Central Board of Direct Taxes (‘CBDT’) has issued Notification No. 36/2019 dated 12th Apr’2019 (‘Notification’) seeking tax deductors (i.e. employers) to submit detailed break-up while furnishing Form No. 16 and Form No. 24Q.
Salient provisions introduced by said notification along with objective of the amendment are captured under –
A. Objective of the Amendment –
B. Applicability of The Notification –
As per Rule 1 of the Income-tax (3rd Amendment) Rules, 2019 introduced by said Notification, it is specified that Notification shall come into force on 12th May’2019.
Since, notification was issued on 12th Apr’19 and is coming into force w.e.f. 12th May’2019, it can be safely assumed that same shall be applicable for AY 2019-20 (i.e. FY 2018-19) as well.
This is due to the following reasons –
1. Tax deductors are required to submit details in relation to Form-16 only in the Quarter 4 TDS return (i.e. Jan’19-Mar’19 return); and
2. Such quarterly return is required to be submitted by 31st May’19.
C. The changes/ new requirements –
New formats primarily require tax deductors to furnish following additional information-
1. Total amount of salary received from other employer(s)
2. Detailed break-up for exempt allowances –
a. Leave travel concession allowance u/s 10(5)
b. Death-cum-retirement gratuity u/s 10(10)
c. Commuted value of Pension u/s 10(10A)
d. Leave encashment u/s 10(10AA)
f. Any other allowance exempt u/s 10
3. Section-wise disclosure of deductions u/ Chapter VI-A (viz. Sec 80C, 80CCC, 80D,80E, 80G, 80TTA etc.)
4. Standard deduction as announced in Finance Act,2018.
5. Concurrent changes have been made in Format of TDS return (Annexure -II of Form 24Q) as well.
Disclaimer – Views expressed above are personal views of the Author and are not meant for any technical/ legal use. Please refer Government publications/ notifications/ Bare Act before taking any decision or taking any action in relation to the same.
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