Form 16 due date: When will you get TDS certificate from your employer? It is a TDS certificate showing all the taxes deducted during the financial year as well as total income paid by an employer during the financial year. Read on to know the deadline for employer to issue Form 16
Having Form 16 handy makes life easier for a salaried individual when filing income tax return (ITR).Form 16 is a TDS certificate employers' issue to their employees. It shows the details of salary income paid, tax regime opted by an employee for TDS on salary, total tax deducted and deposited against salary income during the financial year and the eligible deductions claimed by the employee.
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Due date to issue Form 16
Income tax laws mandate that a TDS certificate must be issued within 15 days from the due date for filing the TDS return by the deductor. The due date to file TDS return is May 31 for fourth(final) quarter of a financial year. As the TDS certificate to be issued by the employer is for the full FY therefore it can be issued only after the TDS return for the last quarter (Q4) of the FY has been filed. Therefore, companies must issue Form 16 to their employees within 15 days of May 31 i.e. by June 15. An employer/company may issue the Form 16 to its employees before June 15 also but would do so only after it has filed its TDS return for the fourth quarter of the previous FY.Also Read: Which ITR form applies to your income?
Remember, the TDS certificate is issued for the financial year in which tax was deducted by the employer while making salary payments. Your employer is required to issue Form 16 for FY 2023-24 (AY 2024-25) showing tax deducted on salary income paid between April 1, 2023, and March 31, 2024.
Two parts of Form 16
Form 16 has two parts - Part A and Part B. Employees should ensure that they have received both parts of Form 16. Both the parts should have the TRACES logo to ensure their authenticity because as per law the issuer has to download them from the TRACES portal after filing of TDS returns.Part A of Form 16: This shows total tax deducted from salary income in each quarter of the financial year. It also shows other details such as the PAN of the employee, and PAN and TAN of the employer. It also shows the name and address of the employer and the employee. Each employee should ensure that the total tax deducted during the financial year matches with the tax deduction shown in Form 26AS. If there is any mismatch, it should be brought to the employer's notice and must be corrected.
Also Read: Last date to file ITR for different taxpayers
Part B of Form 16: This part of the TDS certificate shows the tax regime the employee opted for to calculate TDS (tax deducted at source) on salary. The TDS certificate would have an entry, "Whether opting for taxation u/s 115BAC". If it says "Yes", then tax on salary is deducted as per the income tax slabs under the new tax regime. If it says "No", tax is deducted as per the income tax slabs under the old tax regime.
Part B will show the gross salary paid during the year, including allowances and perquisites such as company car; deductions and exemptions that are eligible and claimed; and net tax paid on the taxable salary.
How to match Form 16 details with Form 26AS
Form 26AS is a tax statement or tax passbook that shows information on all the TDS and TCS deducted/collected from an individual/taxpayer during the financial year.To ensure that there is no mismatch, a taxpayer should keep both Form 16 and Form 26AS handy. The employer will give Form 16. Form 26AS can be downloaded from the income tax e-filing portal.
Login to your account on the income tax e-filing portal by entering username (PAN) and password. Go to e-file> Income tax Returns> View Form 26AS. You will be redirected to another TDS website. Here click on View/Verify Tax credit> View Form 26AS and enter the assessment year (AY 2024-25 for FY 2023-24) and view as HTML. Click on View/Download to read or download the form. It will show the total tax deducted during FY by various deductors.
Match the amount of "Total tax deducted" and "Total tax deposited" as shown in Form 26AS with Part A of the Form 16. Also match the "Total amount paid/credited" in both Form 26AS and Form 16. If it matches, the taxpayer can easily proceed to file ITR. If there is a mismatch, this should be taken up for correction with the tax deductor - which is the employer in case of a salaried individual.
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This story originally appeared on: India Times - Author:Faqs of Insurances
