Form 16 will seek additional details from May 12, 2019.
The Income Tax Department has revised the format of Form 16, which is used by employers to report TDS (tax deducted at source) details of the employees, to demand details such as any investment in and related deductions on the basis of income tax-saving schemes as well as income from other sources.
The amended Form 16 will come into effect from May 12, 2019.
The Income Tax Department has brought about the changes in the Form 16 requirements days after notifying the income tax return (ITR) forms applicable for Assessment Year 2019-20.Why is Form 16 usedForm 16 is a certificate issued by an employer detailing the TDS deducted with respect to payment to its employees.
According to current income tax rules, every employer is required to issue the Form 16 with details of the salary paid and tax deducted at source of each of its employee.
The Form 16 is usually issued by mid-June.Which details are now required in the new Form 16The new Form 16is more comprehensive which is expected to help the taxman check tax avoidance, say experts.In the revised Form 16, the Income Tax Department seeks details such as any income from house property, and any remuneration from other employers.The Form 16 - which will come into effect on May 12- will include information on any deductions with respect to income tax-saving schemes, any allowances received by the employee, and any income from other sources.The revised Form 16 will also require details of deductions with respect to any interest received on deposits in savings accounts, and any applicable rebate and surcharge.What tax experts say"Earlier, where the disclosure of various deductions was mentioned in a consolidated manner, ranging from 80C, 80CCD, 80E, 80G would now be required to be disclosed separately," said Sanjoli Maheshwari, director, Nangia Advisors."These specific disclosures would provide ease to the tax authorities in understanding the various components of income of the taxpayer and thereby, facilitating the conduct of scrutiny more precisely," she added.Meanwhile, the Income Tax Department earlier this month notified new ITR forms.
These income tax return forms - ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 - are applicable for reporting income earned during financial year 2018-19, which ended on March 31, 2019.
Income tax assessees, such as salaried individuals, not required to get their account audited are required to file the income tax return (ITR) by July 31 each year.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.