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STATUTORY CHANGE IN ISSUANCE OF FORM-16

Live Webinar on 25 April 2013

To Join on Call : 1800-1033-829 Conference Password : 195-1-1234

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In Today’s Webinar…….

• The New Form-16• Revised Issuance Procedure for Form-16• Expected Complexities in Issuance• Our Suggestions to comply with the New Regulation• Discussion & Sharing of Ideas/Cases• Closing

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The New Form-16

Part-A to be downloaded from TRACES

Part-B to be generated by Deductors

Issued to the Employees

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The New Form-16 – PART A

to be issued Separately

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The New Form-16 – PART A

downloaded from TRACES

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The New Form-16 – PART B

to be issued by Employer

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The New Form 16

• Few more Changes

• Notification Dated 19.02.2013– 80TTA [ Savings Bank Interest Exemption ] added– But made no mention of 80CCG

• Notification Dated 17.04.2013– Change in issuance procedure

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Revised Issuance Procedure

Until FY 2011-2012, Employers issue Form-16(Part A & Part-B) as 1 Single Document.

OPT

ION

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Revised Issuance Procedure

With Effect from FY 2012-2013, 2 Separate Documents to be issued.

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Depending on the Employer, the following additional pages needs to be issued, as applicable

Annexure to Form-16 Form 12BA

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Expected Complexities in Issuance

• Cannot be Issued as 1 Single Document• Signing (Digital/Manual) on both the documents• Possibility of Mismatch of Data on Part-A & Part-B• Login to TRACES• Time Consuming & Complex generation of Part-A• Incorporate Changes in Form-16 Format • Printing & Handling of Part-A will be a challenge• Employee Satisfaction – Too many Documents

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Expected Complexities in IssuanceCannot be Issued as 1 Single Document

Part-APart-BAnnexure to Part-BAnnexure to Form-16Form 12BA

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Expected Complexities in IssuanceCannot be Issued as 1 Single Document

Part-BAnnexure to Part-BAnnexure to Form-16Form 12BA

Part-A

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Expected Complexities in Issuance Signing (Digital/Manual) on both the documents

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Expected Complexities in Issuance Possibility of Mismatch of Data on Part-A & Part-B

TDS Deducted Details SHOULD

Match

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Expected Complexities in Issuance Possibility of Mismatch of Data on Part-A & Part-B

TDS Deducted Details SHOULD

Match

May Not Match for the following scenarios

•PART A Will not be generated for PAN Not Available Cases•PART A Will not be generated for INVALID PAN•Name & Address of the Employee will be as per PAN Database•If Challans are unmatched, Employee will not get Tax Credit•If Incorrect/Inaccurate E-TDS Filings are done, Employee will not get Tax Credit

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Expected Complexities in IssuanceLogin to TRACES

ERROR

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Expected Complexities in IssuanceLogin to TRACES

ERROR

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Expected Complexities in Issuance

• Cannot be Issued as 1 Single Document• Signing (Digital/Manual) on both the documents• Possibility of Mismatch of Data on Part-A & Part-B• Login to TRACES• Time Consuming & Complex generation of Part-A• Incorporate Changes in Form-16 Format • Printing & Handling of Part-A will be a challenge• Employee Satisfaction – Too many Documents

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Our Suggestions to comply with the New Regulation -1

• TRACES– Create Login as soon as possible, if not yet created

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Our Suggestions to comply with the New Regulation -2

• DECIDE THE MODE OF SIGNATURE ON FORM-16 – And get the necessary infrastructure in place

• If Digital Signature– Vendor for Signing Part B of Form-16– Digital Signature Procurement before 28.05.2013

• If Manual Signature– Printing Equipments

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Our Suggestions to comply with the New Regulation -3

• File your Q-ETDS Returns as quick as possible. Don’t wait for May 15th 2013.

• Once accepted on TRACES, Immediately provide request for Form-16

• Form 16 will be generated based on PAN Numbers. Have a List of your Employee PAN Numbers ready

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Our Suggestions to comply with the New Regulation -4

• Ensure to perform an Audit of your Q-ETDS Filings to enable NO MIS-MATCH between Part-A & Part-B

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Our Suggestions to comply with the New Regulation -5

• Your Payroll Tool/Vendor should have the new format of Form-16 in place as soon as possible.

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Our Suggestions to comply with the New Regulation -6

• Have a Target Date to issue Form-16’s & Work Backwards.

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Discussion & Sharing of Ideas/Cases

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Thank You