To find out the taxable income and the tax to be paid for the financial year, the government servants calculate the anticipated income of a financial year. One 12th of the tax amount is deducted from the salary each month. This system prevails for a long time. But this was not followed properly by most of the govt servants. Now the finance department has published a circular regarding implementation of 8+4 EMI Model for the remittance of income tax based on the salary amount drawn by the govt servants.
What is 8+4 EMI Model?
Let us take the 12 months of a financial year as two parts – the first 8 months and the next 4 months. The first premium of income tax is usually deducted from the salary of March in a financial year. The deduction of same amount of tax premium would continue in the following 8 months if there are no other changes. We would get a clear idea of the income of the present financial year after 8 months. There may be changes in the salary income that was in the month of March. Hence it is preferred to make calculations again including the changes. Most of us have experienced the difficulty of paying a huge amount towards tax in the month of February for not revising our anticipatory income and tax. So, a revised anticipatory statement can be prepared after 8 months and tax deduction can be done based on the new amount.
Gross salary including basic salary, allowance, perquisites is calculated and deductions from 80 C to 80 U, housing loan interest, professional tax etc are lessened from the total salary income to calculate the tax amount(Old Regime). As per the anticipatory income statement, one 12th of tax should be deducted in the salary bill of every month. If the income tax amount is not deducted from the income sources, 1% interest and 1.5% of interest for not being paid the tax amount should be remitted. Penalty can be levied upon the defaulters and those who reduce the amount that is to be deducted. When there is an increase in the total salary amount due to salary hike or interest or other allowances, the govt servants should give a revised anticipatory statement and revised income tax amount ought to be deducted from the salary of the following months.
Anticipatory Income Tax Software 2021-22
Various software tools given here can be made use of, for preparing anticipatory income tax statement.
Update:Easy Tax by Alrahiman is updated to Version 21.04. (Date 28-01-2021) There was an error in calculation of New Regime, whose total income is above 10 Lakhs. Such people please download new version and use import data from old version option in the software to update without losing data already entered
The Income Tax software tools for 2020-21 is to be released. Not like previous years, it can
be calculated in two different schemes and the suitable one can be selected this time. Hence
the software was with a few difficulties, it has been done with utmost care and correctness of
the calculations be examined and if any mistakes are noticed it be emailed.
The major changes
in the income tax in the financial budget presented by the Honorable Minister Smt Nirmala
Sitaraman are also considered in the software preparation.
There is no change in the rate of income tax of the previous year where as a new scheme called
New Regime was also presented.
As it is optional, those willing to change to this new scheme
can do so or they can follow the scheme of the previous years.
Old Regime
In the old scheme, there were different Tax slab for groups such as super senior citizen senior
citizen and an ordinary citizen. As per this scheme, taxable income (total income) is calculated
after various deduction from income and tax will be according to this. Here, there was chance
for tax deduction by focusing on the deposits and such.
Category
Taxable Income
Tax Rate
Till the age of 60
Taxable upto Rs.2.5 lakh
Nil
Above Rs 2.5 lakh to 5 lakh
5%
Upto Rs.10 lakh
20%
Above Rs.10 lakh
30%
From the age of 60
Taxable upto Rs.3 lakh
Nil
Above Rs 3 lakh to 5 lakh
5%
Upto Rs.10 lakh
20%
Above Rs.10 lakh
30%
From the age of 80
Taxable upto Rs.5 lakh
Nil
Above Rs 5 lakh to 10 lakh
20%
Above Rs.10 lakh
30%
New Regime
The tax is calculated in the new scheme by classifying the income limits into 7 slabs each one
is that of Rs 2.5 lakh compared to the old scheme. Though the tax rate is lesser here, the
peculiarity of this scheme is that no deductions from the total income are not allowed here. The
deductions under professional tax, Entertainment allowance, HRA, Standard deduction, NPS
contribution Housing loan deductions, 80 C chapter VI A are not allowed here and the gross
income is the taxable income here.
If the taxable income is below 5 lakh, Rs 12,500/ as per
section 87(A) of old scheme is permitted here too and there is no such classification as ordinary
citizen, senior citizen and super senior citizen. A single tax rate slab only is there considering all
are equal.
