when TDS Deductions can be avoided

Even though many of us are familiar with tax filing, the process of TDS deduction is still confusing for many. When and where TDS is applicable, what are the procedures to reduce it and how to claim the deducted amount at the time of filing tax returns are few of the queries we have. So, here we discuss TDS deductions with a focus on how and when it can be reduced to help you in everyday life.

Understanding TDS:
The Indian tax structure is broadly a two dimensional approach towards payment of tax liabilities. In the first method- self assessment, taxes can be paid voluntarily after evaluation of income during a financial year. In the second method, Tax Deductions at
Source or TDS, as the name suggests, is the spot deduction of tax from the income source itself, at the time of earning. This is to simplify the taxation procedure for the government and to ensure that the payment making and receiving individual / company is accounting the same without fail.
TDS is applicable for earnings from several financial instruments and business transactions like sale of property, interest income from banks, commissions and incentives, payment received for contracts and services, vendors, dividends and awards or prices earned as money.
There is no uniform rate for TDS deduction. Depending on the source of earnings, it can range from 1% for sale proceeds to 30% .
From Salary and Commissions
It is mandatory as per Indian Income Tax rules that companies as well as working professionals who earn above the aforementioned figure should deduct tax at source from the payments they make.
Employers normally will ask employees to fill an investment declaration form. If you have done an early homework to save your TDS deduction by investing in several tax saving instruments under Sections 80C, 80D, or planning to do within that financial year, do declare the details in the form with required proofs to save TDS. If despite all your investments, your salary is still above the exemption limit, TDS will be deducted monthly.
The employer will issue a TDS certificate (also referred as Form No.16 (a)) at the end of the financial year which can be produced while filing income tax return to get the credit of the TDS ( if applicable) during the personal income tax assessment.
TDS is applicable for payments including commissions, service fees, professional fees and payment via contracts. Here the TDS certificate issued will be Form 16 B which like Form 16 A, can be produced while filing income tax return to get reversed if applicable.
TDS from Property, Awards and Incentives:
TDS is applicable in case of earnings sale of property, rental / lease income, cash prizes, lottery winnings etc. The amount of deduction may vary from 1% in case of sale proceeds to nearly 30% in case of cash awards.
Individuals seeking TDS refund in the above mentioned situations can submit form 15G/H which is a self deceleration that your income is below taxable limit. This is applicable only for Indian residents including senior citizens and Hindu Undivided Families (HUF’s). Form 15G can be filed by all Indian residents whose total financial income for the designated financial year is below the threshold limit while senior citizens need to avail Form 15H for the same purpose. It is imperative to note that Non resident Indians are not allowed the use of forms 15G and 15H and need to apply separately.
In case of rental income, TDS will be deducted only if the rent you receive is not less than Rs1.8 lakh a year. In case of joint ownership of rented / leased property, where the specific share of the property is decided, the limit of Rs 1.8 lakh can be claimed separately by each owner.
Income generated through bank deposits-
TDS is deductable on interest income paid by banks and financial institutions in respect of FDs (exceeding Rs.10000 in a FY) and term deposits (exceeding Rs.5000 in a FY).
If your income is below the taxable limit, but the interest earned from your deposits is above Rs 10,000, you can request your bank not to deduct tax by submitting form 15 G and 15 H to the bank at the beginning of the financial year.
Another effective way is to opt for multiple smaller fixed deposits across various banks.
Splitting the interest earned across two financial years in such a way that the overall annual interest earned from any of the FD not exceeding Rs 10,000 is another workable option.
In certain cases, dividing fixed deposits under two different heads can also be useful in avoiding. Individuals can divide deposits in their names and have some under a HUF account to avoid interest generation cross the taxable limit.
And never forget to carry your PAN card for all fixed deposits over Rs.50000, because on not receipt of PAN number banks may deduct 20% TDS which is non reversible.
Reversing TS collected
As you file your tax returns, you will know the tax bracket you are which determines the balance tax to be paid or that can be reversed. So do keep a track of the TDS that you have paid with Form 26AS or annual tax statement. All the taxes deducted on your behalf will be listed in it and it can be availed from the concerned sources along with Form 16. Otherwise missing taxes will be considered unpaid by the income tax authorities.
Source Deduction pattern How to reduce TDS How to reverse TDS Conditions (if any)
Salary Monthly by
employer
Submitting investment declaration with proofs At the time of filing ITR (with proofs of investments under 80C and 80D. Form 16 A Ensure to have a tax savings plan under 80c and 80D
Incentives , Commissions, Services, Contracts, Rental Income At the time of payment Possible only to reverse At the time of filing ITR (with proofs of investments under 80C and 80D. Form 16B Only if eligible under 80C and 80D clauses
Sale of Property At the time of transaction If the transaction as per papers is below 20 lakhs in panchayaths and below 50 lakhs in municipality / corporation limits NA As per costs shown in documents
Bank Deposits During interest remittance by bank Form 15 G / 15 H, Splitting of accounts across banks / HUFs ( if applicable), splitting of interest in two FY Form 15 G / 15 H, Will not be reversed if a single deposit is above 50,000 and PAN no. not submitted

