March 29, 2017

One Page Income Tax Return to be Introduced Plus Automated Form 16 for F.Y.2016-17

Simple One Page Income Tax Return to be Introduced – Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.

Ministry of Finance Press Release on Simple One Page Income Tax Return
The Union Finance Minister Shri Arun Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 per cent of their existing liability.

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


While presenting the General Budget 2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. The Finance Minister further said that if a nominal rate of taxation is kept for lower slab, many more people will prefer to come within the tax net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.

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


The Union Finance Minister Shri Jaitley said that the Government is trying to bring within tax-net more people who are evading taxes. So, in order to expand tax net, it is decided to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income up to Rs 5 lakhs other than business income. Also, a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high value transaction.

Download Automated One by One preparation ExcelBased Form 16 Part B for F.Y. 2016-17 [ This Excel Utility can prepare One by One Form 16 Part B ]


In his Budget Speech, the Finance Minister further said that in order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500, available only to assessees upto income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto Rs 3 lakhs per annum. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crore.
In order to make good some of this revenue loss on account of this relief, a surcharge of 10 per cent of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore has been proposed. This is likely to give additional revenue of Rs 2,700 crore.
The Finance Minister said that the direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore.

Source from Gconnect.in

Simple One Page Income Tax Return to be Introduced – Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.

Ministry of Finance Press Release on Simple One Page Income Tax Return
The Union Finance Minister Shri Arun Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 per cent of their existing liability.

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


While presenting the General Budget 2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. The Finance Minister further said that if a nominal rate of taxation is kept for lower slab, many more people will prefer to come within the tax net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.

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


The Union Finance Minister Shri Jaitley said that the Government is trying to bring within tax-net more people who are evading taxes. So, in order to expand tax net, it is decided to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income up to Rs 5 lakhs other than business income. Also, a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high value transaction.

Download Automated One by One preparation ExcelBased Form 16 Part B for F.Y. 2016-17 [ This Excel Utility can prepare One by One Form 16 Part B ]


In his Budget Speech, the Finance Minister further said that in order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500, available only to assessees upto income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto Rs 3 lakhs per annum. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crore.
In order to make good some of this revenue loss on account of this relief, a surcharge of 10 per cent of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore has been proposed. This is likely to give additional revenue of Rs 2,700 crore.
The Finance Minister said that the direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore.

Source from Gconnect.in

March 28, 2017

Automated ITNS 280 Challan for deposit of Tax (Self/Advance) through the Bank

Automated ITNS Challan 280 which is required for the deposit of Self Assessment Tax or Advance Tax or any Tax fine through the Bank. This Excel Based Software can prepare automatic Challan 280 after filling your required data in Data input sheet. After filling this Challan you should check the Bank's Counterfoil, as there have must the Bank BSR Code is found, Your TAN and PAN is found.

........................This file has the following facility.

  • Single time entry of main data
  • No installation, no key feeding, Excel based
  • Relevant data auto filled in challan.
  • Unlimited financial years, Full version not demo
  • Auto convert Amount in to the In Words

Click here to Download the Challan 280 in Excel (Automated)


Automated ITNS Challan 280 which is required for the deposit of Self Assessment Tax or Advance Tax or any Tax fine through the Bank. This Excel Based Software can prepare automatic Challan 280 after filling your required data in Data input sheet. After filling this Challan you should check the Bank's Counterfoil, as there have must the Bank BSR Code is found, Your TAN and PAN is found.

........................This file has the following facility.

  • Single time entry of main data
  • No installation, no key feeding, Excel based
  • Relevant data auto filled in challan.
  • Unlimited financial years, Full version not demo
  • Auto convert Amount in to the In Words

Click here to Download the Challan 280 in Excel (Automated)


March 27, 2017

Who can responsible to Issue the Form 16 ? It is mandatory to issue the Salary Certificate Form 16 to the employee by the employer with Automated Form 16 for F.Y 2016-17

This is the common demand regarding issuing of Form-16 by the Employer to Employee, even if Employer not deducts any Tax from drawn salary.  What shall happen when Employee want's his Salary Certificate Form-16 for the same year.  In such situation, Employer is liable to issue Form-16 to each and every who have already hold the PAN Card.


