Form 16 deadline extended, more time for saving capital gains tax on property
The government on Friday extended deadlines for various income tax compliances, including Form No.16, which is required to be furnished to the employee. The certificate of Tax Deducted at Source or TDS in Form No.16, required to be furnished to the employee by the employer has been extended till July 31, from July 15, 2021.
“In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances 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.
A Form 16 is a certificate issued by the employer to its employees for each financial year, under Section 203 of the Income-tax Act, 1961. The Form 16 has two sections—part A B. Part A contains the employee’s personal details such as name address, the employer’s name address, the Permanent Account Number (PAN) of the employee PAN the Tax Deduction Account Number (TAN) of the employer. It also contains details of the period of employment with your current employer, details of tax deducted at source (TDS) on your income. Part B has details of income earned during your employment with the employer, total deductions taxable income. This part also has details of the tax payable or refundable. All these details come handy when you file your tax returns.
Time to invest in residential house for tax deduction extension for more than 3 months. Section 54 of the Income Tax Act provides that in case there is capital gain on account of transfer of a residential house property, such capital gain can be exempt from tax if the taxpayer invests the capital gain amount into another house property within 2 years (in case of purchase of new house) or within 3 years (in case of construction of a house) from date of transfer of original house property.
The CBDT circular now provides that in case any such time period of 2 / 3 years is expiring between April 1, 2021 to September 29, 2021, it will be extended to September 30, 2021.
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