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Ramesh Sharma
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  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    TDS on salary is deducted under section 192 of the income tax act. TDS is deducted on the basis of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him. TDS is deducted only when your eRead more

    TDS on salary is deducted under section 192 of the income tax act. TDS is deducted on the basis of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him.

    TDS is deducted only when your estimated salary is more than the basic exemption limit.

    The taxable salary of the employee is calculated after taking into consideration all the deductions allowed and then tax is calculated on that taxable salary according to the tax rate applicable to you. This Tax is deducted from your salary as TDS under section 192 by the employer.

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Ramesh Sharma
Enlightened
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  1. CA Vishnu Ram Enlightened

    Financial Year is the year in which the income is earned or say the year of which income-related. Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it. For example, if the financial year is from 1 April 2020 to 31 MarchRead more

    Financial Year is the year in which the income is earned or say the year of which income-related.

    Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it.

    For example, if the financial year is from 1 April 2020 to 31 March 2021, then it is known as FY 2020-21. The assessment year for this period would begin after the financial year ends – that is from 1 April 2021 to 31 March 2022. Hence, the assessment year would be AY 2022-22.

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Ramesh Sharma
Enlightened
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  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income. For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or forRead more

    Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income.

    For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or for TDS deducted on your rent receipts.

    It means when TDS is deducted on any other income than salary then form 16A is issued.

    Likewise, form 16, form 16A also has details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.

    All details that are there in Form 16A are available on Form 26AS. This can be used to file your return. However, the same is not in the case of Form 16. Details of Form 16 that are available in Form 26AS are only TDS deducted by the employer.

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Ramesh Sharma
Enlightened
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  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B. Part A has information of the employer & employee, like name & address, PAN anRead more

    This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B.

    • Part A has information of the employer & employee, like name & address, PAN and TAN details, the period of employment, details of TDS deducted & deposited with the government.
    • Part B includes details of salary paid, Prerequisites, other incomes, deductions allowed, tax payable, etc.

    In simple words, it is an acknowledgment which states that how much TDS was deducted from your salary and When it was deposited with the Income Tax department. Generally, It is issued by 15th June of the year for which it is being issued but, the due date stands extended to 15 August 2020.

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Ramesh Sharma
Enlightened
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  1. CA Manish Kumar Gupta Enlightened
    This answer was edited.

    Hi, If you are paying rent but not receiving HRA from your employer, then still you can take benefit in Income Tax for the amount of Rent paid. You need to satisfy the following conditions: You are self-employed or salaried You have not received HRA at any time during the year for which you are claiRead more

    Hi,

    If you are paying rent but not receiving HRA from your employer, then still you can take benefit in Income Tax for the amount of Rent paid.

    You need to satisfy the following conditions:

    1. You are self-employed or salaried
    2. You have not received HRA at any time during the year for which you are claiming 80GG
    3. You or your spouse or your minor child or HUF of which you are a member – do not own any residential accommodation at the place where you currently reside, perform duties of office, or employment or carry on business or profession.

    The deduction can be claimed under Section 80GG as follows:

     

    The lowest of the following can be claimed as a deduction:
    1 Rs 5,000 per month;
    2 25% of adjusted total income*;
    3 Rent paid minus 10% of adjusted total Income*
    *here Adjusted Total Income means Total Income minus long-term capital gain, short-term capital gain and deductions 80C to 80U.

    If you own any residential property at any place other than the place mentioned above, then you should not claim the benefit of that property as self-occupied. The other property would be deemed to be let out in order to claim the 80GG deduction.

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Ramesh Sharma
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  1. CA Manish Kumar Gupta Enlightened

    Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service. Accordingly GST is not leviable on secondment of employees. In a similar case, Comm. Appeal Jaipur EXCISEST/VAT  held that no Service Tax wouRead more

    Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service.

    Accordingly GST is not leviable on secondment of employees.

    In a similar case, Comm. Appeal Jaipur EXCISEST/VAT  held that no Service Tax would be levied on reimbursement made by the Indian Company to its parent company for employee secondment. It was held that there exists an employer and employee relationship between the seconded employee and Indian Company and thus the same is out of the meaning of service as defined under section 65B(44) of the Finance Act, 1994 and thus not exigible to Service Tax. Please refer below case laws

    Imasen Manufacturing India (P.) Ltd.
    [2021] 128 taxmann.com 255 (Commissioner Appeals – GST- Rajasthan)

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Ramesh Sharma
Enlightened
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  1. CA Manish Kumar Gupta Enlightened

    Hi, Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member.  For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It's called funded pension plan. It can alsRead more

    Hi,

    Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member.  For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It’s called funded pension plan. It can also be unfunded means the benefits are paid for by the employer by himself at the time of retirement.

    Under Defined-contribution Plan, An annuity is paid to the member of an investment scheme. The contribution is made by employee from his salary or by the employer into a pension fund. This pension fund works as an investment fund. At the time of retirement, the pension will be paid out from this fund’s return. Unlike to defined benefit plan, the annuity is not fixed and guaranteed. It may vary as per the performance of the pension plan.   

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Ramesh Sharma
Enlightened
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  1. Kirti Agarwal Beginner

    a) Uncommuted pension:- Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advRead more

    a) Uncommuted pension:-

    Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advance lumpsum amount this is called commuted pension. The pension may be fully or partly commuted.

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