Form 16 Income Tax New Form 16 Salary TDS - New Salary TDS Form 16 Income Tax New Form 16 TDS - IT Form 16 Official Model. Ministry of Finance (Department of Revenu) Central Board of Direct Taxes has released the New IT Form 16 TDS. vide Notification G.S.R. 304(E) This will come into force on 12th May 2019. Form 16: As per the The Central Board of Direct Taxes (CBDT) notified amendments in the annual salary Tax Deducted at Source (TDS) certificate issued to employees in Form No.16. Part B of Form 16 which provides details of salary paid and other income has been modified asking for more details about the allowances exempt under section 10 and deductions allowed under Chapter VI-A of the Income Tax Act.. What is Form 16 and What are the Changes made in Form-16 are briefly explained below.
Form 16: IT New Form 16 Salary TDS - Income Tax Form 16 Changes
Form 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.
Exemptions under Section 10:- 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.
New changes in Form-16
- Leave travel concession exempt under section 10(5)
- Death cum retirement gratuity exempt under section 10(10)
- Commuted value of pension under section 10(10A)
- Leave encashment under section 10(10AA)
- House rent allowance under section 10(13A)
- Deduction for life insurance premium paid, contribution to PPF etc., under section 80C
- Deduction for contributions to pension funds under section 80CCC
- Deduction for employee’s contribution to a pension scheme under section 80CCD(1)
- Deduction for taxpayer’s self contribution to a notified pension scheme under section 80CCD(1B)
- Deduction for employer’s contribution to a pension scheme under section 80CCD(2)
- Deduction for health insurance premium paid under section 80D
- Deduction for interest paid on loan acquired for higher education under section 80E
- Deduction for donations made under section 80G
- Deduction for interest income on savings account under section 80TTA
- Income (or admissible loss) from house property reported by employee offered for TDS
- Income under the head Other Sources offered for TDS
- A field has been introduced for reporting the total amount of salary received from other employers
- A field has been introduced for standard deduction allowed under section 16 of the Income Tax Act.
Also, the amendment is in line with changes introduced in the income tax returns notified for AY 2019-20. This would facilitate employees in the filing of their tax returns for AY 2019-20.
