The government is likely to make an announcement regarding
extension of due date for filing income tax return for the financial year
2018-19. Meanwhile, the last date for ITR Filing is already out that is
July 31. In context with this, the Central Board of Taxes (CBDT) has issued a
notification extending the last date for employers to file their TDS returns
and issuing of Form 16 to employees to
June 30th and July 10th respectively. Therefore, it is acknowledged that if
employers will get their Form 16 by 10th
July, then it would be difficult for the taxpayers to file the income tax returns on July 31. Following this pace of the CBDT,
the extension of the due date of filing ITRs may well get extended too.
The CBDT has extended the due date of filing of Form 24Q,
i.e., TDS return in respect of salary for the financial year 2018-19 from May
31, 2019 to June 30, 2019," Naveen Wadhwa, chartered accountant and
manager, Taxmann, told The Economic Times. He added that the due date was
extended considering the latest changes made by the tax department in Form 24Q
and to redress genuine hardship of employers in timely filing of TDS return in
revised format of Form 24Q.
Earlier, the tax department has issued a notification to revise
the Form 24Q and Form 16 (TDS certificate in respect of salary income) with
effect from May 12, 2019. Following the latest format by the tax department,
every employee is required to disclose the detailed break-up of salary, exempt
allowances and deduction claimed and allowed to an employee.
In addition to this, the income
tax returns form for the assessment year 2019-2020 are also amended by
CBDT in contrary to the changes made in Form 24Q and Form 16. The move has been
initiated in accordance with the cross-check the information provided by an
employee in ITR Forms with TDS return filed by his employer.
What is Form 16 all about?
Form 16 contains the
following things: –
·
Employee’s personal details
which include name, PAN number, date of birth etc.
·
Employer’s details such as name,
TAN, PAN, etc.
·
Acknowledgement number, which is
a verification number for the taxes paid by the employer.
·
Employee’s Salary details which
contain employee’s net salary, gross salary, perks, deductions, etc.
·
Employee’s total income after
tax deduction.
·
It also contains the Tax
deducted under section 191A
·
It includes the employer’s tax
payment declaration
·
It contains the details of income tax refund
if there are any.
·
Form 16 also comprises of TDS
receipt, which is provided to the individual once he/she pays it.
·
Last but not the least, it
contains tax Payment details such as Cheque number, Challan number, Demand
Draft number, etc.
Why Form 16?
Form 16 is required
to file both Income Tax Return by the employee as well as refund by the
employer on behalf of the employee. It can also be used as income verification
certificate for various purposes, like applying for loan, visa etc.
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