News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Direct Tax »
 Income Tax Refund Alert! Waiting for ITR money? Here is the latest update
 Notification No. 86/ Central Board of Indirect Taxes and Customs
 Processing Of Income Tax Refund Returns Witnessed 20% Increase, Says CBDT
 Tax dept issues 21 mn tax refunds till Nov; ?1.46 lakh cr refunded
 CBDT notifies PAN-Aadhaar interchangeability
 NSE commodities segment gets recognition from CBDT, traders to get tax benefita
 CBDT retires 21 more tax officers in fifth crackdown on corruption
 BPO firms left in the lurch over input tax refund
 CBDT notifies TDS certificate to be issued by individuals deducting tax on payments to contractors
 CBDT notifies TDS certificate to be issued by individuals deducting tax on payments to contractors
 I-T department seeks Rs 1-trillion cut in direct tax mop-up targeta

CBDT notifies changes in Form 16, seeks disclosure of more details about allowances
April, 17th 2019

Tax department has sought detailed bifurcation about exemptions taken by salaried employees under Section 10 of Income-tax Act, which include leave travel allowance (LTA), life insurance, pension, gratuity, leave encashment, transport allowance and house rent allowance.

Tax department has sought detailed bifurcation about exemptions taken by salaried employees under Section 10 of Income-tax Act, which include leave travel allowance (LTA), life insurance, pension, gratuity, leave encashment, transport allowance and house rent allowance.

Income Tax department notifies ITR forms for 2019-20, seeks more information
Central Board of Direct Taxes, CBDT, Tax department, Form 16 Income tax, TDS, tax returns, ITRs, indian express
The notified changes in Form 16 and Form 24Q, the quarterly TDS statement with respect to salaries, would be effective from May 12. (Representational Image)
The Central Board of Direct Taxes (CBDT) has notified changes in Form 16, the certificate issued by employers for tax deducted at source (TDS) for salaried employees, seeking disclosure of more details, especially about exempt allowances.

The tax department has sought detailed bifurcation about exemptions taken by salaried employees under Section 10 of Income-tax Act, which include leave travel allowance (LTA), life insurance, pension, gratuity, leave encashment, transport allowance and house rent allowance.

Tax experts said the detailed disclosures of exemptions and allowances will aid the tax department in scrutinising income tax returns (ITRs) more precisely and plug possibility of tax leakage. The changes are also in line with the changes in ITRs such as disclosure of standard deduction.

The notified changes in Form 16 and Form 24Q, the quarterly TDS statement with respect to salaries, would be effective from May 12. The tax department has also made it mandatory for employer to furnish Permanent Account Number (PAN) of the lender other than a financial institution in case the employee has taken loan for house property and claimed deduction for interest paid. Sanjoli Maheshwari, director, Nangia Advisors (Andersen Global) said, “Earlier, where the disclosure of various deductions were mentioned in a consolidated manner, ranging from 80C, 80CCD, 80E, 80G would now be required to be disclosed separately. These specific disclosures would provide ease to the tax authorities in understanding the various components of income of the taxpayer and thereby, facilitating the conduct of scrutiny more precisely.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting