1. What is Form 16?

Form 16 is a certificate issued to people earning from their employer when deducting tax from employees' salary. In simple terms, it is a consent that means that your deducted tax has been deposited into the income tax department. Form 16 is an important document issued in accordance with the provisions of the Income Tax Act, 1961. Form 16 contains details of the amount deducted from source tax (TDS) on your employer 's income and division of annual salary. In short, it can be said that Form 16 is a TDS proof certificate drawn and filed by your employer.

2. Why Form 16 is required?

Form 16 is a very important document as:

  • It serves as proof that the government has received the tax deducted from your employer.
  • Helps in the process of completing your Tax Department tax returns.
  • Many banks and financial institutions require Form 16 to prove personal identity when applying for a loan.

3. Who issues Form 16?

Income Tax Law, instructs the employer in charge of TAN no and deducts tax from the employee's salary to issue Form 16. If your tax is not deducted your employer may refuse to issue Form 16 to you.

4. When Form 16 is to be issued?

It must be issued by June 15 of the year in which it is issued. For example, F.Y. 2017-18, the due date for Form 16 was June 15, 2018. If any employer delays or fails to issue Form 16 by the due date, then you are liable to pay a fine of Rs.100 per day until the default date continues.

5. How to read/understand your Form 16?

Understanding and learning to complete form 16 is very easy. It is divided into two sections - Part A and Part B.

Form 16 Part A :

This part of the income tax form includes employer, employee, TDS payment details. It shows the smart details of your quarterly tax return to the government.Some details are:

  • Name and Address of the employer.
  • PAN and TAN of the employer.
  • Name and Address of the employee
  • PAN of the employee
  • Statement of taxes paid by employer.

Form 16 Part B

This section shows a detailed calculation of income, where taxes are calculated and deducted by your employer. It consists of the division of income you receive, the various deductions, exemptions (if any) and the calculation of taxes after considering all items on the basis of current tax rates. The details mentioned in Part B are as follows:

A. Gross Salary(1):

This section of Form 16 requires salary details as prescribed in section 17 (1), consumer demands and any benefits accrued in lieu of salary.

B. Exemptions and allowances considered(2) :

Earlier in this section of the form, a comprehensive information for all exemptions under Section 10 was required, but with the introduction of the new Form 16, a list of grants is provided, and details need to be completed. The list of benefits is as follows:

  • Travel permit or assistance under section 10 (5)
  • Death benefit under section 10 (10)
  • Converted pension amount under section 10 (10A)
  • Amount equal to the 10% deduction leave (10AA)
  • Section 10 (13A) housing allowance
  • The amount of further exemptions under section 10

C. Total Amount of Salary received from Employer (3):

This section of the form calculates the total amount of income received including grants and other requirements.

D. Deductions under Section 16 (4):

The 2018 budget has announced a general reduction in the cost of transportation and health care received by the employee. In the new form 16 a separate column for standard draws is introduced. All draw columns are listed below:

  • General arrest under section 16 (ia)
  • Recreation Grant under section 16 (ii)
  • Employment tax less than 16 years (iii)
    • E.Total amount of deduction under section 16 (5)

      F. Income Chargeable under the head “Income from Salaries”(6):

      this column shows the income of the income after deducting all grants and deductions

      G. Any other income declared by employee as per section 192BB (7):

      This form column enables an employee to declare additional income by proof of income.

      H. Total amount of other income reported by employee(8):

      This column provides the total amount of money earned by the employee without salary.

      I. Gross Total Income (9):

      This form column shows the total amount of employees' salaries reduced by exemption but prior to deduction under Chapter VI-A.

      J. Deduction under Chapter VI-A (10):

      Previously, there was no separate list of deductions, there was an opportunity to disclose the category in which the deductions were made. In Form 16, however, disclosure of the draw is required for each list.

      K. Aggregate of deductible amount under Chapter VI-A (11):

      This column contains the amount of deductions for each category under Chapter VI- A as required by the job.

      . Total taxable Income (12):

      This column refers to an employee's income after considering deductions under Chapter VI-A. This is the amount the tax is calculated.

      M. Tax on Total Income (13)

      N. Rebate under section 87A, if applicable (14)

      O. Surcharge, wherever applicable (15)

      P. Health and education Cess (16) :

      This column has been introduced in the new Form 16, as the end of health and education is announced in the 2018 Budget.

