The
Central Board of Direct Taxes (CBDT) have introduced a new Format for Form 16
and Form 24Q, which are referred as salary TDS certificate. From the looks of
the new Forms it can be said that, claims under various sections have been
enhanced and cumulative. Also, new columns and sections have been added
in Form 16. New column is made for senior citizens and various allowances have
been modified in Form 24Q. These two Forms are prepared by your employer, and
include details of your salary and investments. They are vital tools for filing
your income tax return (IRT). Now that ITR filing for assessment year 2019-20
has already begun, it is important that you take note of every section in these
two Forms very seriously. One can reduce their taxes by furnishing these Forms
in their ITR filing. Also TDS can be claimed from the Income Tax
department.
Download Automated Income Tax Form 16 PartB for the F.Y. 2019-20 [ This Excel Utility can prepare at a time 100 employees Form 16 Part B]
Form 16!
An
employer issues this Form. It contains the evidence of TDS which is deducted
from your salary and deposited with authorities. Issued annually on or before
June 15 of every year, the Form contains information needed to file your ITR.
There are two parts of Form 16 - Part A and Part B. Under Part A, details like
name and address of your employer, TAN, PAN of both employer and employee and
summary of tax deducted and deposited annually is included. Meanwhile, Part B
involves details of taxable salary, breakup of section 80C deductions, TDS, tax
payable.
The
part B of Form 16 has been changed. A new section 10 has been added, which
covers information of travel concession, death-cum retirement gratuity,
pension, leave salary encashment and house rent allowances.
Apart
from this, new columns have been created for any other exemptions under section
10. The other allowances that can be claimed in this section are - LIC policy,
daily allowances, bonds, interest on deposits at banks, compensation for
voluntary retirement, provident funds, children education, mutual funds
investment, long term capital gains, dividends and other securities. Hence, if
you have made any investment in any of these schemes and a TDS is deducted,
well you can claim refund.
Download Automated Income Tax Form 16 PartB for the F.Y. 2019-20 [ This Excel Utility can prepare One by One Income Tax Form 16 Part B]
Going
forward, claims can be made for income (or admissible loss) from house property
reported by employee offered for TDS. Recently, in interim Budget 2019, the
interim Finance Minister Piyush Goyal had proposed no notional rent of second
self occupied house. This means that now up to two self-occupied house
properties can be considered for tax benefit while calculating income from
house property.
Further,
now the CBDT has launched new columns for sections like 80E, 80G, 80TTA
and others. Earlier, inFormation for these sections for optional and had only
one single column.
Under
section 80E, interest paid for higher education loan can be claimed. This
means, if you have an education loan and are repaying the same, then interest
paid excluding portion of principal amount in your monthly EMIs is allowed for
deduction. However, only individual can claim the amount deducted, the facility
is not available for HUF or any other kind of taxpayer. Meanwhile, deductions
are made for relief funds and charitable trusts. It needs to be noted that, not
all donations are available for claim, only which are prescribed by government.
Hence, a claim can be made for these deductions.
Download Automated Income Tax Form 16 PartA&B for the F.Y. 2019-20 [ This Excel Utility can prepare at a time 100 Employees Income Tax Form 16 Part A&B]
While
section TTA plays a role in helping a citizen in claiming TDS deducted by their
bank on their interest income from deposits like fixed, recurring and others.
The government has proposed the TDS deducted from FDs, to be Rs 40,000 of
interest income from earlier Rs 10,000. Both individual and HUF can claim these
deductions.
Hence,
CBDT has made a more clear and exclusive Format for Form 16. The department
said in a notification on April 12, “If an assessee is employed under one
employer only during the year, certificate in Form No. 16 issued for the
quarter ending on 31st March of the financial year shall contain the details of
tax deducted and deposited for all the quarters of the financial year.”
Further,
if an assessee is employed under more than one employer during the year, each
of the employers shall issue Part A of the certificate in Form No. 16
pertaining to the period for which such assesse was employed with each of the
employers.
Download Automated Income Tax Form 16 Part B for the F.Y. 2019-20 [ This Excel Utility can prepare at a
time 50 Employees Income Tax Form 16 Part B]
CBDT
highlights that, any contribution made by the Central Government to the account
of the employee under a pension scheme referred to in section 80CCD or any
other sums chargeable to income-tax under the head 'Salaries'. Profits in
lieu of or in addition to any salary or wages including payments made at or in
connection with termination of employment, advance of salary, any payment
received in respect of any period of leave not availed (other than
exempted under section 10 (10AA))
Where
an employer deducts from the emoluments paid to an employee or pays on his
behalf any contributions of that employee to any approved superannuation
fund, all such deductions or payments should be included in the statement. It
has to be noted that various details are similar in both the new Forms.
They will come into effect from May 12, 2019. This will also be the last date
for issuing of Form 16 in previous pattern. Hence, after May 12, anybody
issuing Form 16 will have to do it in new Format.
