CBDT introduce new changes in Form 24Q and 12BA
An overview of the Changes in Form 24Q and 12BA
In this post, we will look into the CBDT-introduced changes in Form 24Q and Form 12BA based on the Income from employees’ salaries.
Changes in Form 24Q Annexure-II
In Annexure II of Form 24Q, when reporting an employee’s salary income details, they need to say if she/he has opted for the new tax regime under section 115BAC.
So, Column No. 332 is split into Column No. 332A containing the ‘Name of the employee and Column No. 332B enquires “Whether opting for taxation u/s 115BAC”.
An employer files Annexure-II with the 4th quarter return of Form 24Q. It will contain the details of the salary income, allowed exemption and deduction claimed, and tax paid and tax deducted by the employer/previous employer. From this data, Form 16, Part-B, and ITR are prefilled.
Changes in Form No. 12BA
New four columns are introduced in this Form: Col 16, Col 17, Col 18, and Col 19. The existing columns 17, 18, and 19 are changed to Cols., 20, 21, and 22, respectively.
The 4 significant changes notified in Form 12BA are mentioned below:
- Column 16 must report “Stock options allotted /transferred by employer being an eligible start-up referred to in section 80-IAC.”.
- Column 17 will report “Stock options (non-qualified options) other than ESOP in col 16 above.”.
- Column 18 should report “Contribution by the employer to fund and scheme taxable under section 17(2)(vii).”.
- Column 19 will have “Annual accretion by way of interest, dividend, etc. to the balance at the credit of fund and scheme referred to in section 17(2)(vii) and taxable under section 17(2)(viia).”
- In Finance Act, 2020 clause (vii) of Section 17(2) provides that perquisites would include any contributions made by the employer to the account of an employee in a recognised Provident Fund, NPS, etc., to the extent it exceeds Rs. 7.50 Lakh in a year.
- Clause (viia) of Section 17(2) says that the amount of interest, dividend, etc. (annual accretion) earned on funds or schemes if it relates to the employers’ contribution above Rs. 7.50 Lakh in the employee’s account as stated in clause (vii), will be included in perquisites.