Taxation and Statutory Compliance

Mr. Vinod Ranpise Baburaoji Gholap College, Sangvi, Pune - 27

Mobile: +91-9850048899

E-mail: ranpisevinod@gmail.com

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: ranpisevinod@gmail.com