Form 16- Basics

Form 16- Basics

Form 16- Basics

1. Form 16- Basics:- Form 16 is a certificate issued by an employer evidencing the TDS which is deducted from your salary and deposited with the authorities. It contains the information you need to prepare and file your income tax return. It is issued annually, on or before 15th June of the next year, it immediately follows the financial year in which tax is deducted. Form 16, essentially has two components to it- Part A and Part B. In case you lose your Form 16, a duplicate can be issued by your employer.

2. Part A of Form 16:- This part of Form 16 is generated and downloaded through the TRACES portal, by the employer. Prior to issuing the certificate, it will be authenticated for the correctness of its contents by the employer. It is important to note that if you change your job in one financial year, every employer will issue a separate Part A of Form 16, for the period of employment. Some of the components of Part A are:
a. Name and address of the employer

b. TAN & PAN of employer

c. PAN of the employee

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

3. Part B of Form 16:- Part B of Form 16 is an annexure to Part A. If you change your job in one financial year, then it is for you to decide if you would want Part B of the Form from both the employers or from the last employer. Some of the components of Part B are:
a. Detailed breakup of salary

b. Deductions allowed under the income tax act (under chapter VIA)

c. Relief under section 89

4. Details required from Form 16 while filing your return :- With reference to the image below, here is where you will be able to locate certain information for filing your annual return.
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

Additional information, which you will require from your Form 16 while filing your annual return are:
a. TDS Deducted by Employer

b. TAN of Employer

c. PAN of Employer

d. Name and Address of Employer

e. Current Assessment Year

f. Your (Taxpayer’s) Name and Address

g. Your PAN

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