Taxation Practicals .docx

TAXATION PRACTICALS CH 1 1.A. PROCEDURE TO DOWNLOAD FORMS 16 AND 16 A FROM TRACES B. COMPUTATION OF INDIVIDUALS INCOME TAX RETURNS THROUGH FORM 16, EXPLAIN THE PROCEDURE TO FILE IT RETURNS ONLINE[ ENCLOSE PROFORMAA ( DUMMY FORM 16OF AN INDIVIDUAL)] C. TDS SIGNIFICANCE ANd ELIGIBLITY CONDITIONS[ EFILING AND CHALLAN] ENCLOSE CH2 A. SIGNIFICANCE OF FORM 10BA [ ENCLOSE FOR 10BA DUMMY FORM] B. RULES PERTAINING TO CLAIM 80G, AND HRA FOR AN INDIVIDUAL WHILE PROCESSING FORM 16 CH3 A. PROCEDURE FOR UPLOADING FORM 3CA , 3CB B. SIGNIFICANCE OF MSME REGISTRATION AND THE BENEFITS AVAILABLE FOR MSME \SSI CH4. A. PROCEDURE FOR ONLINE REGISTRATION OF GST WITH ELIGIBLITY CRITERIA FOR BUSINESS ENTERPRIZES \ INDIVIDUAL[ SOLE TRADER ETC] B. CLASSIFICATION OF HSN, GSTR FORM, CH5. A.GST CONCEPT AND PENALTY FOR FAILING TO FILE GST B. PENALTY AND PROCECUTION FOR FAILING TO FILE IT RETURN OF INDIVIDUALS \HUF\ COMPANIES

1. What is Form 16? Form 16 is a certificate issued by the employer to his employee as per the format provided by the Income tax Department. Form 16 certifies that the TDS (Tax Deducted at Source) has been deducted on salary by the employer. It has two parts, Form 16 Part A and Form 16 Part B. A Form 16 helps an Individual file his Income tax return easily. By referring to the Form 16 an Individual can fill up the Income tax Form in a better way. Uploading Form 16 on myITreturn.com makes income tax return filing quiet convenient and reduces the in-accuracy and time taken to file Income tax return.

2. How to read or understand a Form 16 document? Part A of Form 16 Form 16 Part A is generated and downloaded by the employer from TRACES portal of Income tax Department. Part A of a Form 16 contains following details: 1. 2. 3. 4. 5. 6.

Name and Address of the Employer. Name and Address of the Employee. PAN and TAN of the deductor / employer. PAN of Employee. Amount paid / credited. Tax deducted at source.

A sample Part A of a Form 16 as per the format of Income tax Department is as below:

Part B of Form 16 Form 16 Part B is an Annexure to Part A. It contains the following details: 1. 2. 3. 4. 5. 6.

Break up of Salary. Other Income declared by the employee to his employer. Deductions under Chapter VI A. Relief under Section 89. Tax deducted at source. Net Income tax which is payable / refundable.

A sample Part B of a Form 16 as per the format of Income tax Department is as below:

3. What is Income from salary? Any amount received by the taxpayer from employment is taxable as Income from Salaries. Salary includes basic salary, wages, allowances, bonus, leave encashment, gratuity, pension and any other amount or benefit received from the employer. Form 16 is issued by the employer for TDS deducted and salary paid.

4. Is there any due date for issuance of Form 16? Form 16 is issued once in a year to an employee, on or before 15th June of the year immediately following the Financial Year in which Income tax is deducted.

5. From where do I get my Form 16? Form 16 is given by your employer / deductor when he deducts TDS (Tax Deducted at Source, visible in Part-A of the Form 16 ) on salary paid. It is a must for an employer to issue Form 16 to its employee in case there is any deduction of TDS.

6. Is Form 16 necessary to file an Income tax return? For a salaried person, Form 16 is one of the most important document to file their Income tax return. As Form 16 carries various details of the Salary paid, house property, Other source of income, deductions and tax paid or deducted. It is quite necessary to have your Form 16 before filing the Income tax return. In case you do not have it, you may still file your Income tax return without it but will have to manually enter all the details in the Income tax form.

7. Can Income tax filing be done without Form 16? Yes, Income tax filing can be done without Form 16 , though it is recommended for Income tax return filing and the employee should get the Form 16 from his employer every year. In the absence of Form 16, the employee can refer his salary receipts to prepare annual income and tds detail.

8.What to do if TDS is deducted by the employer but Form 16 not provided?

Every employer who deducts TDS from salary has to issue Form 16 in a specific format within the stipulated time. If the employer does not issue Form 16 within the stipulated time, he is liable for penalty under Income tax Act. Thus, it is compulsory for the employer to issue Form 16. You may raise a grievance to the Income tax department in this regard by contacting your local Income office or through the Aaykar Sampark Kendra. Visit - https://www.incometaxindiaefiling.gov.in/main/contactUs?lang=eng In certain conditions, you can download your 26 AS and fill up the Income tax Return form referring that.

