Income Tax department revises the Form 16 TDS certificate format issued by employers

Income Tax department revises the (Form 16) TDS certificate format issued by employers

The Income Tax department has revised Form 16 by adding various details, including income from house property and remuneration received from other employers, thereby making it more comprehensive to help check tax avoidance.

It will also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources.

Form 16 is a certificate issued by employers, giving details of employees’ TDS (tax deducted at source) usually by mid June and is used in filing I-T returns.

The revised Form, which has been notified by the Income Tax department, will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16.

Among other things, the revised Form 16 will also include details of deductions in respect of interest on deposits in savings account, and rebates and surcharge, wherever applicable.

The I-T department has already notified income tax return forms for fiscal 2018-19. Salaried class and those who do not have to get their accounts audited, will have to file their ITRs by July 31 this year.

Meanwhile, the income tax department has also modified Form 24Q, which is furnished by employer to the tax department. It will include additional details like Permanent Account Number (PAN) of non-institutional entities from whom the employee has taken loan for buying or constructing housing property.

Nangia Advisors (Andersen Global) Director Sanjoli Maheshwari said the Form 16 and 24Q have been amended with an intent to make them more elaborative and informative. The same has been done in order to bring the Forms in parity with latest changes made in ITR Forms such as disclosure of standard deduction and exemptions claimed under section 10.

“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,” Maheshwari said.

The changes in Form 24Q will further help in identifying any fabricated transaction undertaken with an aim of tax avoidance, she added.

PTI

Form No. 16 for Pensioners : Issue Certificate of Tax Deducted in Form 16 to the Pensioners

Form No. 16 for Pensioners : Issue Certificate of Tax Deducted in Form 16 to the Pensioners

Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks – CBDT Circular No.761, dated 13.1.1998

1184. Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks

1. The attention of the Board has been drawn to certain difficulties being faced by pensioners drawing their pensions through banks where the tax deduction at source certificate in the prescribed Form No. 16 is
some-time denied to them on the ground that no employee-employer relationship exists between the banks and the pensioner. At times, objections have also been raised by the banks on the premise that Form No. 16 relates to deductions from salaries and not from pensions. In other cases, the certificates have been denied on the ground that the bank was not aware of any other income which the pensioner may have had.

2. The matter has been considered by the Board. It is hereby clarified that :—

(a) as per section 17(1)(ii) of the Income-tax Act, 1961, the term ‘salary’ includes pension;

(b) once tax has been deducted under section 192 of the Income-tax Act, 1961, the tax-deductor is bound by section 203 to issue the certificate of tax deducted in Form 16. No employee-employer relationship is necessary for this purpose;

(c) the certificate in Form No. 16 cannot be denied on the ground that the tax deductor is unaware of the payees’ other income.

3. These clarifications may be brought to the notice of all concerned, especially the banks in your region.

Circular : No. 761, dated 13-1-1998

Postal Orders : Deduction of TDS at the time payment of quarterly interest from SCSS accounts, withdrawal from NSS-87 accounts, Payment of Commission to Agents and issue of TDS Certificate in Form I6A

Postal Orders : Deduction of TDS at the time payment of quarterly interest from SCSS accounts, withdrawal from NSS-87 accounts, Payment of Commission to Agents and issue of TDS Certificate in Form I6A

SB ORDER NO. 10/2013

F. No.107-02/2007-SB
Government of India
Ministry of Communications & IT
Department of Posts

Dak Bhawan, Sansad Marg,
New Delhi-110001
Date : 09.07.2013

To
All Heads of Circles
Addl. Director General, APS, New Delhi.


Subject : Deduction of TDS at the time payment of quarterly interest from SCSS accounts, withdrawal from NSS-87 accounts, Payment of Commission to Agents and issue of TDS Certificate in Form I6A.

