What is Form 16? How to download Form 16 to file income tax return (ITR) It contains comprehensive details of the salary paid to the employee, including allowances, deductions, and net income. Additionally, it provides information on the taxes deducted at the source, such as TDS (Tax Deducted at Source). This certificate is essential for filing income tax returns as it provides a comprehensive summary of the TDS for the financial year, aiding in the accurate calculation of tax liability and ensuring compliance with tax regulations
Form 16 is a certificate issued by an employer under section 203 of the Income-tax Act, 1961, which pertains to the deduction of tax at source (TDS) from the income earned as salary during a financial year. The employer provides it to show the tax deducted from the employee's salary, which is then deposited with the government against the employee's PAN. The TDS certificate contains a comprehensive overview of the salary amount disbursed to the employee and the tax that has been deducted from it. Additionally, if an employee chooses the old income tax regime and presents investment proofs, this information will be included in Form 16.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} The employer must give the employee their Form 16 if the employer withholds taxes from the employee's salary.
ITR filing: What is the last date for issuing Form 16
Form 16 is issued annually after the end of the financial year and contains details of the salary paid to the employee and the taxes deducted at the source. This certificate is essential for filing income tax returns as it provides a comprehensive summary of the TDS for the financial year.Also read: How to download Form 26AS to file Income Tax Return (ITR)
The deadline for providing Form 16 is June 15. Therefore, Form 16 that, is issued by this date, will include information about the salary income received, taxes withheld, and tax exemptions availed during the financial year 2023-24 (Assessment Year 2024-25).
What are the two parts in Form 16?
You must ensure that both Part A and Part B of Form 16 bear the TRACES (TDS Reconciliation Analysis and Correction Enabling System) logo. This is important because it indicates that both parts have been downloaded from the official income tax portal, providing assurance of their authenticity.What does part A of Form 16 contain?
Part A of Form 16 comprises the details of tax deducted at source on salary in every quarter of the financial year.Part A of Form 16 includes the following:
Name and address of the employerName and address of the employeePAN (Permanent Account Number) and TAN of employerPAN of the employeePeriod for which employer calculated tax on salarySummary of the amount paid or credited as salary and tax deducted at source (TDS) as mentioned in respect of the employee
What does part B of Form 16 contain?
Part B of Form 16 details the salary paid or credited to an employee. Like Part A, it includes the employer's and employee's names and addresses, as well as the employee's PAN and TAN.Also read: Income tax return processing status: How much time it takes for tax department to process ITR
The TDS certificate also mentions whether an employee has opted for an old or new income tax regime. Part B of Form 16 includes:
Detailed breakup of gross salary: a) Salary as per provision in section 17 (1), b) Value of perquisites in section 17 (2) and c) Profits in lieu of salary in section 17(3).Allowances that are exempted from income tax under section 10Any other deductions such as Standard deduction etc. available to salaried employees.Deductions allowed under Chapter VI-A of the Income Tax Act such as Section 80C, 80D etc.Relief under section 89, if any
How to download Form 16? Step-by-step guide
TRACES is a website operated by the Income Tax Department of India that is accessed online. It is primarily utilized for handling TDS-related tasks and delivering services to employers, taxpayers, and other relevant parties. Through this platform, employers can obtain Form 16 Part A & B. You can access Form 16 from TRACES.Here is a step-by-step guide to download your Form 16 from the TRACES website:
Step 1: Visit the official TRACES website https://contents.tdscpc.gov.in/.
Step 2: If you are a registered user, you will have to provide your PAN card number (User ID) and Password to access your account. If you are new to the platform, you can complete the registration process to create a new account.
Step 3: Go to the 'Downloads' tab and select 'Form 16.'
Step 4: Select the type of Form and indicate the financial year for which Form 16 is needed.
Step 5: Verify PAN and other details.
Step 6: Next you have to enter the TDS receipt number and select the date of the TDS.
Step 7: Add the total tax deducted and collected.
Step 8: Click on submit to request for download.
Step 9: Once the Form is ready for download, retrieve the files from the 'Downloads' section.
You can also download your Form 16 from your company's employee portal. Here's how.
Step 1: Log in to the employee portal
Step 2: Go to the tax section
Step 3: Download Form 16
Step 4: Verify details
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This story originally appeared on: India Times - Author:Faqs of Insurances