However, your employer must issue a salary Certificate Form 16 who already holds the PAN Card as per the Income Tax Instruction. Income Tax  Certificate (Form-16) is applicable to such employee who has submitted his Income like as salary or other income (any amount) not deducted or not, during current Financial Year.  If the Employee deducts any amount of Tax during Financial Year, Form-16 must be issued to Employee u/s. 203 of Income Tax Act.

As per the Reserve Bank of India has already circulated to all Nasalized Bank for issuing the form 16 to the Pension Holder. 

This Salary Certificate is most important to PAN Holder who has to work in any sector, like as when any employee who’s Tax not Payable or not fall into the Income Tax Slab, but he gets the Form 16 as his/her proof of Income, which is the need for various purpose.

When any employee willing to get the Bank Loan from any Bank of Branch, the respective Bank asking the Salary Certificate Form 16 as he falls the Tax Slab or not. But the Bank’s requirement the Salary Certificate for giving the Bank Loan either he/she can not be able to get the Bank’s Loan.

Download the Automatic Form 16 for the Financial Year 2016-17 from the below-given link:-    

1 )    Automated One by One Preparation Form 16 Part B for FY 2016-17 [This Excel Utility can prepare One by One Form 16 Part B ]   



2)      Automated One by One Preparation Form 16 Part B and Part A&B for FY 16-17 [ This Excel Utility can prepare One by One Part A&B and Part B both for FY 2016-17]  


   

3)      Automated Master of Form 16 Part B for FY 2016-17 (This Excel Utility can prepare at a time 50 persons Form 16 Pat B )   



4)  Automated Master of Form 16 Part A&B for FY 2016-17 (This Excel Utility can prepare at a time 50 persons Form 16 Pat A&B )   



5)  Automated Master of Form 16 Part B with Form 12 BA for FY 2016-17(This Excel Utility can prepare at a time 50 persons Form 16 Pat B with 12 BA)

This is the common demand regarding issuing of Form-16 by the Employer to Employee, even if Employer not deducts any Tax from drawn salary.  What shall happen when Employee want's his Salary Certificate Form-16 for the same year.  In such situation, Employer is liable to issue Form-16 to each and every who have already hold the PAN Card.


However, your employer must issue a salary Certificate Form 16 who already holds the PAN Card as per the Income Tax Instruction. Income Tax  Certificate (Form-16) is applicable to such employee who has submitted his Income like as salary or other income (any amount) not deducted or not, during current Financial Year.  If the Employee deducts any amount of Tax during Financial Year, Form-16 must be issued to Employee u/s. 203 of Income Tax Act.

As per the Reserve Bank of India has already circulated to all Nasalized Bank for issuing the form 16 to the Pension Holder. 

This Salary Certificate is most important to PAN Holder who has to work in any sector, like as when any employee who’s Tax not Payable or not fall into the Income Tax Slab, but he gets the Form 16 as his/her proof of Income, which is the need for various purpose.

When any employee willing to get the Bank Loan from any Bank of Branch, the respective Bank asking the Salary Certificate Form 16 as he falls the Tax Slab or not. But the Bank’s requirement the Salary Certificate for giving the Bank Loan either he/she can not be able to get the Bank’s Loan.

Download the Automatic Form 16 for the Financial Year 2016-17 from the below-given link:-    

1 )    Automated One by One Preparation Form 16 Part B for FY 2016-17 [This Excel Utility can prepare One by One Form 16 Part B ]   



2)      Automated One by One Preparation Form 16 Part B and Part A&B for FY 16-17 [ This Excel Utility can prepare One by One Part A&B and Part B both for FY 2016-17]  


   

3)      Automated Master of Form 16 Part B for FY 2016-17 (This Excel Utility can prepare at a time 50 persons Form 16 Pat B )   



4)  Automated Master of Form 16 Part A&B for FY 2016-17 (This Excel Utility can prepare at a time 50 persons Form 16 Pat A&B )   



5)  Automated Master of Form 16 Part B with Form 12 BA for FY 2016-17(This Excel Utility can prepare at a time 50 persons Form 16 Pat B with 12 BA)

March 26, 2017

15 Ways Budget 2017 Impacts Your Taxes and Investments + Automatic Form 16 Part B for F.Y.2016-17

Budget 2017 made several changes in terms of Income Tax of Individuals & businesses, the filing of Income Tax Returns, Capital Gains and Investments. We list them in detail below:

Income Tax: Budget 2017 Changes

1. Reduced Tax for Lower slab:

The tax rate for income between Rs 2.5 lakh to Rs 5 lakhs has been reduced to 5% from 10%. This reduction would not benefit Very Senior Citizens ( the person who are aged 80 years or more) as they had NO taxes in this slab.

