CBDT notifies amendments in Form 24Q, Form 16 and Form 12BA

CBDT notifies amendments in Form 24Q, Form 16, and Form 12BA

The Central Board of Direct Taxes (CBDT) notifies the following changes in Form 16, Form 24Q, and Form 12BA vide Notification No. 15 of 2021 dated 11.03.2021 and Income Tax (3rd Amendment) Rules 2021.

Changes in Form No. 12BA

Form 12BA requires reporting of perquisites, other fringe benefits or amenities, and profits in lieu of salary with the value thereof paid or provided to the employee by the employer. The following changes are noted in Form 12BA to incorporate the changes or amendments as per the Finance Act, 2020:

• In addition to the name, designation, and PAN of the employee, the Aadhaar number of the employee will also be shown in Form 12BA.
• Revised Form 12BA incorporated reporting of “stock options allotted or transferred by an employer being an eligible start-up referred to in section 80-IAC of the Income Tax Act, 1961 (ITA).”
• Revised Form 12BA incorporated reporting of “Stock options (non-qualified options) other than ESOP in Col. 16 of Form 12BA.”
• Revised Form 12BA incorporated reporting of “Contribution by employer to fund and scheme taxable under section 17(2)(vii) of the ITA. “Any contribution made by the employer in respect of the employee in a recognized provident fund, in a national pension scheme, and in an approved superannuation fund shall be treated as a perquisite to the extent it exceeds INR 7,50,000/- in a financial year.
• Revised Form 12BA incorporated reporting of “annual accretion by way of interest, dividend, etc. to the balance at the credit of the fund and scheme referred to in section 17(2)(vii) of the ITA and taxable under section 17(2)(viia) of the ITA.” Interest, dividends, etc., earned on such funds or schemes to the extent it relates to the employer’s contribution in excess of INR 7,50,000/- in the employee’s account shall also be included in perquisites.

 Changes in Form 16

Section 115BAC of the ITA is introduced by the Finance Act, 2020, to provide for a lower rate of tax to individuals and Hindu Undivided Families (HUFs) without claiming any allowances and deductions. Further, a salaried individual having no business income can opt for and opt out of section 115BAC of the ITA in any year for any number of times without any restriction. Accordingly, in Part B of Form 16, the employer has to report whether the employee has opted for the new tax regime under section 115BAC of the ITA.

Changes in Form No. 24Q 

In Annexure-II of Form 24Q, required to be filed in the Tax Deducted at Source (TDS) Return of the 4th quarter, 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 of the ITA.

Additional Resources:

• CBDT clarifies on residential status due to covid 19 & Issues new NR form
• CBDT exempts class of persons from applicability of Section 56(2)(x)
• SC Asks CBDT to Decide on IT Relief to NRIs from paying | Tax Alert
• CBDT Notifies the Form 29d for a Claim of a Refund on TDS
• Extension of Timelines for Filing Form 10b, 10bb, and ITR 7
• MCA Revises the Definition of Small Companies to Facilitate Ease of doing business

Article contributed by: Himanshu Suryan, Manager – Direct Tax, MBG Corporate Services