New Delhi: Filing ITR yourself can be difficult. There is a lot of data that you need to fill in your Income Tax Return. If you are a salaried employee then Form 16 can make the process of income tax filing easy for you. Form 16 is issued by the employer to a salaried employee after deducting tax from salary. Form-16 contains accurate information regarding income and allowances. It helps employees to claim tax deductions while filing ITR.
What is Form 16?
An employer issues Form 16 every year. Employers are required to issue Form 16 by June 15 of the assessment year in which ITR is filed. Form 16 is given to you by your employer. So, if you have changed jobs and have more than one employer within a financial year. Then, you will get more than one Form 16. Form 16 has two parts – Part A and Part B
Part A
Part A of Form 16 contains the following information
Name and address of the employer
PAN of both employer and employee
Tax Deduction and Collection Account Number (TAN) of employer
Summary of tax deducted (TDS) & deposited with Income Tax department
Assessment Year
Period of employment with an employer
Unique TDS Certificate Number
TDS given in Form 16 can be cross-checked with Form 26AS. Form 26AS shows that TDS has been deposited with the Government.
Form B
Part B is the important part of Form-16. It has the most information that will need to be present while filing the Income Tax return. The computation of the total income earned by the employee and the tax payable is given in Part B. It is issued along with Part A. Part B of Form 16 contains the following information:
Form 16 Part B has
• Detailed breakup of salary
• Deductions allowed
• Relief under section 89 of the Income Tax Act
So, if you are going to file your income tax return yourself, then Form 16 will come in handy for you.
What is Form 16: An employer issues Form 16 every year to its employee. It contains details regarding tax deducted on salary. It helps in computation of Tax and filing ITR thereon. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
