Case Study 2

Case Study 2

A. Company Information:

• Company Name: Finc Technologies Private Limited
• TAN Number: DELI14724D
• Address: #67, 2nd Cross, Rajpath Marg, Rajpath Nagar, New Delhi 110001
• PAN Number: JHKCG2872H
• Email: finctechnplogies@gmail.com
• Mobile: 9876543211

B. Login credentials for Simulation software (Income Tax Website):

• User ID: DELI14724D
• Password: Fin@123

C. Refer following for more details:

1. Salary Statement for the month of April
2. Form 124 submitted by employees joined in April
3. Salary Statement for the month of March
4. Form 122 & 124 submitted by employees joined in March

1. Salary and leave details for the month of April:

• Gross Salary & Leave Data for the month of April:

• Salary Structure for the month of April:

• Employer Contribution for the month of April:

• Note:

1. Raghunath has submitted Form 124 and chosen to continue under the old tax regime, even though the new regime appears more beneficial in his case.
2. Jeevan K has opted for the new tax regime.
3. Niveditha is insistent on continuing with the old regime, despite not having made any eligible investments. Although she’s not considering investing during the year, she may still shift to the new regime while filing the return – a typical indecisiveness seen in many taxpayers.
4. Gurunandan hasn’t made any investments so far but is open to investing later in the year, keeping his options flexible regarding the regime selection but selected new regime as of now.

2. Form 124 submitted by employees joined in April

• Form 124 of Raghunath:

A. Computation of TDS deductible per month for each employee at the beginning of the year:

EMP 101 Raghunath:

• Monthly Salary Calculation of Employee Raghunath:

• Computation of Net Taxable Income and Tax Liability of Raghunath

• HRA Calculation of Employee Raghunath:

EMP 102 Jeevan K:

• Monthly Salary Calculation of Employee Jeevan K:

• Computation of Net Taxable Income and Tax Liability of Jeevan K

EMP 103 Niveditha:

• Monthly Salary Calculation of Employee Niveditha:

• Computation of Net Taxable Income of Niveditha:

EMP 104 Gurunandan:

• Monthly Salary Calculation of Employee Gurunandan:

• Computation of Net Taxable Income of Gurunandan:

For the month of April, we need to remit TDS within 7th May to the government using simulation software. The company has decided to remit TDS on 6th May

TDS paid Challan for Rs. 70,039 on 6th May. Learners are advised to pay challan on the said date. This option is applicable only on Simulation to give Learners an hands on experience and on the Original website,  we cannot pay challan back dated.

In extension to the above, there are certain changes in the payroll in the last quarter

1. Jeevan K exited the organization on 28th February.
2. Niveditha received an increment of ₹21,750 effective 1st January, revising her monthly salary to ₹1,23,000.
3. Gurunandan submitted Form 124 in December after making investments.
4. Nandan K joined on 1st March and has already opted for the new tax regime u/s 115BAC, which he intends to continue.
5. Swathi Bhat joined the organization on 15th March.

3. Salary & leave data for the month of March:

• Gross Salary & Leave Data for the month of March:

• Salary Structure for the month of March:

• Employer Contribution for the month of March:

4. Form 122 & 124 submitted by employees

• Form 124 of Gurunandan:

• Form 122 of Nandan K:

• FORM 122 of Swathi Bhat:

Form 124 of Swathi Bhat:

1. No change in TDS calculations for Raghunath, as he continues under the old tax regime.
2. Recalculation required for: Jeevan K, as he left the organization on 28th February. Niveditha received a salary increment of ₹21,750 effective from 1st January, raising her monthly salary to ₹1,23,000. During the financial year, although the New Tax Regime would have been more beneficial based on her income profile, she chose to stick with the Old Tax Regime for the entire year, as declared to her employer. However, while filing her Income Tax Return, Niveditha can re-evaluate her tax position and switch to the regime that is more advantageous to her — whether Old or New.
3. No recomputation required for Gurunandan, as he submitted Form 124 in December after making investments, But continues under the new tax regime, which remains more beneficial.
4. Form 122 submitted by Nandan K and Swathi Bhat must be considered, and TDS should be calculated for the month of March accordingly. Income Tax Computation is not required to be prepared for Swathi Bhat as her income is less than

Assume No leaves are taken by any employee during May to February

EMP 102 Jeevan K:

• Revised Monthly Salary Calculation of Employee JeevanK:

• Computation of Revised Net Taxable Income and Tax Liability of Jeevan K (Opted New scheme):

EMP 103 Niveditha:

• Revised Monthly Salary Calculation of Employee Niveditha:

• Computation of Revised Net Taxable Income of Niveditha:

EMP 105 Nandan K:

• Monthly Salary Calculation of Employee Nandan K:

• Computation of Net Taxable Income and Tax Liability of Nandan K (Opted New scheme):

EMP 105 Swathi Bhat:

• Monthly Salary Calculation of Employee Swathi Bhat:

For the month of March, we need to remit TDS within 30th April using simulation software. The company decided to remit TDS on 15th April.

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TDS paid Challan for Rs. 66,971 on 15th April. Learners are advised to pay challan on the said date. This option is applicable only on Simulation to give Learners a hands on experience. On the Original website, we cannot pay challan back dated.