The government extended deadlines for a variety of income tax compliance items on Friday, including Form No. 16, which must be submitted to the employee. The deadline for employers to provide employees with a certificate of Tax Deducted at Source, or TDS, in Form No.16, has been extended until July 31, 2021, from July 15, 2021.
“In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices.
“In order to ease the compliance burden of taxpayers during this difficult time, reliefs are being provided…,” the Central Board of Direct Taxes (CBDT) said in a statement.
Relief is being provided through extensions of the following deadlines as a measure to ease taxpayer compliances during the pandemic period. pic.twitter.com/mXLd5bFtSq— NSitharamanOffice (@nsitharamanoffc) June 25, 2021
A Under Section 203 of the Income-tax Act, 1961, Form 16 is a certificate issued by the employer to its employees for each fiscal year. The Form 16 is divided into two sections: A and B. Part A comprises personal information about the employee, such as his or her name and address, the employer’s name and address, the employee’s Permanent Account Number (PAN), and the employer’s PAN and Tax Deduction Account Number (TAN). Additionally, it contains information about your tenure with your present employer and the amount of tax deducted at source (TDS) on your income. Part B contains information on the income you earned while working for your employer, your total deductions, and your taxable income. Additionally, this section contains information on the tax that is payable or refundable. All of these details come in helpful when it comes time to submit your taxes.
Now is the time to invest in a residential property to qualify for a tax deduction extension of more than three months. Section 54 of the Income Tax Act provides that if a taxpayer incurs a capital gain on the transfer of a residential house property, the capital gain is tax exempt if the taxpayer invests the gain in another house property within two years (in the case of a new house purchase) or three years (in the case of a new house construction) of the date of the transfer of the original house property.
The CBDT circular now states that if any of these two-year time periods expire between April 1, 2021 and September 29, 2021, they will be extended to September 30, 2021.