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DECODING FORM 16

Decoding Form 16

Income Tax Form 16 is a certificate from your employer. It certifies that TDS has been deducted on your salary by the employer. If an employer deducts TDS on salary, it must issue income tax Form 16 as per tax rules of India. Form no. 16 is issued once in a year, on or before 31st May of the next year immediately following the financial year in which tax is deducted.

Understanding Form 16

This is one of the important income tax form. It contains most of the information you need to prepare your income tax return.

Form 16 has two parts Part A and Part B.

Form 16 Part A

  • Name and address of the employer

  • TAN & PAN of employer

  • PAN of the employee

  • Summary of tax deducted & deposited quarterly, which is certified by the employer

  • Assessment Year

  • Period of employment with the employer

  • Form 16 Part A must be generated and downloaded through Traces portal

  • Part A of the Form 16 also has a unique TDS Certificate Number.

 

Form 16 Part B

  • Detailed breakup of salary paid

  • Deductions allowed under the income tax act (under chapter VIA)

  • Relief under section 89

  • If you have held more than one job during the year, you’ll have more than one Form16.

  • Part B is prepared by the employer manually and issued along with Part A. (Are you an employer? If you are an employer, file your TDS Return here)

 

Things you need to know when you fill your ITR!

You must enter the following details

1. Taxable Salary

2. Breakup of Section 80C Deductions

3. Aggregate of Section 80C Deductions (Gross & Deductible Amount)

4. TDS (Tax Deducted at Source)

5. Tax Payable or Refund Due

You must enter the following details

1. TDS Deducted by Employer

2. TAN of Employer

3. PAN of Employer

4. Name and Address of Employer

5. Current Assessment Year

6. Your (Taxpayer’s) Name and Address

7. Your PAN

Frequently asked questions about Form-16 support

Q1. How to get Form 16?

A1. You can get your Form 16 from your employer. Even if you have left your job, your employer will provide you a Form 16. Unfortunately, this income tax form 16, cannot be downloaded from anywhere.

Q2. If there is no TDS is the employer required to issue a Form 16?

A2. TDS certificate in Form16 is issued when TDS has been deducted. In case no TDS has been deducted by the employer, he may not give you a Form 16.

Q3. When the employer deducts TDS and does not issue a certificate?

A3. Any person responsible for paying salaries is required to deduct TDS before making payment. The Income Tax Act lays down that every person who deducts TDS from a payment, must furnish a certificate with details of TDS deducted & deposited. An employer in specific, is compulsorily required to furnish a certificate, in the format of Form 16.

Q4. If no Form 16 has been issued to me does it mean I don’t have to pay tax or file a return?

A4. While the obligation of deducting tax on salaries and providing Form16 is on the employer; the obligation of paying income tax and filing income tax return is on you. If your income from all sources is above the minimum tax slab you are required to pay tax, whether or not your employer deducted TDS. Even when he fails to issue you a Form 16, you must file an income tax return.

Hope you found these information useful. To know more on Tax solutions, visit YES Tax Solutions.

*The full version of this article by our knowledge partner Cleartax can be accessed at Cleartax.in

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