Archive for 2015
Section 10 (13A) of the Income Tax Act along with Rule 2A of the Income Tax Rules provides for income tax exemption on House Rent Allowance (HRA) paid to employees. While HRA is one of the most widely used head of pay in Indian organizations, we find many payroll managers not calculating the exemption on […]
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Leave a Comment (0) →As a payroll service provider, we verify the supporting documents submitted by employees when they seek tax benefit. If an employee seeks deduction under Section 24 of the Income Tax Act, for the housing loan interest, we typically seek a certificate from the bank/financial institution which presents the loan principal and interest schedule for the year, […]
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Leave a Comment (21) →The Income Tax Department notified a new format, comprising Part A and Part B, for Form 16 in 2013. As you would be aware, Part A comes from the TRACES site while Part B is created by the employer. There are salary and tax details in both Part A and Part B. Even after 2 […]
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Leave a Comment (135) →Let us face it: payroll management is a thankless job. When was the last time you thanked payroll folks in your organization for crediting your salary on time or calculating your income tax or provident fund deduction accurately? Running a payroll organization is like running an electric utility. No consumer thanks the power company when […]
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Leave a Comment (2) →Compensation structuring with a view to minimizing tax in the hands of employees is not a bad thing. However, we find a number of organizations not adhering to the Income Tax Act while including allowances and reimbursements in their employees’ salary structure. A typical practice adopted by many organizations is to define a portion of […]
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Leave a Comment (0) →Recently, we received a question from an organization known to us. Should we be calculating Service Tax on notice period recovery when we run final settlement for resigned employees? In case you are wondering how on earth there can be any service tax implication on payroll processing, let us examine the background to this question. […]
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Leave a Comment (5) →Recently, we received a question from an HR manager, “Do we pay salary for the total number of calendar days in a month or only for the working days, after deducting the number of Sundays and other holidays in a month?” Of course, organizations pay the same salary each month to an employee who works […]
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Leave a Comment (39) →Effective April 2015, the state authorities in Karnataka and Maharashtra have introduced amendments to Profession Tax. Karnataka 1. Profession Tax exemption to senior citizens who have attained age of 60 years. 2. Profession Tax exemption to persons drawing salary/wages less than Rs. 15,000 in a month. Source: http://ctax.kar.nic.in/latestupdates/ctd0001.pdf (Please refer to III PROFESSION TAX) Maharashtra […]
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Leave a Comment (1) →State Bank of India (SBI) has published the reference lending rates for the purpose of loan perquisite calculation for the financial year 2015-16. You can find the SBI rates as on 01-Apr-2015 here. SBI’s loan product called “Xpress Credit” corresponds to personal loans provided by employers to their employees. There are 3 categories of reference […]
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Leave a Comment (21) →A new tax year has begun and it is time to start implementing the budget proposals related to tax on salary. As you are aware, the Union Budget for FY 2015-16 was tabled in the Parliament by the Finance Minister of India on 28-Feb-2015. Here are the key proposals related to computation of tax on […]
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Leave a Comment (4) →Joyful Payroll
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