Form 16 is a document that includes all of the information you'll need to finish and file your tax return. It displays the salary income breakdown as well as the number of TDS deducted by the employer. There are two parts to it: Part A and Part B. (discussed in detail below).
Employers must issue it on or before June 15th of the following year, immediately following the financial year in which the tax is deducted. If you misplace your Form 16, you can ask your employer for a duplicate.
The following are some of Form 16's advantages:
Part A of Form 16 contains information about the TDS deducted and deposited quarterly, as well as the employer's PAN and TAN.
This section of Form 16 can be generated and downloaded by an employer using the TRACES system.
It is important to keep in mind that if you change jobs within a fiscal year, each employer will send you a separate Part A of Form 16 for the time you were employed. Part A includes the following elements:
The Annexure to Part A of Form 16 is Part B. Part B is for the employer to prepare for its employees and contains information of the salary breakdown and deductions permitted under Chapter VI-A.
If you change jobs within the same fiscal year, you must get Form 16 from both employers. The following are some of the newly notified Part B components:
When filing your return, you will need information from Form 16.
Your company can provide you with a Form 16. Your employer will furnish you with Form 16 even if you have left your position. Unfortunately, this income tax Form 16 is not available for download.
When TDS is deducted, a TDS certificate in Form 16 is issued. Suppose Your employer may refuse to give you Form 16 if TDS has not been deducted. Take a look at our guide on e-filing without Form 16 for more information.
Everyone responsible for paying a salary must deduct TDS before making a payment. Everyone who deducts TDS from payment is required by the Income Tax Act to give a certificate showing the number of TDS deducted and submitted. A certificate in the Form 16 format is necessary from an employer in particular.