Our school system train people to become good employees, without giving them enough education about inflation and tax laws. Unfortunately going to school and getting good grades will not prepare you to survive in this financial crisis. You need to train yourself to take advantage of tax laws in the coming years.
An average employee sells his time to receive money. His job is the only source of his income. When he wants to make more money, he works longer hours on his job or changes jobs. He pays a lot of taxes.
Actually the more money he makes, the more he pays in taxes. He does not know how to take advantage of TAX LAWS.
He depends on stock market for his retirement. He works hard for 5 days to get 2 free days per week. For him, the freedom on Saturday and Sundays is the reward of 5 hard working days.
Can someone help me around this.. Thanks in advance.!!
I am a salaried employee wants to take a tax benefit for my second home which i am giving on rent. Here are my question : 1. Do I need to ask for Form 16 A from my employer to include my other income(house rent) instead of normal Form 16? 2. Do I need to submit ITR1 or ITR2 in this case? I mean to show rent income and get the benifit for Home Loan interest on the same property? 3. Is is possible for me to get a FORM16 from employer for salaried income and file returns using ITR2 for additional income and get home loan interest waiver from already deducted tax?
Re: ITR1 or ITR2 ?
by DIPAK SRIVASTAVA on Dec 18, 2011 11:44 AM
First please understand that disclosing other income (such as House rentals) to your employer is optional and you can always disclose the same in your ITR2, but how will you deposit the tax accrued on the other income? It is more time saving to disclose the same to your employer and get your tax on other income also deposited by your employer instead of having to wait at a Bank counter for depositing the same. Now of course you can deposit the same online, but tracking two sets of income and finding out the combined incremental tax corectly and depositing it correctly would be your headache. That is avoided by disclosing the other income also to your employer straight away.
Re: Re: ITR1 or ITR2 ?
by DIPAK SRIVASTAVA on Dec 18, 2011 12:41 PM
Query 1. No aaditional form 16A is required. Once you have disclosed your rental income to your employer, he can deduct the tax and give a combined TDS certificate in Form 16 only. However, if your employer has himself taken the house on rent from you, then he has to give Form 16 and Form 16A separately. Query 2.House rental income and salary==> ITR 2 irrespective of whether you have a single Form 16, or separate forms 16 and 16A. Query 3: YES, but then how will you calculate and deposit the Tax on the additional rental income. You will need a tax advisor for this which will be free, so it is more cost effective and time saving to let your employer take the headache for free. He can very well judge the allowabilty and allow the home loan interest deduction himself. However in any case if your employer is disputing the allowabilty of home loan interest deduction and that is whu yyou don't want to disclose your rental income to him, you can choose not to disclose it to your employer, but then you shall have to calculate the tax on rent correctly and deposit it yourself within the stipulated time, and in case of error or delay, only you will be accountable for it.
Re: ITR1 or ITR2 ?
by DIPAK SRIVASTAVA on Dec 18, 2011 11:48 AM
Sl no.1. Having understood the above, No separate form 16A is not required from your employer. However if your employer has taken your house on lease from you, as some companies do to give employees an additional benefit, then your employer will also be deducting TDS on the rental portion separately, for which he may combine the TDS in form 16 or give a separate TDS cert in form 16A. That is for the employer to decide. But if your employer has not taken your house on rent, then no need for a form 16A. the TDS can be certified in form 16 itself.
Can someone help me around this.. Thanks in advance.!!
I am a salaried employee wants to take a tax benefit for my second home which i am giving on rent. Here are my question : 1. Do I need to ask for Form 16 A from my employer to include my other income(house rent) instead of normal Form 16? 2. Do I need to submit ITR1 or ITR2 in this case? I mean to show rent income and get the benifit for Home Loan interest on the same property? 3. Is is possible for me to get a FORM16 from employer for salaried income and file returns using ITR2 for additional income and get home loan interest waiver from already deducted tax?
can anyone be kind enough to let me know what I can do if my previous employer has deducted TDS from my salary but not deposited with the tax dept as he does not have a TIN number and now not giving me any FORM 16A OR refunding the amount deducted?
Re: what if no FORM 16A GIVEN
by sanjay on Dec 14, 2011 09:36 AM
Wait for the letter from income tax dept asking for payment from you. When you recieve the letter, reply to the assesing officer with details about the company, your PAN ,amount deducted (but not deposited) and reason given by the company. If you want to hurry up things, you may personally meet the officer and hand over the letter. Later, it is the head ache of you old company to deal with the issue. Its a offense on part of a company to deduct the amount and not deposit it to Govt. account
Re: what if no FORM 16A GIVEN
by sanjay on Dec 14, 2011 09:36 AM
Wait for the letter from income tax dept asking for payment from you. When you recieve the letter, reply to the assesing officer with details about the company, your PAN ,amount deducted (but not deposited) and reason given by the company. If you want to hurry up things, you may personally meet the officer and hand over the letter. Later, it is the head ache of you old company to deal with the issue. Its a offense on part of a company to deduct the amount and not deposit it to Govt. account
Re: Re: what if no FORM 16A GIVEN
by anil kumar on Dec 14, 2011 09:51 AM
thanks sanjay for your response . actually this was for the financial year 2010-2011 but still no letter from the Tax dept. And the other thing is the company is now closed . the only proof I have THAT i worked with them is their cheques( with the TDS deducted ) i deposited in my account. should I go to the local imcome tax dept and complain or take the amount deducted by my employer s in cash and deposit as tax but they wont be able to give form 16A. THANKS
Re: Re: Re: what if no FORM 16A GIVEN
by sanjay on Dec 14, 2011 10:55 AM
---- should I go to the local imcome tax dept and complain or take the amount deducted by my employer s in cash and deposit as tax but they wont be able to give form 16A. -------------- I am assuming you are ready to pay the Income tax dept the amount which should have been paid by your previous employer. In the present condition this is seem to be the better solution. Since the company is now closed, I am not sure what action can Tax dept can on this company. So if you are willing to pay, just wait for the demand notice from Income tax dept. A challan will be provided for you to pay. The letter will tell the how the payment can be done. In any case, you wont get Form -16A, because that should have been provided by the company earlier.
can anyone clarify what I can do if my previous employer has deducted TDS and not diposited the same with the TAX dept as he does not have the TIN number. now he is not giving form 16a or refunding the amount.
Re: if no form 16a given by employers
by DIPAK SRIVASTAVA on Dec 18, 2011 12:26 PM
If you have got the pay slip or any proof that the Tax has been deducted then only you can approach the Income Tax Officer (TDS) of the circle and city where your employer is located, stating the TAN no or PAN no of your employer. The tax officer's details can be looked up from the govt website www.incometaxindia.gov.in. Your employer shall have to pay a hefty fine and be hauled to jail if it is proven that TDS deducted from employees has not been deposited. However before filing the complaint , know a few rules: 1. TDS is to be deducted every month from employee's salary, and deposited to govt. through bank challan by 7th of the next working month. No details of employee's whose TDS is being deposited is furnished at this time. 2. Every 3 months the employer has to file a return (ie submit a detailed statement containing the details of the TDS deducted , names of employees with PAN no., the amts. deducted, the amts. deposited with date and name of the bank where deposited, and challan details. The employee wise amount totals should tally with the Total amt of all challans of the last 3 months. This TDS return is to be submitted online by every employer for qtrs. ended Jun, Sep, Dec and Mar on 15 July, 15th Oct 15th jan, and 31st May respectively every year . 2.
