payroll

Changes Made in Form 16 and Form 24Q for FY 2023-24

By PAVAN KUMAR ANTIYAKULA
10
Jul

Introduction 

Form 16 and Form 24Q are important documents used for tax compliance in India. They play a crucial role in the employer-employee relationship and the accurate reporting of income and taxes. As we step into the financial year 2023-24, several changes have been made to Form 16 and Form 24Q, aiming to simplify the tax filing process and enhance transparency. This blog will discuss the notable changes introduced in these forms.

Changes under Form 16 – Part B:

  • A row inserted Other special allowances under section 10(14) under allowances.
  • Under Chapter VI-A a row was inserted for Deduction in respect of contribution by the employee and employer for the Agnipath Scheme under section 80CCH.

Changes under Form 24Q:

  • In the complete form, the words “Education Cess” is to be substituted with the words “Health and Education Cess”.
  • This year onwards, the department wants to keep a check on both individuals who have opted in or opted out of section 115BAC. Thus, under Annexure II, the words “Whether opting for taxation u/s 115BAC [Yes/No]” would be replaced with the words “Whether opting out of taxation u/s 115BAC(1A) [Yes/No]”.

To read the complete notification, please refer to the said link:

https://incometaxindia.gov.in/communications/notification/notification-28-2023.pdf

Conclusion:

The changes made in Form 16 and Form 24Q for the FY 2023-24 aim to enhance transparency, streamline tax calculations, and facilitate accurate reporting of income and taxes. The revised format of Form 16 provides employees with a more comprehensive view of their salary components, deductions, and exemptions. On the other hand, the changes in Form 24Q focus on improved disclosure requirements and a simplified reporting process for employers.

Both employers and employees need to stay updated with these changes and ensure compliance with the revised forms. Consulting a tax professional or referring to official guidelines from the tax department can provide further clarity and help in the smooth filing of income tax returns.

Email us at info@pulsehrm.com or call us directly at +91 (806) 184 8844 to get started.

PAVAN KUMAR ANTIYAKULA