Introduction

Form 16 is a certificate, in which employer is certifying details regarding the salary and the deduction of TDS of the form 16employee during the year.Form 16 is issued once in a financial year, on or before 31st May of the next year immediately following the financial year in which tax is deducted.It has two parts, Part A and Part B:

Part A has information of the employer & employee, like name & address, PAN and TAN details, a period of employment, details of TDS deducted & deposited with the government.

Part B includes details of salary paid, other incomes, deductions allowed, tax payable etc.

Eligibility 

  • If a person switches job in the same financial year: Furnish the details of both the salaries and if there is more than one employer during the year, please give the details of the last employer. The details of the last employer include name and address and of the current employer.
  • If a person is working with multiple employers simultaneously: Provide the details such as name and address of the employer from whom you have got more salary during the year. Further, furnish the details in respect of total salary earned from various employers during the financial Year.

Form 16 Part A:

Form 16

 

  • Name and Address of Employer.
  • Name and Address of employee in accordance with` company’s records.
  • TAN and PAN of the employer.
  1. TAN is a ten-digit alphanumeric code and People or Organisations who are allowed to collect tax on behalf of Income Tax Department are required to acquire a TAN.
  2. PAN (Permanent account number) and Employee Reference Number of the employee in accordance with the company’s records.
  • CIT (TDS): This contains the income tax commissioner’s office details.
  • Assessment year and Period: Financial year starts on April 1 and ends on March 31.
  • Summary of all tax deducted and deposited quarterly: The quarters ending on June 30, September 30, December 31st and March 31st.
  • Details of tax deducted and deposited into the central government account through book adjustment and challan.

Form 16 Part B:

form 16

  • A detailed breakup of salary paid by the employer.
  • Deductions allowed under the IT Act (chapter VI-A)
  • Relief or exemptions under section-89
  • If you have held more than one job during the assessment year, you will have more than one Form 16.
  • Part-B of Form 16 is prepared by the employer manually and is issued along with Part A.

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.