The Central Board of Direct Taxes has extended the last date for the employers to issue Form 16 to July 10, 2019 (earlier June 15). Consequently, the last for filing an ITR (July 31 of each year) may get extended. Furthermore, it has also extended the last date for filing of Form 24Q (May 31) by the tax deductors till June 30 for FY 2018-19.
In the month of May, an important change was made in the Form 24Q, which is a quarterly statement of deduction of tax in respect of salary for the quarters of the financial year and is to be filed by the employer.
The new rule says every employer is required to report the detailed break-up of salary, exempt allowances and deductions claimed and allowed to an employee to ensure the generation of accurate TDS certificate in Part B of Form No. 16.
The employers must also report correct data in Annexure II of Form 24Q. The CBDT has issued a notification to amend the Form 24Q and Form 16 (TDS certificate in respect of salary income) w.e.f. May 12, 2019.
However, the flip side says that if the last date of filing ITR remains July 31, several employers may not even stick to the deadline of 10 July. Hence, it may impact several taxpayers who would hardly get any time to file their ITR. The generation of Form 26AS may also get delayed.