#arrear salary income tax

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Income Tax Calculator All in One for Salaried Persons for the F.Y.2024-25

Introduction Managing your income tax can be a daunting task, especially if you’re a salaried person juggling multiple financial responsibilities. This is where the Automatic Excel-Based Income Tax Calculator comes in handy. Designed specifically for the F.Y.2024-25, this tool simplifies tax calculations, ensuring accuracy and saving you time. What is Automatic Excel-Based Income Tax…

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Income Tax Calculator All in One for Salaried Persons for the F.Y.2024-25

Introduction Managing your income tax can be a daunting task, especially if you’re a salaried person juggling multiple financial responsibilities. This is where the Automatic Excel-Based Income Tax Calculator comes in handy. Designed specifically for the F.Y.2024-25, this tool simplifies tax calculations, ensuring accuracy and saving you time. What is Automatic Excel-Based Income Tax…

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Understanding Payroll Processing 

Payroll processing remains one of the most critical functions of HR. It is also a significant responsibility for an organization to ensure that employees receive their salary accurately and on time. All organizations must have a good understanding of what payroll entails and how to manage payroll processing effectively. In this article, we look at the fundamentals of payroll processing and the steps involved. 

What is Payroll? 

Payroll is formally defined in two ways: 

A list of a company’s employees and how much they are to be paid 

The total amount of money paid in each period by a company to their employees for service provided 

How is employee salary calculated? 

The amount of money paid to an employee is known as “net salary”, which is the amount due to the employee after removing required deductions from the “gross salary”. 

Gross salary includes base salary plus any allowances plus any one-time benefits or payments. 

Deductions can include regular sums such as contributions to a savings scheme, or one-off payments such as a recovery of an overpayment, or in some cases a statutory deduction such as a tax or regular pension contribution. 

The net pay, which is the amount transferred to the employee, is the gross income minus the gross deductions. 

What steps are needed to process payroll? 

The function of establishing a payroll involves six critical steps as shown below, and we can combine these into three phases – what happens before, during and after processing. 

Before 

1. Define payroll policy: The organization must establish documented and approved payroll-related policies as a base. These policies must comply with local labor laws and include elements such as time and attendance, leave, and benefits. 

2. Define components: Core components that will be used to build the payroll must be defined, including base salaries and salary scales, flexible salary rates, and overtime rates. 

3. Collect and check inputs: Those responsible for payroll processing need to gather all the elements required as input to the salary at specified times in preparation for processing. There will usually be data needed from multiple sources such as IT systems, other departments and sometimes other organizations. This data needs to be checked and validated before being used in calculations to ensure the accuracy of salaries being paid to employees. 

During 

1. Calculate payments: Some smaller organizations are still dependent on manual processing of payroll, usually with the support of spreadsheets. In contrast, others have invested in specialized payroll software or may even have an outsourced payroll solution. Whatever the case, the collated data needed for payroll calculation needs to be fed into whatever system is used for payroll processing. The payroll system will apply deductions to gross salaries, calculate each employee’s net salary, and provide total payroll data. 

After 

1. Distribute pay slips: After payroll calculations are complete and checked, salaries are distributed with documentation that summarizes gross salary, deductions and net salary, commonly known as a pay slip. Pay slips may be paper-based or provided online based on the organization's policies and are typically distributed one month in arrears. 

Salaries may be paid in cash, by cheque or, more often these days, by bank transfer directly to the employee’s bank account. Funds are released from the organization's bank account, and so the person responsible for payroll must notify the bank each month of the payroll sum to be provided. 

2. Report and Pay Dues: In addition to the responsibility to pay employees, organizations must also pay any dues required by government entities or other organizations. Money due may include taxes or contributions to government pension schemes, for example. Typically, with any statutory requirement, there is a level of reporting required to relevant bodies to validate the payments. In addition, payroll must be accounted for as an operating cost for the organization and forms part of audited accounts. 

What steps are needed to process payroll? 

There are three main methods of managing payroll processing: 

Spreadsheets 

Specialized payroll software 

Outsourced payroll processing 

Small companies with few employees and standard salary profiles may use spreadsheets such as Excel for their payroll processing. Typically, spreadsheets are set up with defined macros to simplify the processing and ensure accurate and consistent application of formulas and methods. The use of spreadsheets is the lowest cost option for managing payroll but has a higher risk of error as it is dependent on manual data entry.  Excel-based processing is also more difficult when rules or policies change, and the spreadsheet macros need to be re-designed to meet new requirements. 

Specialized payroll software is another common method for handling payroll processing. Payroll software ranges from those that provide simple handling of all core payroll tasks to more sophisticated systems that offer a higher level of data integration by handling payroll-related information such as time and attendance or benefits management. Often these systems can be integrated with other core HR systems in seamless workflows. 

