Country: India
Compliance category: Tax
Regulatory Information:
Regulation:
- Finance (No.2) Act,2024
- Income-tax (Eighth Amendment) Rules, 2024
Notification/Circular no: CBDT Notification No. 112/2024 /F. No. 370142/19/2024-TPL
Notification date: October 15, 2024
Updates in Compliance:
Summary:
The Central Board of Direct Tax (CBDT) vide above circular has introduced Form 12 BAA and amended Form 16 and 24 Q for the purpose of declaring tax deducted at source on Income other than salary.
Effective date: October 15 ,2024
Impact:
1. Introduction of Form 12BAA
In Finance Act (No.2) 2024, Section 192(2B) was introduced wherein salaried individuals can declare the taxes withheld on Income earned other than salary to their employers. As implementation guidelines, Rule 26B of The Income Tax Rules, 1962 (‘the Rules’) has been amended in the above circular, by introducing Form 12BAA which needs to be submitted by the employee to the employer. In this form, employee needs to provide the following details:
- Name, Address, Permanent Account number/Aadhar number of the employee
- Financial year
- Name, Address, TAN of the deductor
- Amount of income and tax deducted
- Name, Address, TAN of the collector
- Amount of income and tax collected
- Loss from House property head
For reporting the above amount in Form 16 and Form 24Q, the following changes have been introduced:
2. Changes in Form 16
For furnishing details related to Tax deducted or collected at source declared in Form No. 12BAA, the following text have been inserted in Form 16 Part B of Annexure I:
“Tax deducted and collected at source as per Form No. 12BAA submitted under provisions of section 192(2B)”
3. Changes in Form 24Q
In Annexure II, an additional column has been added as follows:
“Amount reported as per section 192(2B), of other tax deducted at source or tax collected at source, other than (388)”
Our Analysis:
This notification provides complete clarity on declaring necessary details pertaining to tax deducted at source on income other than salary to the employer.
