Download Automated Income Tax Form 16 Part A and B and Part B for F.Y 2021-22. Form 16 is one of the most important tax documents for both employees and employers. In this guide we have covered every aspect related to Form 16. This Form 16 is divided into two sections-Forms 16 Part A for Employees, Form 16 Part B for Employers
What is Form 16?
Form 16 is a certificate issued to employees by their employer when deducting the tax from the employee's salary. Put simply, it is an acknowledgment that your deducted tax has been filed with the Income Tax Office.
Form 16 is a most indispensable document that is issued under the provisions of the Income Tax Act, 1961. Form 16 details the amount of withholding tax (TDS) on your employer's salary along with the salary break for the financial year.
Why is Form 16 required?
Form 16 is a very important document because:
• Form 16 as a proof that the government has received the tax deducted from your employer or deductor.
• Assist in the tax return filing process with the Income Tax Department.
• Many banks and financial institutions require Form 16 to check the creditworthiness of the person when applying for the loan.
Who issues form 16?
The Income Tax Department as well as Income Tax Act guided an employer holding a TAN number and deducting employee salary tax to issue Form 16. If your tax is not deducted, your employer may refuse you to issue form 16.
When should form 16 be issued?
It should be released by June 15 of the year for which it was released. For example, F.Y. 2021-22, the deadline for issuing Form 16 was June 15, 2022. If an employer delays or fails to issue Form 16 by the stipulated period, they are required to pay a fine of Rs 100 per day up to that date. The default continues.
The new modified form 16 is divided into two sections: part A and part B.
Module 16 Part A:
This part of Income Tax Form 16 covers the employer, employee and TDS payment details. Show quarterly details of your government filed tax. Some details are as follows:
• Name and address of the employer.
• PAN and TAN of the employer.
• Name and address of the employee
• PAN of the employee
• Details of the taxes paid by the employer.
Module 16 Part B
This part shows the detailed income calculation, according to which the tax is calculated and deducted by your employer. This includes the salary you earned, various deductions, exemptions (if any) and tax calculations after considering all items under current tax rates.
