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CBDT-Amends-Form-16-and-Form-24Q

 

CBDT Amends Form-16 and Form-24Q

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Introduction-

The Central Board of Direct Taxes (CBDT) has revised Form 16 and Form 24Q, which has been notified by the Income Tax department vide Notification No. 36/2019/F.No. 370142/4/2019-TPL dated 12th April, 2019, will come into effect from May 12, 2019.

 
Download the Notification: CBDT Notification_36_2019 dt. 12.04.2019
 

This revised form must be useful for assesse to file their Income Tax Return means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16. These specific disclosures would provide ease to the tax authorities in understanding the various components of income of the taxpayer.

 
See the related post : How to E file Income Tax Return
 
  • Form 16 has two parts i.e. Part-A and Part-B. Part –A is standardized one however for Part-B every organization has its own format, but now every organization will have to follow a standardized format to fill the relevant exempted allowances and deductions against the specified earmarked fields. CBDT Amends Form-16 and Form-24Q1  CBDT Amends Form-16 and Form-24Q2 
   

As above the revised form 16 includes the following-

Detailed break-up of Tax exempted allowances under section 10, includes Leave Travel Allowance (LTA), Pension, Gratuity, Leave Encashment, House Rent Allowance etc.

Any Income from previous employer during the financial year, including remuneration received from other employers, deductions under various tax saving schemes, different allowances received by the employee, if any (As the details given to his current employer).

Any other income during the financial year, including income from house property  (which also contain the details of payment of Municipal Taxes or Interest on housing loan etc., if any) as well as income from other sources i.e. interest on deposits i.e. Saving account, Fixed Deposit etc. (As the details along with proofs given to his current employer).

Detailed break-up of Deductions falling under section 80C to 80U during the financial year i.e. deductions under various tax saving schemes, investments in tax savings instruments. (As the details along with proofs given to his current employer). Earlier, the deductions were mentioned in a consolidated manner, would now be required to be disclosed separately.

   
  • 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. CBDT Amends Form-16 and Form-24Q3  CBDT Amends Form-16 and Form-24Q4  CBDT Amends Form-16 and Form-24Q5 

The main purpose to disclose the detailed break up of exemptions and allowances will aid the tax department in scrutinising income tax returns (ITRs) more precisely and plug possibility of tax leakage.

 
See the related post : Deductions under chapter VI-A



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