[ecis2016.org] Form 16 has all details about the TDS cut from your salary and submitted to the government by the employer.
Form 16 is the commonly used income tax-related document in India, used at the time of filing an ITR. Form 16 is a necessary financial document to file your ITR. Thus, a clear understanding of this document is crucial for all salaried individuals in India.
You are reading: Form 16: All you want to know
What is Form 16?
Employers of those who earn a taxable income are liable to deduct tax, known as TDS, while paying salaries. This tax deduction on the part of the employer, is documented in Form 16. Form 16 has all the details about TDS cut from your salary and submitted to the government. Form 16 is a statement of how much you have earned as an income in a financial year, and how much TDS has been deducted from your salary by your employer, depending on the tax bracket you fall under.
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Issued under Section 203 of the I-T Act, the Form 16 states that your employer deducted the TDS and submitted it to the I-T Department. Form 16 also provides information about how your tax liability was calculated, based on the investment declarations you have made at the start of the financial year.
In case you have switched jobs multiple times in a financial year and all employers have deducted TDS during this period, you will have to collect your Form 16 from each one of your employers before you file your ITR.
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Form 16 download
Form 16 download is not possible as only your employer can provide you with Form 16. Most organisations have in-house payroll platforms, using which an employee can do Form 16 download after it is issued by the employer. However, Form 16 download cannot be done from any other source.
An employer generates and downloads Form 16 via TRACES portal at https://www.tdscpc.gov.in/app/login.xhtml. The employer has to authenticate the contents of Form 16 before issuing it to the employee.
Form 16 eligibility
All salaried employees, whose income falls in the taxable bracket, are eligible to get Form 16 from their employers. Some organisations issue Form 16 to even those employees whose salary is not taxable and hence, no TDS is cut.
Form 16: Details you can find
In Form 16, you will find the following details:
- TAN & PAN details of the employer
- Details of the employee
- Details of tax payment
- Taxes deducted according to Section 191A
- Salary details
- TDS receipt
- Refunds or balance of taxes payable
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Form 16 parts
Form 16 has two parts: Form 16 A and Form 16 B.
Form 16 Part A details
- PAN and TAN of employer
- PAN of employee
- Employer’s name and address
- Tax deducted and deposited quarterly
Form 16 Part A sample
Form 16 Part B details
- Detailed breakup of salary
- Deductions allowed under Income Tax Act
- Breakup of allowances under Section 10
- Deductions allowed under Chapter VI A
- Relief under Section 89
Form 16 Part B sample
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Form 16, Form 16A and Form 16B
While Form 16 is your salary TDS certificate, Form 16A is a salary TDS certificate for incomes other than salary. Form 16 B, on the other hand, is a TDS certificate for income earned through sale of immovable property.
Difference between Form 16, Form 16A and Form 16B
| Form types | Form 16 | Form 16 A | Form 16 B |
| Purpose of issue | TDS on salary | TDS on any income that is not salary. These may include rent and interest earned on deposits | TDS on income from sale of immovable property |
| Issuer | Employer | Banks, tenants, etc. | Property buyer |
In case, your employer deducted TDS and submitted it to the I-T Department, you will be able to find these details in Form 26AS. Issued by the I-T Department, Form 26AS is a consolidated annual tax credit statement, containing information about the taxes deducted on your income, by employers and banks, including any advance tax or self-assessment tax paid during the year, sale and purchase of property, mutual funds, cash deposits and cash withdrawals.
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Form 16 issue date
Form 16 is issued by your employer every year on or before June 15. Form 16 is issued right after the financial year, in which the tax is deducted.
Form 16: Uses
A salaried employee can use the information mentioned in his Form 16 in following situations:
- To file income tax return
- To apply for any type of loan
- To apply for foreign visa
- When joining a new company
- To show proof of income
- To check effectiveness of your tax saving instruments
[ecis2016.org] Everything you wanted to know about ITR or income tax return
Information in Form 16 needed to file ITR
- Employer’s TAN
- Employer’s PAN
- Employer’s name and address
- Present assessment year
- PAN of the taxpayer
- Taxable salary
- Tax deducted at source by the employer
- Breakup of the deductions under Section 16
- Relief under Section 10
- Income from house property provided for TDS
- Income from other sources provided for TDS
- Breakup of deductions under Chapter VI-A, including under Section 80C, Section 80CCC, Section 80CCD (1), Section 80CCD(1B), Section 80CCD (2), Section 80D and Section 80E
- Aggregate of deductible amount under Chapter VI-A, covering deductions under Section 10(a), Section 10(b), Section 10(c), Section 10(d), Section 10(e), Section 10(f), Section 10(g), Section 10(h), Section 10(i), Section 10(j), and Section 10(l)
Form 16 FAQs
What does Form 16 mean?
Form 16 is an income tax form given by an employer to its employees, in which the particular about Tax Deducted at Source (TDS) are clearly mentioned.
Who generates Form 16?
The TDS Central Processing Cell (TDS CPC) is responsible for generating Form 16. Only the TDS deductor, your employer, in case you are a salaried person, would be able to raise a request for Form 16 generation on the official TRACES portal.
Why did my employer not issue Form 16?
Your employer may not issue Form 16 if your salary is below the basic exemption limit.
Can I file ITR without Form 16?
You can file ITR without Form 16 if you have all the information required for filing income tax returns.
Do I need to file an ITR when my employer has deducted TDS?
Filing your income tax returns is your responsibility even if your employer has deducted TDS and issued Form 16.
What if I lose my Form 16?
You can ask your employer to provide you with another copy of Form 16.
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