Demand cut from ₹10,050 to ₹1,310
TaxSavvy for payroll
Payroll every month, with TDS, PF and PT done.
We run salaries, payslips, TDS, PF, ESI and professional tax monthly.
If you wait: Late salary TDS: interest 1.5% a month (Sec 398(3), old 201(1A))
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
PAN (business and owners). Aadhaar of owners / directors
Discussion
Headcount now and planned?. State for professional tax?
Forms
PF ECR. ESI contribution
Deliverables
Challans + returns
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹30,700 leaking every month
Sample Books from your bank statement
13 bank lines, books balanced
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Form 130 (old Form 16): Part A and Part B Decoded
- Facts
- Form 130 (old Form 16) is the salary TDS certificate, the most important document for a salaried person's ITR. Most employees receive it but don't know how to use it. Part A shows TDS deposited with the government. Part B is the salary breakup prepared by the employer. Errors in Form 130 (old Form 16) cause ITR mismatches and demands.
- Provisions and law
- Sec 395(4) (old 203); Rule 215 (old Rule 31); TRACES system; Sec 392 (old 192(2B))
- Analysis
- Form 130 (old Form 16) Part A, what to check: (1) Employer TAN must match what's in your Form 168 (old Form 26AS). (2) Your PAN must be correct. (3) TDS amount quarter-wise must match your Form 168 (old Form 26AS) and AIS. (4) "Amount paid / credited" = your gross salary for each quarter. (5) If employer changed TAN mid-year (company restructuring): multiple Part As may exist. Form 130 (old Form 16) Part B, the salary breakup: Shows: Basic salary, HRA, special allowance, LTA, bonus, perquisites. Deductions: Sec 123, Income-tax Act 2025 (old Sec 80C) investments, Sec 126 (old Sec 80D) health insurance, home loan interest (24b), standard deduction ₹75K. Taxable salary after deductions. TDS schedule with advance tax if any. This is what flows into your ITR Schedule S (Salary) and should match your AIS salary figure. Common Form 130 (old Form 16) errors: (1) Old investments not included in Part B (employer didn't update after you submitted Form 124 (old Form 12BB)). (2) HRA exemption computed wrong (wrong city classification).
- Conclusion
- Receive Form 130 (old Form 16) from employer by June 15 (if not received: email HR immediately)
- Check Part A: TAN, your PAN, period of employment, TDS figures, match with Form 168 (old Form 26AS)
- Check Part B: salary breakup is complete, Basic, HRA, allowances, perquisites, bonus
- Verify deductions in Part B: Sec 123, 126, 22(1)(b) (old Sec 80C, 80D, 24(b)), NPS Sec 124 (old Sec 80CCD(2)), standard deduction ₹75K
TDS on Salary: Section 392 (old 192)
- Facts
- The most voluminous TDS in India, every employer deducts on estimated annual salary. Most errors in TDS happen here: wrong regime, missed deductions, dual employment.
- Provisions and law
- Sec 392 (old 192); Sec 392 (old 192(2)); Sec 392 (old 192(2B)); Form 124 (old Form 12BB); Sec 204, 201 (now 398)
- Analysis
- How salary TDS is computed: Step 1, Estimate gross salary for full year. Step 2, Add any other income declared by employee (Form 124, old Form 12BB). Step 3, Deduct loss from house property if declared. Step 4, Deduct allowances (HRA, LTA to extent exempt). Step 5, Deduct Sec 123/126, Income-tax Act 2025 (old Sec 80C/80D) etc. if old regime. Step 6, Compute tax on net income. Step 7, Divide by 12 months remaining = monthly TDS. Common employer errors: (1) Default to new regime without checking employee's declaration. (2) Not collecting Form 124 (old Form 12BB), missing HRA and home loan deductions. (3) Not aggregating other employer salary in job-switch year. (4) Not giving effect to Sec 392 (old Sec 192(2B)) house property loss declaration. Employee duty: Submit Form 124 (old Form 12BB) with proofs by February 28 each year. Declare other income/loss if applicable. If employer TDS seems wrong, check payslip and Form 130 (old Form 16) mid-year.
- Conclusion
- Employee submits Form 124 (old Form 12BB) by April (start of year), regime declaration, HRA, home loan, Sec 123 (old Sec 80C) estimate
- Employer updates payroll software with regime and deduction inputs
- Monthly TDS computed on estimated annual income, deducted each month
- If employee joins mid-year, collect Form 122 (old Form 12B; previous employer income) and aggregate
Section 143(1) (now 270(1)), Intimation after processing: what it means and when it's fine
- Facts
- Sec 143(1) (now Sec 270(1), Income-tax Act 2025) is an automated intimation, not a proper assessment. The CPC (Centralised Processing Centre) in Bengaluru processes your ITR and sends this when: (a) the numbers match and your return is accepted, refund issued, or (b) the system finds a mismatch, tax demand raised.
- Provisions and law
- IT Act 1961, Sec 143(1) (now 270(1)) | Time limit: 9 months from end of AY
- Analysis
- Three outcomes in a Sec 143(1) (now Sec 270(1)): • Demand: System says you owe more tax, check if it's right. Common reasons: TDS mismatch (your Form 26AS (now Form 168) vs what you claimed), deduction not matching books, income missed. • Refund: System agrees you overpaid, refund will credit to bank account. • Neither: Accepted as filed. No action needed. Most Sec 143(1) (now Sec 270(1)) demands are wrong, AIS/26AS (now Form 168) data entry errors, employer TDS timing mismatch. Respond with rectification under Sec 154 (now Sec 287) before paying.
- Conclusion
- Login to IT e-filing portal → e-Proceedings → response to outstanding demand
- Download the intimation, identify the specific line causing the demand
- Cross-check with Form 26AS (now Form 168), AIS, and your ITR Schedule
- If system is right: pay the demand within 30 days (+ interest if delayed)
50-30-20 Budget Rule: Your Salary Split in Seconds
- Facts
- The only budget framework you need. 50% needs, 30% wants, 20% savings. Enter your take-home and get instant allocation. Most people discover they're saving 5%, not 20%.
- Provisions and law
- RBI Guideline; SEBI / AMFI
- Analysis
- Why most people miss 20%: Lifestyle inflation, every salary hike is consumed by wants before savings. Set up auto-SIP on salary day. Savings happen before spending. EMI trap: Home loan + car + personal loan + credit card. When EMIs cross 50% of income, any income shock = default. Keep EMI ≤ 40% of take-home. The 20% math: ₹20,000/month SIP at 12% for 10 years = ₹46.5 lakhs. Starting 5 years late = only ₹24.2L. Cost of delay: ₹22.3L. Emergency fund first: Before any investment, build 6× monthly expenses in liquid fund or savings account. This is your shock absorber. RBI Guideline: EMI-to-income ratio should not exceed 40-50% of net monthly income for retail loan eligibility. Banks use FOIR (Fixed Obligation to Income Ratio), includes all existing EMIs + proposed. SEBI / AMFI: Systematic Investment Plan (SIP) for the 20% savings component. ₹500 minimum SIP via AMC or MFU.
- Conclusion
- Calculate actual take-home (after TDS, EPF, professional tax)
- List all fixed obligations: rent, EMIs, insurance premiums, school fees
- Fixed obligations should be ≤ 50% of take-home
- Set up auto-SIP for 20% on salary credit date (not end of month)
Payroll every month, with TDS, PF and PT done.
A Chartered Accountant handles it. Fixed price, told before you pay.
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