The CBDT or Central Board of Direct Taxes has notified a new
format for Form 16. This requires the break up of the Tax-Exempt Allowances paid
to the employee and also of all tax breaks claimed by them. In the previous
format allowed the companies to give consolidated figures or break-up in
different formats for both, thereby leaving some ambiguity regarding their individual
composition.
Several changes have been made in the format of the Form 16
for the Assessment Year 2019-20, the new format of Form
16 will allow the Income Tax Department get a detailed break-up of the
income and tax breaks claimed by a salaried person at the first instance
itself. Moreover, if there is any discrepancy between the income and deductions
shown in Form 16 and the ITR filed by the taxpayer, it will be quite easy to
spot it. This new format is likely to help the department digitize cross checking
of figures too, as it takes away the leeway that companies earlier had in
providing the break-up of income and deductions and fixes the format for
providing necessary details.
The new Form 16 format was notified on 12th April
2019, by the Central Board Direct Taxes. The format mentioned in the
notification will come into effect from 12th May 2019, which is well
ahead of the last date to issue Form 16 or the TDS certificate to the salaried
employees by Employers/ Tax Deductors. Therefore, those issuing Form 16 after
this date will have to do so in the new format.
List of changes in Form 16 Format:
-
·
The
nature as well as amount of Tax-Exemption should be mentioned by Employer.
·
The
Part B of form 16 has been amended to provide the section wise break-up of
various exemptions allowed under section 10 of the Income Tax Act.
·
Form-16
will also contain the break-up of all the tax-related deductions under section
80C to 80U claimed by taxpayer from the salary paid to him/ her by your employer.
·
If
a taxpayer has received salary from his/ her ex-employer or other employer
during the previous year and same has been reported to the current employer for
TDS purposes, then separate reporting is required in case of such a salary
income new Form 16.
·
Standard
deduction, announced in the Budget 2018, has also been introduced in Form16
under the head 'Deduction under section
16’.
·
Now,
income apart from salary is confined and can only be reported under Income from
House Property and Income from Other
Sources.
You can Download
Form 16 For more details visit @ www.allindiaitr.com
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