Form 16 Confusion: Should We Include Previous Salary and Tax Details?

Can anybody help me in clarifying whether we should include the previous income salary and tax deducted by the previous employer in the current organization's Form 16?

Please help!

Hi Palak,

This question should be asked to the CFO of your organization - whether he wants to take ownership of the previous income and tax deducted by the 'other organization' or not.

My personal opinion is that you should ask for a Form 12B (previous income details) from the employees and use the same to incorporate previous income and tax deductions in the Form 16 to be issued by you.

Regards,
Neeraj K Singh

Dear Mr. Neeraj,

What is the difference between Form 12B and Form 16? Is PAN number mandatory to issue Form 16, and can it be issued even if the employee does not fall under the tax bracket?

Regards,
Praveena S

Hi Praveena,

The purpose of Form 12B and Form 16 is to detail income and tax deducted on it. However, while the former is filled out by the employee (as self-declaration), the latter is issued by the organization.

When an employee joins an organization in the middle of the financial year, they are required to submit details of their previous income and tax deducted thereof. In the absence of Form 16 (which should ideally be issued by the previous organization), the employee fills out Form 12B detailing previous income and tax deducted on it.

Form 16 is usually issued by the organization at the end of the financial year and contains details of tax deducted at the source from income chargeable under the head "Salaries."

Regarding your second query, Form 16 cannot be issued without a PAN, even if the employee does not fall under the tax bracket. As an earning citizen of the country, you must have a PAN and submit details of your income to the Income Tax Office by filing an IT return.

Regards,

Neeraj K. Singh