The CBDT or Central Board of Direct Taxes has notified a new format for Form 16. This requires the break up of the Tax-Exempt Allowances paid to the employee and also of all tax breaks claimed by them. In the previous format allowed the companies to give consolidated figures or break-up in different formats for both, thereby leaving some ambiguity regarding their individual composition.
Several changes have been made in the format of the Form 16 for the Assessment Year 2019-20, the new format of Form 16 will allow the Income Tax Department get a detailed break-up of the income and tax breaks claimed by a salaried person at the first instance itself. Moreover, if there is any discrepancy between the income and deductions shown in Form 16 and the ITR filed by the taxpayer, it will be quite easy to spot it. This new format is likely to help the department digitize cross checking of figures too, as it takes away the leeway that companies earlier had in providing the break-up of income and deductions and fixes the format for providing necessary details.
The new Form 16 format was notified on 12th April 2019, by the Central Board Direct Taxes. The format mentioned in the notification will come into effect from 12th May 2019, which is well ahead of the last date to issue Form 16 or the TDS certificate to the salaried employees by Employers/ Tax Deductors. Therefore, those issuing Form 16 after this date will have to do so in the new format.
List of changes in Form 16 Format: –
House Property and Income from Other Sources.
You can Download Form 16 For more details visit @ www.allindiaitr.com