How to do GPF Advance Deduction in IFHRMS - (Full Guide)

Check out the above video to learn how to do "GPF Advance Deduction" in IFHRMS (2021 Full Guide).

Visit - 👉 IFHRMS 👈 to do the "GPF Advance Deduction" process.

Gpf advance deduction is a tax deduction on an advance tax of employees calculated by deducting money from the employee's salary, which is supposed to be deducted in the subsequent year. It is applicable for one time only.

Now let's read the different scenarios for GPF Advance Deduction in IFHRMS.

Below are some scenarios explained further:

• Salary Deduction (only on Salary) (As per Rule 6(3) of Income-tax Rules, 1961(Pt. VIII)(as amended)).
• Salary Deduction (only on Salary) (As per Rule 6(3) of Income-tax Rules, 1961(Pt. VIII)(as amended)).
• Salary Deduction and Advance Tax (As per Rule 6(3)(a) of Income-tax Rules, 1961(Pt. VIII)(as amended)).
• Salary Deduction and Advance Tax (As per Rule 6(3)(a) of Income-tax Rules, 1961(Pt. VIII)(as amended)).
• Combined salary deduction and advance tax for salary only.
• Combined salary deduction and advance tax for salary only.

Below are some additional scenarios explained with examples:

• Salary deduction and/or Advance Tax / or Additional advance tax.
• The Salary deduction, Advance Tax and/or Additional advance tax.
• Service tax on salary deduction and/or Advance Tax and/or Additional advance tax.
• HRA on salary deduction, Advance Tax and/or Additional advance tax.
• Income tax on salary deduction, Advance Tax and/or Additional advance tax.

How to do GPF Advance Deduction in IFHRMS?

To calculate GPF Advance Deduction in IFHRMS, the employee has to calculate the advance tax for the non-exempted salary (circumstances explained below).

By calculation of advance tax, the following two steps are involved:

Step 1: Calculate income chargeable to income tax under different heads

For calculating advance tax, one has to calculate the following head of income. This can be done by maintaining a separate account for each head.

These are simply transactions to get the amount of income from the government and other sources and pay it out to various entities such as employees, casual workers, etc.

Step 2: Calculate income chargeable to GPF under different heads

Income chargeable under each head shall be added up and it will be added with another head. After adding the above two steps, the sum of all these additions would come out as a total amount of income chargeable under different heads.

This process is repeated for all different heads of income and it will give a total of the total taxable income of a person.

The relevant figures can be compared with the relevant statutory figures mentioned in section 12(7) of the Income Tax Act, 1961(as amended).

To calculate advance tax, one has to maintain an account of the following head of taxable income under six heads as prescribed by Income Tax Act, 1961.

These are simply accounts that one has to maintain for transaction purposes. One has to maintain a separate account for each head.

How to overcome the failure in GPF Advance Deduction?

There are some difficulties or failures that can happen while calculating GPF Advance Deduction in IFHRMS. The common problems faced while calculating GPF Advance Deduction are salaried calculation errors, salary deduction errors, service tax errors, HRA calculation errors etc.

To overcome the above-mentioned problems, one has to go through the following options:

1) Calculate the error of advance tax by comparing it with the previous year's advance tax or with statutory advance tax.

After knowing the percentage of error of advance tax, one has to make corrections in an excess amount of advance tax paid.

At last, one has to pay the balance amount later on the due date after deducting the excess amount of advance tax.

2) Ensure that the errors don't happen again and calculate advance tax again. The later on date, one can make corrections to an excess amount of advance tax paid in the earlier year.

This will enable the employee to calculate his income chargeable under different heads in order to deduct his advance tax correctly in IFHRMS.

3) Please contact your employer or service provider with regard to the errors made by you in advance tax deduction calculation. If there are some mistakes or mistakes that occur again due to reasons not under your control, please inform IFFCO about it soon after knowing it.

4) You can go through the relevant provisions mentioned in rule 6(3)(a) of Income-tax Rules, 1961(Pt. VIII)(as amended). 5) If you are not able to calculate advance tax correctly, you can approach your service provider with regard to errors in advance tax deduction.

6) Take help from other similar entities such as the NPS, ESI etc. who do advance tax computation and you can also take help from other online portals such as www.taxmaniac.com.

If you have any queries while calculating advance tax in IFHRMS, we would be glad to help you out and sort out the query while taking advantage of our knowledge about taxation and geometrical progression system in ITR. You can also visit our website www.assetfinancierindia.com.

7) If you are ready with your advance tax and want to know about your advance tax calibration, you can ask your pension fund manager to check the calibration of your advance tax.

8) You can check the GPF Advance Deduction calculator that we have developed with the help of GATE certified professionals. This tool will help you to calculate advance tax and GPF Advance Deduction easily and precisely.

Conclusion

This guide will help you to understand how to do GPF Advance Deduction in IFHRMS. This can be used as a reference point for employees of the central government of India, the state government of India, PSUs, PSUs under government control, public sector banks, public financial institutions, central & state public sector enterprises etc.

To calculate GPF Advance Deduction in IFHRMS is very important for you as it will help you to save the money that you pay as advance tax every year. The key to calculating advance tax correctly is understanding it correctly and timely execution even if the task looks very simple.

As this is a seed article, it will help you to understand the step-by-step method to do GPF Advance Deduction in IFHRMS. If you find any problems while calculating advance tax in IFHRMS, please let us know by our email address - [email protected].

We will be glad to help you out with your query or problem faced while calculating advance tax in IFHRMS. We would work accordingly according to the nature of the query or problem reported.