      Q. Tax payable (17)

      R. Relief under section 89 (18)

      S. Net tax payable (19

6. How does the Form 16 process work?

According to a procedure set by the Department of Taxation, the person who pulls your tax files returns with the government. Therefore, TDS entries are updated in the department database when your employer files the TDS retrieval. The last date to install TDS for the month of March is April 30. The TDS return for the last quarter (January to March) will be filed on May 31st. After TDS installation, it takes 10 to 15 days to display the entry in the department database. After that, your employer downloads Form 16 and gives it to you.

7. How do I get Form 16?

Form 16 is issued by your employer and you can expect it by the end of May / June. But if it is not released by the end of June, you can claim it from your employer. Usually, the accounts or the department of labor issue Form 16.

8. I lost my Form 16, what should I do?

Form 16 is the most important document for you to submit your income tax returns and you must keep this document carefully. But if you get lost, don't panic, check your email whether it was emailed by your employer or not. If it is not sent to you by email, you can simply ask your employer to provide you with a copy of Form 16

9. Can I file my return without form 16?

Yes, income tax returns can be emailed even without a 16-year income tax return, you need to have all the required documents for your income sources, any requirements, required funds, investments made, medical bills or any other contributions made.

10. I haven’t received any Form 16 from my employer; do I still need to file my income tax return?

If your Gross Total Income exceeds 2,50,000 [of F.Y. 2018-19] then it is compulsory to submit income tax returns. Your employer is obliged to issue a form 16 only if he or she has deducted tax from your salary. If your employer is not tax deductible and your income exceeds the limit set then even if you do not have a Form 16, you must file a refund file.

11. I haven’t received Form 16, how do I calculate my Salary Income?

If you have not yet received Form 16, then for the purpose of completing the file, you will need to refer to pay slips, bank statements, proof of tax-paying investment, home loan certificates and education and Form 26AS etc. for the submission of income tax returns. While pay slips contain details of your income as basic income and allowances, Form 26AS contains details of all your tax deductions and taxes you have paid.

The Form 26 AS can be viewed / downloaded from the Income Tax Department’s online portal i.e. www.incometaxindiaefiling.gov.in.

For example, Mrs Tania worked with XYZ Ltd. and did not receive Form 16. In in such a case, he consulted with a specialist and they calculated his income by paying his monthly pay slips indicated the basic salary of Rs. 30,000 per month. It also contained details of the transport grant of Rs. 2,000 each the moon. In addition, he had a mortgage certificate, so he was allowed to withdraw Rs.50,000 from his salary. Therefore, Ms Tania's last calculated amount will be calculated as follows:

Basic Salary = 30,000 x 12 months = 3,60,000
Transport Allowance = 2,000 x 12 months = 24,000 but subject to an exemption of Rs. 1600 per month.
Therefore, 400 x 12 = 4,800 is taxable.
Hence, the Taxable Income [after deducting the basic exemption limit] of Ms. Tania will be Rs. 64,800 (3,60,000 + 4,800 – 2,50,000 (basic exemption) – 50,000 deduction for home loan).

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12. My employer has deducted tax from my salary, but neither did he issue me a Form 16 nor does my Form 26AS show any such deduction entries?

In that case, where your employer deducted the tax from your salary, but you can find out how it was deducted from Form 26AS, it is possible that your employer has already deducted the tax from your salary but he did not place the same on the Government account credit. Also, in that case, you must pay the full amount of tax when you submit your tax return. Also, you should immediately bring this issue or error to your employer's notice.Do you need a CA to get you out of this situation? connect now

13. I want to claim a deduction under Chapter VI / other exemptions / allowances in my income tax return which is not in my Form 16? Can I do it?

In the event that your employer gives you a Form 16 without deduction, you can still apply for a deduction on your tax return. Form 16 is a certificate issued by your employer confirming tax deduction (TDS) on your salary. It is just a basic document for filling out files and not the final return itself. You can always claim a deductible benefit, while submitting your income tax return even if the same is not stated on your Form 16.

Our experts say "Always remember to check whether the House Rent Allowance exemption has been deducted from Form 16 or not (if you have the right to do so). while filing your tax return.”

