Form 16
Tax-filing season is almost here. It’s that time of the year when you have to go about collecting different proofs of income and your expenses so you can file your taxes. For salaried individuals, one of the most important documents needed to file taxes is Form 16.
Want to know More ?
Form 16 required mandatory
Benefits of Form 16
- It acts as the 'income from salary' statement of the individual.
- It helps at the time of filing of income tax returns.
- It is a supporting document for the issuance of visa.
- It acts as a proof of income.
- It helps keep a tab on all your tax-saving investments.
- It provides a clear picture of the computation, payment, and refund of your taxes
- Agent of Suppliers
Pricing
(Simple & Clear Pricing. No Hidden Charges)
| Government Fee | Rs 0 |
| Professional Fees | Rs 1,459 |
| Goods & Service Tax | Rs 00 |
| Total Cost | Rs 1459 |
What is FORM 16?
(All you need to know)
Form 16 is an annual tax document issued to salaried individuals by employers. This document contains details of income earned by an employee, the tax-saving investments and deductions that were availed as well as any tax deducted at source (TDS) for the applicable Financial Year. These are the key details that the employee needs to file their income tax returns.
According to the Income Tax Act of 1961, it is mandatory for employers to provide Form 16 to employees who draw an annual income of more than Rs. 2.5 lakh. Form 16 is usually issued to employees latest by the 15th of June every year.
In case you have switched jobs during the financial year, then you will get Form 16 from all your employers during that year. You will then have to collate the income, TDS, and tax-savings investment or deductions from multiple Form 16 in order before you can calculate income tax online and file your ITR correctly.
1. It works as a proof that your employer has deducted tax from your salary and deposited it with the government
2. It helps in the income tax returns efiling process
3. It is usually requested by banks and financial institutions when you approach them for loans.
Details required from Form 16 while filing your return
With reference to the image below, here is where you can locate certain information for filing your income tax return for FY 2020-21 (AY 2021-22).
- Allowances exempt under Section 10
- Break up of deductions under Section 16
- Taxable salary
- Income (or admissible loss) from house property reported by an employee and offered for TDS
- Income under the head ‘Other Sources’ offered for TDS
- Break up of Section 80C deductions
- The aggregate of Section 80C deductions (gross and deductible amount)
- Tax payable or refund due
Checklist for Form 16
Through a notification, the Central Board of Direct Taxes has brought some changes in the format of Form 16, effective from 12 May 2019. Now, you have to provide some more details about your salary or income, in comparison to the details provided earlier.
Part A and Part B of Form 16 are to be downloaded from the TRACES website of the Income Tax Department. Now, both pages shall carry the logo of TRACES (TDS Reconciliation Analysis and Correction Enabling System).
On TRACES, the PAN holder can check the tax amount that has been deducted and deposited against the PAN during a financial year.
Check these details in Form 16:
The PAN is the most important information at the time of tax filing. Therefore, it is very important to ensure that the PAN mentioned in Form 16 is entered correctly. If you have worked for more than one organization in one financial year, make sure you check it on each Form 16. In case the number mentioned is wrong, it will reflect in a Form 26AS. The tax deducted from salary will not be reflected and you won’t be able to claim credit for that while filing your ITR.
In Part A of Form 16, the details of both the employees and employer are mentioned, such as name, address, PAN, and the employer’s TAN etc. It is necessary that the TDS details match with the data recorded in Part A of Form 16 with the data in Form 26AS. In case of any dissimilarity, it should be immediately communicated to the employer. After rectifying the mistake, the employer will need to issue a revised TDS certificate.
Part B of Form 16 consists of the details of the income earned in the financial year. The income details to be furnished here are extensive. If you have worked under two employers in one financial year, ensure your Form 16 carries the information from the previous employer. If it is missing, get that included in Part B of Form 16. Post the amendment of 2019, from the financial year 2019-20, a detailed break up of tax saving deductions is to be shown. The tax-saving deductions and exemptions claimed have to be supported by relevant documents submitted by the employer.
More Question? A specialist is here to help
Call us at: +91 820 956 9514 or
Email us: info@taxtorium.com
Frequently Asked Questions
From where is Form 16 issued?
The employer provides Form 16 when there is a deduction at source from the salary.
Is Form 16 required to file an ITR?
Form 16 is the most important document for filing the ITR of a salaried person. The employer is liable to issue Form 16 every year in the prescribed format. However, if the employer does not do so, the employee can use the salary slip for the same.
How will the return be filed if any deduction is not mentioned on Form 16?
Even if some deductions are not mentioned on Form 16, it can be added in the ITR form while filing. However, it is always recommended to disclose all your investments to your employer so that the deductions are calculated in the most appropriate manner and nothing is left behind.
How to get Form 16?
You can get your Form 16 from your employer. Even if you have left your job, your employer will provide you with Form 16. Unfortunately, this income tax Form 16 cannot be downloaded from anywhere.
If there is no TDS deducted, is the employer required to issue a Form 16?
TDS certificate in Form 16 is issued when TDS has been deducted. If the employer has deducted no TDS, he may not give you Form 16. Please take a look at our Guide on how to e-file without form 16
Are you looking for GST Registration?
Apply for GST registration @ ₹ 1,499/-
- Simple
- Secure
- Smart
- Online
