the employee from his employer or former employer at or in connection with termination of his employment after continuous service of not less than three years and where the unexpired portion of the term of employment is also not less than three years;
   d.  where the payment is in the nature of commutation of pension;
   e.  where the payment is not covered by the description given in (a) to (d) above.
The relief is to be worked out in the first four situations in accordance with the specific modes described in rule 21A (2)(a) to (d).

3. The authority to grant relief in the four specific cases is the Income-tax Officer assessing the employee.  In the residua case, it is Central Board of Direct Taxes.

4. The relief under section 89(1) is to be given in the assessment in which the extra payment by way of arrears, advance, etc., is taxed. The mode of granting relief spelt out in rule 21A(2) to 21A(5) would show that in all the four different cases the exercise of giving relief is initiated by bringing to tax the whole of the extra amount in the assessment for the assessment year relevant to the year of receipt. Basically, the relief under section 89(1) is arithmetical. It involves finding out of two rates of tax. The first is the rate of tax applicable to the total income including the extra amount in the year of receipt. The second is finding out the rate by adding the arrears to the total income of the years to which they relate. For this purpose the assessee should be asked for a true and authentic statement of the total income of the earlier years to which the arrears pertain  There is no warrant for issuing a notice under section 148 or calling for returns of income of the earlier years.
Circular : No. 331 [F.  No. 174/102/79-IT(A-I)], dated 22-3-1982.

Automated Amended Form 16 with Automatic Form 12 BA for the Financial Year 2014-15 and Assessment Year 2015-16

As per the Income Tax Department's New Notification Dated 19/2/2013 that the Salary Certificate Form 16 have already Changed  the Format of Form 16. In this New Format of Form 16 have two parts one of Part A and another is Part B. In Part A have the details of Tax Deposited in to the Central Govt and in the Part B have the details of employee's Salary Details. As per the previous format of Form 16 have One Part but this new Amended Form 16 have two parts. Most of the Employer have not know about this new Notification of the CBDT. Below Given the Snap Shot of New Amended Form 16. 

Given below the Excel Based Software which can prepare the Automatic Form 16  with Form 12 BA(Value of Perquisite).This Excel Based Software can prepare at a time 50 employees Form 16 and Form 12 BA just a moment.

Click here to download the Automated Form 16 with Form 12 BA for the Financial Year 2014-15 and Assessment Year 2015-16 [This  Excel Based Software  can prepare at a time 50 employees Form 16 with Form 12 BA]

Get Tax Rebate Rs.2,000/- from the Income Tax Section 87 A with Aumatic TDS +Arrears Relief Calculation+HRA Calculation+Form 16 Part B and Part A&B for FY 2013-14

Click here to Download Automated Form 16 Part B and Part A&B for FY 2013-14

 As per the Central Finance Budget 2013, The great news about the Income Tax Rebate  can get the tax payers who’s taxable Income not more than 5 Lakhs, It has been announced in Budget 2013 for Assessment Year 2014-15 worth Rs. 2000/-.  This rebate can be availed under section 87A.   For more clarity it is necessary to read clauses 19 and 20 of the bill as given below :-

Clauses 19 and 20 of the Bill seek to amend section 87 and insert a new section 87A in the Income-tax Act relating to rebate of income-tax in case of certain individuals.

The proposed new section 87A seeks to provide that an assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under Chapter VIII of the Income-tax Act) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent. of such income-tax or an amount of two thousand rupees, whichever is less.

Consequential amendments have been proposed in section 87, so as to provide reference to proposed new section 87A.

These amendments will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.

Automatic Tax Computed Sheet+Salary Sheet+Salary Structure+Automatic Arrears Relief+Automatic HRA Exemption+Form 16 Part B+Form 16 Part A&B Financial Year 2014-15 for Govt & Non Govt Employees

Now it is most common to prepare the Income Tax Calculation with the Form 16 through the Computer and also it make through the popular software of Excel. Various Excel Based Income Tax Software have in the Web Site and where can prepare only the Income Tax amount and Form 16 which is not built the Automatically. 

