Specifying Section 16 deductions
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See page overview
Select “Section 16 Setup” hyperlink from the left pane.
The “Section 16 setup” page appears. The system will display the following.
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Tax Setup Unit |
The name of the tax setup unit in which the tax set up has been deployed. Tell me more |
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Date Format |
The date format applicable to the login user. Tell me more |
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Tax Year |
From the drop-down list box select the tax year for which the standard deductions must be specified. The drop-down list box contains list of all the tax years that have been created in the “Create Tax Year” activity and having status as “Active”. |
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By default the system will display with “Select” value. If there is only one tax year defined, the system will default the same. |
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Gender |
From the drop-down list box select the gender whose details are to be specified. The drop-down list box lists two values namely “Male” and “Female”. By default the system displays with a blank value. |
Select the “Get” pushbutton. As you select the pushbutton the system retrieves the values if entered earlier. If you are entering the values for the first time, the system displays with a blank value.
As you specify a default tax year, you indicate that the new tax year will inherit all the deductions specified in the selected default tax year.
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Default From Tax Year |
From the drop-down list box select the tax year whose deductions is applicable for the selected tax year. The drop-down list box contains list of all the tax years prior to the selected tax year that have been created in the “Create Tax Year” activity and have status as “Active”. By default the system will display with a blank value. |
Note: As you specify a default tax year, the system displays all the details specified for the selected year in the multiline. You can modify the details if any, and save the details.
To specify Standard Deductions
In the “Standard Deductions” multiline specify the rates applicable for the tax year.
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Income Over |
The start of the range of the income for which the specific tax rate is applicable. |
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But Not Over |
The maximum income, beyond which the tax rate is not applicable. |
Note: The value of
“Income Over” must be the same as the value of “But Not Over” in previous
row. For example, Income over 1 but not over 50000; Income over 50000
but not over 60000; etc.
If the “Income over” is not specified, the system takes the value as zero
and if “But Not Over” is not specified, the system will regard any value
exceeding the specified “Income Over” value in the corresponding row.
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% of Income |
The percentage of income that is allowed as deduction. |
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Maximum Amount |
This maximum amount that can be availed as deductions. |
Select the “Save” pushbutton to save the details entered.
Select the Book icon beside the comments field. The system displays a dialog box containing comments, if entered earlier.
You can view, modify or delete the content.
Select the “OK” pushbutton to save the details and return to the previous page.
Select the “Cancel” pushbutton to return to the previous page without saving the details entered.
Select the “Save” pushbutton to save the details specified. As the details are saved, the system refreshes the page with the saved details.
Hyperlinked topics below
Use this page to create or modify the standard deductions applicable to the employees under section 16 of the Income tax act.
In this page, you can specify section 16 deductions applicable for a tax year in three different ways.
Specify new values that are applicable to various income levels.
Specify an earlier tax year make it applicable to the new tax year.
Apart from specifying the details, you can also modify the same.
To_specify_standard_deductions