Outsourced payroll processing involves submitting employee data to a contracted specialist external service provider that processes the payroll and manages compliance on behalf of the organization. Outsourcing payroll can be an effective way to manage this critical aspect of the business. It takes away the need for an organization to maintain specialized skills sets, ensures implementation of the latest legislation and reduces the risk of processing errors. In this model, it is critical that the organization selects a reputable and professional partner as their service provider. 

Payroll can be a complicated and time-consuming activity and is subject to human error in processing. It requires specialized skills and up-to-date knowledge of the latest relevant legislation. 

Our HRBluSky platform provides you with payroll processing seamlessly integrated across other modules, and with external service providers for salary processing using the WPS electronic salary transfer system. 

HRBluSky has inbuilt UAE labor law, employee recruitment, visa, insurance and end of service benefits costs. These are all included in the system, enabling you to track hidden employee costs and support more accurate forecasting for your HR budget. 

[financelatestnews]

What is the Difference Between CTC, Take-Home, Net & Gross Salary?

The annual or monthly amount that an employee receives from the employer against services rendered to the company is called a salary. The income salary calculator takes into account multiple factors such as the tax bracket the employee falls under, work experience, skill set, location, demand and supply, and the nature of the profession.

Salary comprises multiple components such as CTC, take-home, net salary, and gross salary. When using a take home calculator, understanding these components can help job seekers make well-informed decisions in choosing an employer.

Armed with a salary calculator, they have more bargaining power to negotiate their salaries.  Let us go through each of these in detail.

Cost to Company (CTC)

The total expense that a company incurs for hiring an employee’s services is known as cost-to-company or CTC. All the components of a salary such as incentives (if any), medical insurance, provident fund, pension fund, gratuity, travel allowance, house rent allowance (HRA), and basic salary are included within the CTC.

The CTC is the combination of all direct and indirect benefits and is not the same as take-home salary. Given below are the components of a CTC. Please note that organizations may not provide all these benefits, but rather a combination of these depending on the organization’s policy, employee’s role and designation, nature of the organization, etc.

Basic Salary – This is the non-variable component of your salary and is considered a part of your in-hand salary.

Allowances – The amount that an employee receives from an employer to meet the requirements of daily service is known as the allowance. This differs from company to company.

House Rent Allowance (HRA) – An employee who rents his or her place of residence is paid this amount.

Leave Travel Allowance – When an employee travels for service purposes, the company pays this amount to meet the domestic travel expenses. This amount does not include the accommodation and food expenses of the employee.

Dearness Allowance – This amount enables employees to tackle the volatility of inflation. It is a living allowance that is paid to pensioners, private sector employees, and government employees only.

Fuel or Vehicle Allowance – In a financial year, an employee is eligible for this amount as reimbursement for the use of vehicle and fuel for official purposes.

Phone or Internet Allowance – A company may pay for the internet and phone bills of an employee up to a predetermined limit.

Employee Provident Fund (EPF) – This is a percentage of the basic salary component which is deducted from the employee’s salary and placed into his/her provident fund account. The employer too contributes some amount. The amount contributed by the employer is calculated within the CTC for the employee. 

Gratuity – A company deducts this amount from an employee’s salary. If the employee leaves the company after more than 5 years of service,  the lump sum amount is awarded to the employee in his/her full and final settlement. Some organizations may allow employees to get this benefit if they leave after 3 years of service.

Must Read: What is Minimum Salary Required For a Personal Loan?

Gross Salary

The total salary that is offered to the employee before deductions is known as the gross salary. It is also known as the Savings Contributions.

Gross salary comprises all the components of CTC except gratuity, Superannuation Benefits, and the EPF. The following CTC components are a part of the gross salary –

Basic salary

Leave Travel Allowance

Educational Allowance

House Rent Allowance

Dearness Allowance

Conveyance Allowance

Travel, leave, and medical allowance

Overtime payment

Accommodation rent

Salary arrears

Performance-related monetary awards

Remuneration fee

City Compensatory Allowance (if any)

Office refreshments and reimbursements for food, travel, and other business trip expenses are not included in the Gross Salary.

Take Home or Net Salary

When we are trying to calculate in hand salary, we have to keep the following in mind - the definite salary that an employee gets in-hand after all deductions including income tax is known as the net salary or take-home salary. It is the salary that an employee gets after income taxes, professional taxes, gratuity, provident fund, EPF, etc. are deducted from the gross salary.

Depending on the tax slab applicable, if the income tax on the gross salary is zero, take home salary is the same as the net salary.  While using an eligibility calculator, an applicant should enter the monthly take-home salary amount to get accurate estimates of the maximum loan they can get.