Category
Taxable Income
Tax Rate
New Income Tax Slab & Rate
Taxable upto Rs.2.5 lakh
Nil
Above Rs 2.5 lakh to 5 lakh
5%
Above Rs.5 lakh to 7.5 lakh
10%
Above Rs.7.5 lakh to 10 lakh
15%
Above Rs.10 lakh to 12.5 lakh
20%
Above Rs.12.5 lakh to 15 lakh
25%
Above Rs.15 lakh
30%
Housing loan and New tax system
In the scheme that was followed in the previous years, the amount remitted towards principal
amount of the housing loan was considered to be deduction in 80 C up to an amount of rupees
one and half lakh and up to Rs 2 lakh towards interest as deduction in income from house
property whereas these two deductions are not available in the new scheme. Moreover, the
rent received from house that was let should be given as income, in income from House
property.
The advantage of the new scheme here is that the interest for the housing loan can be
reduced from this income and the maximum amount that can be deducted is limited to, in the
income from rent as such things can't be allowed to be deducted from other income. A
deduction of upto Rs 2 lakh was available in this in the old scheme.
Which is better?
For the question which scheme is better, a sudden and single answer is not possible. It may
vary and depend upon the individual's deduction scheme The fact is that, for those who have
availed of the deductions possibilities to the maximum, following the old scheme would be
better. Anyway, you need not think over this much. This job would be done by the software.
The software is prepared in such a way that both scheme statements can be
generated from a common single entry. Once the details are entered, two statements, Old
Regime and New Regime can be opened. The statement with lesser Tax amount can be printed
out and submitted in the office.
It is time to do efiling income tax of 2019-20 and the last date for e-filing has been extended from 31st July to November 30th 2020. Rs.5000 would be the late filing fee. After 31st December, it would be Rs.10,000/- The late filing fee will not be more than Rs.1000/- for those with the taxable income below Rs.5 lakh.
E filing should be submitted by those upto 60 years of age with above 2.5 lakh of income before having deduction of Chapter VI A (amount after professional tax, housing loan and interest only deducted from total income) and those of above 60 years old and income of more than Rs.3 lakh. ITR -I can be used by those with salary income, income from house property, bank interest, income like family pension and agricultural income upto Rs.5000/-
* If 10E Relief was availed as per Section 89 in 2019-20, 10E should be prepared and submitted before efiling. Click here for help file
* If TDS to be get back, then, the bank account details must be pre-validated in E-filing portal before efiling. Click here for help file
* The complete amount reduced as TDS can be checked with Form16 Part A, downloaded and signed by the head of the institution from TRACES. Click here for help file
* If any Fixed Deposit accounts are there with any bank or any such firms, 26AS must be verified and in the case of any other income, that also should be added for tax calculation and TDS deducted and the rest of the amount be remitted before efiling. Click here for help file
Click log in and enter used id (PAN No) and password, captcha code.
If any changes are to be done, it can be edited in ‘Update Profile Details’. But, it would be changed only when the OTP number in mobile and mail id is entered.
Then click ‘Income Tax Return’ in e-file page.
Select the Assessment year 2020–21
Select ITR Form No– ITR I
Select in Filing type – Original/Revised return
Select ‘Prepare and submit online’ in submission mode
Account details can be seen below, in ‘Bank Account Details’.
Click below ‘Select Account for Refund credit’
While the prefill consent box opens – click ‘I agree’ to reach efiling page.
Various tabs in the Income Tax Portal
Tax details,
Part A General Information,
Computation of Income Tax,
Tax details,
Tax paid and Verification,
Schedule D1,
Schedule 80 D,
Schedule 80 G,
80 GGA.
Remember to click ‘Save Draft’ to save while entering details.
If revising it after filing it already, ‘139(5) Revised’ be selected.
Select ‘No’ for the question that is seen now, Are you filing Returns under seventh proviso of section 139(1)
In ‘Computation of Income Tax’ page, the details can be entered from 2019–20 income tax statement. There are separate pages for deduction under 80G to CMDRF and Medical insurance as per 80 D. It should be done first.
