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CBDT Notifies Amendments and Changes in Form 16, Form 24Q and Form 12BA

cbdt-notifies-amendments-and-changes-in-form-16,-form-24q-and-form-12ba

CBDT vide Notification No. 15 of 2021 dated 11.03.2021 and Income-tax (3rd Amendment) Rules 2021 has amended and notified Revised Form No. 16 for Part B (Annexure), Revised Form No. 12BA and Form No. 24Q Annexure-II related to Income from Salary of employees paid by the employers.


The last time CBDT revised Form 16 was in 2019 when the changes and revised Form 16 was notified vide Notification 36/2019.


Read Also:

CBDT Circular on TDS from Salary under 192 for AY 2021-22 (FY 2020-21)

CBDT Circular on TDS from Salary under 192 for AY 2020-21 (FY 2019-20)


This time vide Notification 15 of 2021, CBDT notifies the following changes in Form 16, changes in Form 24Q and changes in Form 12BA.


1. Notified Changes in Part B (Annexure) of Form 16


There is only one change notified in Part B (Annexure) of Form 16. In Part-B of Form 16, the employer has to report whether the employee has opted for the new tax regime under section 115BAC.


Readers are aware that section 115BAC is introduced by the Finance Act, 2020 to provide for a lower rate of tax to individuals and HUF without claiming any allowances and deductions. Further, a salaried individual having no business income can opt for and opt-out from section 115BAC in any year for any number of times without any restriction.



Further CBDT has also clarified the procedure for deduction of tax by the employer when the employee opts for the new tax regime under section 115BAC. The detailed guidelines can be accessed here.


At the top of Form 16, Part-B (Annexure), the following row is inserted to incorporate the changes-


A

Whether opting for taxation u/s 115BAC?

[YES/NO]


2. Notified Changes in Annexure-II of Form No. 24Q 


Similar to Form 16, there is only one change notified in Annexure-II of Form No. 24Q. In the annexure of Form 24Q, while reporting the salary income details of the employee, the employer has to report whether the employee has opted for the new tax regime under section 115BAC.


For this purpose, existing Column No. 332 is split into two new columns - Column No. 332A and Column No. 332B. 


While Col. No. 332A contains the old value of  Col. 332 being the ‘Name of the employee’, the new column 332B requires to report “Whether opting for taxation u/s 115BAC [Yes/No]”.


Annexure-II is required to be filed with the 4th quarter of Form 24Q by the employer. The Annexure-II of Form 24Q contains the details of the salary income, exemption allowed and deduction claimed, and tax paid and deducted by the employer/previous employer. From the data contained in this Annexure, Form 16 Part-B as well as ITR is prefilled by the income-tax department.


3. Notified Changes in Form No. 12BA


Major changes have been notified for Form 12BA. Form 12BA requires reporting of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof paid or provided to the employee by the employer.


The following four changes are notified in Form 12BA. The changes are notified to incorporate the changes or amendments introduced in the taxation of salary income by the Finance Act, 2020.


Four new columns are introduced in the Form 12BA - Col 16, Col. 17, Col. 18 and Col. 19.


(i) Substituted Col. 16 of Revised Form 12BA: In the new Revised Form 12BA, Col 16 is amended to require reporting of “Stock options allotted or transferred by employer being an eligible start-up referred to in section 80-IAC.”.


Existing Cols. 17, 18 and 19 have been renumbered as Cols., 20, 21, and 22 respectively. New Cols. 17, 18 and 19 are discussed below.


(ii) Substituted Col. 17 of Revised Form 12BA: In the new Revised Form 12BA, Col 17 is substituted to report “Stock options (non-qualified options) other than ESOP in col 16 above.”.


(iii) Substituted Col. 18 of Revised Form 12BA: In the new Revised Form 12BA, Col 18 is substituted to report  “Contribution by employer to fund and scheme taxable under section 17(2)(vii).”.


(iii) Substituted Col. 19 of Revised Form 12BA: In the new Revised Form 12BA, Col 19 is substituted to report “Annual accretion by way of interest, dividend etc. to the balance at the credit of fund and scheme referred to in section 17(2)(vii) and taxable under section 17(2)(viia).”.