Having trouble filling your tax return? Just click here

14. Salary arrears received but not shown in From 16, what to do?

If you have received arrears of income, but arrears are not shown on Form 16, then you can also show your arrears in tax. All you need is all the details of the arrears and Form 10E which is a necessary requirement for claim of arrears under section89 (1)

15. How do I upload Form 16 and file my return?

You can upload income tax form 16 and e-file your return with Tax2win by following some simple steps:

  • Upload Form 16: Visit our e-filing portal, select your sources of income & upload form 16.
  • Review: Our advanced software automatically picks up the required information & fill your details by itself. Simply review the information.
  • file ITR: As soon as you give your confirmation, our system files your income tax return online

16. My Form 16 is incorrect, what should I do?

If possible, when Form 16 is issued correctly but by mistake, the same may be corrected by your employer at your request. Thereafter, a revised Form 16 will be provided to your employer.

17. Is Form 26AS different from Form 16?

Form 26ASForm 16
It contains the source tax information (TDS) for all revenue heads. It contains the source tax information (TDS) of income from income only. Details of other income heads may also be provided on your Form 16, should you provide details of other income to your employer./td>
Depends on the Department's website based on information submitted by all Deleters. We have been issued by your employer to you.

18. Is Income Tax Return and Form 16 same?

No, Form 16 is not the same as Revenue Income Return but is a source statement of yoursalary income. It really helps, especially if all the money you earn comes from salaries and you have no other source of income. In addition, you do not need to attach your Form 16 and your tax return.

19. I switched my job during the year, how should I file my return now?

It is very likely that you will change your job in the middle of the year, but then you may be wondering who will issue Form 16.

If possible, if you have two employers a year, you will receive a Form 16 from both employers for months submitted by you. Income tax returns will be entered by incorporating the details of both Forms 16. However you should be careful to do so as your first and current employer may have calculated your tax after considering the basic exemption limit. In such a case, you do not have the right to take advantage of the double release limit, but only once.

The same applies to all deductions and grants during the year, as any deduction / grant may be claimed only once or in accordance with the relevant rules of tax law or as indicated in both Forms 16.

For example, suppose in the year 2018-19, you were working with the company X Pvt. Ltd for a period of 6 months with a salary of Rs. 45,000 per month and for the remaining 6 months you have joined Y Ltd. by Rs. 50,000 per month. In that case, you deduct the salary of Rs. 2,70,000 from X Pvt. And Rs. 3,00,000 from Y. Now, both companies X Pvt. Ltd. and Y Ltd. they will deduct your tax after checking the basic exemption limit (e.g. Rs. 2,50,000 / -) and your Form 16 will be the same. This means that X Pvt. Ltd will levy tax on balance Rs. 20,000 with Y Ltd. will levy tax on Rs. 50,000, each giving you a release of Rs. 2,50,000. However, at the time of filing your final annual refund, you will be allowed a basic exemption only once and not twice that your tax should be levied at Rs. 3,30,000. (Rs. 300000 + 270000 - 250000).

In addition, when you change jobs annually, you must provide TDS details of your previous employer to your new employer on Form 12B.

20. Is Form 16 different from Form 60?

Form 60 is a declaration made by people who do not have a PAN andform 60 refers to the income certificate issued by the employer to the employee.

21. Is form 16B is part B of Form 16?

Form 16B is a tax deduction certificate and part b of the income tax form is included in all details of the division of wages, deductions and employer taxes on behalf of employees.

Frequently Asked Questions

Q- Will I get Form 16 from my employer even if there is no TDS?

Form 16 is a TDS certificate and is only issued if tax is withheld. Therefore, if no tax is deducted, the employer is not required to issue Form 16. The purpose of Form 16 is to act as proof of tax deducted and deposited on your behalf.


 

Q- How do I upload Form 16 & file my ITR online with Myitronline?

Our easy-to-use interface helps you submit an ITR within minutes. Just follow these 3 easy steps -

  • Upload Form 16: Visit our e-filing portal, select your sources of income & upload form 16.
  • Review: Our advanced software automatically picks up the required information & fill your details by itself. Simply review the information.
  • File ITR: As soon as you give your confirmation, our system files your income tax return online.

 

Q- When Form 16 is required? What is the importance of Form 16?

Form 16 is required when submitting your tax return. This form serves as proof that your employer has deducted and taxed your salary from the tax department on your behalf.


 

Q- What is Form 16 issue date?

All employers, if they draw TDS, are required to submit Form 16 by 15 June of the financial year.


 

Q- What is Income from salary? How it is related to my Form 16?

Any amount earned by your employer during work hours is called salary. They usually have basic income, benefits, bonuses, pensions, salaries or other benefits provided in connection with your work.

When an employer deducts tax from your salary, issue a Form 16. This form allows your employer to deduct tax from your salary.


 

CEO Krishna Gopal

Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO