The Central Board of Direct Taxes (CBDT) Friday issued a detailed circular on tax deducted as source (TDS) for the assessment year 2024-25 that will include stringent penalties for employers who fail to deduct TDS.
As per the circular, employers will now be required to correctly report tax deducted at source, failing which will attract a penalty equal to the amount it failed to deduct and even imprisonment in nonpayment of deducted tax.
It says rent-free or concessional accommodation provided by the employer is taxable as per the prescribed rules. The new form has also incorporated the Agnipath Scheme into salary components.
The board introduced a revised Form 16 and Form 24Q to incorporate legislative changes introduced in financial bill 2024, including higher surcharges for higher salary income when filing returns under the old tax regime.
The form 24Q, which is a statement utilised to prepare e-TDS statements for the TDS on salary by employer, includes a new column to report other TDS/TCS deductions besides that by the employer for ease of calculating deduction and correct reporting of income.
