The Income Tax Department informed another organization, involving Part An and Part B, for Form 16 of every 2013. As you would know, Part An originates from the TRACES site while Part B is made by the business. There are pay and expense subtleties in both Part An and Part B. Indeed, even following a long time since the new arrangement was presented, we find numerous finance chiefs not being clear about the premise of compensation and assessment figures in Part An and Part B of Form 16.
Section A of Form 16
Any business who deducts assess on compensation needs to record what is called Form 24Q, the quarterly return which exhibits the pay paid to a representative and the duty deducted/transmitted for every worker each quarter. Annexure I of Form 24Q presents the deductee shrewd (worker savvy) subtleties of the pay paid (in the section with the heading “Sum Paid or Credited”) and the duty deducted for every representative (in the segment with the heading “All out TDS (Total of segments 321 and 322).
In the event that an association runs regularly scheduled finance, and a representative has pay and assessment reasoning for all the 3 months in a quarter, Annexure I of Form 24Q ought to contain the compensation paid to and the duty deducted from every worker (according to worker PAN) for every month in the quarter. This implies every worker who gets compensation for every one of the months in a quarter ought to have something like 3 lines against his PAN in Form 24Q.
Presently, what is implied by “Sum Paid or Credited” in Annexure I of Form 24Q?
The Income Tax Department has not determined the correct importance of the above term anyplace. Associations have comprehended the term as alluding to the gross pay paid to a representative every month.
When a Form 24Q is documented, the assessment office refreshes Form 26AS of a representative with the pay and duty subtleties displayed in Annexure I of Form 24Q. What’s more, the assessment division utilizes Annexure I data to populate Part An of Form 16 which is downloaded from the TRACES website after Form 24Q for the last quarter is recorded.
A concentrate from Part An of Form 16 is as per the following:
The compensation (Amount paid/credited) and assess sums (Amount of expense deducted) in the above are from Annexure I of Form 24Q documented each quarter.