EMI Calculator

Equated Monthly Installment, commonly known as EMI, is an amount the borrower pays back every month on a particular date to the lender towards the repayment of loan taken by him. The EMI amount is calculated on the basis of the loan amount, interest rate and the tenure of loan. The borrowers' loan EMI comprises of the interest and the principal component. In the initial period of repayment the interest component in the EMI is significantly higher than the principal component. 

One of the major factors that affect the loan eligibility of a prospective borrower is his ability to pay the EMI. Different banks presume certain portion of the borrowers' income as available for payment of EMI's of all loans. It varies from bank to bank and there is no standard norm or formula. But normally the bank will assume around 40%- 45% of the borrowers' net salary is available for payment of EMI to serve all the loans. Even the percentage which can be considered for servicing of any EMI can be higher for people in the higher income group. As the income rises the proportion of saving in monthly income goes up hence the higher proportion for servicing of any loan EMI. 

The EMI calculator will help the borrower to find out his ability to service loan of a particular amount for certain tenure at a predetermined interest rate thus help in taking loan within his ability to service the EMI month after month. The EMI calculator will also give a break up of his EMI i.e. the principal component vis-a-vis the amount that you will be paying as an interest on that loan. 

You can use one of the following calculators for the purpose of finding out the loan which you are eligible for and the amount of EMI which you will have to fork out every month. These calculators will also help you in taking decision about the value of the asset which you can buy whether it is a house or a car. These various calculators which can be used can be any of the following:
Home Loan EMI
Personal Loan EMI
Car Loan EMI
Loan Against Property EMI
Education Loan EMI

As interest rate is not something that the borrower can decide, he can definitely increase / decrease the tenure to find a suitable EMI. The borrower can also increase the tenure to increase the loan eligibility amount. The borrower should keep in mind that any increase in tenure will result in higher interest component on same loan amount. Secondly, the borrower should also take into consideration that if the loan is on floating interest rate, the EMI is bound to change whenever there is a change in the repo rate announced by RBI or any changes in the base rate of the bank 

For an under-construction property the borrower has to pay Pre - EMI, which is only the simple interest on the amount disbursed and it does not have any principal component. Some lenders do allow the borrowers to pay EMI for every portion of loan disbursed and the actual consolidated EMI starts after complete disbursement of housing loan.

efile by Email

Instant eFile. Pay Later! 
To eFile by email, fill the fields below and click on the 'Compose Email' button, clicking on which will open your email client. Attach your digital Form 16 (pdf) and send us the email and your ITR will be immediately processed and eFiled.

Note: If you use web-based email, then copy-paste the email format as provided in Step I below. Press CTRL+R to refresh if the contents of this page appear distorted.

Personal Details

Father's name

Gender

Male

Female

Date of Birth

(DD/MM/YYYY)

Form 16 Password

(Optional – applicable if your Form 16 is password protected)

Email Address

Confirm Email Address

Deductions not part of Form 16

Yes

No

(applicable only if you have additional deductions which are not part of Form 16)

Bank account number

(Mandatory in ITR from AY2011-12)

MICR code

(9 digit number that you see on your cheque leaf- after the cheque no.)

Telephone Number (mobile)

Payment Prepaid Code

(Optional)

Any Other Comments

Yes

No

Address Details

Flat/Door/Block No

Road/Street/Post Office

Area/Locality

Town/City/District

State

Andaman and Nicobar IslandsAndhra PradeshArunachal PradeshAssamBiharChandigarhChattisgarhDadra Nagar HaveliDaman and DiuDelhiGoaGujaratHaryanaHimachal PradeshJammu and KashmirJharkhandKarnatakaKeralaLakshadweepMadhya PradeshMaharashtraManipurMeghalayaMizoramNagalandOrissaPondicherryPunjabRajasthanSikkimTamil NaduTripuraUttar PradeshUttaranchalWest BengalForeign State

PIN Code

If the above 'Compose eMail' button does not work, follow these steps:

I. Email Form 16:

• Email your digitally signed Form 16 to efilebyemail@taxspanner.com
• Mention your Father's Name, Gender, DOB and Address in the email in below format:
  • Father Name:
  • Gender (M/F):
  • Date of Birth (dd-mm-yyyy):
  • Form 16 Password (if applicable):
  • Address Flat/Door/Block No:
  • Road/Street/Post Office:
  • Area/Locality:
  • Town/City/District:
  • State:
  • PIN Code:
  • Bank Account Number:
  • MICR Code:
  • Any Other Details:
• If there is no missing information, your return will be automatically e-filed on receipt of your "Efile-By-Email" request.
• Else, you will receive an email with subject "Your Efile By Email Request". Follow the instructions received in the email to fill the missing information.

II. Sending your ITR-V:

• Once you send your Form 16 and your ITR is filed, you will receive a 1 page Acknowledgement (ITR-V) on your e-mail id
• Print and sign the copy of ITR-V in BLUE ink
• Drop the ITR-V in Taxspanner Drop Box at your location ( if available) or just courier the signed copy to “Taxspanner .com , #411, 1st Floor, 1st Main, 7th Block, Koramangala, Bangalore 560095"
• Once the signed copy of ITR-V reaches the Tax Dept, you will receive an acknowledgement e-mail from IT dept confirming receipt of your signed ITR-V. This e-mail can be expected within one month of sending the ITR-V. With this, the ITR filing process is complete. Please save this confirmation e-mail for any future requirements
• You will receive an email from income tax department that your signed ITR-V has been received
• In case you fail to receive the confirmation e-mail as above, please write tosupport@taxspanner.com; and we will assist you for closure

Employment Taxes

Employment taxes

Whether you have one employee or a hundred, you will be way ahead of the game if you get an outside firm to handle your filings and payroll taxes. So, before you do anything else, get yourself a payroll service to take all of the time, hassle, anxiety, and risk out of the payroll process.
Employment tax rules are extremely complex. If you try to handle them yourself, you are bound to make a costly mistake and you'll pay interest and penalties. If a payroll service makes the mistake, typically, it will pay.

As an employer you have a tremendous fiduciary responsibility to collect and withhold taxes from employees on virtually every paycheck you issue. Throughout the United States, you must withhold an appropriate amount for federal income and other earnings-related taxes. Many states and some municipalities also require the payment of an income or other tax on earnings.

Your employees must fill out a federal W-4 form and a Form I-9 from the Immigration and Naturalization Service. States that do not use the same income basis for determining tax liability as does the federal government may require that employees fill out state filing forms.

You, or your payroll service, must determine the appropriate amount to be withheld for each individual. If you withhold too little from your employee's incomes, you will be penalized by the governments involved. The federal government also requires that you withhold your employees' share of federal Social Security and Medicare taxes. Tables for calculating federal withholding taxes are available from the Internal Revenue Service at

1-800-TAX-FORM

State withholding tables may be obtained from your state income tax department.

Budgeting for your share of the payroll taxes
The employer is also responsible for a share of their employee's unemployment, Social Security, and Medicare taxes. The amount that you pay will depend on many factors salaries, your firm's balance, if any, in your state's unemployment insurance account, dates of hire, and a host of other considerations. As a quick and dirty rule of thumb, allowing 13 percent on top of your gross payroll should cover your share of the payroll taxes.

