For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Form 16 Format Revised To Make Tax Evasion Difficult

|

The Central Board of Direct Taxes (CBDT) has revised Form 16 by adding various details, including income from house property and remuneration received from other employers, thereby making it more comprehensive to help check tax avoidance.

Form 16 Format Revised To Make Tax Evasion Difficult
 

Form 16 is a certificate issued by employers, that gives details of an employee's TDS (tax deducted at source) paid to the government on his/her behalf. These will be issued for the previous financial year by 15 June and is used to assist in the filing of income tax returns (ITR).

Details on 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 are also provided in the certificate.

The revised Form 16 format notified by the CBDT will come into effect from 12 May 2019 and will probably also mean that for the financial year 2018-19, income tax returns will have to be filed on the basis of the revised Form 16.

The revised Form 16 will also include details of deductions in respect of interest on deposits in a savings account, and rebates and surcharge, wherever applicable.

The income tax return forms for the fiscal 2018-19 have already been notified. The salaried class with income less than Rs 50 lakh and one house property have to file the ITR-1 form. These can be filed using Form 16 issued by their employers and have to be completed by 31 July 2019.

Meanwhile, the income tax department has also modified Form 24Q, which is furnished by an 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 a loan for buying or constructing housing property.

Experts say that Forms 16 and 24Q have been amended to make it more elaborative and to bring them in parity with latest changes made in ITR Forms such as disclosure of standard deduction and exemptions claimed under section 10.

Read more about: cbdt income tax itr
Story first published: Wednesday, April 17, 2019, 11:00 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more