The Central Board of Direct Taxes (CBDT) has revised the form 16 providing salary TDS certificate which provide details of salary along with the tax deducted at source (TDS) of each its employee. The Income Tax Act requires every employer to issue such a certificate.
The form would also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources.
The earlier format allowed companies to give consolidated figures or break-up in different formats for both these thereby leaving some ambiguity regarding their individual composition.
This is in the light of incidents where the tax department detected several cases of false claims of large income tax refunds made by some employees which are likely to be another reason for this streamlining exercise which is aimed at removing all space for such manoeuvres in future.
The revised form 16 would include the details of deductions in respect of interest on deposits in savings account, and rebates and surcharge, wherever applicable.
The Income Tax department has already notified income tax return forms for fiscal 2018-19. Salaried class and those who do not have to get their accounts audited, are required to file their Income Tax Returns by July 31 this year.
Meanwhile, the income tax department has also modified Form 24Q, which is furnished by employer to the tax department. It will include additional details like Permanent Account Number (PAN) of non-institutional entities from whom the employee has taken loan for buying or constructing housing property.
Subscribe Taxscan Premium to view the Judgment
