New Delhi, 9 June (IANS). Form 16 for FY 2024-25, about all the salaried employees will get by June 15. Due to the implementation of the announcement made in the budget, many major changes will be seen in this year Form 16.
This time in Form 16, TDS (Tax Deed at Source) and TCS (Tax Colored at Source) etc. will be given on income from other sources on income from other sources. However, this will be possible only when you have submitted Form 12 BBA to your employer.
The budget was amended the Income Tax Rules, so that the salaried persons can inform their employer about TDS on other sources of income, as well as the TCS charged on specific expenses.
This TDS and TCS can be adjusted (reduced) against the total total tax deducted from the salary of the employee. This will help the employee and will deduct less TDS than before salary.
In addition, the government has given standard deduction for salaried people in the budget to Rs 50,000 to Rs 75,000 under the new Income Tax Regime. In such a situation, if you have chosen a new tax regime, then in Form 16 you will get a discount of Rs 75,000 under standard deduction on TDS deduction by the employer in Form 16.
If a person switchs to the old tax regime from the new tax regime, he can only claim a standard deduction of Rs 50,000.
At the same time, if the employee has selected a new tax regime for the financial year 2024-25 (Assessment Year 2025-26), he can claim more tax exemption from his gross income on the contribution of the employer in NPS.
Under Section 80 CCD (2) in the new tax regime, employees can claim up to 14 percent of their basic salary. This deduction can be claimed on the employee’s contribution to the employee’s National Pension System (NPS) account. This high cut will appear in your Form 16 only when you have chosen a new tax regime for TDS from salary.
At the same time, if the tax regime is converted from new to old while filing ITR, then the cut will be reduced. Employees will be eligible to claim only 10 percent deduction of their basic salary under Section 80 CCD (2) on the contribution of employer to NPS in the old tax system.
-IANS
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