In this context, it should be noted that the Finance Act, 2020 has amended the provisions of section 17(2)(vii) of the Act to provide that the amount or the aggregate amounts of any contribution made by the employer in respect of the assessee, to the account of an assessee in a recognised provident fund; in the scheme referred to in subsection (1) of section 80CCD (NPS); and in an approved superannuation fund shall be treated as a perquisite, to the extent it exceeds Rs. 7,50,000 in a previous year. 


In other words, clause (vii) of section 17(2) provides that perquisites would include the amount of any contributions made by the employer to the account of an employee in a recognised Provident Fund, NPS, etc. to the extent it exceeds Rs. 7.50 Lakh in a year.


Further, Finance Act, 2020 has inserted a new sub-clause (viia) in section 17(2) so as to provide that annual accretion by way of interest, dividend or any other amount of similar nature during the previous year to the balance at the credit of the fund or scheme referred to in sub-clause (vii) may also be treated as perquisite to the extent it relates to the contribution referred to in the said new sub-clause (vii), which is included in total income and shall be computed in the prescribed manner.


In other words, clause (viia) of section 17(2) provides that amount of interest, dividend etc. (known as annual accretion) earned on such funds or schemes to the extent it relates to the employers’ contribution in excess of Rs. 7.50 Lakh in the employees account as stated in clause (vii) above, shall also be included in perquisites to be computed in the prescribed manner.


The above-mentioned amendments are applicable from AY 2021-22.


The manner of computation of such annual accretion in the provident and other welfare funds specifying the method of computation of perquisite u/s 17(2)(viia) is notified by Notification 11 of 2021 dated 5.3.2021 and inserted new Rule 3B in the Income Tax Rules, 1962 for this purpose.


Read the full text of Notification 15/2021 dated 11.03.2021 on Changes in Form 16, Form 24Q and Form 12BA


MINISTRY OF FINANCE


(Department of Revenue)


(CENTRAL BOARD OF DIRECT TAXES)


NOTIFICATION

 

New Delhi, the 11th March, 2021

 

G.S.R. 170(E). —In exercise of powers conferred by sections 200 and 203 read with section 295 of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—


1. Short title and commencement – (1) These rules may be called the Income-tax (3rd Amendment) Rules, 2021.


(2) They shall come into force on the 1st day of April, 2021.


2. In the Income-tax Rules, 1962, in Appendix II,-


(i) For Form No. 12BA, the following shall be substituted, namely:–


“FORM NO. 12BA


[See rule 26A(2)(b)]


Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof



1.

Name and address of employer

 

2.

TAN

 

3.

TDS Assessment Range of the employer

 

4.

Name, designation and Permanent Account Number or Aadhaar Number of employee

 

5.

Is the employee a director or a person with substantial interest in the company(where the employer is a company)

 

6.

Income under the head “Salaries” of the employee (other than from perquisites)

 

7.

Financial year

 

8.

Valuation of Perquisites

 


S.No.

Nature of perquisites (see rule 3)

Value of perquisite as per rules (Rs.)

Amount, if any, recovered from the employee (Rs.)

Amount of perquisite chargeable to tax Col. (3) – Col. (4)(Rs.)

(1)

(2)

(3)

(4)

(5)

1.

Accommodation




2.

Cars/Other automotive




3.

Sweeper, gardener, watchman or personal attendant




4.

Gas, electricity, water




5.

Interest free or concessional loans




6.

Holiday expenses




7.

Free or concessional travel




8.

Free meals




9.

Free education




10.

Gifts, vouchers, etc.




11.

Credit card expenses




12.

Club expenses




13.

Use of movable assets by employees




14.

Transfer of assets to employees




15.

Value of any other benefit/amenity/service/privilege




16.

Stock options allotted or transferred by employer being an eligible start-up referred to in section 80-IAC.




17.

Stock options (non-qualified options) other than ESOP in col 16 above.




18.

Contribution by employer to fund and scheme taxable under section 17(2)(vii).




19.

Annual accretion by way of interest, dividend etc. to the balance at the credit of fund and scheme referred to in section 17(2)(vii) and taxable under section 17(2)(viia).




