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2019

Notified Changes in Format of Form 16 (Salary Certificate) w.i.f. 12th May 2019

Notified Changes in Format of Form 16 Salary Certificate

The Central Board of Direct Taxes has notified the changes in Form 16 (TDS Deduction Certificate) issued by Employer. The new changes would be effective from May 12, i.e. before the last date for issue of Form 16.

Limitations of Previous Format:

  • The previous format does not require the specific list of exempt allowances. Hence, only consolidated disclosure was required for various deductions.
  • In previous Form 16, the employers had an option to provide description of exempt allowances in Part B. As a result different employers created different formats of Part B as per their requirements.
  • Hence, there was no fixed format of Part B of Form 16 making it impossible for IT department to automatize data processing of Part B.
  • Earlier details were different across form 24Q, Form 16 & ITR, so it was difficult to track the tax evaders.
  • Moverover, IT Department had also detected several cases of false claims of large income tax refunds made by some employees.

Specifications of New Format:

  • The new certificate requires a detailed break up of all the tax exempt allowances paid to the employees under section 10 of the Income Tax Act including:
    • Leave Encashment,
    • Medical Allowance,
    • House Rent Allowance,
    • Pension,
    • Gratuity etc.
  • The employer will have to specify the nature as well as amount of allowances which are exempt from tax. Similar details have been asked for this year in ITR-1 also.
  • The new format will aid the tax department to scrutinize the detailed breakup of the claimed and also plug the possibility of tax evasion.
  • Apart from changes in form 16 & ITR-1 changes has been made in TDS Returns (Form 24Q) filed by the employer for tax deducted.
  • This move will help the department to cross verify the information from ITR filed by the taxpayer.
  • Further in Form 24Q it is mandatory to furnish the PAN of the lender in case any deduction has been claimed in respect of housing loan taken from a person other than a Financial Institution or the Employer.
  • The above changes will bring more accountability in processing of returns with the help of IT Infrastructure.
  • The Income Tax Department have notified new ITR forms for salaried class for FY 2018-19, the due date for the same is 31st July 2019.


Please refer to the newly prescribed format of Part B of Form 16 below:

Sr. No. Particulars Amount Amount Amount
 Details of salary paid and any other income and tax deducted   
 1. Gross Salary   
(a) Salary as per provisions contained in section 17(1)  Rs…. 
(b) Value of perquisites under section 17(2) (as per Form No. 12BA, wherever applicable) Rs….
(c) Profits in lieu of salary under section 17(3) (as per Form No. 12BA, wherever applicable) Rs….
(d) Total Rs….
(e) Reported total amount of salary received from other employer(s) Rs….
2. Less : Allowances to the extent exempt under section 10
(a) Travel concession or assistance under section 10(5) Rs….
(b) Death-cum-retirement gratuity under section 10(10) Rs….
(c) Commuted value of pension under section 10(10A) Rs….
(d) Cash equivalent of leave salary encashment under section 10(10AA) Rs….
(e) House rent allowance under section 10(13A) Rs….
(f) Amount of any other exemption under section 10 Rs….
clause … Rs….
clause … Rs….
clause … Rs….
clause … Rs….
clause … Rs….
(g) Total amount of any other exemption under section 10 Rs….
(h) Total amount of exemption claimed under section 10 [2(a) + 2(b) + 2(c) + 2(d) + 2(e) + 2(g)] Rs….
3. Total amount of salary received from current employer [1(d)-2(h)] Rs…
4. Less: Deductions under section 16
(a) Standard deduction under section 16(ia) Rs….
(b) Entertainment allowance under section 16(ii) Rs….
(c) Tax on employment under section 16(iii) Rs….
5. Total amount of deductions under section 16 [4(a)+4(b)+4(c)] Rs….
6. Income chargeable under the head “Salaries” [(3+1(e)-5]
7. Add : Any other income reported by the employee under as per section 192 (2B)
(a) Income (or admissible loss) from house property reported by employee offered for TDS Rs….
(b) Income under the head Other Sources offered for TDS Rs….
8.  Total amount of other income reported by the employee [7(a)+7(b)] Rs….
9. Gross total income (6+8) Rs….
10. Deductions under Chapter VI-A
Gross Amount Deductible Amount
(a) Deduction in respect of life insurance premia, contributions to provident fund etc. under section 80C Rs…. Rs….
(b) Deduction in respect of contribution to certain pension funds under section 80CCC Rs…. Rs….
(c) Deduction in respect of contribution by taxpayer to pension scheme under section 80CCD (1) Rs… Rs…
(d) Total deduction under section 80C, 80CCC and 80CCD(1) Rs… Rs…
(e) Deductions in respect of amount paid/deposited to notified pension scheme under section 80CCD (1B) Rs… Rs…
(f) Deduction in respect of contribution by Employer to pension scheme under section 80CCD (2) Rs… Rs…
(g) Deduction in respect of health insurance premium under section 80D Rs… Rs…
(h) Deduction in respect of interest on loan taken for higher education under section 80E Rs… Rs…
Gross Amount Qualifying Amount Deductible Amount
(i) Total Deduction in respect of donations to certain funds, charitable institutions, etc. under section 80G   Rs… Rs…  Rs… 
(j) Deduction in respect of interest on deposits in savings account under section 80TTA Rs…  Rs…  Rs… 
(k) Amount deductible under any other provision(s) of Chapter VI-A 
section … Rs… Rs… Rs…
section … Rs… Rs… Rs…
section … Rs… Rs… Rs…
section … Rs… Rs… Rs…
section … Rs… Rs… Rs…
(l) Total of amount deductible under any other provision(s) of Chapter VI-A Rs… Rs… Rs…
11. Aggregate of deductible amount under Chapter VI-A [10(a) + 10(b) + 10(c) + 10(d) + 10(e) + 10(f) + 10(g) + 10(h) + 10(i) 10(j)+10(l)] Rs…
12. Total taxable income (9-11) Rs…
13. Tax on total income Rs…
14. Rebate under section 87A, if applicable Rs…
15. Surcharge, wherever applicable Rs…
16. Health and education cess Rs…
17. Tax payable (13+15+16-14) Rs…
18. Less: Relief under section 89 (attach details) Rs…
19. Net tax payable (17-18) Rs…

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