Akash Jha
An Overview
It’s that time of year when the Income Tax Department sends you reminders to file your tax returns. Form 16 is one of the most commonly used financial forms when filing your ITR. Here’s a quick look at Form 16, and how it can help you submit your ITR more easily.
What Is Form 16?
Form 16 contains all of the information you need to prepare and file your tax return. It shows a breakdown of pay income as well as the amount of TDS deducted by the employer. Part A and Part B are the two sections.
Employers must provide it by June 15th of the following year, immediately following the fiscal year in which the tax is deducted.
What Are The Form 16 Eligibility Requirements?
According to the Finance Ministry of the Indian Government, every salaried employee whose salary falls within the taxable limit is eligible for Form 16. However, in some cases, the company is not obligated to provide Form 16 to the employee.
However, many organisations now provide this certificate to employees as a good work practice since it includes a consolidated picture of the individual’s earnings and has several extra purposes.
Points To Consider While Reviewing Form 16
- The information on Form 16 should be double-checked, such as the TDS deducted, the amount of income, and so on.
- It is the employee’s obligation to ensure that all of the information on Form 16 is correct.
- If any of the information is incorrect, contact the organization’s Payroll/HR/Finance department right once to have it corrected.
Wrapping Up
- Form 16 is one of the most crucial forms required for paid workers to submit taxes. It is proof that TDS has been deposited on the employee’s behalf by the employer. It can also be used as proof of income for loans, immigration applications, and other purposes.
Frequently Asked Questions About Form 16
Q. What is Form 16A?
Form 16 Part A is the certificate of tax deduction at source provided by the employer on behalf of the staff. These certificates describe TCS/TDS for several transactions between the deductee and the deductor.
Q. What is Form 16B?
Form 16 Part B confirms that tax on revenue from the sale of immovable property (land or building) other than agricultural land has been deducted at source. This is due to the fact that the property buyer reported the TDS to the Income Tax authorities.
Q. I’m missing Form 16. How do I submit my tax return?
Even though this is one of the most important income tax forms, don’t be alarmed if you don’t have it. You can still file your tax return.
Q. How can I get Form 16?
Your Form 16 may be obtained from your employer. Even if you are no longer employed, your company will issue you with Form 16.
Q. When does an employer deduct TDS without issuing a certificate?
Before making a payment, everyone in charge of salary payments must subtract TDS. According to the Income Tax Act, everyone who deducts TDS from a payment must provide a certificate detailing the TDS deducted and lodged. A Form 16 certificate is necessary, in particular, from an employer.
Q. Is the employer obligated to provide a Form 16 if no TDS is deducted?
When TDS is deducted, a TDS certificate on Form 16 is issued. If your employer has not deducted TDS, he may not present you with Form 16.
Q. Is it true that if I haven’t received Form 16, I don’t have to pay taxes or submit a return?
While your employer is responsible for withholding taxes and submitting Form 16, you are responsible for paying income taxes and filing an income tax return. You must pay tax if your total income from all sources exceeds the minimal tax threshold, whether or not your employer deducted TDS. Even if he does not provide you with a Form 16, you must file an income tax return and pay any taxes that are required.
