Central Board of Direct Taxes (CBDT) has issued Notification No.15/2021 to further amend Income Tax Rules, 1961. As per the amended Rules – Form 12BA, Part B of Form 16 and Annexure II of Form 24Q stands revised in order to incorporate the changes made under Finance Act, 2020 and which shall come into force from 1st day of April, 2021 onwards.
Key points of the amendments are:
1. Form 12 BA relating to “Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof” has been revised to include additional reporting by the employer which included the details of –
a) Contribution by employer to recognized provident fund, pension scheme of Central Government or approved superannuation fund in respect of the assessee, to the extent it exceeds seven lakhs and fifty thousand rupees under section 17(2)(vii) of Income Tax Act and also annual accretion by way of interest, dividend etc. to the balance at the credit of fund and scheme;
b) Stock options allotted or transferred by an employer being an eligible start-up;
c) Stock options (non-qualified options) other than ESOP
2. Part B of Form No.16 relating to “Details of Salary Paid and any other income and tax deducted” has been revised to include details as to whether the option to pay tax at lower rate than the prevailing tax rates subject to fulfillment of certain conditions available for an Individuals or HUF’s u/s 115BAC is exercised or not.
3. Annexure II of Form 24Q relating to the “Details of salary paid or credited during the financial year and net tax payable” has been revised in order to insert a column where the employer would be required to answer that whether the employee is opting for taxation u/s 115BAC or not.
For further details and substituted Forms please refer the attached document
Source: Central Board of Direct Taxes (CBDT)