Sir / Madam,
The undersigned is directed to refer to this office letter of even number dated 21.9.2010 (SB Order No.20/2010) vide which a detailed procedure on provisions of deduction of TDS under different sections of IT Act pertaining to Small Savings Schemes and issue of TDS Certificate in Form 16A was circulated.

2.This office is receiving number of complaints from many depositors and agents regarding mismatch of details of TDS shown in TDS Certificates issued by Post Offices and amount of TDS shown in the Income Tax Web Site in 26AS against their PAN resulting in non refund of TDS where due.

3. It is obligatory under the law for the Post Offices to follow latest amendments and notifications issued by Central Board of Direct Taxes (CBDT) which are uploaded on the Income Tax Department web site www.incometaxindia.gov.in . As per Income Tax Act and Rules, TDS certificate for other than salary is to be issued to depositors/agents in Form 16A on quarterly basis within 15 days of filing TDS return by DDSs in Post Offices, failing which a penalty of Rs.100/- per day can be imposed on the DDO. Procedure for filing eTDS return and generation of Form l6A from TDS Reconciliation Analysis and Correction Enabling System” or https://www.tdscpc.gov.in (which is called TRACES Portal) previously called TIN website, is enclosed for ready reference.

4. All Circles/ Regions should nominate one nodal officer not below the rank of AD to go through this website regularly and update the Divisions and other independent units about any change in the Income Tax provisions, who in turn, should update the Post Offices under their jurisdiction and ensure that Form 16A is generated by IIPOs within the prescribed period i.e within 15 days of filing of eTDS quarterly return (circulated vide SB Order No.20/2010) and also monitor/ensure the quarterly return is tiled after close of each quarter 30th June/30th September 3lst December/31st March. Form 16A, relating to transactions of SOs should be sent to respective SOs for delivery to the depositors/agents. A notice in this regard may be displaced in the Post Offices for information of depositors/agents. If any depositor/agent fails to collect Form I6A within 15 days of generation of Form l6A or placing notice on the notice board, it may he sent to his/her latest address by ordinary post All other provisions regarding rates of TDS applicable under different sections of IT Act circulated vide SB Order No.20/2010 stands unchanged.

5. This issues with the approval of Member (Tech.)

Yours faithfully,
sd/-
(V.K.Mohan)
ADG (FS-II)

Procedure for filing eTDS return and issue of TDS Certificates in Form 16A

1. As per Circular No. 01/2012 dated 9.4.2012 issued by CBDT, Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc. The relevant form for such TDS certificate is Form No.16 for Salary and 16A for non-salary deductions. TDS certificate in Form No.16 is to be issued annually whereas TDS certificate in Form No.16A is to he issued quarterly.

2 In case of TDS collected from SCSS/NSS-87 depositors and SAS/MPKBY/PPF/Agents, ‘TDS Certificate is required to be issued in Form No16A on quarterly basis. From 1.4.2012, it is mandatory for all deductors who have been issued TAN number to issue TDS certificate in form No.16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (https://www.tdscpc.gov.in) (which is called TRACES Portal) previously called / TIN website. This is possible only if full detail of TDS collection made at IIO (including SOs in jurisdiction) is entered in eTDS monthly return in Form 24G as well as TDS quarterly return in Form 26Q is filed by DDo i.e. Postmaster of HPO. Detailed guidelines on filing of eTDS return may be seen from CBDT Circular No 08/2012 dated 5.10.2012 available on its website.

3 From the period 1.4.2012 onwards, all DDOs having allotted TIN number should file eTDS returns on monthly as well as quarterly basis in prescribed formats i.e 24G and 26Q and generate TDS certificates in Form 16A from “TDS Reconciliation Analysis and Correction Enabling System” (called TRACES Portal) or (https://www.tdscpc.gov.in) which was previously called TIN website.


Source : www.indiapost.gov.in
[http://www.indiapost.gov.in/DOP/Pdf%5CCirculars%5C107-02-2007-sbdtd09July2013.pdf]