I want to know details about income tax and Form 16?



I want to know how we can deduct tax from an employee who is eligible for the same.
Like, an employee is getting 50000/- in hand. Now suppose he is eligible for 2000/- tax per month. Now I know about the house rent rules. Suppose he produced a house rent bill and eligible for 1000/- concession on the same. Then he submitted an LIC paper worth monthly 5000/- premium. My questions are:
1. Should he be given full concession on LIC premium?
2. Does FD at any bank come under any exemption?
3. What are the other regular things that can help an employee to exempt the tax and how they work?
4. Do I only have to collect the documents for tax exemption and keep it? Or I have something to do with that as well?
5. I want a format of Form 16 and being an employer how to fill it up and other details about it.
6. And if an employee wants to file IT return, then is the employee or the employer responsible to do that?

I am completely puzzled about the tax details. Can someone help me out?

I want to know details about income tax and Form 16?
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4 Replies to “I want to know details about income tax and Form 16?”

  1. 1. Premium paid on Life insurance policies (on own life or life of spouse or child) and contribution to pension plans like Jeevan Akshay and Jeevan Dhara are fully exempt under Section 80C, subject to a maximum of Rs. 100000/-
    So, you should give full concession on LIC premium paid.

    2. FD opened for 5 years or more in any bank is also eligible for exemption. However, interest earned in taxable.

    3. Investment in PPF, EPF, Life Insurance, etc are eligible for deduction upto Rs. 100000/- under Section 80C. Medical insurance is eligible for deducation upto Rs. 15000/- or Rs. 20000/- (senior citizen) under Section 80D.

    4. You need to collect documents (as proof) and keep it in safe place. There’s no need to attach any document when filing your return.

    5. http://www.finance.pushpi.com/form-16-and-16a-in-excel-and-word-format.htm
    http://finotax.com/form/tds.htm

    6. It’s better that the employee files his/her own return.



  2. I suppose you are an employer. It is the duty of the employer to deduct Income Tax from the salary and allowances paid to employees and issue a certificate known as F 16, to the concern employees.
    Similarly it is the duty of the employee to remit advance Income Tax and also to inform the investments under 80C 80CC etc made by him to the employer with evidence. If the employee fails to submit the required details, the employer has the authority to deduct Income Tax for the total salary and other allowance paid to him and to issue F 16 to the employee. F 16 can be downloaded from http://www.incometaxindia.in You may go through this web site for other details.


  3. 1. Premium paid on Life insurance policies (on own life or life of spouse or child) and contribution to pension plans like Jeevan Akshay and Jeevan Dhara are fully exempt under Section 80C, subject to a maximum of Rs. 100000/-
    So, you should give full concession on LIC premium paid.

    2. FD opened for 5 years or more in any bank is also eligible for exemption. However, interest earned in taxable.

    3. Investment in PPF, EPF, Life Insurance, etc are eligible for deduction upto Rs. 100000/- under Section 80C. Medical insurance is eligible for deducation upto Rs. 15000/- or Rs. 20000/- (senior citizen) under Section 80D.

    4. You need to collect documents (as proof) and keep it in safe place. There’s no need to attach any document when filing your return.





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