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Form 16, Form 16A, and Form 16B?

  • 11th Oct 2019
  • 5,489
Form 16, Form 16A, and Form 16B?

What is Form 16?

Form 16 is a form issued by Employers for their employees as per the regulations under section 203 of the Income Tax (IT) Act, 1961. Form 16 is also known as the salary certificate. It includes all the information about your salary during the financial year. It also mentions the details of the tax deducted at source (TDS).

Components of Form 16

Form 16 is an important form to have if you are a salaried individual. Here are the components of this form:

1. Form 16

As issued by your employer, it summarizes the tax deducted by your employer from your annual salary. This TDS is calculated based on the income tax slab applicable during a particular financial year. The TDS is deducted on your behalf and it is your employer’s responsibility to deposit this amount with the government authorities. It certifies the TDS and confirms that the same is deposited with the concerned authorities.

Components of Form 16A

  • Employer’s and employee’s personal information such as name, address, Permanent Account Number (PAN), and Tax Deduction and Collection Account Number(TAN)
  • Assessment year
  • Period during which you were employed with the company
  • Summary of the salary received
  • TDS date
  • TDS deposit date
  • Summary of TDS and quarterly deposits with the IT Department
  • TDS payment acknowledgement number

The part A may be generated on the TRACES portal of the IT Department. It includes details of the paying bank’s Basic Statistical Returns (BSR) code and challan numbers for future reference. Every page of this form is digitally signed by the deductor.

2. Form 16B

This component of Form 16 for salaried employees is a consolidated summary of total salary, other income if any, and total tax paid and due. It is a comprehensive and systemized statement of your income, deductions, and exemptions available in the required format.

Components of Form 16B

  • Total salary breakup such as leave travel allowance (LTA), house rent allowance (HRA), gratuity, leave encashment, and others
  • Allowed exemptions like HRA, children education and hostel fees, conveyance, medical, and others
  • Gross income including salary and earnings from other sources
  • Income tax deductions under section 80C, 80CCC, 80CCD for contributions in tax-saving instruments
  • Other deductions like health insurance premium (Section 80D), donations (80G), and interest on education loan (80E)
  • Net taxable salary after deductions under Chapter VI

Therefore, Form 16 and Form 16A are not exactly the same. The latter is a part of the former. Every salaried individual is eligible for Form 16.However, if you do not fall under the taxable income bracket, the employer is not obliged to issue Form 16.

Eligibility criteria for Form 16

Anybody can generate and download Form 16 online for payments other than salary. Having understood everything about Form 16 here is how to download Form 16. You need to visit the TRACES portal. You need a valid PAN number to ensure that you are able to download this form. After logging in to Cleartds and clicking on the Returns Dashboard, at the bottom of the page you will see an option of ‘Import from Traces’. You must click it to request to download the form.

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