Must Read: How Much Personal Loan Can I Get On My Salary?

Understanding the Differences Between the Salary Components

When using an annual income calculator, understanding the fundamental differences between in-hand salary and CTC can help job seekers negotiate salaries to their advantage.

CTC is the total of saving contributions, indirect benefits, and direct benefits. The net salary is direct benefits after all the deductions such as income tax, employee PF, etc.

When negotiating new salaries, informed job seekers try to increase the direct benefit component of their CTC. For example, they try to convert transportation, an indirect benefit, into conveyance allowance, a direct benefit.

Similarly, subsidised meals, which are indirect benefits, can be converted into food allowance, which is a direct benefit.

Conveyance allowance is non-taxable up to a certain limit. House rent allowance also offers tax rebates. Either of these options is a better alternative to, say, a pick-and-drop facility.

The tax liability of prerequisites and allowances vary across companies. Therefore, one should know the company policy of a new employer before accepting an offer. This will enable them to make better use of CTC to take home calculators.

We hope that this article has helped broaden your understanding. At Fullerton India, we offer a host of attractive financial products such as an instant personal loan online. If you are looking for a personal loan, visit our website or download the Fullerton India Instaloan app today.

Using our personal loan EMI calculator, you can determine the best tenure to select so that the resulting EMI is easy on your monthly budget.

Source: https://www.smfgindiacredit.com/knowledge-center/difference-between-ctc-take-home-net-gross-salary.aspx

[somver]

https://margcompusoft.com/m/section-89a-of-income-tax-act/

Relief under Section 89A: Managing Taxation on Salary Arrears and Advances.

Understand how to calculate and claim relief under this section when receiving arrears or advances.

[cboerp]

Details of HR_PAYROLL Employee Management Hierarchy Management CTC Management Salary Structuring Joining Process Offer/ Confirmation/ Appointment Process Promotion/ Transfer Leave Management Increment & Promotion Declaration of Savings & Investments Income Tax(Computation) Leaves Register Attendance Registers Expense & Claims Benefits Arrears & increment Loan and advance Payment Process Resignation Process Full & Final Settlement Visit: http://www.cboerp.com/ Facebook: https://lnkd.in/d9pBT3Vp instagram: https://lnkd.in/dQXt2AQX Linkedin: https://lnkd.in/dKQjtAA3 Tumblr: https://lnkd.in/dPs-F99K Pinterest: https://lnkd.in/dkiZZwqY youtube: https://lnkd.in/dbfHtYBb Twitter: https://lnkd.in/dnry5ig7

[qandle1]

Qandle’s All-in-One Payroll Management Software

You have definitely come across this term called “payroll” if you are a working professional or will be encountering it in near future.

Basically, payroll is the collection of financial records of earnings, pay, rewards, total compensation, and reductions in the workforce. Managing and handling the same in an organization is known as payroll management. The whole responsibility falls on the shoulder of the HR department.

It’s a brainer to understand that payroll management for large companies is a really complicated task. With loads full of income tax regulation and monetary jurisdiction, organizing the process without a well-designed payroll software or payroll system, as you may say, comes with a lot of risks. Any government shall charge fines in case of any discrepancy. Payroll software has an integrated system known as a payroll management system which facilitates a hassle-free process for the company and the HR team.

One such excellent software in the market is Qandle’s HR Payroll software.

About Qandle’s Compensation Management Software

So, as discussed above, Qandle-designed all-new Payroll management software is quite an amazing platform for companies and new startups, struggling to chalk a proper safety plan for the deliverance of payroll amounts to workers.

Let’s unveil the top reasons why you should switch to Qandle, next!

The Employee Payroll Management Software includes-

●     Compensation Structuring -

Multi-dimensional structuring of payments to all classes of employees is one of the leading highlights of this HR and Payroll Software. The services comprise employee self-service, salary updation, auto-generation of paying and tax slips, incentive payment, and lots more

●     All-round and final monetary settlements -

Qandle’s Payroll Management Software auto-calculates the full and final amounts with FnF slip statements, leave encashments, investment-dependant tax reductions, etc.

●     Error-deficit Processing -

Payroll and HR software are highly regarded for error-free payments to employees, taking everything into consideration. Manual processing surely falls short, compared to Payroll management systems. Checking and balancing gross amount - everything takes place seamlessly.

●     Arrear Payments -

Qandle’s Payroll Software diligently crosschecks previous payments’ history and facilitates overdue reimbursements or arrears payments smoothly.

●     Advanced Analytics -

This Payroll and HR software follows the policy of “Slice and split the compensation data as necessary for analysis”!

