High-earning employees who receive rent-free accommodation from their employers are set to enjoy increased savings and a larger take-home salary. The income tax department has updated its valuation guidelines for such accommodations.

The IT department has identified various methods used to evade tax, including submitting fake rent receipts in the name of relatives, false donations, exaggerated claims against loans, and more.

Form 16 is a TDS certificate given by employers to employees, indicating the tax deducted from salary income during a financial year. It helps employees with their income tax return filing.

Good news for non-govt salaried employees: Income Tax exemption limit for leave encashment upon retirement hiked to Rs 25 lakh

To Avoid Tax Deducted at Source (TDS) on incomes like rent and interest, taxpayers can submit form 15G or 15H to the relevant individual or organization, including banks, post offices, and corporate bond issuers. Form 15G is for individuals below 60, whereas 15H is for senior citizens.