Taxation and Statutory Compliance
Mr. Vinod Ranpise Baburaoji Gholap College, Sangvi, Pune - 27
Mobile: +91-9850048899
E-mail: [email protected]
Direct Tax Indirect Tax
Salary Slip Allowances Amount Deductions Amount
Basic Pay xxxx Professional Tax xxxx
D.A. xxxx INCOME TAX xxxx
H.R.A. xxxx GPF/EPF xxxx
T.A. xxxx DCPS xxxx
CLA xxxx Staff Society xxxx
Special Pay xxxx LIC xxxx
Other Pay xxxx Other xxxx
Gross Salary xxxx Total Deductions Xxxx
NET SALARY = Gross Salary – Total Deductions (xxxx)
Professional Tax
The maximum amount payable per year is INR 2,500 and in line
with tax payer's salary. The states which impose professional tax are Punjab, Uttar
Pradesh, Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, TamilNadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, Jharkhand and Sikkim. (17 States)
Professional Tax Slab in Maharashtra
The State Government of Maharashtra also implemented a special privilege for women professionals. As per the provision, women employees who earn up to Rs.10,000 per month will not be required to pay professional tax on their salary. This exemption was put into effect in the financial year 2015-2016.
Monthly Gross Salary Amount Payable as Professional Tax
Up to Rs.7500 Nil
Rs. 7,501 to Rs.10000 Rs. 175 per month
Above Rs. 10000
Rs. 2,500 p.a. The amount is can be paid in the
following manner:
Rs. 200 per month except for the month of
February.
Rs. 300 for the month of February.
How to Pay Professional Tax in Maharashtra
Go to the https://www.mahagst.gov.in/en website and select the e-payment link, in case of Professional Tax Registration Certificate (PTRC), or Ptec e-payment, in case of Professional Tax Enrolment Certificate (PTEC).
Login using your TIN Number and select e-payment.
A Challan in MTR Form No.
Guidance on filing Professional Tax Return in Maharashtra
Go to the https://www.mahagst.gov.in/en
Downloads – Forms – Electronics Form - Form III (B) _ PTRC Return Template Version 1.0.001- Return-login with TIN No- Upload file
*Under Section 5(6) of the Profession Tax Act, the penalty for providing wrong information when applying for an enrolment certificate or a registration certificate is 3x the actual tax payable.
TDS
Contractor /Sub-Contractor as per Section 194C
Rate of TDS u/s 194C
When provisions of section 194C of the Income Tax Act gets attracted, the Deductor is required to deduct TDS at the following rates
However, in case the PAN is not furnished, the Deductor would be liable to deduct TDS @ 20% i.e. at the maximum marginal rate.
Particulars Rate of TDS
Payment made / credited to an individual or HUF 1%
Payment made / credited to a person other than an
individual or HUF 2%
INCOME TAX/TDS Payment by Challan 281
Filling INCOME TAX/TDS Challan 281
020-Company or 021-Non-Company
Assessment Year
Tax Deduction Account no (T.A.N.)
Tax Deductor Name and Address
Type of Payment Code * - 92B or 94C
Type of Payment 200 or 400 Regular or Late
Amount
Cheque No, Date, Bank Name
Signature of person making payment
Due date e-Filing INCOME TAX/TDS Date
Due Date E-Filing TDS Return FY 2020-21/ AY 2021-22
Time Limits to Deposit of Payment TDS
TDS Retune Filing Due Date
Time Limit of issue of TDS Certificate Form 16 or 16A
Quarter Month Due Date Due Date
1 Apr, May, Jun 31st July 2020 15th Aug 2020
2 July, Aug, Sept 31st Oct 2020 15th Nov 2020
3 Oct, Nov, Dec 31st Jan 2021 15th Feb 2021
4 Jan, Feb, Mar 31st May 2021 15th June 2021
Particulars Due Date
Tax Deductible in
March
30th April of the next Year
Other Month 7th of the Next Month
INCOME TAX/TDS Payment Fine
Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit. Note, that this is to be calculated on a monthly basis and not based on the number of days i.e. part of a month is considered as a full month.
For example, say that your payable TDS amount is Rs 5000 and the date of deduction is 11th January. Say you pay TDS on 25th May. Then the interest you owe is Rs 5000 x 1.5% p.m. x 5 months = Rs 375.
Under Section 234E, you will have to pay a fine of Rs 200 per day (two hundred) until your return is filed. You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.