How to do the main entries in Income Tax Portal
Total salary income can be added in B1(a) salary as per section 17 (1) (If any income received which can be exempted as per various statements of section 10, it should be added and then select ‘Nature of Exempt allowance’ in B(ii) and add the amount
Standard deductions Rs.50,000/- be added
Professional tax should be added in u/s 16
(ii)
*B2-entries are for Housing loan and interest only. Select - ‘self occupied’ in ‘Type of House Property’
*Housing loan interest be added in ‘Interest paybale on Borrowed capital’. Don’t enter minus symbol.
Other source income like – Bank interest, Family Pension etc be shown in B3 – Income from Other Sources
In Part C- ‘Deductions and Taxable Total Income’, enter the deductions under 80C to 80U in relevant boxes.
After entry of deductions, if there is any investment / deposit/ payments between 1st April and 30th June 2020. click ‘yes’ or ‘No’ whichever is apt. For deductions of such deposits, select ‘yes’ and add details in ‘Schedule D1’ page (column no.3)
Relief under 10E be added in D6 Relief U/S 89 (1)
Even though there is deduction or not as per Section 80D, data be entered in the page – Schedule 80D
CMDRF Entry Details
Name of Donee – Chief Minister’s Disaster Relief Fund
Address _ Govt of Kerala
City or Town or District – Thiruvananthapuram
State code – Kerala
Pincode – 695001
PAN of Donee – AAAGD0584M
Donations in cash – for donations done by cash only (upto Rs.2000) be done for deductions
Donations done by other mode – Deductions from salary or other such
In Tax paid and Verification page, entries in D12 & 14 can be verified and refund amount if any, also can be seen. Enter correctly the bank details.
Click ‘Save Draft’ and check the entries made. Then add - Name and Father name in ‘Verification’ and select the suitable one in verification options
'Submit’ button should be clicked only after confirming all entries.
Click ‘forgot password’ in log in page and enter – User id (PAN no) and captcha code. Then select ‘Using OTP (PINS)’ in the next page click ‘continue’. Select the first option in the case of remembering registered mobile number and mail id else, select ‘New Email id and mobile number’ and enter the mobile number and mail id and select ‘26 AS TAN option’ to add TAN number and click ‘validate’. Now a new page would open. Create a new password and add in the two boxes.
Revised Return
After submission
If any corrections are to be done in the ‘Verified Returns’ , ‘Revised Return’ can be submitted in the same way. This can be done till 31st of July, before the completion of Income Tax Dept assessment.
To remember - In the General Information page, select ‘IT Revised 139 (5) in A22- Return file
* Add ‘Revised’ in whether ‘Original or Revised’
* Acknowledgement number of original return and date of filing original return be added in A25 – in under section 139 (5) Revised Return.
The Income tax for the financial year 2019-20 should be calculated and be paid completely with the salary bill for the month of February 2020. The software tools for doing these calculations and preparing statements are ready for use. Tax is calculated and remitted for the income of the period- from April 1st to March 31st. Since the salary for a month is encashed and received in the next month, inclusion of the salary for the month of March of the previous year and exclusion of the salary of the present year March exist(ie March 2019 to February 2020). All deductions that are possible till March 31st should be considered while calculating the tax amount. Salary means Basic salary, Dearness Allowance, House Rent Allowance, Earned leave Surrender, Festival allowance, bonus, pay revision arrear etc have to be included for tax calculations.
After calculating gross income as said above, the things given below can be deducted.
1.House Rent Allowance (HRA)
2.Vehicle Allowance
3.Amount remitted towards professional tax
The salary received after above said deductions from the gross salary income is called Net salary Income. The income received from rented buildings, business and professional capital gains, income from other sources should be added with this. The income from other sources added to the Net salary is known as Gross Income. As per chapter VI A, 80c, 80ccc, 80CCD sections, maximum Rs.1,50,000/- can be lessened. Apart from this 80CCD(1), 80CCG,80D, 80DD, 80DDB, 80E,80EE,80G,80U deductions are allowed.
The amount of income received after all said deductions should be rounded off to next 10 Rs amount. It is called the Taxable income. This income is considered for tax rate to be remitted. With the tax amount calculated, 2% education cess, 1% secondary and higher education cess (total -3%) should be added. The amount received thus is the tax to be remitted.
Tax Slab 2019-20
The significant change in the tax rate of the present year is the standard deduction of Rs.50000.
