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Form 16 is essentially a certificate issued by employers to their employees. It provides a validation that TDS has been deducted and deposited with the government authorities on behalf of the employee. It gives a detailed summary of the salary paid to the employee and the TDS amount deducted on the same.
New changes in Form 16 – Part B has been notified by the income tax department. We have updated the below article as per the changes applicable to Form 16 Part B since FY 2018-19. Read here to know more.
Form 16 contains the information needed to 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).
Employers must issue it every year on or before 15th June of the following year, immediately after the financial year in which the tax is deducted. If you lose your Form 16, you can request a duplicate from your employer.
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 2020-21 (AY 2021-22).
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.
You can get your Form 16 from your employer. Even if you have left your job, your employer will provide you with Form 16. Unfortunately, this income tax Form 16 cannot be downloaded from anywhere.
Though this is one of the most important income tax forms, don’t worry if you do not have it. You can still file your income tax return. Click here to learn more.
TDS certificate in Form 16 is issued when TDS has been deducted. If the employer has deducted no TDS, he may not give you Form 16. Please take a look at our Guide on how to e-file without form 16
Any person responsible for paying a salary must deduct TDS before making payment. The Income Tax Act lays down that every person who deducts TDS from a payment must furnish a certificate with TDS deducted & deposited details. An employer in specific is compulsorily required to furnish a certificate in the format of Form 16.
While the onus of deducting tax on salaries and providing Form 16 is on the employer, the onus of paying income tax and filing an income tax return is on you. If your aggregate income from all sources goes above the minimum tax slab, you must pay tax, whether or not your employer has deducted TDS. Even when he fails to issue you a Form 16, you must file an income tax return and pay off the due taxes.
Our software automatically picks up all the relevant information from your Form 16 and prepares your tax return. No need to enter anything manually.