Just like an HR may ask you “Why should we hire you?”, you may even wonder reading this blog - “Why should we use this?”. A lot of payroll software is available in the market. But why Qandle’s?

-       An all-in-one HR platform that unburdens the huge pressure of managing the time-to-time payroll processes of the company.

-       Absolutely error-free delivery of work

-       Highly profound analytics tools embedded for a better user experience

-       Very reliable bank-grade security(PCI DSS). End-to-end (SHA-2, 2048-bit) encryption of all transmitted data.

-       Fully configurable, requiring only 2 weeks time for set up.

-       Immensely pocket-friendly software to implement in your company as a proper Employee Payroll Management System software.

Conclusion

This article encompasses all necessary and technical aspects of Qandle’s HR and Payroll software. This saves so much time that can be allocated to other aspects of the company while keeping the business person out of legal jeopardy.

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Sources of income

In most cases, a parent's salary is not garnished for the need of child support until they have fallen significantly behind on their payments and have not made complete payments in a number of months.

Sources of income

The courts and an agency run by the state government that handles child support typically begin the process of wage garnishment and coordinate it with the parent's employer in question.

From 1968 onwards, when the government passed Title III of the Consumer Credit Protection Act into law, federal law has imposed constraints on all different kinds of garnishments. The law will allow employers of divorced parents to garnish up to fifty percent of the parent's earnings for delinquent child support payments. This percentage increases to sixty percent if the guardian in question is'nt supporting a partner, child or children not under the cover of the child support order that's being questioned. If the concerned parent is overdue for over 12 weeks in payments, there is an additional 5% increase in the amount due. The combined limit is between 50 and 65 percent.

Because this would amount to 85 percent of the debt, a creditor cannot collect 25 percent of the debt while also having child support garnish about 60 percent of the debt. Garnishments for child support have precedence over all other garnishments, except for tax levies issued by the IRS. Even in this case, the need to pay child support takes precedence over any other liens or levies unless the lien or levy was lodged prior to the date on which the child support order was made.

When a company receives information that it needs to garnish an employee's salary, the process can then officially commence. To explain the wage garnishment, the employer needs to write to the worker and either send it along with the subsequent payment or send it ahead of time.

In addition to regular salaries, child support arrears might have a garnishment order against other income kinds. The Federal Office of Child Support Enforcement states that a garnishment can also be placed on other types of income. Virtually every possible source of income is susceptible to risk.

[indilegalonline]

Income Tax Deduction from Salaries during the financial year 2021-22: Circular No. 4/22

Reference is invited to Circular No. 20/2020 dated 03.12.2020 'whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961 (hereinafter 'the Act), during the financial year 2020-21, were intimated. The present Circular contains the rates of deduction of Income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2021-22 and explains certain related provisions of the Act and Income-tax Rules. 1962 (hereinafter the Rules). All the sections and rules referred to are of Income-tax Act. 196 1 and Income-tax Rules, 1962 respectively unless otherwise specified. The relevant Acts, Rules. Forms and Notifications are available at the website of the Income Tax Department. As per section 192 (I ) of the Act, any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income tax on the amount payable at the average rate of income tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under the head of Salary income for that financial year. The section also provides that a person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof.

Definition of "salary", "perquisite" and " profit in lieu of salary" (section 17)

