The Form 16 due date is normally set at June 15 every year. (Photographer: Brent Lewin/Bloomberg)

CBDT Extends Deadline For Employers To Issue Form 16 To Employees To July 10

The Income Tax department on Tuesday extended the deadline for employers to issue Form 16 tax deducted at source certificate for financial year 2018-19 to its employees by 25 days till July 10. However, the extension would leave the salaried taxpayers with a limited time-frame of just 20 days to file their income tax returns.

The due date of filing of tax deducted at source, or TDS, by employers to Income Tax department in Form 24Q for financial year 2018-19 has been extended by a month till June 30, 2019.

The deadline is being extended with a view on redressing genuine hardship of deductors to file TDS statement on time, said the Central Board of Direct Taxes in a statement on Tuesday. Delays have been reported due to revision of the format and consequent updating of the file validation utility for online filing.

Hence, the due date of filing of TDS statement in Form 24Q for 2018-19 has been extended from May 31, 2019 to June 30, 2019. Consequently the due date for issuing Form 16 for FY19 has been extended from June 15, 2019 to July 10, 2019.

Employers deduct TDS at the time of paying salary to an employee, following which she has to file salary TDS return in Form 24Q which has to be submitted to the Income Tax department on a quarterly basis. Details of salary paid to employees and TDS deducted on such payment get reflected in Form 24Q.

Commenting on the development, Nangia Advisors (Andersen Global) executive director Neha Malhotra said the CBDT can be seen committed with its objective of easing off the compliances and reduce the stress amongst the taxpayers.

“The extension would leave the salaried taxpayers with a limited time frame of only 20 days to file their ITRs. A further favourable action can be expected from CBDT and timeline for ITR filing for individual taxpayer may be extended to mid of August,” Malhotra said.

Individual taxpayers, who do not have to get their accounts audited, have to file ITRs for financial year 2018-19 by July 31, 2019.