9. Some deductions are not reflecting in my Form 16. Can I claim them in my return filing? Yes. In case you missed to report somel deductions to your employer by the end of the financial year, or by any reason some information is missing in your Form 16, you can add them in your Income tax return form while filing your Income tax return. If those deductions are within the allowed limits, you shall be able to claim them.

10. Even if no income tax has been deducted from salary, is there any need for my employer to issue Form 16 to me? If no taxes are deducted from salary then the employer may not issue Form 16 to you. However, the employer should always issue a salary statement to the employee.

11. Is pension income taxable as salary? Is Form 16 required? Yes, pension is taxable as Income from Salary. If pension is received through banks then Form 16 is required to be issued by the employer. The format of pension details shall be same as salary details in the Form 16.

12. Is family pension taxable as salary income? Is Form 16 required? Family pension is taxable as Income from Other Sources. Hence, Form 16 is not required in such case.

13. Can employer consider relief u/s 89 for calculating TDS on salary? Yes. The employer can consider relief under section 89 while deducting the TDS and issue Form 16 accordingly.

14. During the year, I have worked with three different employers, none of them deducted TDS and Form 16 is also not issued. The total amount exceeds basic exemption limit. Do I have to pay taxes on my own? Yes. The self assessment tax needs to be paid in case your gross taxable income is over the exempt limit and Income tax return is to be filed by you. If one or more than one employer but not all, has deducted tds then also, you need to accumulate all Income at one place and then calculate applicable taxes.

15. I have lost my original Form 16. What can I do? You can ask for a duplicate Form 16 from your employer. If you just wish to know who had deducted income tax and the amount of tax deducted, you can download your Form 26AS for the particular assessment year and check.

16. I have changed the job during the Financial Year. Do I need to get Part B of Form 16 from all employers or only from last employer? You can get Part B of Form 16 from all the employers for the salary paid by those employers respectively. Alternatively, you can obtain Part B of Form 16 from the last employer wherein the details of the salary earned from previous employer(s) are also declared.

17. Tax filing through myITreturn myITreturn has developed a question-answer based return filing process, in which you need to answer some simple questions and provide information about your income, tax saving deductions and other fields. Thereby your Income tax return will be prepared by the software. To know how to file Income tax return from myITreturn.com, click here.

18. Upload Form 16 and file Income Tax returns Below are the steps to Upload Form 16 and e-file Income tax return through myITreturn.com: 1. Visit myitreturn.com. There are 2 options provided viz: o Upload Form 16 o Start Your Return

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Click on Upload Your Form 16. You will be asked to upload your Form 16. Browse the Form 16 PDF file and click on open to upload Form 16. On successful upload, a confirmation message will be shown. Click on “OK” to continue You will be asked to Login. Login if you are existing user Or Click on New User to create your account. Once you are logged in, you need to confirm your personal details which are automatically fetched using your Form 16. You need to enter some details such as Date of birth, Father's name, Mobile Number etc. as the same are not available in Form 16. Click on Submit button once details are entered. On the basis of Form 16 uploaded, software will automatically fetch the salary details as well as details of tax saving deductions such as life insurance premium, mediclaim, contribution to PPF, donations to charitable trusts, etc. Select whether you are Indian Resident, Non Resident Indian (NRI) or Not Ordinary Resident (NOR). In case you are confused about what your residential status should be, then you may select "Help me decide" option. Proceed to filing of return by entering the income details. Update contact details. Provide details of all the Savings and Current Accounts in India. You will be shown final summary of your return. Select the type of return as "New/ Original" if the return you are filing is the Original (New) Return. Last step will be payment of filing fees. Software will automatically generate fees as per the plan applicable to you such as Non-resident Plan (if you are non-resident), Professional Plan (if you are having business income) and so on. Once Amount is paid, your return will be in filing queue. Once same is filed, you will receive ITR-V Acknowledgement on your Email account. A detailed guide on how to upload form 16 is available here.

19. Filing Income tax return without Form 16 Form 16 is an important document in e-filing of Income tax Return. But if you are a salaried assessee and do not have Form 16, you can still e-file your Income tax return. Here’s a guide for the same.

20. What to do after e-filing the Income tax return? After e-filing of Income tax return is done, you need to e-verify the return so that the Income tax department can process it further. To know how to e-verify, click here. If for some reason, you cannot e- verify the return then you need to send the signed copy of ITR V to CPC, Bengaluru.

21. Form 16 Software Organisations can generate digitally signed Form 16. Merge (each PDFs with TRACES Part-A and generated Part-B) the Part A & Part B and distribute a single PDF of Form 16 to respective employees via eMail . Generate upto 50,000 digitally signed Form 16 with a single click