Understanding Your Form-16


Your Form-16 contains details you need to file your Income Tax Return. Having a basic understanding about your Form-16 goes a long way to help you file your tax return.

See the below annotated image to understand some of the most relevant portions of your Form-16. It is a very brief form packed with information.

After reading this guide, you will be able to understand how the information from the Form-16 is entered in ClearTax.

How to use this guide:

  1. Click on the images to see them in large size.

  2. The left side is the Form 16 generated by your employer or company

  3. The right side is the corresponding section in ClearTax where you enter these details


An annotated image of a sample Form-16 (PART A)

This is the format of the new Form-16 to be used from this year onwards. This form is generated using TRACES.




PART B of the Form 16, sometimes called Salary Statement


Upload your Form-16 to Start e-Filing


Information your Employer Provides

Taxable Salary

Your employer will provide key information such as Gross Salary, Perquisites, Various allowances and deductibles.

From a tax perspective Field-6, Income Chargeable under the head 'Salaries' is relevant. This is your taxable salary.

Tax Deducted at Source (TDS)

The other relevant information your employer will tell you is Tax deducted at source. This is field-18(a). This tax deducted is what you have paid to the Income Tax Department already.


The Income Tax Department provides Form-26 AS.
This is a Tax Credit Statement. This statement tells you how much Tax was deposited on your behalf with the Income Tax department. It is strongly recommended that you check your Form-26AS before you file your tax return.


We have detailed instructions on how to view your Form-26AS here



Information you already have

Deductions

Deductions under Section 80C, 80D, 80E, 80CCF, 80G, 80DD, 80U, etc are reported by you to your Employer.

You may or may not have reported all deductions to your employer. That is no problem. You can still claim them in your Income Tax Return by filling up the relevant columns in ClearTax.

In general, its a good idea to report your tax deductions to your employer to minimize the TDS by employer.

Income other than Salary

If you receive any other Income, like interest from a bank account or rent, etc. You may have informed your employer about it. This is mentioned in Field-7.

Most commonly, people who have a housing loan report it to their employers for less tax deduction at source. Don't worry if you have not reported income to your employer
You can add additional Income to your Income Tax Return in the relevant columns of ClearTax.


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Questions? Contact us anytime!



Frequently asked questions about Form-16 support

Q1. I switched jobs this year and I have multiple Form-16s. What should I do?

You can upload each Form 16 and ClearTax will automatically figure out the details. You can add this detail manually as well if you like.

On the Salary section in ClearTax (like http://cleartax.inpaytax/y2013/0/Salary ), you will see a button at the bottom that says "I want to upload another Form-16".

Q2. What if some details are incorrect on my Form-16. What should I do?

You can add and edit any value which ClearTax reads from your Form-16. Furthermore, you can add any values that may have been missed as well.

ClearTax is designed for both first-timers and the power user. We give you complete control over your creating and editing your Tax Return.

Q3. I have to declare more income from other sources and deductions. What should I do?

After reading your Form-16, ClearTax will take you on an easy step-by-step journey in which we will let you fill out any additional information like income sources and deductions that you may need to specify.

Take a look at the guide on our Guide to Efiling

Q4. I am new to tax return filing online. What should I do?

Never fear. Most people who file via clearTax are first time e-filers.
We have an step-by-step visual Guide to Efiling,
We have expert support available whenever you need.

If you still need help, you can opt for our CA-assisted e-filing plans where we take care of everything. Just sit back and relax while we do the heavy lifting for you.