20.

Other benefits or amenities




21.

Total value of perquisites




22.

Total value of profits in lieu of salary as per section 17(3)





9.

Details of tax,—



(a) Tax deducted from salary of the employee under section 192(1)



(b) Tax paid by employer on behalf of the employee under section 192(1A)



(c) Total tax paid



(d) Date of payment into Government treasury



DECLARATION BY EMPLOYER


I, _______, s/o _______________________ working as_________(designation) do hereby declare on behalf of ____________ (name of the employer) that the information given above is based on the books of account, documents and other relevant records or information available with us and the details of value of each such perquisite are in accordance with section 17 and rules framed thereunder and that such information is true and correct.


Place Full Name

Date Designation

Signature of the person responsible for deduction of tax.”;


(ii) In Form No. 16, for Part B (Annexure), the following shall be substituted, namely :-


“PART B (Annexure)



Details of Salary Paid and any other income and tax deducted

A

Whether opting for taxation u/s 115BAC?

[YES/NO]

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





clause …

Rs. …




clause …

Rs. …




clause …

Rs. …




clause …

Rs. …




clause …

Rs. …




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]



Rs. …

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 80CCCD (2)


Rs. …

Rs. …

(g)

Deduction in respect of health insurance premia 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. …


section …

Rs. …

Rs. …

Rs. …


Rs. …

Rs. …

Rs. …

(l)

Total of amount deductible under any other provision(s) ofChapter 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 @ 4%



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. …



Verification

I, …………………………….., son/daughter of ……………………………………….working in the capacity of .……………………………… (designation) do hereby certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, and other available records.

Place …………

(Signature of person responsible for deduction of tax)

Date …………

Full Name : ………………


Notes:


1. Government deductors to fill information in item I of Part A if tax is paid without production of an income-tax challan and in item II of Part A if tax is paid accompanied by an income-tax challan.


2. Non-Government deductors to fill information in item II of Part A.


3. The deductor shall furnish the address of the Commissioner of Income-tax (TDS) having jurisdiction as regards TDS statements of the assessee.


4. If an assessee is employed under one employer only during the year, certificate in Form No. 16 issued for the quarter ending on 31st March 2021 of the financial year shall contain the details of tax deducted and deposited for all the quarters of the financial year.


5. (i) If an assessee is employed under more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers.


(ii) Part B (Annexure) of the certificate in Form No.16 may be issued by each of the employers or the last employer at the option of the assessee.


6. In Part A, in items I and II, in the column for tax deposited in respect of deductee, furnish total amount of tax, surcharge and health and education cess.


7. Deductor shall duly fill details, where available, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.”;


(iii) in Form No. 24Q, for “Annexure II”, the following Annexure shall be substituted, namely:–



“Annexure II

Details of salary paid or credited during the financial year ………………………….and net tax payable

Serial Number.

Permanent Account Number of the employee.

Name of the employee.

Whether opting for taxation u/s 115BAC

[Yes/No]

Deductee type (Senior Citizen, Super Senior Citizen, Others).

Date from and date up to employed with current employer in the current financial year (dd/mm/yyyy).

(a) Gross Salary as per provisions contained in section 17(1).

(b) Value of perquisites under section 17(2)(as per FormNo.12BA, wherever applicable).

(c) Profits in lieu of salary under section 17(3)(as per Form No.12BA,wherever applicable).

Total amount of gross salary received from current employer (see Note 1 for definition of Salary).

(330)

(331)

(332A)

(332B)

(333)

(334)

(335)

(336)

(337)

(338)













Reported total amount of salary received from other employer(s) (see Note 1 for definition of Salary).

Travel concession or assistance under section 10(5).

Death- cum- retirement gratuity under section 10(10).

Commuted value of pension under section 10(10A).

Cash equivalent of leave salary encashment under section 10(10AA).

House rent allowance under section 10(13A).

PAN of landlord, if exemption is claimed under section 10(13A) (see Note 3).

Amount of any other exemption under section 10.

Total amount of exemption claimed under section 10 (340+341+342+343 +344+346).

Total deduction under section 16(ia).

