The Central Direct Tax Board has notified the changes to Form 16 (TDS Deduction Certificate) issued by the employer. The new changes will come into force starting from May 12, ie before the deadline for the issuance of Form 16.

Download Automated Income Tax Revised Form 16 Part A&B and Part B which can prepare One by One Form 16 Part A&B and Part B both in single Excel Utility

 

Modified format of form 16

The new certificate requires a detailed description of all tax exemption benefits paid to employees under Section 10 of the Income Tax Act, including vacation collection, medical benefit, and rental allowance. Home, retirement and gratuity, etc. The employer must specify the nature. Even the amount of allowances that are exempt from tax. Similar details were also sought in ITR-1 this year.

 

The new format will help the taxman to verify the claimed details and also prevent the possibility of tax evasion. The older format does not require a specific list of exempt benefits. Previously, consolidated disclosures were required for various deductions. In addition to the changes to Form 16 and ITR-1, changes were also made to the TDS declaration (Form 24Q) submitted by the employer for tax deduction.

Download Automated Income Tax Form 16 Part B which can prepare One by One Form 16 Part B in Excel

 

Form 16 Part B

Previous Form 24Q, Form 16 and ITR had different details, so it was difficult to track down tax evaders. This move will help the department cross-check the information received from the ITR filed by the taxpayer. In addition, provision of the Lender's PAN on Form 24Q is mandatory if a deduction is required in connection with the home loan taken by someone other than a financial institution or employer.

 

The above changes will result in greater responsibility in processing returns with the help of the IT infrastructure. The Revenue Agency has notified the new ITR forms for the salaried class for the financial year 2021-22, whose deadline is July 31, 2022.

Download Automated Income Tax Form 16 Part B which can prepare at a time 50 Employees Form 16 Part B in Excel

Modified format of form 16

Modified formt of Form 16