Download & Prepare at a time Tax Compute sheet + Individual Salary Structure + Individual Salary sheet + Arrears Relief Calculation + Form 10E + HRA Calculation + Form 16 Part A&B and Part B for the Financial Year 2014-15 

Feature of this utility:-
  • Automatic Calculate the Income Tax
  • Automatic Calculate the Arrears Relief Calculation
  • Automatic Calculation HRA Exemption
  • Automatic prepare the Form 16 Part B
  • Automatic prepare the Form 16 Part A&B
  • Automatic convert the Amount in to the In Words

Download the Excel Utility All in One TDS on Salary for Financial Year 2014-15

New CBDT Circular about mandatory to download Salary Certificate Form 16 Part A from the TRACES Portal,With Automated Master of Form 16 Part B for FY 2014-15

Download Master of Form 16 Part B for the Financial Year 2014-15 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B for the Financial Year 2014-15]     

 Most of the Tax Payers and Tax Practitioners  have not know about the Salary Certificate Form 16 have  in two parts  as Part A and Part B.In Part A have the details of Tax Deducted and deposited to the Central Govt Accounts and Part B have the all details of Salary of an employee. Previously this Form 16 part A and Part B have prepared by the employer. But Now the Income Tax Department have  published the Circular vide No 4/2013 Dated 17/4/2013 that the Salary Certificate Form 16 Part A is mandatory to download from the New Income Tax portal TRACES. It is also mandatory to prepare the Form 16 Part B by the employer of Govt and Non Govt concerned.What is the Circular of Income Tax said? you can read the Circular as given below :-

       CIRCULAR NO. 04/2013

      New Delhi, the 17th  April, 2013

Sub: Issuance of certificate for tax deducted at source in Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules 1962 -- regarding

1. Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc. The relevant form for such TDS certificate is Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provision of Chapter XVII-B of the Act. TDS certificate in Form No. 16 is to be issued annually whereas TDS certificate in Form No. 16A is to be issued quarterly. TDS Certificate in Form No 16 as notified vide Notification No. 11/2013 dated 19.02.2013 has two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

2. With a view to streamline the TDS procedures, including proper administration of the Act, the Board had issued Circular No. 03/2011 dated 13.05.2011 and Circular No. 01/2012 dated 09.04.2012 making it mandatory for all deductors to issue TDS certificate in Form No. 16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (Error! Hyperlink reference not valid., previously called TIN web-site. In exercise of powers under section 119 of the Act, the Board has now decided as following:-


All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading through TRACES Portal, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number.


The deductor, issuing the Part A of Form No. 16 by downloading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents

mentioned therein and verify the same either by using manual signature or by using digital signature in accordance with sub-rule (6) of Rule 31.

2.3              In other words, Part A of Form No. 16 shall be issued by all the deductors, only by generating it through TRACES Portal and after duly authenticating and verifying it.

2.4              ‘Part B (Annexure)’ of Form No. 16 shall be prepared by the deductor manually and issued to the deductee after due authentication and verification alongwith the Part A of the Form No. 16 stated above.

2.5              Sub rule (3) of rule 31of the Rules sets the time limit for issuance of Form 16 by the deductor to the employee. Currently, Form 16 should be issued by 31st May of the financial Year immediately following the financial year in which income was paid and tax deducted.

3.1    The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of download of Part A of Form No. 16 from the TRACES Portal and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for download of Part A of Form No. 16 in electronic form.

3.2   It is further clarified that Part A of Form No. 16 issued by the deductors in accordance with this circular and as per the procedure, formats and standards specified by the Director General of Income-tax (Systems) and containing Unique Identification Number shall only be treated as a valid compliance to the issue of Part A of Form No. 16 for the purpose of section 203 of the Act read with rule 31 of the Rules.

