Recently vide its Notification No. 36/2019 by the Income Tax Department has substantially modified the format of Part B of Form 16 (Salary TDS Certificate given to Employees) with effect from FY:18-19. Correspondingly, the information to be provided by the employer in Annexure II of Form 24Q-Q4 (Salary Details – providing tax computation of each employee) has also been changed. This comes into effect for all Salary TDS Returns (Form 24Q) for FY:2018-19, Quarter 4.
Objective of the Department seems to consolidate information pertaining to the most frequently exercised exemptions & deductions being considered while determining the taxable income.
Major changes include:
- Break up of Salary and details of exemptions u/s 10 to determine the Total Salary (earlier only Total Salary had to be provided)
- Standard Deduction u/s 16(ia) has been included (this is new provision applicable from FY-18-19 onwards)
- Break up of Other Income (Other than Salary) – in two broad heads; Income / Loss from House Property and any other Income clubbed together (earlier this was one consolidated value)
- Detailed breakup of deductions under Chapter VI (earlier it was only in two broad categories – all sections with a consolidated cap of Rs. 1,50,000 and rest of the sections all together)
The new File Validation Utility Ver. 6.2 has been launched on 12th May 2019 that needs to be used for validating the modified format for submission of TDS Returns.