Form 16 for Income Tax Filing

• 19th Dec 2018
• 432

Do you know what Form 16 is when you file your income tax returns? It is a certificate that your employer issues as per the format prescribed by the Income Tax authorities. This form certifies the amount of tax deducted at source (TDS) from your salary.

The form comprises of two parts: Part A and Part B. You are easily able to file your returns by referring to the information comprised in this form. You may also upload the form to make the entire procedure simpler and convenient. It also ensures there are no discrepancies while filing your returns.

Form 16 is issued by each of your employers on or before June 15 of the next year following the end of the financial year. In case you misplace the form, you may procure a duplicate from your employers.

Part A of Form 16

You may download this part from TDS Reconciliation Analysis and Correction Enabling System (TRACES), which is the portal where Part A is generated. Before Part A is issued, it will have to be verified by the employers to ensure the accuracy of the information. If you have been employed by more than one company during the financial year, every organization will issue a separate Part A of Form 16. The information available in Part A includes:

• The name and address of your employer
  
• A summary showing the TDS, which is deposited every quarter and is certified by the company
  
• PAN and TAN of the employer
  
• Your PAN
  

Form 16 Part B 

This is an annexure to Part A of Form 16 for income tax filing. If you move from one company to another during a financial year, it is at your discretion whether you want Part B from both the companies or only from your last employer. Some of the details included in this part include:

• Relief under section 89
  
• Information about the deductions available under Chapter VIA of the Income Tax Act
  
• A detailed breakdown of your income
  
• The net income tax that is payable or refund amount
  
• Any other income declared by you to your employer
  
• TDS
  

Salary income

The earning received from your employer is known as salary. It includes your basic pay, leave encashment, allowances, pension, bonus, gratuity, and any other benefits. This form is issued by your employee and shows your salary and TDS.

Information required from Form 16

Form 16 for income tax filing will require you to provide some information. This includes the following:

• Total tax liability or refund being claimed
  
• Taxable income
  
• TDS
  
• Breakdown of section 80C deductions
  
• Gross and deductible amount of section 80C
  

Frequently asked questions

How to get Form 16?

A common question you may have is how to get Form 16 for income tax filing? The form is provided by your employer. Even if you quit your employment during the financial year, the form is provided by your ex-employer.

 Is it possible to file income tax returns without form 16?

Form 16 is an important document required when you want to file your income tax returns. However, if you do not have it, you may still file your returns without too much trouble.

Does the employer have to issue Form 16 if there is no TDS?

The TDS within this form is issued when your employer deducts such taxes. In the event that your employer does not deduct TDS, the company may not issue this form. However, you may still file your returns without any trouble.

What if the employer deducts TDS but does not issue the certificate?

Every employer must deduct TDS before paying salaries to the employees. As per the Income Tax laws, the company must issue the certificate comprising the amount deducted and deposited when TDS is applicable. Therefore, the employer is legally required to issue the certificate.

The responsibility of deducting TDS and issuing the certificate is on your employers. However, the responsibility to file returns lies with you. If you earn more than the minimum no-taxable income, you need to file your returns irrespective of whether the employer issues Form 16 or not. It is important that you pay the taxes that are due and file the returns in time.