Category: India Payroll

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80C Deductions ESIC Excel Formulas & VBA Code Gratuity House Rent Allowance (HRA) Human Resource (HR) India Payroll LTA Others Payroll Provident Fund (PF) Salary Tax Return (ITR)

Know your job skill in your company?

Classification of skills Category (Employee)

 

(A) Highly skilled- Highly skilled work employee is one who does the work which involves skill or competence of extra-ordinary degree and possesses supervisory ability.

(B) Skilled- Skilled employee is one who is capable of working independently and efficiently and turning out accurate working. He must be capable of reading and working on simple drawing circuits and process, if necessary. (ELECTRICIN, MECHANIC, TAILORS, COOKS Comes in skilled category)

(C) Semi-skilled- Semi-skilled employee is one who has sufficient knowledge of the particular trade or above to do respective work and simple job with the help of simple tools and machines.( GATEKEEPER(CINEMA),ASST. OPERATOR, ASST ELECTRICIAN, BOOKBINDER
,WAITER OR BEARER, MALI WITH TECHNICAL EXPERIENCE comes in unskilled category)

(D) Un-skilled- Un-skilled employee is one who possesses no special training and whose work involves the performance of the simple duties which require the exercise of little or no independent judgment or previous experience although a familiarity with the occupational environment is necessary. (UNSKILLED: PEON, CHOWKIDAR, DURBAN, WATCHMAN, CLEANER, SWEEPER, LOADER, HELPER, MALI comes in unskilled category.)

CLERICAL AND SUPERVISIORY STAFF: BOOK CLERK, TYPIST, RECEPTIONIST, TELEPHONE OPERATOR, TRAVELLING SALESMAN, comes in this category.

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Excel Formulas & VBA Code Human Resource (HR) India Payroll Others Payroll

Yours Salary Pay Slip! All about

Click here to download Salary Pay slip Format in Excel

A salary slip is a legal financial document that contains an itemized account of an employee’s salary or wage payment and the deductions occurred during the allotted time period. A salary slip is referred to as a slip because of the small size of the piece of paper. Each salary slip should consist of these itemized details: Basic payment, the employee’s gross pay, and income Tax, state taxes withheld insurance, Medicare and social security deductions, holiday, PF Deduction and sick time available, holiday pay, retirement plan contributions, wage garnishments and net pay.

Every company provides their employees with one. A salary slip is an essential tool for record keeping for both the employer and the employee.

Pay slip format

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India Payroll Payroll Tax Return (ITR)

Budget 2015 (highlights)

Download Budget 2015 (highlights)

As you are aware that, Finance Budget (bill) 2015 was presented in the Indian Parliament by Finance Minister Mr. Arun Jaitley on February 28, 2015.

The Budget has reiterated the commitment to introduce GST w.e.f. April 1, 2016 and Direct Tax Code in offing has been more or less been shelved. Budget has rationalized many of existing provisions meeting the Industry expectation like giving comfort under Income Tax Act w.r.t. doubt over the taxability post Vodafone judgment. Tax benefits have been proposed towards implementation of the Government’s key projects in India’, ‘Digital India’, Skill India, ‘Ease of Doing Business’ and ‘Swachh Bharat (Clean India)’. Budget has also relaxed procedural issues faced by industry and corrected few of the erroneous provision of Act and Rules.

Some of the specific changes impacting us individually and Companies are as follows:

Direct Taxes: Key changes for individuals (Impacting in Payroll Calculation)

