Vide Notification No. 36/2019 by the Income Tax Department it had 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) had also been changed. This came 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.
- 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 altogether)
Coexistence of TDS 194Q and TCS 206C(1H) after Budget of 2021