Category
Taxable Income
Tax Rate
Till the age of 60
Taxable upto Rs.2.5 lakh
Nil
Above Rs 2.5 lakh to 5 lakh
5%
Upto Rs.10 lakh
20%
Above Rs.10 lakh
30%
From the age of 60
Taxable upto Rs.3 lakh
Nil
Above Rs 3 lakh to 5 lakh
5%
Upto Rs.10 lakh
20%
Above Rs.10 lakh
30%
From the age of 80
Taxable upto Rs.5 lakh
Nil
Above Rs 5 lakh to 10 lakh
20%
Above Rs.10 lakh
30%
Relief Calculator
The software for calculating arrear relief is also published. The video help for relief calculator is available here.
Income tax software tools, supporting files, guidelines etc. can be downloaded from the link below.
The last date to submit returns after IT calculations for the financial year 2018-2019 is August 31st. If one's income before deductions is Rs 2.5 lakh, he should submit returns. The limitation for the same to the senior citizen is Rs 3,00,000 and it is Rs 5,00,000 for the super senior citizen. Those who demand refund for being paid excess tax, also should submit returns even if their income does not come under the purview of tax. Housing loan payers also need submit returns although their income is lesser than that of taxable.
Despite the existence of traditional paper filing facility for submission of IT returns this e-filing is more convenient and easier. Also it is mandatory for the people with taxable income more than Rs 5 lakh to submit returns. e-filing is not possible for people who don't have PAN card.
Is Aadhar mandatory for Income Tax returns?
The present Aadhar holders should link PAN number with Aadhar for submission of IT returns. Others (people not having Aaadhar ) need not do this and their PAN card will not become invalid. In the case of difference in name in Aadhar and PAN card , linking is possible only after correction. A detailed post on how to link Aadhar was published early. Link is available in the close of this section. It should be assured before e-filing whether the form 16 downloaded from TRACES is available from the disbursing officer and confirm the entire tax amount deducted from salary has been credited to IT department is mentioned in Part A of Form 16 as well.
Requisites for Income Tax e-filing
An e-mail account Mobile number Form 16 issued by disbursing officer Bank account number and IFSC code With these, we can register in the e-filing website https://incometaxindiaefiling.gov.in of IT department. Those who have already submitted returns can log in by entering their username and password and proceed to next step.
Things to Remember
Income tax returns e-filing facility for the financial year 2018- 2019 or the assessment year 2019 – 2020 is operative in income tax site. Unlike previous year, certain things are changed in the e-filing process. The things to remember while submitting income tax returns of the financial year 2018 -2019 online are given below.
Income Tax Return and Verification
Returns verification code (EVC) is usually generated towards the end. But there is a difference this year that it has to be generated when you start doing e-filing. The options for generating EVC also are not similar to that of previous years. Open the PDF file below for details.
Income Tax and 10E Relief
10E relief has been claimed by many of those who have got their pay revision arrear. They have to submit 10 E form online at first to file ITR. Watch the below video for submitting 10E relief online.
Income Tax and Bank Deposit
The interest for bank deposits (mainly fixed deposits ) must be included in the income. If not, they would get notice because the bank might report the interest amount sanctioned, to the income tax department not considering whether the bank has collected the tax amount or not. To know the interest amount reported by the bank, log into the income tax portal to download 26 AS and check it. The PDF help file "How to verify 26 AS" is given here.
When income like fixed deposit interest is left out by us in tax calculation and the same is added later, the amount paid towards tax may become insufficient. Under such conditions, we will have to remit tax directly. Lack of knowledge on this may cause many difficulties. If we have any of the internet facilities like internet banking, debit card (ATM card) etc, such kind of taxes can be paid easily by us and there is no need to visit banks. Go through the PDF file given below to know how to pay taxes online by using the above facilities.
Income Tax and CMDRF Donation
Those whose have contributed for CMDRF Flood Relief(Salary Challenge) fund, should enter details in 80 G tab.
Name of Donee: Chief Minister Distress Relief Fund
Address: Government of Kerala
City: Thiruvananthapuram
State: Kerala
Pin Code: 695001
PAN of Donee: AAAGD0584M
Donation in other modes: Salary Deduction Amount(Type the amount donated in the financial year 2018-19 )
How to Download Form 16 from TRACES
Remember to ask for form 16 downloaded from TRACES from your disbursing officer before e-filing returns. Only after filing TDS of 4th quarter, e-filing can be done. May 30th is the last date to file 4th quarter of TDS. Hence you may have to wait till then for updation of your tax details. For more details, download the given below PDF file and try filing returns after reading it.