(339)

(340)

(341)

(342)

(343)

(344)

(345)

(346)

(347)

(348)













Total deduction under section 16(ii).

Total deduction under section 16(iii).

Income chargeable under the head “Salaries” [338+339- (347+348+ 349+350)].

Income (or admissible loss) from house property reported by employee offered for TDS as per section 192 (2B).

PAN of lender, if interest on housing loan is claimed under section 24(b) (see Note 4).

Income under the head other sources offered for TDS as per section 192 (2B).

Gross total income (351+352+ 354).

Deduction in respect of life insurance premia, contributions to provident fund etc. under section 80C.

Deduction in respect of contribution to certain pension funds under section 80CCC.

Deduction in respect of contribution by taxpayer to notified pension scheme under section 80CCD(1)

(349)

(350)

(351)

(352)

(353)

(354)

(355)

(356)

(357)

(358)













Deduction in respect of amount paid or deposited under notified pension scheme under section 80CCD(1).

Deduction in respect of contribution by employer to notified pension scheme under section 80CCD (2).

Deducti on in respect of health insuranc e premia under section 80D.

Deduction in respect of interest on loan taken for higher education under section 80E.

Total deduction in respect of donations to certain funds, charitable institutions, etc. under section 80G.

Deduction in respect of interest on deposits in savings account under section 80TTA.

Amount deductible under any other provision (s) of Chapter VI‐A.

Total amount deductible under Chapter VI‐A [356+357+358 (limited to Rs. 1,50,000) +359 +360+361+362+363+36 4+365].

Total taxable income (355-366

Income- tax on total income.

(359)

(360)

(361)

(362)

(363)

(364)

(365)

(366)

(367)

(368)













Rebate under section 87A, if applicable.

Surcharge, wherever applicable.

Health and education cess.

Income‐tax relief under section 89, when salary, etc. is paid in arrear or advance.

Net tax liability [368+370+371- (369+372)].

Total amount of tax deducted at source by the current employer for the whole year [aggregate of the amount in columns 325 of Annexure I for all the quarters in respect of each employee].

Reported amount of tax deducted at source by other employer(s) or deductor(s) (income in respect of which included in computing total taxable income in column 339).

Total amount of tax deducted at source for the whole year (374+375).

Shortfall in tax deduction (+) or excess tax deduction (‐) (373- 376).

(369)

(370)

(371)

(372)

(373)

(374)

(375)

(376)

(377)

 

 

 

 

 

 

 

 



Notes:


1. Salary includes wages, annuity, pension, gratuity (other than exempted under section 10(10), fees, commission, bonus, repayment of amount deposited under the Additional Emoluments (Compulsory Deposit) Act, 1974 (37 of 1974), perquisites, profits in lieu of or in addition to any salary or wages including payments made at or in connection with termination of employment, advance of salary, any payment received in respect of any period of leave not availed (other than exempted under section 10 (10AA), any annual accretion to the balance of the account in a recognised provident fund chargeable to tax in accordance with rule 6 of Part A of the Fourth Schedule of the Income-tax Act, 1961, any sums deemed to be income received by the employee in accordance with sub‐rule (4) of rule 11 of Part A of the Fourth Schedule of the Income-tax Act, 1961, any contribution made by the Central Government to the account of the employee under a pension scheme referred to in section 80CCD or any other sums chargeable to income-tax under the head 'Salaries'.


2. Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to any approved superannuation fund, all such deductions or payments should be included in the statement.


3. Permanent Account Number of landlord shall be mandatorily furnished where the aggregate rent paid during the previous year exceeds one lakh rupees.


4. Permanent Account Number of lender shall be mandatorily furnished where the housing loan, on which interest is paid, is taken from a person other than a Financial Institution or the Employer.”.


[Notification No. 15/2021/F.No. 370142/04/2019-TPL]


ANKIT JAIN, Under Secy. (Tax Policy and Legislation)


Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 969(E) dated the 26th of March, 1962 and were last amended vide notification number G.S.R No. 162(E) dated the 09th of March, 2021


Download Copy of Notification 15/2021 dated 11.03.2021 on Changes in Form 16, Form 24Q and Form 12BA in pdf format

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