The CBDT has recently notified that Form 16 had two parts – Part A and Part B. Part A contains details of tax deducted and remitted and Part B contains details of income. The Central Board of Direct Taxes (CBDT) has now notified that Part A of Form 16 containing the Unique Identification Number will be issued by the employer by generating and subsequently downloading the same from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) Portal. ( www.tdscpc.gov.in)
Employer to download Part A of the Form 16 from the TRACES Portal and authenticate the correctness of the contents mentioned therein before issuing to the employee. Part B of the Form 16 will be prepared manually and issued to the employee after due verification. Part A and B can be either digitally or manually signed.
Form 16 to be issued by the employer containing both Part A and B by 31 May 2013. Form 16 issued in the manner prescribed and containing Unique Identification Number will only be considered to be valid.
The Director General of Income-tax (Systems) will specify procedure, formats and standards for downloading Part A of Form 16 and will be responsible for the day to day administration.
It is also Mandatory by the CBDT that the Form 16 Part B which contain the employee's Salary Details which must be prepare by the Employer. Now you have to need the prepare Form 16 Part B and the Form 16 Part A Download from the TRACES Portal.