4. Hindi version shall follow.
                                                                                                     (Anshu Prakash) 
                                                                                                      Director (Budget)

Central Board of Direct Taxes

Copy to:

1.                  The Chairperson, Members and all other officers of the CBDT of the rank of Under Secretary and above
2.                  All Chief Commissioners of Income-tax (CCA) & All Directors General of Income-tax

3.                   The Director (PR, PP & OL), Mayur Bhawan, New Delhi for printing in the quarterly tax bulletin and for circulation as per usual mailing list (100 copies)
4.                  The Comptroller and Auditor General of India (40 copies)

5.                  All Directors of Income Tax, New Delhi;

6.                  All CsIT (TDS)

7.                  The Director General of Income-tax, NADT, Nagpur

8.                  Guard file
                                                                                                             (Anshu Prakash)
                                                                                                               Director (Budget)
                                                                                                    Central Board of Direct Taxes

Download and Prepare at a time 100 employees Form 16 Part B for the Financial Year 2014-15

All about 80C Deduction after Finance Budget 2014, with Automatic All in One TDS on Salary for Govt and Non Govt employees for the Financial Year 2014-15

Click here to Download Automatic All in One Income Tax Preparation Excel Based Software for FY 2014-15 (This Excel Based Software  can prepare at a time Income Tax Computed Sheet + Individual Salary Sheet + Individual Salary Structure for Govt and Non Govt employees + Automatic Arrears Relief Calculator + Automatic HRA Exemption + Form 16 Part B and Form 16 Part A&B for Govt and Non Govt Concern's Employees for the Financial Year 2014-15 and Assessment Year 2015-16)

Under Section 80 C ( Max Limit Rs. 1.5 Lakh)
The total limit under section 80C is Rs 1 lakh. Included under this heading are many small savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C

Most of the Income Tax payee try to save tax by saving under Section 80C of the Income Tax Act.  However, it is important to know the Section in toto so that one can make best use of the options available for exemption under income tax Act.   One important point to note here is that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions.
Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction
Sec 80C of the Income Tax Act is the section that deals with these tax breaks. It states that qualifying investments, up to a maximum of Rs. 1 Lakh, are deductible from your income. This means that your income gets reduced by this investment amount (up to Rs. 1 Lakh), and you end up paying no tax on it at all!
This benefit is available to everyone, irrespective of their income levels. Thus, if you are in the highest tax bracket of 30%, and you invest the full Rs. 1 Lakh, you save tax of Rs. 30,000. Isn’t this great? So, let’s understand the qualifying investments first.
Qualifying Investments
Provident Fund (PF) & Voluntary Provident Fund (VPF: PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.
Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 70,000. A point worth noting is that interest rate is assured but not fixed. Interest on PPF  is proposed to increase to 8.60% and Investment Limit is also expected to increase to Rs. 1,50,000/- 
Life Insurance Premiums: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.
Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.
Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.
Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

National Savings Certificate (NSC): National Savings Certificate (NSC) is a 6-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

Pension Funds – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it maeans that the total deduction available for 80CCC and 80C is Rs. 1 Lakh.This also means that your investment in pension funds upto Rs. 1 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed Rs. 1 Lakh.
5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.
Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.
5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.
NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.
Unit linked Insurance Plan : ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments.They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.
Others: Apart form the major avenues listed above, there are some other things, like children’s education expense (for which you need receipts), that can be claimed as deductions under Sec 80C.
So, where should you invest?
Like most other things in personal finance, the answer varies from person to person. But the following can be the broad principles:
Provident Fund: This is deducted compulsorily, and there is no running away from it! So, this has to be the first. Also, apart from saving tax now, it builds a long term, tax-free retirement corpus for you.
Home Loan Principal: If you are paying the EMI for a home loan, this one is automatic too! So, it comes as a close second.
Life Insurance Premiums: Every earning person having dependents should have adequate life insurance coverage. (For more on this, please read “Life after life – Why you should buy Life Insurance”) Therefore, life insurance premium payments are the next.
Voluntary Provident Fund (VPF) / Public Provident Fund (PPF): If you think that the PF being deducted from your salary is not enough, you should invest some more in VPF, or in PPF.
Equity Linked Savings Scheme (ELSS): After the above, if you have not reached the limit of Rs. 1,50,000, then you should invest the remaining amount in Equity Linked Savings Scheme (ELSS).

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