Updated on: Mar 20th, 2024
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8 min read
TDS is deducted on your salary income and deposited with the Income Tax Department (IT Department) every month. Form 16 is a certificate issued by employers to their employees which gives a detailed summary of the salary paid to the employee and the TDS deducted on the same.
Using Form 16 you can prepare and file your income tax return. It shows the breakup of salary income and the TDS amount deducted by the employer. It has two components – Part A and Part B (discussed in detail below).
The due date to issue Form 16 is 15th June 2024. If your employer deducted TDS from April ‘23 - March ’24, then Form 16 must be issued latest by 15th June '24. If you lose your Form 16, you can request a duplicate from your employer.
Form 16 is a very important document as:
Each salaried employee can obtain Form 16 from the employer on or before the 15th of June of the following year, immediately after the financial year in which the tax is deducted. If any employer delays or fails to issue Form 16 by the specified date, the employer is liable to pay a penalty of Rs.100 per day until the default continues.
Part A of Form 16 provides details of TDS deducted and deposited quarterly details of PAN and TAN of the employer and other information.
An employer can generate and download this part of Form 16 through the TRACES (https://www.tdscpc.gov.in/app/login.xhtml) portal. Before issuing the certificate, the employer should authenticate its contents.
It is important to note that if you change your job in one financial year, each employer will issue a separate Part A of Form 16 for the period of employment. Some of the components of Part A are:
Part B of Form 16 is an Annexure to Part A. Part B is to be prepared by the employer for its employees and contains details of the breakup of salary and deductions approved under Chapter VI-A.
If you change your job in one financial year, you should take Form 16 from both employers. Some of the components of Part B notified newly are:
With reference to the image below, here is where you can locate certain information for filing your income tax return for FY 2023-24 (AY 2024-25).
It shows your name (taxpayer’s), address and PAN. You can also find additional information of your employer in your Form 16 while filing your annual return, such as:
According to the regulations issued by the Finance Ministry of the Indian Government, every salaried individual whose income falls under the taxable bracket is eligible for Form 16.
If an employee’s income does not fall within the tax brackets set, they will not need to have Tax Deducted at Source (TDS). Hence, in these cases, the company is not obligated to provide Form 16 to the employee.
However, these days, as a good work practice, many organisations issue this certificate to the employee as it contains a consolidated picture of the individual’s earnings and has other additional uses.
Our software automatically picks up all the relevant information from your Form 16 and prepares your tax return. There is no need to enter anything manually.
TDS is deducted on salary income and deposited with the IT Department monthly. Form 16 is a certificate by employers to employees with salary and TDS details. It is integral for income tax return filing, proof of salary income, and loan applications.