Form 12BA, Part B of Form 16 and Form 24Q updated for FY 2021-22 and notified with changes

CBDT has notified Form 12BA, Part B of Form 16 and Form 24 for FY 2021-22 with some notifications vide notification no. 15/2021 Dt. 11.03.2021.

Form 12BA is covered under rule 26A(2)(b) and is a Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof.

Form 12BA is a statement which needs to be issued by the employer to the employee if the amount of salary paid or payable to the employee is more than one lakh and fifty thousand rupees, which shall accompany the return of income of the employee.

There are 4 major amendments made to Form 12BA which are as under:

1. At S. No. 16 of Form 12BA the following point shall be added: Stock options allotted or transferred by employer being an eligible start-up referred to in section 80-IAC.

2. At. S. No. 17 of Form 12BA the following point shall be amended: Stock options (non-qualified options) other than ESOP in col 16 above.

3. At S. No. 18 of Form 12BA the following point shall be added: Contribution by employer to fund and scheme taxable under section 17(2)(vii).

4. At S. No. 19 of Form 12BA the following point shall be added: 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).

Part B of Form 16 shows total taxable income of employee considered for TDS on salary and various deductions claimed by assessee. Thus, Part B of Form 16 is a statement of income from employer to employee used for deducting TDS.

The major amendment in Part B of Form 16 is with regard to whether employee had opted for section 115BAC or not.

It is important to note that even though had opted for 115BAC with employee he can change the same while filing his return of income.

Form 24Q is the TDS return for deducting TDS on salary income.

As compared to previous year Form 24Q has become much descriptive like including columns for whether employee has opted for 115BAC or not and various deduction under section 16 and details of perquisites under section 17, details of interest on housing loan including PAN of lender etc.

 

It is important to note that above amendment shall be applicable from 01.04.2021 i.e. for FY 2021-22

 

Looking at the above changes to various forms it can be said that this is step towards make pre-filled Income tax return form.

 

To Read the above notification CLICK HERE.