How to e-file Income Tax Return online?
The Income Tax e-filing video tutorial portraying how to calculate IT and submit returns for the financial year 2018-2019 can be viewed from here. All the steps of e-filing process from the beginning of entering into e-filing website of IT department to submission of returns are illustrated with screen shots by the connoisseur in this domain, Sri.Alrahiman. Doubts can be forwarded as comments.
Income Tax E-filing
E-filing of Income Tax Returns 2019-20 by Alrahiman: Video Tutorial
As part of the grave floods that devastated the major parts of our state, the govt employees might have contributed a huge sum of money in person or through salary challenge. Since such amount paid towards relief fund is eligible for tax deduction, the tax amount to be paid has to be revised. Or, the same rate of tax deduction would lead to excess amount towards tax. Many have doubts regarding this. It is made clear here.
Q.At the time of filing income tax returns, where should the contribution towards CMDRF be entered?
The amount paid towards CMDRF is deducted from taxable income, not from tax amount. While submitting income tax returns, it should be deducted under section 80G. The total amount paid towards CMDRF till February 2019 only should be deducted for this financial year. The contribution can be done from September 2018 to the maximum of 10 terms. Hence, there would be 6 installments till February 2019. The amount paid up to this period only, can be deducted while doing TDS this year. The eligible tax deduction for the rest of the amount can be claimed in the next year. It is to be noted that the total contribution amount paid till February 2019 irrespective of the number of installments is eligible for TDS.
Q.Since one month salary amount is deducted, is it sufficient to enter 11 month salary as total income?
No. Even though one month salary amount is deducted, it is necessary to include it under total income.
Q.Do we need add the festival allowance amount as it was not granted?
No. There is no need to mention it as source of income or deduction under 80G.
Q.What are the things to be noted for those who have contributed their 4th term pay revision arrear ?
Those who have contributed the pay revision arrear to CMDRF, should show the amount in salary arrear details as income source. Also, the total amount and the rest of the amount to be contributed till February 2019 should be added and entered for deduction under section 80G of this financial year.
Q.What should be done in the case of leave surrender for CMDRF contribution?
The surrender amount should be entered as source of income before deducting under 80G.
Q.What has to be done for those who contributed to CMDRF from NRA?
Those who availed of NRA from their PF amount for CMDRF need not show it under total income. It is sufficient for them to deduct the amount under 80G.
The anticipatory income tax calculation software given here can be used by the govt employees who have contributed their salary to CMDRF, to calculate the income tax amount to be paid each month. The video on how to use this is also given with this link.
General Provident Fund (GPF) annual accounts statements and credit cards showing the opening balance as on the 1st April of the year, the total amount deposited and withdrawn during the year, amount of interest credited as on 31st March of the year and the closing balance on that date , for the year 2017-18 of Government employees have been hosted on Accountant General's website.
GPF Credit Card and Annual Account Statement 2019-20
To download GPF account statement for the year 2019-20, Department code, GPF Account number, and PIN number are needed. After entering these details , click the submit button.
GPF Subscribers have to satisfy themselves as to the correctness of the Credit Cards and errors should be brought to the notice of the Accountant General within three months of receipt of the same.
GPF PIN Number Finder
You are automatically given a default PIN when you join General Provident Fund. If you're new to GPF portal or don't remember changing your default PIN , use our 'Default PIN Finder' Program and then try to sign in. Click the below link for details.
The Income tax department made it compulsory to link PAN card with Aadhaar and made it easy for taxpayers to link their PAN with Aadhaar. The Tax payers are directed to use the simplified process to complete the linking of Aadhaar with PAN as early as possible. This will be useful for E-Verification of Income Tax returns. This new feature does not even require to login or register at the e- filing website.
Step 2: Click the 'Link Aadhaar' available on the left portion.
Step 3: Provide PAN Card No, Aadhaar no. and enter your Name Exactly as given in Aadhaar Card, Type the CAPTCHA code displayed in the screen and finally click the Link Aadhaar Button.
Step 4: Now the portal will display the message "Aadhar PAN Linking is completed successfully"