What is the salary? As per section 15 of the Act, the following incomes are chargeable to income tax under the head "Salaries"- (a) any salary due from an employer or a former employer to an assessee in the previous year. whether paid or not; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him; (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income tax for any earlier previous year. As per section 17 of the Act Salary includes the following:i) wages; ii) any annuity or pension; iii) any gratuity; iv) any fees, commissions. perquisites or profits in lieu of or in addition to any salary or wages; v) any advance of salary; VI) any payment received by an employee in respect of any period of leave not availed of by him; vii) the portion of the annual accretion to the balance at the credit of an employee participating in a recognized provident fund. to the extent to which it is chargeable to tax under rule 6 of Part A of the Fourth Schedule; a) contributions made by the employer to the account of the employee in a recognized provident fund in excess of 12% of the salary of the employee, and b) interest credited on the balance to the credit of the employee in so far as it is allowed at a rate exceeding such rate as may be fixed by the Central Government by notification in the Official Gazette; viii)the contribution made by the Central Government or any other employer to the account of the employee under the New Pension Scheme as notified vide Notification F.N. Sn 12003- ECB&PR dated 22.1 2.2003 (enclosed as Annexure VII) referred to in section 80CCD (para 5.5.3 of this Circular); ix) the aggregate of all sums that are comprised in the transferred balance as referred to in sub-rule (2) of rule II of Part A of the Fourth Schedule of the Act in case of an employee participating in a recognized provident fund, to the extent to which it is chargeable to tax under sub-rule (4) thereof. It may be noted that since salary includes pension, tax at source would have to be deducted from pension also, unless otherwise so required. However, no tax is required to be deducted from the commuted portion of the pension to the extent exempt under section 10 (IGA). Family Pension is chargeable to tax under the head "Income from other sources" and not under the head "Salaries". Therefore. provisions of section 192 of the Act are not applicable. Hence, DOOs are not required to deduct TDS on a family pension paid to the person. What is a Perquisite? As per Section 17(2) of the Act, perquisites include: i) The value of rent-free accommodation provided to the employee by his employer; ii) The value of any concession in the matter of rent in respect of any accommodation provided to the employee by his employer; iii) The value of any benefit or amenity granted or provided free of cost or at a concessional rate in any of the following cases: a) By a company to an employee who is a director of such company; b) By a company to an employee who has a substantial interest in the company; c) By an employer (including a company) to an employee, who is not covered by (a) or (b) above and whose income under the head "Salaries" (whether due from or paid or allowed by, one or more employers), exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds Rs.50, OOO/-. iv) Any sum paid by the employer in respect of any obligation which would otherwise have been payable by the assessee. v) Any slim payable by the employer. whether directly or through a fund, other than a recognized provident fund or an approved superannuation fund, or other specified funds u/s 17, to effect an assurance on the life of an assessee or to effect a contract for an annuity. vi) The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at a concessional rate to the employee. For this purpose, (a) "specified security" means the securities as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956 and, where employees' stock option has been granted under any plan or scheme, therefore, includes the securities offered under such plan or scheme; (b) " sweat equity shares" means equity shares issued by a company to its employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called; (c) the value of any specified security or sweat equity shares shall be fair to the market value of the specified security or sweat equity shares, as the case may be, on the date on which the option is exercised by the assessee as reduced by the amount actually paid by, or recovered from the assessee in respect of such security or shares; (d) "fair market value" means the value determined in accordance with the method as may be prescribed (refer to Rule 3(9) of the IT Rules); (e) "Option" means a right but not an obligation granted 10 an employee to apply for the specified security or sweat equity shares at a predetermined price; (vii) the amount or the aggregate of amounts of any contribution made to the account of the assessee by the employer- (a) in a recognized provident fund; (b) in the scheme referred to in sub-section (1) of section 8QCCD; and (c) in an approved superannuation fund, to the extent, it exceeds seven lakh and fifty thousand rupees in a previous year; (viia) the annual accretion by way of interest, dividend, or any other amount of similar nature during the previous year to the balance at the credit of the fund or scheme referred to in clause (vii) above to the extent it relates to the contribution referred to in the said clause which is included in total income; and (viii) the value of any other fringe benefit or amenity as prescribed in Rule 3. What is profit in lieu of salary? As per Section 17(2) of the Act. 'Profits in lieu of salary' include: I. the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto; II. any payment (other than any payment referred to in clauses (10), (10A), (10B), (11), (12) (I 3) or (13A) of section 10) due to or received by an assessee from an employer or a former employer or from a provident or other funds, to the extent to which it does not consist of contributions by the assessee or interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy. "Keyman insurance policy" shall have the same meaning as assigned to it in section 10(/10D): Ill. any amount due to or received, whether in a lump sum or otherwise, by any assessee from any person- (A) before his joining any employment with that person; or (B) after cessation of his employment with that person.

RATES OF INCOME-TAX AS PER FINANCE ACT, 2021

As per the Finance Act, 2021, the rates of income tax for the FY 2021-22 (i.e. Assessment Year 2022-23) are as follows: Rates of tax A. Normal Rates of tax: In the case of every individual other than the Individuals referred to in para (B) and (C) below: S.No.Total IncomeRate of tax1.Where the total income does not exceed Rs. 2,50,000/-Nil;2.Where the total income exceeds Rs. 2,50,000/- but does not income exceeds Rs. 5,00,000/-.5 percent of the amount by which the total income exceeds Rs. 2,50,000 /-;3.Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.Rs. 12,500/- plus 20 percent of the amount by which the total income exceeds Rs. 5,00,000/-;4.Where the total income exceeds Rs. 10,00,000/-.Rs. 1,12,500/- plus 30 percent of the amount by which the total income exceeds Rs. 10,00,000/- B. Rates of tax for every Individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year: S.No.Total IncomeRate of tax1.Where the total income does not exceed Rs. 3,00,000/Nil;2.Where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000/-5 percent of the amount by which the total income exceeds Rs. 3,00,000/-;3.Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-Rs. 10,000/- plus 20 percent of the amount by which the total income exceeds Rs. 5,00,000/-;4.Where the total income exceeds Rs. 10,00,000/-Rs. 1,10,000/- plus 30 percent of the amount by which the total income exceeds Rs. 10,00,000/- C. In the case of every individual, being a resident in India. who is or the age or eighty years or more at any time during the financial year : S.No.Total IncomeRate of tax1.Where the total income does not exceed Rs. 5,00,000/Nil;2.Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000/-20 percent of the amount by which the total income exceeds Rs. 5,00,000/-;Where the total income exceeds Rs. 10,00,000/-Rs. 1,00,000/- plus 30 percent of the amount by which the total income exceeds Rs. 10,00,000/-. Read the full article

