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Know Your Form 16 or Salary Certificate form

Know Your Form  16  or Salary Certificate form 

 


Before filling the income tax return, understand the form 16 properly here. 



To file these tax returns first, some documents like Form 16 and PAN card are required. Let's know what happens to Form 16 at the end.

The Central Board of Direct Taxes (CBDT) has extended the last date for filing the Income Tax Returns from 31st July to 31st August, but it is better to file ITR as soon as possible. For this, first of all, some documents like Form 16 and Pan Card are needed. Let's know what happens to Form 16.

Form 16 is issued to every employee by its employer. This confirms that the tax deducted at source has been deducted on the payment made to the employee by the employer and it has been deposited with the Income Tax Department on behalf of the employee. It contains all the necessary details, which is required when you file an Income Tax Return.

After the end of the financial year, till June 15, every employer has to give their employees their form 16. However, this year the date was extended to July 10. Form 16 in two parts-Part A and Part B. If your form has been deleted or disappeared, you can ask for a duplicate copy from your employer.

Part A of Form 16


The Employee's Form gets 16 ready-made from every employer's TRACES portal and it validates the TDS and other information of the employee. If you have changed the job in a financial year, then you will have to get form 16 from both employers, because every employer issues Part A of Form 16 for the job duration of the employee. Part A of Form 16 has the following detail.

- Employee name

- Address of registered office of the employer

-Tan of Employee and PAN (PAN)

- Employee PAN

- TDS deduction and quarterly deposit certificate

- Monthly statement of TDS

Part B of Form 16


Part B is supplement to Form 16. Part B of Form 16 has the following information.

- Detail details of employee's salary (breakup)

- Detailed details of those allowances, which are exempt from tax under section 10 deductions and tax calculation.

The following major changes were made in Form 16 from the Financial Year 2018-19:

1. Getting the details of Part B online: Employers had to first prepare Part B themselves or they used to prepare it using third party software. But now the employer can download it from the TRACES portal.

2. In-depth disclosure of allowances and deductions: In the form 16 of the employer's allowances and deductions, the first was to put a consolidated statement. After the changes in the rules by the Income Tax Department, the employer has to give full details of all types of deduction and allowances received by the employee. This change was done so that salaried taxpayers could get it in Form 16 standard format.

3. Description of income from other sources: The employer did not have to give details of income received from other sources to any employee. But the revised format of Form 16 has come up, in which the income from 'other sources' is also disclosed.



 

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