Form 16 exemption claims: Keep documents handy as there could be queries

If deductions are claimed while filing returns, there could be queries from tax officials

The Central Board of Direct Taxes has notified changes in Form 16. Employers will now need to furnish detailed break-up of exemptions that an employee has claimed.  Earlier, employers were allowed to provide a consolidated figure instead of specifying details of each exemption.

In the existing Form 16 (Part B), the employer had an option to provide a description of the exempt allowance. Consequently, every organisation had created different formats as per their requirements. The new Form 16 (Part B) has removed this option to write-down the description of exempt allowances. “Now, the employers have to mention the amount of exempt