[irssolutions]

3 Reasons Your Tax Practice Needs an IRS Offer in Compromise Calculator

Tax resolution professionals know that one of the most important services they can provide their clients is proactive, successful negotiation with the IRS. In many cases, that means an Offer in Compromise (OIC). Like any agreement, a great OIC is one in which neither party entirely prevails but in which all stakeholders walk away feeling satisfied. 

Consider the case of a taxpayer who has fallen into arrears. Coming to the table, the IRS would love to collect every dime of back taxes owed to the United States government, if possible. The taxpayer, on the other hand, would be happy if they could walk away from the situation with no financial consequences. Sometimes neither scenario is feasible. The IRS hopes that if your client had the resources to pay their taxes in full, they would have done so by now, and so do you. The agents working on your client’s case are willing to negotiate, but only to the point allowed in their guidelines. You’ve got to submit a proposal that your client can afford and that the IRS finds palatable, but how will you determine what that looks like? The best way to make it happen is with an IRS Offer in Compromise calculator like the one that’s built into IRS Solutions.

 

Easily and Quickly Determine Client Account Status

One of the first things you’ll do for a new tax resolution client is to determine the status of their account. That might mean concluding that their case is Currently Not Collectible (CNC) or determining and leveraging accurate Collection Statute Expiration Dates (CSEDs). In many cases, you’ll need to determine the client’s eligibility for an Offer in Compromise (OIC) to settle an outstanding debt, then craft and submit that offer on their behalf. 

The best way to make that determination is by using specialty software. There are several options available to you. IRS Solutions was created by tax professionals for tax professionals and includes everything you need to succeed, including solution recommendations. After you’ve gathered and input your initial client data and used our ultra-fast API to retrieve and translate their IRS transcripts, you’ll get an IRS options summary. This will let you know what you can and can’t do and advise your client of the best next steps. The system will also generate a detailed, easy-to-understand report for you to review with your client, showing them that you have analyzed their case and helping them understand the path forward, and let them know why you are the best person to assist them.

 

An IRS Offer in Compromise Calculator Boosts Chances of Acceptance

If you determine that an Offer in Compromise is best for your client, the next step is determining the best offer you can make on their behalf. In recent years, the Internal Revenue Service has accepted only around 30% of the OICs that it has received. The odds are greatly increased if you submit an offer of what the IRS is willing to accept as using IRS Solutions Software takes all IRS guidelines into consideration.

A successful OIC will have to take several factors into account, including balance due, current assets, income and expenses, and the client's CSED. The amount owed will come directly from the IRS. Be sure to counsel resolution clients that they must be fully transparent when disclosing assets and income. The IRS will not look favorably on bad-faith dealings. They’ve also got to keep expenses to allowable, modest levels, adhering to IRS allowable living figures for budget items such as rent, food, car payments, and insurance. They must disclose not only salary figures but also alimony, rental fees on property, and all other sources of income.

You’ll also need to determine whether your client can afford a lump sum (five or fewer monthly payments) settlement or require a payment plan. IRS payment plan options range from six to 24 months in duration and are determined based on a combination of assets and monthly remaining income. There was a time when you had to sit down with paper, pencils, and an adding machine to use those figures and manually calculate your offer, then put it in an envelope and cross your fingers.

Today, there’s a better way. IRS Solutions members can have their clients easily enter their asset, income and expense data themselves.  The secure portal will help clients answer questions at their leisure and members will receive notification when completed.  IRS Solutions software will take into account what is owed and what their financial situation is and then make an optimized recommendation; giving members a full report to give to their clients. 

 

Live Your Best Life In and Out of the Office with an OIC Calculator

According to the Association of International Certified Public Accountants, the numbers of people entering the profession continued to decline in 2021. Quality of life and job satisfaction issues are among the reasons for this drop-off, particularly the long hours and seasonally erratic workload traditionally associated with life as a financial professional. Not coincidentally, these are also common reasons for transitioning to a practice that specializes in tax resolution. 

