Tax authorities seek detail of perks in TDS forms

Tax authorities seek detail of perks in TDS forms
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First Published: Wed, Mar 28 2007. 08 33 PM IST
Updated: Wed, Mar 28 2007. 08 33 PM IST
PTI
New Delhi: The government has now asked the employers to furnish complete details of perquisites apart from salary paid to their employees in the annual salary certificate also known as ‘Form 16´.
In a notification dated 26 March, the Finance Ministry has made it mandatory for all the employers to submit information such as value of perquisites paid to their employees, profits in lieu of salary, entertainment allowance, and tax paid on behalf of their employee.
Employers will now have to provide details regarding deposit of taxes each month, after deducting from the salary of employees, besides education cess and other charges in the TDS forms.
The changes in the tax forms are expected to provide complete details to taxmen about the gross income of employees and improve flow of income taxes on schedule to the state exchequer.
The amendments in these forms have been introduced after the government failed to amend the Form 2F return forms due to stiff opposition from political quarters and tax experts. This has to be filled by the tax assesses along with Form 16.
Form 16 A, which is used for issuing a certificate of deduction of tax on income earned from interest on securities, interest other than securities, lottery and crossword puzzle has also been amended to facilitate electronic filing of returns, said a senior IT official.
He said the Ministry has substituted Form 16,16A and 27D with immediate effect, while making a provision for separate space for receipt of acknowledgement.
The official said in the new tax forms, the space for TDS circle has been dispensed with as TDS circle is now identifiable on the basis of TAN.
The new forms specifically require the deductor and collector to furnish payment-wise, transaction-wise details of the tax deducted or collected and paid to the credit of the Central government.
This is expected to facilitate matching of the entries in the returns of TDS and TCS with those in the certificats of TDS and tax collection at source (TCS).
The expressions like GIR number of the deductor or collector have also been dispensed with, official added.
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First Published: Wed, Mar 28 2007. 08 33 PM IST
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