  1. No change in the tax rate slabs for the individuals.
  2. Additional Surcharge introduced, for Individuals, HUF, AOP or BOI @ 2% on total income exceeding Rs 1 crore.
  3. Limit of contribution under section 80CCC to pension fund increased to Rs 5 lakhs from Rs 1 lakh.
  4. 80D -health insurance premium deduction limit increased to Rs 25000, from 15000.
  5. 80D – For senior citizens, health insurance premium deduction limit increased to Rs 30,000.
  6. 80DDB max limit up to 80000, from existing 60000.
  7. PAN is mandatory for all transactions on purchase or transfer of property above Rs 1 lakh, this is to curb black money.
  8. Exempted from tax on transportation allowance is increased to Rs 1600 per month from Rs 800 per month.
  9. Contribution to Sukanya Samridhi account, Swach Bharat kosh, and Clean ganga fund are deductible from total income.
  10. The employee earning income under a specified limit will have the option for either investment in new pension scheme or contribution to EPF.
  11. Additional deduction of Rs 50000 under section 80CCD contribution.
  12. On failure to furnish return of income or on concealment of income, in relating to the foreign assets the penalty upto 300% of tax evaded and imprisonment of 10 years.

Direct Taxes: Key changes for Companies

  1. The corporate tax rate to be reduced from 30% to 25% over the next 4 years, and simultaneously eliminate the exemptions under the act.
  2. The rate of tax for foreign companies as covered under section 115A for income by way of royalty and fees for technical services has been reduced to 10%. (from 1st April 2016).
  3. Dividend distribution tax rate increased to 12% . The Tax Deduction at Source, Tax Collection at Source and advance tax payments will now be at the increased rates .
  4. The threshold limit of audit under the provision of transfer pricing of the specified domestic transaction covered under section 92BA increased to Rs. 20 crore from Rs 5 crore earlier.( from 1stApril 2016).
  5. GAAR provision shall apply from 1st April 2018.
  6. Wealth tax act 1957 has been abolished from 1st April 2016.

Indirect tax

  1. Tariff rate of basic excise duty rate increased from 12% to 12.5% (effective from 1.3.2015) Excise duty for Polypropylene and Sulphur increased from 12% to 12.5%.
  2. Service tax rate increased from 12.36% to 14% (effective from date finance bill is passed ).
  3. Additional Swatch Bharat CESS levied 2% on taxable value of services, (date to be notified).

      Reading 2 & 3 together effective rate of service tax will be 16%

  1. Excise duty on MS & HSD remain as it is however CENVAT duty portion reduced and Special Additional Duty ( SAD ) has been increased as follows.
  2. SAD for Naphtha import reduced from 4% to 2%.
  3. Period for return of job work material increased from 6 months to 2 years.
  4. Presently document for CENVAT credit for input and input service should not be more than 6 month prior to date of taking credit the period has been increased to 1 year.
  5. Rationalization in penalty provision under CENVAT Credit Rules.
  6. Digital signature provisions introduced w r t service tax and excise.
  7. CENVAT credit for both full and partial reverse charge payment allowed once service tax payment is done and payment of service provider to happen in 3 months. Earlier this was limited to full reverse charge cases.
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India Payroll

TAX-FREE INCOMES Agricultural Income [Section 10(1)]

Agricultural Income [Section 10(1)]

As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. Agricultural income is defined under section 2(1A) of the Income-tax Act. As per section 2(1A), agricultural income generally means:
(a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes.
(b) Any income derived from such land by agriculture operations including processing of agricultural produce so as to render it fit for the market or sale of such produce.
(c) Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A).
Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.

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80C Deductions India Payroll Payroll Salary Tax Return (ITR)

Good news to taxpayers, No more sending ITR-V by post after income tax filing – Verification with aadhar card introduced

Good news to taxpayers, No more sending ITR-V by post after income tax filing – Verification with aadhar card introduced.

Dear Taxpayers,

There is a good news to taxpayers. CBDT recently announced that taxpayers who filed their income tax returns online will no longer have to send the ITR-V paper acknowledgement by post to CPC Bangalore, if they have aadhar card which can be used for verification purpose.

Instead of manual verification, a new Electronic Verification Code has been introduced to verify the e-returns. For that one will have to mention their aadhar card number in ITR form, and tax-payer will get an OTP number on their mobile for verification, which needs to be completed on the website of tax filing.

You get a row devoted to Adhaar card no on page one. in ITR1, it is on row no.

But I dont have Aadhar Card ?