Tax resolution specialists typically earn more in fewer hours per week than their peers do. To achieve this goal, you’ve got to make smart choices about prioritizing work for yourself and your staff, spending as much time as possible on revenue-generating tasks, and as little as possible on chores that eat time without adding to the bottom line. An OIC calculator takes one time-consuming task off your to-do list, freeing you up to devote those hours to more professionally and personally rewarding tasks. 

What could you do with those reclaimed hours? Whether your goal is to attract and serve more clients or to leave the office a little bit earlier each day to spend more time with your family, adding an IRS Offer in Compromise calculator to your practice can help you get there.

 

Additional Resources

We dive deeper into working an Offer in Compromise and the benefits of an IRS Offer in Compromise calculator in these 2 guides:

8 Tips to Boost Offer in Compromise (OIC) Acceptance Rates

6 Tax Resolution Mistakes When Working an OIC

Try Tax Resolution Software with a Built-In Offer in Compromise Calculator

Are you ready to find out how using tax resolution software with an OIC calculator can transform your practice? We'll be happy to give you a one-on-one tour of IRS Solutions, a Tax Pro’s Best Friend. Schedule your demo today.

[poonamranius]

Public Provident Fund: PPF अकाउंट हो गया है बंद, ये है दोबारा चालू करवाने का तरीका

Public Provident Fund: PPF अकाउंट हो गया है बंद, ये है दोबारा चालू करवाने का तरीका

Public Provident Fund ( PPF ) : आपको लगातार 15 साल तक लगातार निवेश करना होता है। यदि आप हर साल 500 रुपये का minimum investment भी नहीं करते हैं तो आपका यह PPF Account निष्क्रिय हो जाता है। HIGHLIGHTS PPF टैक्स बचाने और निवेश करने का सबसे पुराना और सुरक्षित साधन हैहर साल 500 रुपये का न्‍यूनतम निवेश नहीं करते तो खता बंद हो जाएगाआप आसानी से अपना बंद पड़ा पीपीएफ खाता चालू कर सकते हैं Public…

[realbrianerbis]

Prosecutorial Indiscretion

Well, you don't say. The activist prosecutor, Marilyn Mosby the Maryland State Attorney for Baltimore, has been federally indicted for mortgage fraud and related offenses relating to dishonesty. Among those were lying about recent financial hardships including salary and failing to disclose that she is not only in arrears on federal income tax but also had a federal tax lien lodged against her and her husband, Baltimore City Council President Nick Mosby, by the IRS. I guess taxes are for the little people as Leona Helmsley once said. Exceptionally rich is that she is allowed to continue in her capacity as head prosecutor until such time as "Under the Maryland constitution, a state’s attorney is subject to removal from office for incompetency, willful neglect of duty or misdemeanor in office, on conviction, or by a vote of two-thirds of the Senate, on the recommendation of the attorney general." How politicians insulate themselves by passing laws for others to follow. And of course, you're innocent - until proven guilty that is. I'm sure the race card is about to drop. According to her attorney, "the charges were unfounded and rooted in personal, political and racial animus five months from her election. It's a shame that the Baltimore cops weren't afforded the same opportunity as they battled her witch hunt. The world will be watching and awaiting the outcome, Marilyn Mosby. https://www.washingtonpost.com/.../mosby-baltimore.../

[unkorkd]

Panhandling With Pride Part 3

I didn’t want to get Cassey’s hopes up so I kept my tertiary activities to myself. The next day I devoted a drive over to this building to inquire about the potential aide. Unbeknownst, to me it would be the first of the last three trips that I would ever make in my soon-to-be-defunct car. Surprisingly, the case workers received me in with not much hassle. I displayed my past income, court documentation (outlining my rental arrears), and on-going correspondence from employers.

Explicably, I had to prove that I had the ability to “take over the wheel” once a settlement was reached with the property manager. Cooperation likely turned in my favor on behalf of a hood chick, crowned in a fake Lois Vuitton scarf, launching a profanity laced tantrum before my appointment. Contrarily, I met them with a perky “Good Morning” smiling brightly as I plopped down into the chair.

I propped my Starbucks on the desk and quipped “I would’ve brought y’all some but given the gravity I didn’t want it to seem like I was trying to poison you.” That joke didn’t go over well. I shrugged then proceeded into my laptop bag neatly laying out 20 years of tax records, bank transactions, pay stubs, stock sells, social security cards, birth certificates, plus the aforementioned affidavit and debt. They stared at each other puzzled then glared back at me. I returned their bewilderment with a wide grin. I mean a deliriously wide grin…the wonky-toothy kind that Eddie Murphy flashes mockingly.

“Ummm…Mr. Dunbar…”

“Please…just Gio” I interrupted. She was cute afterall.

She continued…”We’ll need to see your co-leaseholder, Cassey Lewis.”

