Hi, please assist me regarding Form 16. Here in my office, there are a few members who are provided with Form 16. What will be the salary range to get this form? Please let me know what the procedures and eligibility criteria are.
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Understanding Form 16
Form 16 is a certificate issued by your employer under Section 203 of the Income Tax Act, 1961. It provides information on the tax deducted at source (TDS) from income chargeable under the head "salaries."
Structure of Form 16
Form 16 has two sections—Part A and Part B.
Part A: Personal and Employment Details
Part A consists of your personal details, including your name and address, your employer’s name and address, and the Permanent Account Number (PAN) of both you and your employer. It also includes the employer’s Tax Deduction Account Number (TAN). These details help the Income Tax department track the flow of money from your and your employer’s accounts.
Additionally, Part A provides details of 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, the 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 provides 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 Income Tax department. For instance, if every month your employer deducts Rs.6,000 as tax from your salary, it will be shown in 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 Income Tax department.
Part B: Details for Filing I-T Return
Part B of Form 16 provides the details needed to file your Income Tax return, including 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 Income Tax Return (ITR), which has to be done by 31 July (this year by 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 the 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 a 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.
Form 26AS: Tax Credit Statement
Another vital form is 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 it to the Income Tax department. Form 26AS is available on the Income Tax department’s website. All taxpayers should register on the IT site and check their 26AS regularly to verify the 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.
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From India, Pune
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3180Form 16 is a certificate issued by your employer under Section 203 of the Income Tax Act, 1961. It provides information on the tax deducted at source (TDS) from income chargeable under the head "salaries."
Structure of Form 16
Form 16 has two sections—Part A and Part B.
Part A: Personal and Employment Details
Part A consists of your personal details, including your name and address, your employer’s name and address, and the Permanent Account Number (PAN) of both you and your employer. It also includes the employer’s Tax Deduction Account Number (TAN). These details help the Income Tax department track the flow of money from your and your employer’s accounts.
Additionally, Part A provides details of 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, the 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 provides 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 Income Tax department. For instance, if every month your employer deducts Rs.6,000 as tax from your salary, it will be shown in 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 Income Tax department.
Part B: Details for Filing I-T Return
Part B of Form 16 provides the details needed to file your Income Tax return, including 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 Income Tax Return (ITR), which has to be done by 31 July (this year by 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 the 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 a 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.
Form 26AS: Tax Credit Statement
Another vital form is 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 it to the Income Tax department. Form 26AS is available on the Income Tax department’s website. All taxpayers should register on the IT site and check their 26AS regularly to verify the 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.
Regards
From India, Pune
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TDS is not been detected from my salary.. and my CTC is 2.6L PA. I asked for this FORM and they haven’t provided yet!
From India, Bangalore
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From India, Bangalore
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User input: Gopinath89
Refer to this link: https://www.citehr.com/263547-possib...ction-tds.html
Your pay may be below the taxable limit of Rs. 250,000.
From India, Pune
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Refer to this link: https://www.citehr.com/263547-possib...ction-tds.html
Your pay may be below the taxable limit of Rs. 250,000.
From India, Pune
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Income tax and form 16.xls