It gives information on the tax deducted at source (TDS) from income chargeable under the head “salaries”
Form 16 has two sections—part A and part B.
Part A consists of your personal details - your name and address, your employer’s name and address, Permanent Account Number (PAN) of both, the employer’s Tax Deduction Account Number (TAN). These details help the I-T department track the flow of money from your and your employer’s accounts.
Part A additionally gives details ----the assessment year (AY)—the year in which your tax liability is calculated for the income earned the previous year. For example, for income earned between 1 April 2013 and 31 March 2014, Assessment Year will be 2014-15.
This portion of the form also gives details of your period of employment with the current employer.
Next, it gives a summary of the TDS by the employer on behalf of the employee. This is the amount that the employer deducts from your salary as tax periodically and credits it to the I-T department. For instance, if every month your employer deducts Rs.6,000 as tax from your salary, it will be shown in the Form 16 as deposited by your employer to the government. The summary space will be divided based on the periodicity of how your employer credits the tax to the I-T department.
Part B of Form 16 is the one that gives the details that one needs to file I-T return, -- salary paid, other income, tax deducted, and more. Your gross income is mentioned first.
Next, deductions are included. These include those under sections 80C, 80CCC and 80CCD (contributions towards Public Provident Fund, life insurance policies, pension, among others). Then come the deductions under other sections such as 80D (health insurance premium), 80E (interest on education loan), 80G (donations), and others.
The total deductions are reduced from the gross income to arrive at the taxable income. Tax is calculated on this amount based on your tax slab.
How to use your Form 16?
Form 16 is one of the many documents that you need to keep handy while filing your ITR, which has to be done till 31 July.(This year 31 August 15)
While all deduction related details are mentioned in Form 16, you should cross-check the amounts with your investment and other documents. Is the health insurance premium mentioned correctly? What about life insurance premium?
“If there is an error in your Form 16, you will have to ask your employer to rectify it since it is the employer who has generated it for you. For instance, if you have paid a premium of Rs.15,000 for a health insurance policy but the Form 16 shows only Rs.14,000, you will have to tell your employer to correct the mistake.
Remember Form 16 only declares TDS from salary. For other incomes, there are other forms. For instance, income from bank fixed deposit (FD) will be in Form 16A. You can get this form from the source. So, if you have interest income from a bank FD, you will have to get Form 16A from the bank.
Another vital form -- Form 26AS, the tax credit statement. It will help you verify details of TDS. Using this form you can check if your company or bank has indeed paid the tax and correctly reported to the I-T department. Form 26AS is available on the I-T department’s website. All tax payers should register on IT site and check their 26AS regularly to verify credit of tax.In case you have changed your job during the year, you have to get Form 16 from both employers and then file your ITR.
Who has to e-file?
If your annual taxable income exceeds Rs.2.5 lakh, you have to file income-tax returns. And if this is above Rs.5 lakh, you have to compulsorily e-file your ITR.
17th June 2015 From India, Pune
17th June 2015 From India, Bangalore
Refer this link:https://www.citehr.com/263547-possib...ction-tds.html
Your pay may be below taxable limit of Rs250000
17th June 2015 From India, Pune
My annual income 4.4 lakhs ( gross) and approx 1 to 2 lakhs in saving a/c.except salary i have not any other source of income. previous year i did not filed income tax return. i read in news\ paper on it expert gives her opinion that " if you wants to work in foreign previous 3 year it return required and it is compulsory ". my question is can i file previous 3 years it return.
22nd June 2015 From United States
Have you filed IT return at any stage earlier?
It returns filed after due date is known as belated return.
Basic rule for belated IT returns :It can be filed any time,before the expiry of one year from end of assessment year.
IT return due date for Financial year 2012-13 is 31 July 2013,belated return can be filed before 31 Mar 2015.
IT returns are mandatory if your gross total income exceed Rs 250000 for f/y Mar 15/16.
With annual income of 4.4 lakhs and SB interest you would have definitely been in 10% tax bracket.
Did your employer deduct TDS?
As far as three years IT return for three years is concerned,please cross check about this information.Many carpenters,workmen go abroad and they would not have filed IT returns.
Filing of three years IT returns would be time barred.
However please consult a tax consultant with specific questions and tax liability,penalty for belated returns etc.
22nd June 2015 From India, Pune