The government is likely to make an announcement regarding extension of due date for filing income tax return for the financial year 2018-19. Meanwhile, the last date for ITR Filing is already out that is July 31. In context with this, the Central Board of Taxes (CBDT) has issued a notification extending the last date for employers to file their TDS returns and issuing of Form 16 to employees to June 30th and July 10th respectively. Therefore, it is acknowledged that if employers will get their Form 16 by 10th July, then it would be difficult for the taxpayers to file the income tax returns on July 31. Following this pace of the CBDT, the extension of the due date of filing ITRs may well get extended too.
The CBDT has extended the due date of filing of Form 24Q, i.e., TDS return in respect of salary for the financial year 2018-19 from May 31, 2019 to June 30, 2019,” Naveen Wadhwa, chartered accountant and manager, Taxmann, told The Economic Times. He added that the due date was extended considering the latest changes made by the tax department in Form 24Q and to redress genuine hardship of employers in timely filing of TDS return in revised format of Form 24Q.
Earlier, the tax department has issued a notification to revise the Form 24Q and Form 16 (TDS certificate in respect of salary income) with effect from May 12, 2019. Following the latest format by the tax department, every employee is required to disclose the detailed break-up of salary, exempt allowances and deduction claimed and allowed to an employee.
In addition to this, the income tax returns form for the assessment year 2019-2020 are also amended by CBDT in contrary to the changes made in Form 24Q and Form 16. The move has been initiated in accordance with the cross-check the information provided by an employee in ITR Forms with TDS return filed by his employer.
What is Form 16 all about?
Form 16 contains the following things: –
- Employee’s personal details which include name, PAN number, date of birth etc.
- Employer’s details such as name, TAN, PAN, etc.
- Acknowledgement number, which is a verification number for the taxes paid by the employer.
- Employee’s Salary details which contain employee’s net salary, gross salary, perks, deductions, etc.
- Employee’s total income after tax deduction.
- It also contains the Tax deducted under section 191A
- It includes the employer’s tax payment declaration
- It contains the details of income tax refund if there are any.
- Form 16 also comprises of TDS receipt, which is provided to the individual once he/she pays it.
- Last but not the least, it contains tax Payment details such as Cheque number, Challan number, Demand Draft number, etc.
Why Form 16?
Form 16 is required to file both Income Tax Return by the employee as well as refund by the employer on behalf of the employee. It can also be used as income verification certificate for various purposes, like applying for loan, visa etc.