How to Prepare Form 16

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Rajnish (Querist)

13 April 2010 Dear All,

please take a note that, how to prepare form 16.
For e.g. Mr. X getting following componet

Total Gross salary 2,50,000/-
PF - 15,000
Profession tax - 2,500/-
Reimb. Amount 50,000/- (Reimb. claim Against bills)

Note:- Reimb. and Profession amount will be reflected in Chapter VI-A.

Please guide me.

Regards
Rajnish

shraddha

shraddha (Expert)

14 April 2010 Gross salary as per prov sec 17 (1 =250000

If medical allowance is included in salary structure and bills submitted for the samae then deduct from gross salary actual medical bills or 15000/- whichever is less.

Deduction - PT - = 2500

Gross total Income = 247500
Deduction Ch VI - PF = 15000
Total Income = 235500

Tax =7250
EC = 217
TAX Payable =2175
TDS if any =
TAX PAYABLE /REFUNDABLE =2175

Specify the Reimbursement if thy r perk thn included u/s 17 (2)

kartik_somu

kartik_somu (Expert)

14 April 2010 agree with expert

Rajnish

Rajnish (Querist)

14 April 2010 Dear Ms. Shraddha,

Thanks for your reply.

but my one question is pending.

If Ms. X Claimed telephone & Conveyance Reimb. of Rs. 50,000/- then how to present in Salary Certificated i.e. Form16.

As per my knowledge Less: "Allowance to the extent exempt under section 10" from Gross Salary.

Please guide me; your co-operation will be highly appreciated.

Regards
Rajnish

shraddha

shraddha (Expert)

14 April 2010 only Conveyance Allowance is exempted u/s 10 @ rs 800 / - pm if ur nt in transport industry.

Hence if ur salary structure includes tel n conv allowance thn only conv is exempted

No tele allowance exempted

Rajnish

Rajnish (Querist)

14 April 2010 Dear Ms. Shradha

Thanks for your quick reply.

But where I mention Reimb. amount in Form16 (this is not taxable).

please guide me.

Regards
Rajnish

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 April 2010 for perqusites You need to fill another form called Form-12BA along with Form-16. in this actual reimbursement/ exempted/ taxable columns are available

Rajnish

Rajnish (Querist)

15 April 2010 Dear Mr. Ramesh Krishnan,
Ms. Shraddha
Mr. Kartik Somu

Thanks to all expert, to support me.

Regards
Rajnish

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