अब आप न्यूज्ड हिंदी में पढ़ सकते हैं। यहाँ क्लिक करें
Home » Information » What is Income Tax Form 16? All you need to know

What is Income Tax Form 16? All you need to know

Form 16 is a certificate issued by an employer evidencing the TDS which is deducted from your salary and deposited with the authorities.

By Newsd
Published on :
What is Income Tax Form 16? All you need to know
Source: Livemint

Form 16 is a crucial document and there is a need to understand its importance for a salaried individual. One can upload their Form 16 on tax filing portal ClearTax and if salary is the only source of income, you can complete your return in a matter of few minutes.

What is Form 16?

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.

Part A of Form 16: Part A has a tax deduction and collection account number (TAN) of the employer and permanent account number (PAN) details of both the employer and employee. Part A also has a summary of tax deducted from your income and deposited to the government as per the quarterly TDS return filed by the employer.

Part B of Form 16: Part B is an important part of your Form 16 since it has a consolidated detail of salary paid to you during the year. The breakup of your salary, as well as detail of deduction claimed by you under section 80 of the income tax act, is mentioned.

TDS certificate in Form 16 is only required to be issued to the employee when TDS has been deducted. In case no TDS has been deducted by the employer they may not issue you a Form 16. On the other hand, an employer may be liable to pay a penalty for non-issuance of Form 16 where TDS was deducted.

Information required from Form 16 while filing an annual return:

For filing your annual return, you will require information like your taxable salary, breakup and aggregate of Section 80C deductions. You must also possess information regarding Tax Deducted at Source (TDS) and tax payable or refund due.

In addition to this information, you will require to know the TDS deducted by employer along with your employer’s name, address, TAN and PAN details.

Related