Form No. 16

The following are some of Form 16's advantages:

• It serves as the individual's "income from salary" declaration.
• It aids in the preparation of income tax returns.
• It is a document that is used to support the issuance of a visa.
• It serves as proof of earnings.
• It benefits you in keeping track of all of your tax-saving investments.
• It gives you a clear view of how your taxes were calculated, paid, and refunded.

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:

• Employer's name
• Address
• TAN and PAN of the employer Employee's PAN
• The employer certifies a summary of tax deducted and deposited quarterly.

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.

• Section 10 allowances are exempt.
• Deductions under Section 16 are broken down.
• Taxable salary
• The employee reported income (or allowable loss) from housing property, which was provided for TDS.
• TDS is applied on income under the heading Other Sources.
• Deductions under Section 80C .
• Section 80C Deductions as a Whole (Gross & Deductible Amount).
• Taxes must be paid or a refund to be received.

• Every salaried employee whose income falls under the taxable bracket is eligible for Form 16, according to regulations established by the Indian Government's Finance Ministry.
• If an employee's earnings do not fall within the set tax brackets established, tax Deducted at Source is not required (TDS). As a result, the firm is not obligated to provide Form 16 to the employee in these situations.
• However, many firms now provide this certificate to employees as a good work practice because it contains a consolidated image of the individual's earnings and has other purposes.

• When an employee receives a Form 16 from their employer, they must double-check that all information is correct.
• It is essential to double-check Form 16, such as the amount of income, TDS deducted, etc.
• If any of the facts are incorrect, the employee should contact the company's HR/Payroll/Finance department right once to get it corrected.
• The employer would then remedy the situation by filing a new TDS return to credit the TDS amount to the correct PAN. The employer will send updated Form 16 to his or her employee once the corrected TDS return has been processed.