SALARY PERQUISITES SECTION 17( 2) with all type of Perquisite Calculator and Automated Form 16 Part B with Form 12 BA for F.Y.2014-15

Perquisites mean any casual emoluments, fees or profit attached to an office in addition to salary and wages. In simple words, it’s a personal advantage. It does not cover a mere reimbursement of any expenditure incidental to the employment.

Download All in One Value of Perquisite U/s 17(2) [ All type of Value of Calculator U/s 17(2)

Like if an employee is provided with a watchman for official use there is no personal advantage to the employee, hence there is no perquisites. If the watchman is provided for personal as well as official use, the value of the perquisites only relating to personal use is taxable. Similarly if the travelling bills for official duties are reimbursed to the employee, there is no advantage to the assesse, so it is not a perquisite.

The perquisites may be in cash or in kind or in the money or money’s worth and also in amenities which are not convertible to the money.

All cash allowance is included in the ordinary meaning of perquisites: - all cash allowance is included and hence taxable under section 17(2) of income tax act. City compensatory allowance, bad climate allowance, shift allowance and incentive bonus are included as perquisites under section 17(2) of income tax act.

A perquisite is taxable as salary only when it is provided by the employer during the continuance of employment: - any perquisites allowed by a person other than employer is taxable as income from other sources. For example tips received by hotel waiters from customers are taxable as income from other sources

Wide scope of the inclusive definition of perquisites: - the definition of the perquisites is inclusive but not limited to them only. The scope of an inclusive definition cannot be restricted only to those words which accrue in definition, but with extend to many other things not mentioned in it. Therefore, any other item not listed in the definition of perquisites will have to be evaluated in accordance with the general and commercial meaning of the word perquisites.
Section 17(2) of income tax perquisites includes.
1- Rent free accommodation under section 17(2) 1
2- Accommodation in confessional rate of rent under section 17(2) 2
3- Any benefit or amenity to the specified employee who is either a director of has a substantial interest in the company or whose income under salaries exceeds Rs. 50000 under section 17(2)3
4- Obligation of the employee paid or reimbursed by the employer under section 17(2)4
5- Any sum payable by the employer to effect an assurance on the life of the assesse or to effect a contract of annuity under section 17(2) 5
6- Prescribed fringe benefits or amenity under section 17(2)6

When an employee receives ‘perquisites’ from his job, Form 12BA is provided by his employer to the employee. Perquisites are the benefits derived from a job or a position and these are in addition to salary already being paid to the employee.

This form is basically a detailed statement with information about perquisites, fringe benefits or amenities and profits in lieu of salary. The Income Tax Act has set out rules for calculation of monetary value of these perquisites. The value of these payments is shown in the form and also the amount that is taxable for the employee towards these perquisites.
Do note that this is form is additional to the Form 16 you will receive from the employer. Value of Perquisites u/s17(2) of the Income Tax Act is already included in the Part B of your Form 16. The TDS deducted on perquisites is also included in Form 16. Therefore Form 12BA is an additional detail meant only for perquisites. 

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

Tax Savings and Benefits in Budget 2015-16,with All in One TDS on Salary for Govt and Non-Govt employees for FY 2015-16 and AY 2016-17

Download All in One TDS on Salary for Govt and Non-Govt employees for the Financial Year 2015-16 and Assessment year 2016-17.[This Excel Utility Can prepare at a time your Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure + Automatic HRA Calculation + Automatic Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Form 16 Part B ]

The FM has extended tax concessions mostly for senior citizens in this Budget without doing any changes in Income Tax Slabs and there are no changes in Section 80C limits for the salaried. The FM also went all out to fight against black money announcing a string of stringent tax measures for concealment of foreign income or non-disclosure of foreign assets in Income Tax Returns.
Section 80D limit raised to Rs 30,000 – Deductions under section 80D are allowed on health insurance premium paid. In case of premium paid for senior citizens the deduction allowed shall be up to Rs 30,000. This is a great relief to Senior Citizens who may have to shell out a higher premium. This limit was Rs 20,000 earlier.

Under Section 80DDB – Deduction towards medical treatment for senior citizens suffering from specified diseases raised from Rs 60,000 to Rs 80,000. If actual expenses incurred for treatment are lower, such lower amount shall be allowed as a deduction.

