Form 16 helps in filing ITR, which can be done without the help of Chartered Accountant; it is especially beneficial for those who are on a payroll.
Understanding the meaning of Form 16
- It is a form which contains salary details which is issued by employer
- An employee have right to demand TDS certificate in form 16
- This form is issued every year
- Otherwise we will get penalty of rs 100 per day u/s 272 A(2)(g)
- It also helps in filing ITR, it can be done without the help of a CA, it is especially beneficial for those who are salaried.
- It contains 2 sections
- PART A
- PART B
- PART A: – It contains personal information like name, personal address as well as the address of the employers, PAN and TAN of the employer and the receipt no. of TDS payment. These information helps IT department to know the money flow of your and your employers account as well
This provides information of current year that means the year in which tax is calculated for previous year
This also provide the period that how many years you worked with the current employer
It also provide all the detailed summary of TDS which is deducted by employer and the most important is TAN i.e,tax deduction amount number of employers
- PART B:- In this part we require major relevant information for filing ITR Like salary which should be first mentioned then allowances will be deducted from salary to get net salary
All the deduction will be subtracted from gross income after all these process we will get taxable income and the tax would be calculated according to slab rate
- It helps in ITR as it includes all the details as for example income of the employee, deductions, tax calculation and TDS
- It is also very helpful when you need home loan as few banks ask for form 16 to know the income of the individual
- It is also important for ITCC
- Without TAN an individual cannot file form 16
Question related to Form 16
Anyone who get salary are eligible to get Form 16 from their employers. If he/she deducting TDS from your salary, then he/ she must issue Form16 to you.
What is the total period which takes in issuance of Form-16?
It is generally issued by 31st of March. It can be differ as it depend upon company to company
How to download?
It could be in hard copy as well as in soft copy. Now it is issued to employees via mail
How to Get Form 16 Online?
You can get from 16 from your employers, it is totally not correct that we can get it through PAN number from traces website
If employer will not be ready to issue Form 16 then what could we do?
Then we can File form number 26AS online (http://blog.vfn.in/guide-form-26as)
In this form information of tax deduction from payment is given and deposited in the government account. Still if you are not able to access it then you can demand form 16 to your employer as this is an employee’s right.