2. 10% Surcharge for Income above Rs 50 Lakhs

Budget 2017 has introduced 10% surcharge for people with taxable income of more than Rs 50 lakhs but less than Rs 1 crore. The surcharge of 15% on income above Rs 1 crore still applies.

Download Automated Income Tax Form 16 Part B for F.Y. 2016-17 & A.Y.2017-18 which can prepare at a time 50 employees Form 16 Part B for F.Y.2016-17

3. Rebate under Section 87A reduced to Rs 2,500

The income tax rebate under section 87A has been reduced from Rs 5,000 to Rs 2,500. Also, the eligibility of taxable income limit has been reduced from Rs 5 lakh to Rs 3.5 lakh. HUF or NRIs are not eligible for this rebate.

4. NO RGESS Tax exemption from FY 2017-18

Tax exemption under section 80CCG for RGESS (Rajiv Gandhi Equity Scheme) would NOT be available from FY 2017-18 onwards. The deduction was introduced in Budget 2012 to encourage retail participation in the stock market but failed to take off as desired.

Download Automated Tax Form 16 Part A & B for Financial Year 2016-17, this Excel Utility can prepare at a time 50 employees Form 16 Part A & B for f.Y. 2016-17

5. Interest deduction on rented property capped at Rs 2 Lakh

Budget 2017 has bridged the gap between self-occupied and rented property by capping the deduction on home loan interest to Rs 2 lakh in both cases. Earlier for rented property, there was NO capping. However additional loss can be carried forward for 8 years.

6. More tax deduction on NPS for self-employed

From next financial year, self-employed individuals can claim deduction up to 20% of their gross income for the contribution made to National Pension System (NPS). The limit was 10% earlier. This deduction is part of Section 80C and hence not very beneficial!
Additional tax deduction on investment up to Rs. 50,000 under Section 80CCD (1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed.

7. Tax-exemption to partial withdrawal from NPS

Partial withdrawal up to 25% of the contribution made by an employee would be exempted from tax.

Download Automated Form 16 Part A & B and Part B for Financial Year 2016-17, this excel utility can prepare  One by One Form 16 Part A&B and Part B for Financial Year 2016-17

8. Penalty for Late filing of Income Tax Return

If the income tax return is filed after the due date but on or before the December 31 of the assessment year, there will be a fine of Rs 5,000. In all other cases, there would be fine of Rs 10,000. However, in case the total income is less than Rs 5 lakh, the penalty should not exceed Rs 1,000.

9. Simple Tax Return Form:

A simple one-page income tax return (ITR) form would be introduced for people with income less than Rs 5 lakhs with NO income from Business.

10. NO Scrutiny for First Time ITR

There would be NO scrutiny of income tax returns for people who file ITR for the first time unless there is specific information available with the Department regarding his high-value transactions.

11. Reduced Time to revise ITR

The time period to revise tax returns has been reduced to 12 months.

12. Limit of Rs 3 Lakh for cash transaction

Now you cannot pay more than Rs 3 lakh in cash for any transaction. This limit is not only per day but per transaction and per event.

13. Cash Donation Limit to Rs 2,000

Any donation above Rs 2,000 in cash would not be eligible for tax exemption u/s 80G. Donations have to be digital or by cheque to qualify for tax breaks.

14. Reduced Cash Expense Exemption

The limit on cash expenses claimed by a person has been reduced from Rs 20,000 to Rs 10,000 per day.