“Got ya!” I thought to myself.

Within days Cass’ attended the office, U-Hauls were re-summoned, and beds ushered back in to our two-bedroom that resides in a once torn straight of Greater Southeast. Yeah, it’s the hood but my little boys know it as home. As the months passed by things settled down. The pre-destined high salary was acquired, new improved décor began to ornament our confines, and we went back to normal but indeed stronger…and no doubt motivated. Cassey had started school and we began to make sure that that we went through the ‘highs’ just like we went through the ‘lows’.

It’s a certainty that you’ll be tested in life and will be denied the small tokens that you take for granted. So now when I’m stuffing a shopping bag, posting a vacation, or high-ticket purchase online I am not doing it to show-off but instead I’m rejoicing that not long ago this world had nearly ended and I had nothing to show for it…just wild nights. I promised myself back then that this time if I was going to splurge in my success I would do it right. Build memories, spend extravagantly (but intelligently) and share my resources with those around me.

Going forward, please know that if I invite you out to a nightspot on my treat and I order that market rate lobster, you are forbidden to order a chicken sandwich. No, you are eating lobster too and don’t fret…this go’ round I don’t need anyone to snatch away a bank card or worry if I’ve gone out-of-control. I’m spending what I can afford to give. The previous brush with disaster surely wasn’t the first and it will not be the last so I might as well savor the moment. Eventually, another conflict will emerge; however it shall be challenged by a tougher, wiser, equipped, and more stable family. Thanks for reading “Panhandling with Pride!”

- END -

[spinetechnologies]

How to fill or submit Form 12BB?

Since its introduction in the year 2016, Form 12BB is making people’s life easier when it comes to investment declaration. Every salaried employee needs to fill and submit the form 12BB in his organization to claim tax benefits/rebate on his/her investments and expenses. The form 12BB is useful for tax saving investments such as House Rent Allowance (HRA), Leave Travel Concession (LTC), Home loan interest, deductions under 80C, 80CCC, 80CCD, 80D, 80E, 80G, and 80TTA. Form 12BB should be supported by the documented evidence.

Filling out the Form 12BB

Form 12BB is easily available online.

Steps involved are:

1. Download Form 12BB

2. Fill out the first part of the form that includes basic details such as Name, Address, PAN (Permanent Account Number) and the financial year.

3 In the second part of the form, the employee needs to fill the House Rent Allowance (HRA) details. To support the HRA claim, documentary proof like the rent receipt is required. In this part of the form details about the property owner is also required such as his name, address and the rent amount. If the rent paid during the financial year exceeds Rs. 1 lakhs, then the property owner’s PAN card number should also be mentioned

4. Section three of the form consists of Leave Travel Allowance (LTA) details. As per the income tax act, section 10(5), LTA is exempted from tax. The LTA details should be provided and it should also be supported with proof of travel in form of receipts and bills.

5. The next part of the form includes details about the deduction of interest on borrowing.Interest paid on home loan is deductible from the tax. In support of the details filled in this section, an employee should submit the interest certificate to claim the tax rebate. Here he needs to fill in the details like interest amount paid to lender, name, and address of the lender including bank or non-banking financial company (NBFC) and PAN Number of the lender.

6. This section of the form provide details about all the tax deduction mentioned under Chapter VI-A (80C, 80CCC, 80CCD, 80D, 80E, 80G, and 80TTA) with proof.

80C: Premium paid for life insurance, the investment made in ELSS funds, PPF, NPS and school tuition fees for children etc. 80CCC:Premium paid for annuity plan 80CCD: Additional contributions made to NPS 80D: Premium paid for medical insurance 80E: Interest paid on the educational loan 80G: Donations made to a specified organization 80TTA: Interest income earned from saving bank account.

7. In the last section, the employee should verify the details filled in the form.

The employee should make the declaration of their investment at the starting of a financial year and should submit the dully-filled form 12BB with the documented evidence of the investment by the end of the financial year.An Employer makes the TDS deduction based on the submitted form 12BB.

One of the core HR functions includes payroll management, and the most tedious part of it is the calculation of employee income tax. After the calculation of taxable income, tax payable and tax exemptions/deductions, what remains is often referred to as Income Tax. There are many government regulations about payable taxes, income declaration, investment declaration, and so on.

HR professionals can effectively managed suh HR functions with the help of cloud based HRMS and Payroll solutions offered by Spine Technologies, Mumbai. The software application is very effective in managing salary calculation, EIS, Monthly Reconciliation, payslips, Arrears Calculation, and Tax calculation without any difficulty.

[exelahrsolutions]

By outsourcing payroll processing, small businesses can minimize hidden costs & hassles that usually accompany payroll services.