Changes of Form 16

The new format would list details of:

1. Detailed breakup of salary

2. Detailed breakup of exempted allowances under section 10:

A.  Leave travel concession exempt under section 10(5)

B.  Death cum retirement gratuity exempt under section 10(10)

C.  Commuted value of pension under section 10(10A)

D.  Leave encashment under section 10(10AA)

E.  House rent allowance under section 10(13A)

3. Deductions allowed under the income tax act (under chapter VIA):

Specific fields are notified for deductions mentioned below:

• Under Section 80C – Deduction for life insurance premium paid, contribution to PPF, etc.
• Under Section 80 CCC – Deduction for contributions to pension funds
• Under Section 80CCD (1) – Deduction for employee’s contribution to the pension
• Under Section 80CCD(1B) – Deduction for taxpayer’s self contribution to the notified pension scheme
• Under Section 80CCD (2) – Deduction for employer’s contribution to the pension scheme
• Under Section 80D – Deduction for health insurance premium paid
• Under Section 80E – Deduction for interest paid on loan taken for higher education
• Under Section 80G – Deduction for donations made
• Under Section 80TTA – Deduction for interest income on savings account

4. Any other section of Chapter VI-A must be mentioned quoting the respective section.

5. Relief under section 89

6. Details of Rebate and Surcharge, if applicable must be reported in the latest format. Further Educations Cess has been replaced by Health and education cess.

Kindly check the changes in Annexure Part B of the new form 16 attached herewith.