Good news for all employers and Payroll professionals!
Recently, Income Tax India (CBDT) systems has amended the rule 31 of Income tax Rules 1962. As per new rule form 16 Part A and Part B (A complete TDS certificate form 16 shall be available from trace website to download and issue to employee.
1st April 2018 on wards, every employer shall issue the form 16 Part B (Annexure) from trace only along with Part A. You can say Now, complete form 16 to be given by income tax only not employer.
But in case, employee are claiming for exemptions under section 10 (Apart form 10(5), 10(10), 10(10A) , 10(10AA) and 10(13A) ) than employer have to fill the form 16 item no. 2f. Complete information given below.
The item nos. 2(t) and 10(k) in Part B (Annexure) of Form 16 required to be filled-in by the deductor manually shall be made available at the bottom of the TRACES generated Form 16 (Part B) and the deductor shall duly fill details, where available, in item numbers 2(t) and lOCk) before furnishing of Part B (Annexure) to the employee. The deductors who opt to uthenticate Part B of Form No. 16 manually will be provided with the download of the Part B of Form No. 16 alongwith these item nos. 2(t) and lOCk) appearing at the bottom of the Form. The deductor shall duly fill details, where applicable, in item numbers 2(t) and 10(k) before furn ishing of Part B (Annexure) to the employee. The deductors who opt to authenticate Part B of Form No. 16 using Digital Signature Certificate (DSC) will be provided with the download of Part B of Form No. 16 without item nos. 2(t) and 10(k) and therefore these details shall be required to be prepared by the employer and issued to the employee, where applicable, before furni shing of Part B to the employee.
- Part A of Form 16 shall be download from Trace only.
- Part B of Form 16 shall be download from Trace only.
- A Complete form 16 TDS certificate shall be issued by Trace Income tax India only.
- Employer will update form Part B of Form 16 in case employee are claiming exemption in item no 2(f) of form 16 and any deduction allowed by employer in item no 10(k) o form 16.
- Part B is mandatory in case employee has submitted PAN to employer and employer has finished in salary return (form 24Q).
- Authentication or verification of TDS certificate Form 16 both parts downloaded from trace to be done by employer or you can say final issuing correct form 16 tds certificate responsibility of employer only.
- Employer also will issue form 12BA from own records in case employee is getting perk benefit more than 150000.
- Manual form 16 part B will not issue from 1st April 2018 onward.
Regards, Kumar Ajit