CBDT Amends Form-16 and Form-24Q

CBDT vide Notification No. 36/2019/F.No. 370142/4/2019-TPL dated 12^th April, 2019 has amended Form 16 and Form 24Q. The said notification will come into effect from 12^th May, 2019.

Recently the CBDT notified the new Income Tax Return Forms for AY 2019-20. The new ITR Forms requires that the salary income reported in ITR must be matched with TDS certificate issued by employer in Form 16.

Presently 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. Every organization presents the Exempt Allowances and Chapter VIA deductions as per the description of their own choice. To ensure that the Form 16 be in conformity with new ITR Forms, the CBDT has amended the Form 16 and Form 24Q. Now every organization will have to follow a standardized format to fill the relevant exempted allowances and deductions against the specified earmarked fields. Further it would make it easy for assesses to file their income tax returns.

In case the employee reports the salary received from other employers to the same would be a part of Gross Salary and would be reported separately as “Reported total amount of salary received from other employer(s)”. Each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers. Part B (Annexure) of the certificate in Form No.16 may be issued by each of the employers or the last employer at the option of the assessee.

Finance Act, 2018 has introduced the Standard Deduction upto Rs. 40000/-. The amended Form 16 has been revised accordingly to incorporate this change.

The CBDT has further amended the “Annexure-II” to the Form 24Q. In new Form 24Q, it is mandatory to furnish the PAN of the lender in case any deduction has been claimed in respect of housing loan taken from a person other than a Financial Institution or the Employer