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Changes to the format and method of preparing Form 16 for Assessment Year 2013-2014

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As per the recent mandate from the Indian Income Tax department, manually prepared Form 16 or Form 16A  (for deduction under any other provision of Chapter XVII-B of the Act) shall no more be valid for the income deductions made on or after 1st April, 2012.

Income Tax department has amended the rules of issuing Form 16 and 16A. The format of Form 16 and 16A has also been changed for assessment Year 2013 - 14.

The process:
As per the official circular from Income Tax Authority, India (TDS reconciliation analysis and correction enabling system), Employer should generate TDS Certificate online.

TDS Certificate in Form no. 16 as notified vide notification no.11/2013 dated 19.02.2013 has two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

Part A shall be mandatorily generated through TRACES portal by following guidelines mentioned there. As per circular, Form 16 generated manually or from any other manner other than TRACES portal is not valid.
Part B of Form 16 which is the statement of income of an employee can be prepared by employers themselves.

 

Our take on this
Worried about how to update your existing system to keep pace with these changing rules?

Don’t be.
We constantly work to ensure that all changes in statutory compliances are quickly updated onto Greytip Online.
Complying with the regulatory policies Greytip is bringing you the new Form16 module which will simplify the process of managing Form 16 submission and circulation.

As part of the new module, Greytip Online will provide you features to upload the Part A from TRACES. The Part B along with Form 12BA will be generated inside the application. The two forms will be merged automatically and you can then easily, at the click of a button, download the full Form 16 consisting of the two parts - Part A and Part B.

The same can be emailed and would also be available for download from the Employee portal.

Keep an eye on this space to know in detail about the feature and how to use it effectively.

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