Deduction for Medical Expenses for Super Senior Citizens up to Rs 30,000: Individuals who are more than 80 years old shall be allowed a deduction for medical expenses of up to Rs 30,000 from their total income.

Service Tax Exemption on premium paid by Senior Citizens for Varishtha Bima Yojana – Senior citizens shall not be required to pay for service tax component on insurance premium of this bima.

For those less than 60 years old
Increased deduction under section 80D to Rs 25,000 from Rs 15,000 – when you pay health insurance premium for self or spouse or children (allowed for dependent children) you can now claim a deduction of Rs 25,000 instead of Rs 15,000 allowed earlier. This increase is a great encouragement to tax payers to insure their health if they haven’t already.

Under Section 80U – where disability is 40% or more but less than 80% the fixed deduction. The deduction earlier allowed was Rs 50,000 which is now raised to Rs 75,000. And in case of more than 80% disability deduction allowed was Rs 1,00,000 which is now raised to Rs 1,25,000.

Transport Allowance now Rs 1600 pm up from Rs 800 pm – Total exemption that will be allowed on transport allowance is now Rs 19,200 annually instead of Rs 9,600 earlier. This limit has been revised after several years and will be a welcome relief for low income earners.

Interest earned on Sukanya Samridhi Account to be fully tax free – Under this scheme a minimum amount of Rs 1,000 has to be deposited each year for the girl child account. A maximum Rs 1,50,000 can be invested in each financial year. The amount deposited in this account shall be eligible for deduction under section 80C. The FM announced that interest payments shall be fully exempt from tax.

Additional deduction of Rs 50,000 towards contributions to Pension Funds – The FM emphasized the government is committed to ensuring pension for the common man and towards this effort they enhanced the deduction under section 80CCD by Rs 50,000 for contribution to pension funds.

File your Income Tax Return Online without download any Excel Based Utility for the Assessment Year 2015-16

Income Tax Department has come up with a New user friendly online Income Tax Return filing tool. Unlike the tools provided earlier in which we have to fill up an offline Excel sheet, the new Income Tax tool has a neat online interface for filling up and saving data at once. Undoubtedly, the new online Income Tax Return filing facility is user friendly and professional.
We could see that presently this online tool is applicable only for ITR-1 and ITR-4S. We hope to Income Tax Department would extend this online tool to ITR-2 also in the near future.
While many of the salaried employees finished ITR filing as the deadline for the same is round the corner, some of the employees who have taxable income not  more than Rs 5 lakh were waiting for income tax notification for exempting them from filing income tax return like previous years.
But income tax department has clarified that there will not be any exemption this year for salaried employees from filing income tax return. The main reason putforth by income tax department for for not extending exemption from filing income tax return is enhanced and user friendly e-filing features have been provided in the official income tax website which would facilitate all salaried employees to file their IT return online
Here is an intro to this useful tool
1. Go to this Income Tax Department’s Official online ITR filing Website. Register using your PAN and get user name and password, if you have not already registered.
2. Login in to New Income Tax E-filing tool
3. Once you have successfully logged in you will land in to following page
4. After you select the ITR type and relevant year for which ITR has to be filed, entry page of ITR will be shown. The first tab will be containing the instructions for filling the data
5. As you are in logged in session, it is adviceable to save the data entered after each tab is completed. However Submit Button has to be used only after entry of all the data. The following Screenshot is Personal Information entry tab. Once entry is completed save the data as draft and proceed to next tab.
6. Following Screenshots are relating to entry tabs for Income Tax details, Details of Income Tax Deducted by employer, and Bank Account details. After entry of data in all these tabs are completed, click Submit button to generate ITR-V Button. ITR-V is a document which contains the summary of your income, deductions and income tax paid. This document has to be signed and sent to the Income Tax Central Processing Centre at Bangalore. Address of this centre will be available in the mail sent to you attaching filled up ITR-V form. Please note that Online E-filing will get completed only after receipt of this ITR-V at Central Processing Centre at Bangalore.
As per the CBDT has mandatory to mention the Aadhar Card for the Assessment Year 2015-16

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