This is the time of year when your employer hands over your Form 16 Many people, especially the first time, are unable to understand this document. Here's an explanation of what is form 16 is and what you should do with it
Your employer will publish this document every year. This is one of the most important income tax forms for salaried people.
Form 16 comes under Section 203 of the Income-tax Act, 1961 and is a certificate issued by your employer that verifies the amount of salary and TDS you have earned in a year.
The form cannot be downloaded by any employee, it can only be issued by your employer. Form 16 is a TDS certificate and can only be issued by your employer. People often have the misconception that the form can be downloaded from the Tracks website. But that is not true.
What is the form of divisions A and B?
Understanding the contents of Form 16 enables you to streamline the process for filing your ITR (income tax return). Your income comes entirely from your salary and you will be able to do it yourself if you have no other source of income.
Part A and its components:
Part One contains the initial details of the employee and the employer
Yer employer name and address
Name and address of the employee
Permanent account number (PAN) of both
Employer's Tax Exemption Account Number (TAN) and others.
Section B also gives details of the assessment year (AE), date of deduction of tax, and submission of this amount to the Central Government and an invoice issued by the Government thereby. This part of the form details your tenure with the current employer.
Part B and its components:
Part B is an important part of the form, as it gives you most of the details that you need to file an income tax return (ITR), such as payroll, other income, tax deductions, and more.
This is a breakup of how your tax was calculated considering the investment you declared at the beginning of the financial year and the evidence of the investment submitted thereafter.
It contains details of other the employer that your employer has provided to you that may be necessary for tax calculation purposes; And any other details - such as house rent, medical bills, home loans, and grants that you have exempted the employer from paying taxes. The details include:
Total salary
Salary as per provision includes 17/1 (1)
Adult Value 17/2 Received (2)
Profit instead of salary 17/3 (3)
If any other source of income intimated by the employee,
Exemptions under Chapter VI-A include detailed separations such as 80C, 80CCC, and 80CCD (list is not exhaustive) Provident Fund (EPF / PPF) Housing, National Protection Certificate, Life Insurance Plan, Tax Savings Mutual Funds (ELSS), and Any other investment in tax saving schemes
Discount U/s 80D (Health Insurance Premium)
Chapter Discounts under other sections of the chapter
Tax on total income
Any benefit is realized
No tax deduction
Any surcharge
If you are employed under more than one employer in a year, each of your employers will provide you with a Form 16.
What is the process to use Form 16 to file ITR (Income Tax Return)?
IT This is a very critical document that you need to keep in your hand while filing your ITR. You can either file your own return or you can ask your chartered accountant or someone else to help you file your return online.
As one of the most important tax
forms, it contains most of the information needed to prepare your income tax
return in
Although all the details related to the deduction are mentioned in the form, you should cross-check the amounts with your investment and other documents. If there is an error in your form, you need to correct it to the employer because the employer made it for you.
Form 16 Compulsory?
Yes, it is mandatory for employers to issue forms if TDS is deducted from the salaries of the employees. If no TDS is deducted by the employer, they will not be able to disclose Form 16 to you. It is also beneficial for you to receive the form, so you can:
Check for any errors
Download and Prepare at a time 50 Employees Revised Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC (Who are not able to download Form 16 Part A from the Income Tax TRACES PORTAL, they can use this Excel Utility)
Check that you have met all your tax obligations
Seek refunds for any additional fees payable
While it is the owner's responsibility to deduct the tax at the source, you are still responsible for paying the tax and filing the return.
Can Income Tax Return (ITR) be submitted except Form 16?
Yes, you can file your income tax return without the form but you know the details mentioned in Part A and Part B. of the form. You can refer to your payslip and Form 26AS.
If I don't get Form 16 from my employer, does that mean I don't have to pay taxes or file a return?
It is the employer's job to deduct the TDS and provide Form 16, pay your income tax and file the return. If your total annual income is taxable, you will have to pay tax, whether your employer deducts TDS or not.
Download and Prepare at a time 100 Employees Revised Form 16 Part A&B for the
F.Y.2020-21 as per new and old tax regime U/s 115 BAC (Who are not able to
download Form 16 Part A from the Income Tax TRACES PORTAL, they can use this
Excel Utility)
