Recent Changes in Form 24Q – Annexure II & Form 16 – Part B

A. Need of the hour – Brief about the change

THE REVISED ANNEXTURE II will lead to:

> Availability of complete detailed breakup of Income, various tax deductions & exemptions claimed

> Pre filling of ITRs

> Check on false claims of exemptions and deductions claimed in the ITRs by enhanced system driven comparisons between ITRs and Part B of Form 16

> Avoidance of mismatches and queries received by the taxpayers from CPC-ITR

> Generation & Download of Form 16 Part-B from TRACES

B. Relevant Notifications

> “CBDTs Income Tax Circular No 04/2013, dated 17th April, 2013:

It specifies issuance of certificate for TDS in Form 16. in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules, 1962.

> “CBDTs Income Tax Notification 36/2019, dated 12th April, 2019:

It specifies the format of Part B of Form 16 & TDS Statement in Form No. 24Q, revised Annexure-II. The Notification shall come into force w.e.f. 12th May’2019.

> CBDTs Income Tax  Notification 09/2019, dated 06th May, 2019:

It specifies the procedure, format & standards for issuance of certificate for TDS in Part B of Form 16. in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules, 1962 through TRACES.

C. 24Q Annexure II Before & Now

1. Basic Information of the employee and periodicity of employment with current employer

Before & Now (No Change)

> PAN of the employee (Column no. 331).

> Name of the Employee (Column no. 332).

> Deductee Type (Column no. 333).

> Date from and date upto employed with current employer in the current F.Y. (Column no. 334).

2. Gross salary (By the current employer)

Before

  • Taxable amount on which tax is deducted by the current employer (Column no. 335)
Now

> Gross Salary as per sec. 17(1)- (Column no. 335).

> Value of perquisites as per sec. 17(2) and 12BA if applicable- (Column no. 336).

> Profits in lieu of salary as per sec. 17(3) & 12 BA if applicable- (Column no. 337).

> Total amount of Gross salary by the current employer-(Column no. 338).

3. Salary reported by the previous employer

Before

  • Reported Taxable Amount on which tax is deducted by the previous employer(s) (Column no. 336)

Now

Reported Total amount of salary received from other employer(s) (Column no. 339).

4. Exemptions S-1/2

Before

> Not Captured

Now

 

> Travel concession or assistance u/s 10(5)-(Column no. 340).

> Death Cum retirement gratuity u/s 10(10) –(Column no. 341).

> Commuted value of pension u/s 10(10A) – (Column no. 342).

> Cash equivalent of leave salary encashment u/s 10(10AA)- (Column no. 343).

> House Rent Allowance u/s 10(13A) – (Column no. 344).

5. Exemptions S-2/2

Before

> Not Captured

Now

PAN of the Landlord if exemption is claimed u/s 10(13A) – (Column No. 345)

Amount of any other exemption u/s 10-(Column no. 346).

Total Amount of exemption claimed u/s 10 i.e. Sum of column no. 340 to 346-(Column no. 347).

6. Deductions u/s 16

Before

> Total Deduction u/s 16(ia)- Not
Captured

> Total Deduction u/s 16(ii) –
(Column no. 338) –No Change

> Total Deduction u/s 16(iii) –
(Column no. 339) – No Change

Now

> Total Deduction u/s 16(ia) –
(Column No. 348)

> Total Deduction u/s 16(ii) –
Column No. 349)- No Change

> Total Deduction u/s 16(iii) –
(Column No. 350)- No Change

7. Income Chargeable under the head salaries

Before

Column no. 340 {Column no. 337-(338+339)}

i.e. Gross Taxable Salary
337(335+336) – Deductions(338 & 339)

Now

> Column No. 352- { Column No. (338+339)-(347+348+349+350)}

i.e. Gross Salary (338+339)

–Exemptions(347)

–Deductions(348 to 350)

Note: Column corresponding to
337 before is omitted because of
redundancy.

8. Income from House property or other sources

Before

Income (Including admissible loss from House property) under any head other than the head “Salaries”offered for TDS{Section 192(2B)}- (Column no. 341)

Now

> Income (or admissible loss) from House property reported by employee offered for TDS{Section 192(2B)} – (Column no. 352)

PAN of the lender if interest on
housing loan is claimed u/s 24(b)
-(Column No. 353)

Income under the head ‘Other
Sources’offered for TDS{Section
192(2B)} – (Column no. 354)-

9 .Gross Total Income 

Before

> Column no. 342 (Column no. 340+341)

i.e. Sum of the Income chargeable under the head ‘salaries’& Income or loss from house property or income from any other head other than ‘Salaries’

Now

> Column No. 355 ( Column No. 351+352+354)

i.e. Sum of the Income chargeable under the head ‘salaries’& Income or loss from house property & income under the head ‘Other Sources’

10 .Deduction under Chapter VI-A S-1/3

Before

> Aggregate amount of deductions admissible u/s(s) 80C, 80CCC and 80CCD (Total to be limited to amount specified under Section 80CCE)- (Column No. 343)

> Amount deductible under any other provision(s) of Chapter VI-A –(Column No. 344)

Now

Deduction in respect of Life Insurance Premia, contributions to provident fund etc. u/s 80C -(Column no. 356)

Deduction in respect of contribution to certain pension
fund u/s 80CCC – (Column no. 357)

Deduction in respect of contribution by taxpayer to notified pension scheme u/s 80CCD(1) – (Column no. 358)

11. Deduction under Chapter VI-A S-2/3

Before Now

Deduction in respect of amount paid or deposited under notified pension scheme u/s 80CCD(1B)-(Column no. 359)

Deduction in respect of contribution by employer to notified pension scheme u/s 80CCD(2) – (Column no. 360)