Form no 16
Form No 16A
24Q
26Q
Income Tax
Income Tax Calculation
Lets Understand Tax Saving Options Available
Section
Limit
80C
1,50,000
80CCD
50,000
80D
25,000 – 65,000
80E
No Limit 80TTA
10,000
24
Max 2 Lacs
80G
The various donations specified in section 80G are eligible for a deduction of up to either 100% or 50% with or without
restriction
80C Options – Max Limit 1,50,000 Employee Provident Fund Contribution
Public Provident Fund Contribution (PPF)
Life Insurance Premium paid for self/spouse Only
House Registration / Stamp-duty paid
Housing Loan EMI paid towards principal amount
Children School Tuition Fee
Bank / Post Office 5 Year Deposits
Equity Linked Savings Scheme (ELSS) Mutual Funds
National Pension Scheme (NPS) Contribution
Sukanya Samriddhi Yojana Contribution
80CCD(1) – Limit 50,000 This Rs 50,000 is beyond 80C limit of 1,50,000
Money to be invested in (National Pension Scheme)NPS – Tier 1
Few Points to Note about NPS
NPS doesn’t itself provide Pension
Money cannot be withdrawn till 60yrs of age – exceptions given under extreme situations
After 60 Years, only 60% amount can be withdrawn tax free
Compulsorily purchase pension plans with 40% amount
Pension received from pension plans is not tax free
Returns are not Guaranteed / Projected by Govt.
Avoid Investing in NPS just for Tax Savings
80D – Health Insurance T Limits are as follows ax savings can be availed for the
premium paid towards Health Insurance
Persons Covered
Exemption Limit
Preventative Health Check Up
Exemption
Total
Self & Family
Rs 25,000
Rs 5000
Rs 25,000
Self & Family + Parents
Rs ( 25,000 + 25,000 ) = Rs 50000
Rs 5000
Rs 55,000
Self & Family + Senior Citizen Parents
Rs ( 25,000 + 30000 ) = Rs 55000
Rs 5000
Rs 60,000
Self (Senior Citizen ) & Family + Senior Citizen
Parents
Rs ( 30,000 + 30,000 ) = Rs 60000
Rs 5000
Rs 65,000
80E – Interest on Education Loan If you have taken an education loan and are repaying the same,
then the interest paid on that education loan is allowed as a deduction from the total income under Section 80E
The deduction is provided only for the interest part of the EMI .
There is NO LIMIT on the maximum amount that is allowed as deduction
No Tax benefit is allowed for the principal repayment
If your loan tenure exceeds 8 years, then you cannot claim a deduction for the interest paid beyond 8 years. So it is always advisable that education loan is paid within eight years.
You need to obtain a certificate from your Bank displaying principal and the
interest portion of the education loan paid during the financial year
80TTA – Interest on Savings Bank Account
This deduction is allowed on interest earned
From a savings account in a bank, post office
Maximum Deduction – is limited to Rs 10,000.
Section 24 - Deductions from Housing Loan
Homeowners can claim a deduction of up to Rs.2 lakh in a financial year for the interest paid towards Home loan EMI (EMI = Interest + Principal Amount)
80 G - Donations Eligible for 100% Deduction Prime Minister’s National Relief Fund
Chief Minister’s Relief Fund
80 G - Donations Eligible for 50% Deduction Jawaharlal Nehru Memorial Fund
Indira Gandhi Memorial Trust
Section 80DD – Medical expense on disabled person Where disability is 40% or more but less than 80% –
fixed deduction of Rs 75,000.
Where there is severe disability (disability is 80% or more) –
fixed deduction of Rs 1,25,000.
Income Tax Calculation Example and better option
Tax Calculator for Resident Individuals FY 2020-21
https://www.incometaxindiaefiling.gov.in/Tax_Calculator/
Annual Gross Salary (Rs) 12,00,000 Slab Amount (Old) Tax (Old) Slab Amount (New) Tax (New)
Standard Deduction 50,000 2,50,000 - 2,50,000 -
HRA 70,000 2,50,000 12,500 2,50,000 12,500
PT and Entertainment Allowance - 2,50,000 50,000 2,50,000 25,000
NPS - 55,000 11,000 2,50,000 37,500
Leave Travel Allowance - - - 2,00,000 40,000
Home Loan Interest Payment 1,25,000 - - - -
Deduction u/s 80C 1,50,000 - - - -
Health Insurance U/s 80D - Total 73,500 - 1,15,000
Saving Bank Interest u/s 80TTA - Cess 2,940 - 4,600
Total Exemption & Deductions 3,95,000
Taxable Income (Old) 8,05,000 Decision New Tax Slab result in Higher Taxes
Enter data in Yellow Fields Workings
Total Taxes 76,440 1,19,600 -
Tax Savings 43,160
Better Option Old Tax Slabs
Mr. Vinod Ranpise Baburaoji Gholap College, Sangvi, Pune - 27
+91-9850048899 E-mail: [email protected]