Timing of employment tax payments
If you are a growing company, paying employment taxes yourself can be very frustrating. Employment tax rules change as the size of the company increases both your liability and the time frame in which the taxes must be paid. Following are two general guidelines:

New employers pay federal withholding taxes on a monthly basis. As the business grows, the frequency increases to semi-weekly. For the largest businesses, taxes are due within twenty-four hours of each payroll.
Each state has its own rules for frequency of payment. Generally, payments are not required more frequently than are federal taxes. But be sure to check with your state tax office

Determining Taxable Income As Per 2012-13 Guidelines

The income tax form for 2012-13 fiscal states that the following investments will be regarded as exempted from taxation as per the Section 80C of the Indian Income Tax Act:
Premium of life insurance
Mutual funds
Unit Linked Insurance Plans
Fixed deposit postal deposit schemes with tenures of 5 years each
National Savings Certificates
Pension plans
Public Provident Fund
Tuition fees
Principal of housing loans
Fixed deposits
The employee's contribution to the provident fund is normally deducted from his or her salary. The following deductions are also available to an employee as per the rules of the Indian Income Tax Act:
Mediclaim expenses for self as per Section 80D
Interest paid for education loans as per Section 80E
Mediclaim expenses for parents as per Section 80D

How to Calculate Taxes on Your Own

Taxpayers can use the sheet to compute the taxes on their own. Following are some steps with which they can use the sheet:
Fill in the amounts for the first category of payments like the Basic and HRA
Then fill up the "Other Payments" and "Pre-requisites or Others" sections if you receive such payment. Once filled up the aggregate amount will represent the your overall income
Now comes the part of finding out how much can be exempted from taxes. For this you will need to put in the applicable figures for your housing loan interest or loss from residential property. (In case you are eligible for any of the above mentioned tax exemptions granted under Section 80C, 80D, 80U or 80E you can also include the amount to calculate your taxable income.)
Now, with regards to determining the applicable income tax amount the basic tax to be imposed on salary needs to be mentioned in the columns. Tax payers can also fill in the other taxes like PRV employer tax and referral claim.

Forgot LIC India User ID | Login Password Easy Recovery

Recover Forgotten LIC User ID | Login ID | Password Details Easily

 Life Insurance Corporation of India (LIC) is the largest insurance company in India, also country’s largest investor and most trusted Insurance company. LIC India provides online portal facility for LIC policyholders, agents, etc. for many policy related services such as paying LIC premium online, viewing policy status, etc. by creating user account.

LIC portal users may forget login details, user ID, password

 For LIC portal users, it is quite possible that many times LIC Policyholders, LIC Agents, LIC Online Portal Users create their User ID on LIC India website/portal and forget the User ID over a period of time. Then, they try here and there to find their forgotten LIC India User ID but due to unknowingness, cant recover LIC user ID or login details.

Recovering | Resetting LIC login details, user ID, password

You can find below simple and easy steps to Recover | Reset Forgotten LIC India User ID or Login Details. This is useful for only valid LIC Policyholder who has forgotten his/her Login ID / Login Details due to some reasons. Please do not try it if you are not a valid LIC Policyholder, otherwise strict actions might be taken against you. 

Simple and Easy Steps to Recover Forgotten LIC of India Portal Login User ID

To get your forgotten User ID for LIC INDIA you have to send an e-Mail requesting for the same to the e-Mail ID bo_eps1@licindia.com
In the Subject Line of the e-Mail, mention “New Query”
In the contents of the e-Mail you have to mention your LIC Policy Details (just for verification purpose) such as:
Policy Number
Policyholder’s Name
Date of Birth
Date of Commencement
Complete Postal Address, etc.
Now, send the e-Mail to above mentioned e-Mail ID i.e. to bo_eps1@licindia.com
You are done, you will surely get your forgotten LIC User ID within hours at the e-Mail ID (from which you have asked for it).
Hence you have recovered your forgotten LIC India user ID, now it is time to recover your LIC India password, the process of which is mentioned below:

Simple and Easy Steps to Recover Forgotten LIC of India Portal Login Password

Go to Forgot Password Page of LIC India Portal i.e., https://customer.onlinelic.in/ForgotPwd.htm
In the Forgot Password Page you would be asked to enter the following:
Date of birth, and
User ID
Fill up the above details there and Click on the Submit button. After few hours, you will get your LIC India Portal Login Password at your Original e-Mail ID (i.e., the e-Mail ID which was used at the time of Creation of LIC India Portal Login Account)
Finally, you have successfully recovered your LIC INDIA Login User ID as well as LIC INDIA Login Password.

Feel free to write your review, feedback, comments, suggestions, etc. in the comments form below to rate us and serve you better. Moreover, do mention, if you face any type of difficulty in recovering your lic login details.