Deduction in respect of Health insurance premia u/s 80D(Column no. 361)

Deduction in respect of interest on loan taken for higher education u/s 80E (Column no. 362)

12. Deductions under Chapter VI-A S-3/3

Before

> Total amount deductible under chapter VI-A (Sum of Column 343 & 344)

– (Column No. 345)

Now

> Total Deduction in respect of donations to certain funds, charitable institutions etc. u/s 80G-(Column no. 363)

> Deduction in respect of interest on deposits in savings account u/s 80 TTA-(Column no. 364)

> Amount deductible under any other provision(s) of Chapter VI-A –(Column No. 365)

> Total amount deductible under chapter VI-A {356 + 357 + 358 (Limited to Rs. 1,50,000) + 359 + 360 + 361 + 362 + 363 + 364 + 365} – (Column no. 366)

13. Total Taxable Income

Before

> Column no. 346 (Column no. 342-345)

i.e. Difference of Gross Total Income & Total amount deductible under chapter VI-A

Now

> Column No. 367 ( Column No.
355-366)

i.e. Difference of Gross Total Income & Total amount deductible under chapter VI-A

14. Tax effects S-1/2

Before

> Income Tax on Total Income – (Column no. 347) – No Change

> Rebate Under Section 87 A –Not Captured

> Surcharge (Column no. 348) – No Change

> Education Cess (Column no. 349)

Now
> Income Tax on Total Income –
(Column no. 368) – No Change
> Rebate Under Section 87 A, if
applicable – (Column no. 369)
> Surcharge wherever applicable
(Column no. 370) – No Change
> Health & Education Cess
(Column no. 371)

15. Tax effect S – 2/2

Before

> Income Tax relief u/s 89 when salary etc. is paid in arrear or advance – (Column no. 350) – No Change

> Net Tax Payable (column No. 347+348+349-350) (Column no. 351)

Now

Income Tax relief u/s 89 when salary etc. is paid in arrear or advance – (Column no. 372) – No Change

Net Tax liability {column No. 368+370+371-(369+372)} (Column no. 373)

16. Available TDS Credit

Before

> Total amount of TDS by the current employer for the whole year (aggregate of the amount in column 325 of Annexure I for all the quarters in respect of each employee- (Column no. 352) – No Change

> Reported amount of TDS by the other employer(s) or deductors (Income in respect of which included in computing total taxable income in column 346)- (Column no. 353) – No Change

Now

> Total amount of TDS by the
current employer for the whole
year (aggregate of the amount in
column 325 of Annexure I for all
the quarters in respect of each
employee- (Column no. 374) –
No Change

> Reported amount of TDS by
the other employer(s) or
deductors (Income in respect
of which included in
computing total taxable
income in column 339)-
(Column no. 375)No Change

17. Shortfall or excess in TDS 

Before

> Total amount of TDS for the whole year ( Column no. 352+353) Column no. 354) – No Change

> Shortfall in tax deduction
or excess tax deduction
(Column no. 351-354)
(Column No. 355) – No Change

> Whether tax deducted at
higher rate due to non
furnishing of PAN by Deductor
(Yes or No) – (Column No. 356)

Now

Total amount of TDS for the whole year (Column no. 374+375)

(Column no. 376) – No Change

Shortfall in tax deduction or excess tax deduction (Column no. 373-376) (Column No. 377) – No Change

Whether tax deducted at
higher rate due to non
furnishing of PAN by Deductor
(Yes or No) – (Omitted)

D. TDS Certificate (FORM 16 PART-A & PART-B) Download Procedure

E. Latest Updates on Functionalities & Utilities liked to 24Q

> Form 16 Part B pdf conversion utility will be made available before 6th June 2109.

> Online Correction for Form Type 24Q Q4 (Add/Delete Salary Details Annexure-II) has been disabled for F.Y. 2018-19 from 13-May-2019 to 5-Jun-2019 due to changes in 24Q Annexure-II. The same will be available from 6th June 2019 onwards.

> Corrections for 24Q can be done through Conso File during this period

> Aadhaar based OTP Authentication has been enabled for following functionalities:

i. Form 26QB Correction Request Submission

ii. 26QB/Refund Request Submission

iii. Form 13 Request Submission

> Intermediate Communications has been stopped in case of Original Statement Processing.

> Form 26QC challan cum statement correction is available now

> Online functionality to apply Lower / No Deduction / Lower Collection certificate in Form 13 for upto 50 rows is available also for NRI Services at TRACES portal through DSC only.

> To ease compliance, DSC is allowed to be used in place of specific KYC. Now, you can use your DSC in place of Specific KYC for online correction, TDS certificate, Conso file and Justification Reports.

> Second Time Correction on critical fields in 26QB Form is now available for Taxpayers on TRACES

> Income Tax Department has launched a mobile application – Aayakar Setu for multiple taxpayer services at one place. Please download it on your Android phones from App Store

> Paper Intimation will be sent through post on quarterly basis by CPC-TDS for the latest processed correction statement filed during the quarter.

F. Expectations from Deductors:

  • Due Tax Deduction and its Timely Deposit.
  • Receiving the relevant information required in Annexure II from the employees and its correct entry in the Annexure II.
  • Timely Filing of Quarterly TDS Statements within defined Due dates to avoid Late Filing Fee
  • Also, Avoid last day filing .
  • Download of Form 16 Part A & B from the TRACES website and passing it on to the taxpayer well in time (Before 15th June).

G. Guidance resources At Hand

Note:-

√ Call Back Functionality is available for users after selecting Node 8 at IVR

√ Request for resolution for 24Q Annexure II functionality will be available soon.

Source 24Q –Annexure II Updations & Form 16 – Part B – Awareness Seminar at BCAS, Mumbai on 27th May 2019- A CPC-TDS Initiative

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