Don’t worry. You can always send the physical documents ITV-V to CPC, Bangalore like you did earlier. You can do that even if you have aadhar card. This new system of verification is just an alternative way for those who have aadhar card.

Govt will implement new system where you don’t have to send the Form to CPC if you have ADHAAR card but for now, follow the same procedure but use AADHAAR in ITR. New implement can be effect as soon as possible.@ Ajit K. yadav

Do you want to file your income tax return?  Need Assistance?

Call Now:  96 544 212 88

Last date for filing income tax returns for individuals: July 31 (August 31 for AY 2015-16)

Due date (August 31 for AY 2015-16) for filing the tax return for salaried individuals. Note that you can file income tax return even after the due date. Such returns are called belated returns. However, there are some disadvantages of filing a belated income tax return.

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80C Deductions ESIC Human Resource (HR) India Payroll LTA Others Payroll Provident Fund (PF) Salary Tax Return (ITR)

The generation of UAN for first time

Download Steps for generate UAN Onlinedragon-free-dwn-btn

A Universal Account Number (UAN) will be generated for each of the PF contributing members during the period 01/01/2014 to 30/06/2014 by EPFO. The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number. This will help the member to view details of all the Member Identification Numbers (Member Id) linked to it. If a member is already allotted Universal Account Number (UAN) then he / she is required to provide the same on joining new establishment to enable the employer to in-turn mark the new allotted Member Identification Number (Member Id) to the already allotted Universal Identification Number (UAN).

The main objective behind this new function is to capture KYC details of its members in order to eliminate the dependency on the employer and improve the quality of service. The KYC details will be tagged against the allotted UAN rather the member id thereby eliminating the redundancy.

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80C Deductions ESIC House Rent Allowance (HRA) Human Resource (HR) India Payroll LTA Others Payroll Provident Fund (PF) Salary Tax Return (ITR)

Download Employee Log Book Format for Car

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FORM NO. B               (See Rule 6 D)
REGISTER IN RESPECT OF MOTOR-CAR OR OTHER CONVEYANCE USED FOR THE
PURPOSE OF THE BUSINESS OR PROFESSION
Date Period of use Reading of meter Distance Covered Name & Designation of the person using the Conveyance Place visited and purpose of visit Signature of the person using the conveyance Remarks
From  (Hours ) To       (Hours ) At the Commencement of the trip At the Conclusion of the trip

 

 

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India Payroll

Circular No. 4/2013 [F.No.275/34/2011-IT(B)]

As per the tax department Circular No. 4/2013 [F.No.275/34/2011-IT(B)],

AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:

 

“Part A & Part B need to reconcile in terms of only tax deducted and deposited and if you match income, it is more preferred.

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.

 

Part – A of Form No. 16 downloaded from the Traces site contains a unique TDS certificate number. Employers have to necessarily use only the Part A downloaded from the Traces site and can no longer create Part A of Form 16 on their own.”

 

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.

 

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.

 

‘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. 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.

 

The income tax department by way of a [Notification No.11/2013/F.No. 142/31/2012-SO (TPL)] (dated 19-Feb-2013) has prescribed changes to the format for Part A and Part B of Form No. 16.<br>Employers should verify the data in Part A before issuing Form No. 16 to employees. The Part A of Form 16, as generated from the Traces site, contains the following information.

  1. Employee name, employee PAN, employer name, employer PAN and TAN.
  2. Salary paid, tax deducted, tax remitted, Form 24Q acknowledgement number for the 4 quarters.
  3. Details of tax remitted (BSR code, date of remittance, and challan serial number).
  4. Status of challan matching with OLTAS (Final, Unmatched, etc.).

 

  1. Details of tax deducted & deposited in Part A of form 16 downloaded from website should match with your part –B.
  2. In Part – A Salary or amount paid is not taxable salary amount. Taxable salary always differ from actual salary paid
  3. Part – B should match with your salary annexure filed in 4th quarter

 

So Part A & Part B need to reconcile in terms of only tax deducted and deposited, as per as income concern only part-b can be considered as final. no need to math with part-a, if you match that is more preferred