Form 16: New format for salary TDS certificate makes it difficult to fudge income, tax breaks. The new format will allow I-T department to view a detailed break-up of the income and tax breaks. The CBDT has notified a new format for Form 16 – the salary TDS certificate – requiring a detailed break up of tax exempt allowances paid to employee and also of all tax breaks claimed by him/her. The earlier format allowed companies to give consolidated figures or break-up in different formats for both these thereby leaving some ambiguity regarding their individual composition. Standard deduction, announced in the Budget 2018, has also been introduced in Form16 under the head ‘Deduction under section 16’.
KRC TIMES Desk
Form 16: New format for salary TDS certificate makes it difficult to fudge income, tax breaks. The new format will allow I-T department to view a detailed break-up of the income and tax breaks. The CBDT has notified a new format for Form 16 – the salary TDS certificate – requiring a detailed break up of tax exempt allowances paid to employee and also of all tax breaks claimed by him/her. The earlier format allowed companies to give consolidated figures or break-up in different formats for both these thereby leaving some ambiguity regarding their individual composition. Standard deduction, announced in the Budget 2018, has also been introduced in Form16 under the head ‘Deduction under section 16’.
