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What is Form 16?

Form 16 is an Income tax form. It is used by the companies to provide their salaried individuals information on the tax deducted. Alternatively, you can consider Form 16 as your Salary TDS certificate. Suppose the income from your salary for the financial year is more than the basic exemption limit of Rs. 2, 50, 000. Then, in this case, your employer is required to deduct TDS on your salary and deposit it with the government. When From 16 is provided to an employee by their employer, it is considered as a source of proof of filing their Income Tax Returns. And if your income does not fit the basic exemption limit, the employer does not deduct any TDS in that case.

In simple terms, Form 16 is a certificate provided by your employer which certifies details regarding the salary you have earned during the year and how much TDS has been deducted. It consists of two parts i.e. Part A and Part B, where part A consists of information of the employer & employee, like the PAN and TAN details, name and address, TDS deducted & deposited, etc.

However, part B consists of details pertaining to other income, deductions allowed, salary paid, tax payable etc. Form 16 is annually issued by the employer on or before 15th June of the next year, where it immediately follows the financial year in which tax is deducted. Also, in case you lose Form 16, your employer can issue a duplicate one.

Following are the components of Form 16:

  • Refunds in any to the employee, or balance of taxes payable by the employee.

  • Details of the employer like collection Account Number (TAN), name, PAN, Tax deduction and etc.

  • All details of the Tax Payment, like amount, Challan number, cheque number, Demand Draft number etc.

  • Personal details of employee, like name, Permanent Account Number (PAN) etc.

  • Acknowledgement of number of the taxes paid by the employer.

  • Taxes deducted as per sections 191A.

  • Total income and tax deductions.

  • Details like salary, net salary, Gross salary, perks, deductions, etc.

  • TDS receipt paid

  • Declaration of tax payments from the employer.

What is Form 16A or Part A of Form 16?

The employer generates and downloads this part of Form 16 through TRACES portal. Before issuing this certificate, the employer will authenticate for the correctness of its contents.

Note: It is vital for you to get a separate Part A of Form 16 for the period of employment if you have changed your job. Following are the components of Part A of Form 16:

  • PAN details of the employee

  • PAN & TAN of the employer

  • Employer Name and address

  • Summary of tax deposited and deducted quarterly, certified by the employer.

What is Form 16B or Part B of Form 16?

Form 16B is an annexure to Part A. In case you happen to change your job in one financial year, you will have to decide if you need Part B of the form from last employer or from both the employers. Following are the components of part B of Form 16:

  • Relief under section 89

  • Detailed breakup of salary

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

What are the details required for Form 16 while filling your Income Tax Return?

  • Tax Payable or Refund Due

  • Taxable Salary

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

  • Breakup of Section 80C Deductions

  • TDS (Tax Deducted at Source)

Also, following is the additional information required while filing your Income Tax Return:

  • PAN

  • TDS Deducted by Employer

  • Current Assessment Year

  • Employer PAN

  • Name and Address of Employer

  • Taxpayer’s (your) Name and Address

  • Employer TAN

FAQs on Form 16

How to get From 16?

Your employer will provide you with Form 16. It can be provided even if you have left your job. Besides, Form 16 is the only form that cannot be downloaded anywhere.

How do I file return if I don’t have my Form 16?

Although Form 16 is important for filing your income tax return, however, if you do not have one you can still file your return. Please follow the below steps to file returns without Form 16:

  • Collect your payslips and figure out your Taxable Income

  • Your Tax Credit / 26-AS will help you find the exact Tax Deducted

  • If you are staying on rent, don't lose out on HRA if you're eligible

  • Claim your Deductions

  • Income from other sources

  • Pay additional tax if necessary

  • Finally, File your Income Tax Return

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

An employer is supposed to deduct TDS before making payment to the employee. As per the laws laid by Income Tax Act, every person who deducts TDS from a payment, must furnish a certificate with details of TDS deducted & deposited.

Is the employer required to issue a Form 16 if there is no TDS?

In Form 16, the TDS certificate is issued only when the TDS is deducted. Also, if there is no TDS deducted by the employer, Form 16 may not be issued in this case.

What are the benefits of Form 16?

  • It will act as a proof of tax payment and for income

  • It consists of all the details of the amount of TDS that has been deducted from your salary.

  • While applying for loan you can submit it as proof of income/tax.

Can I Get Form 16 For Previous Years?

You can get Form 16 of any particular year from the employer you worked with. However, if this does not work in your favour, you can download Form 26AS which has information about TDS, TAN and Salary.

What if Form 16 is not issued, does it mean that I don’t have to pay tax or file return?

  • The duty of deducting tax is on salaries and providing Form 16 is on the employer while filing income tax and paying income tax is on you.

  • In case the income from all sources falls above the minimum tax slab, you are required to pay tax, whether or not your employer deducted TDS.

  • Even in case your employer fails to provide you with Form 16, you file an income tax return and pay off the taxes.

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