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Business
08 Mar 2019

#FinancialBytes: What is Form-16? Here's everything you need to know

All you need to know about Form 16

Almost every salaried individual must have heard of Form 16, which is an important document in the e-filing of income tax returns.

Form 16 is a certificate issued to an employee by their employer to validate that TDS (tax deducted at source) is deducted and deposited with the income tax department on the employee's behalf.

Here's everything you need to know about Form 16.

In context

All you need to know about Form 16

What exactly is Form 16?

As mentioned before, Form 16 is the TDS certificate issued by an employer. As per the Income Tax Act, when employers deduct TDS on salaries, they are required to issue a certificate in which details of the tax deducted and deposit is certified.

About the Part A of Form 16

Part A

About the Part A of Form 16

Form 16 has two sections: Part A and Part B. Part A is generated and downloaded by the employer through the TRACES portal of the Income Tax Department.

Part A comprises components like the name and address of the employer and employee, PAN and TAN of the employer, PAN of the employee, and a summary of tax deducted/deposited that is certified by the employer.

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Part B

What about Part B of Form 16?

Part B of Form 16 is just an annexure to Part A.

It contains details like the employee's salary breakup, other income sources declared by the employee, relief under Section 89, deductions claimed under the Income Tax Act Chapter VI A, the TDS and the net income tax payable by the employee, among others.

Is it mandatory for employers to issue Form 16?

One can collect their Form 16 from their employer, who has to issue it mandatorily if TDS has been deducted in the employee's salary. However, if the employer has not deducted TDS, then Form 16 may not be issued.

What details are required from Form 16 while filing ITR?

Details

What details are required from Form 16 while filing ITR?

Individuals require certain details from Form 16 while filing their return such as taxable salary, breakup of Section 80C deductions, aggregate of Section 80C deductions (gross and deductible amount), TDS, and tax payable or refund due.

While filing annual return, individuals might require additional information from Form 16 like employer's TAN, PAN, name/address, apart from current Assessment Year and the taxpayer's name/address and PAN.

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Most asked questions

In Dec 2018, I had filed the revised ITR and got e-verified but still didn't get my refund. What should I do now?

How to download Form 16?

Can I fill my ITR with the help of only 26AS Form?

Is Income Tax Return and Form 16 same?

If there is anything wrong in my Form 16 can I change it?

Will I get Form 16 from my employer even if there is no TDS?

More questions

In Dec 2018, I had filed the revised ITR and got e-verified but still didn't get my refund. What should I do now?

Asked 2019-03-09 08:12:33 by Aman Kumar

Answered by NewsBytes

If your IT return has been verified and you still haven't got the refund, you can contact the Centralized Processing Center (CPC) of the Income-tax Department on 1800 103 4455 or +91-80-46605200. These contact numbers are active from Monday to Friday between 8 am-8 pm.

How to download Form 16?

Asked 2019-03-08 21:53:35 by Jatinder Kumar

Answered by NewsBytes

Your employer is responsible to provide Form 16 to you. In case you didn't get it, you can download it by using the following steps: visit the official website, and login using your credentials. Now go to the 'download' tab and select the form 16 to download it.

Can I fill my ITR with the help of only 26AS Form?

Asked 2019-03-08 17:57:04 by Anika Mukopadhyay

Answered by NewsBytes

Yes, you can fill your Income Tax Return even without form 16 by using form 26AS. Collect all the payslips and calculate your net salary. Match the amount of TDS deducted by your employer with the one in Form 26AS. Claim your deductions and include if there is any source of income other than salary and file ITR.

Is Income Tax Return and Form 16 same?

Asked 2019-03-08 17:57:04 by Trisha Pawar

Answered by NewsBytes

No, a Form 16 is not equivalent to an Income Tax Return but it's the source document for your salary income. It is really helpful, especially in case your entire income is from salaries and there is no other source of income. Further, you don't need to attach your Form 16 with your income tax return.

If there is anything wrong in my Form 16 can I change it?

Asked 2019-03-08 17:57:04 by Pari Malhotra

Answered by NewsBytes

Yes, you can. Visit the website, login, and select 'request for conso file' from Statement/Payments and import it on clear TDS. To open the zip file, the pattern of the password is "TAN of the director_latest request number of the respective form and quarter available in TRACES website". Make the necessary changes.

Will I get Form 16 from my employer even if there is no TDS?

Asked 2019-03-08 17:57:04 by Navya Bose

Answered by NewsBytes

Form 16 is a TDS certificate & it is issued only when there is tax deducted. Therefore, if there is no tax deducted, employer is not required to issue Form 16 to you. Purpose of form 16 is to serve as a proof of tax deducted & deposited on your behalf.

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