15. Cash donation to Political parties restricted to Rs. 2,000


Political parties can receive cash donations of only Rs. 2,000. They can receive cheques and digital payments. People willing to donate can do so by buying election donor bonds. These bonds will be redeemable.
Budget 2017 made several changes in terms of Income Tax of Individuals & businesses, the filing of Income Tax Returns, Capital Gains and Investments. We list them in detail below:

Income Tax: Budget 2017 Changes

1. Reduced Tax for Lower slab:

The tax rate for income between Rs 2.5 lakh to Rs 5 lakhs has been reduced to 5% from 10%. This reduction would not benefit Very Senior Citizens ( the person who are aged 80 years or more) as they had NO taxes in this slab.

2. 10% Surcharge for Income above Rs 50 Lakhs

Budget 2017 has introduced 10% surcharge for people with taxable income of more than Rs 50 lakhs but less than Rs 1 crore. The surcharge of 15% on income above Rs 1 crore still applies.

Download Automated Income Tax Form 16 Part B for F.Y. 2016-17 & A.Y.2017-18 which can prepare at a time 50 employees Form 16 Part B for F.Y.2016-17

3. Rebate under Section 87A reduced to Rs 2,500

The income tax rebate under section 87A has been reduced from Rs 5,000 to Rs 2,500. Also, the eligibility of taxable income limit has been reduced from Rs 5 lakh to Rs 3.5 lakh. HUF or NRIs are not eligible for this rebate.

4. NO RGESS Tax exemption from FY 2017-18

Tax exemption under section 80CCG for RGESS (Rajiv Gandhi Equity Scheme) would NOT be available from FY 2017-18 onwards. The deduction was introduced in Budget 2012 to encourage retail participation in the stock market but failed to take off as desired.

Download Automated Tax Form 16 Part A & B for Financial Year 2016-17, this Excel Utility can prepare at a time 50 employees Form 16 Part A & B for f.Y. 2016-17

5. Interest deduction on rented property capped at Rs 2 Lakh

Budget 2017 has bridged the gap between self-occupied and rented property by capping the deduction on home loan interest to Rs 2 lakh in both cases. Earlier for rented property, there was NO capping. However additional loss can be carried forward for 8 years.

6. More tax deduction on NPS for self-employed

From next financial year, self-employed individuals can claim deduction up to 20% of their gross income for the contribution made to National Pension System (NPS). The limit was 10% earlier. This deduction is part of Section 80C and hence not very beneficial!
Additional tax deduction on investment up to Rs. 50,000 under Section 80CCD (1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed.

7. Tax-exemption to partial withdrawal from NPS

Partial withdrawal up to 25% of the contribution made by an employee would be exempted from tax.

Download Automated Form 16 Part A & B and Part B for Financial Year 2016-17, this excel utility can prepare  One by One Form 16 Part A&B and Part B for Financial Year 2016-17

8. Penalty for Late filing of Income Tax Return

If the income tax return is filed after the due date but on or before the December 31 of the assessment year, there will be a fine of Rs 5,000. In all other cases, there would be fine of Rs 10,000. However, in case the total income is less than Rs 5 lakh, the penalty should not exceed Rs 1,000.

9. Simple Tax Return Form:

A simple one-page income tax return (ITR) form would be introduced for people with income less than Rs 5 lakhs with NO income from Business.

10. NO Scrutiny for First Time ITR

There would be NO scrutiny of income tax returns for people who file ITR for the first time unless there is specific information available with the Department regarding his high-value transactions.

11. Reduced Time to revise ITR

The time period to revise tax returns has been reduced to 12 months.

12. Limit of Rs 3 Lakh for cash transaction

Now you cannot pay more than Rs 3 lakh in cash for any transaction. This limit is not only per day but per transaction and per event.

13. Cash Donation Limit to Rs 2,000

Any donation above Rs 2,000 in cash would not be eligible for tax exemption u/s 80G. Donations have to be digital or by cheque to qualify for tax breaks.

14. Reduced Cash Expense Exemption

The limit on cash expenses claimed by a person has been reduced from Rs 20,000 to Rs 10,000 per day.

15. Cash donation to Political parties restricted to Rs. 2,000


Political parties can receive cash donations of only Rs. 2,000. They can receive cheques and digital payments. People willing to donate can do so by buying election donor bonds. These bonds will be redeemable.

 
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