Income Tax: As per the rules, employers have to issue Form 16 on or before 15 June every year. This is immediately following the business year in which tax is deducted.
Income Tax: Some salaried taxpayers across the country have received a message from the Income Tax Department about their total tax deducted at source (TDS). This message received via SMS includes details of TDS deducted by the employer for the quarter ended December 31 and cumulative TDS for the financial year 2024-25.
The message reads, “Total TDS from the employer of PAN xxx for the quarter ended December 31 is xxx rupees and cumulative TDS for the financial year 24-25 is xxx rupees. See 26AS for details. The purpose of the ITD team is to provide acknowledgement of TDS deposited during the final quarter and the previous financial year.”
What does it mean
After receiving this message, some taxpayers may have got confused and thought that they do not owe much tax. Actually, this SMS alert service was started in 2016 with the aim of giving information to taxpayers about their total TDS deductions.
This service can prove to be very helpful for taxpayers. With its help, they can match their office salary slips with the details given in the message. However, salaried people will have to wait till mid-June to file Income Tax Return (ITR) for the financial year 2024-25 as this is the time when employers issue Form 16.
As per the rule, employers have to issue Form 16 on or before June 15 every year. This happens immediately after the business year in which tax is deducted. ‘Form’ 16 is a certificate issued by employers.
It contains the information required to file ITR. ‘Form’ 16 contains details of TDS and Tax Collected at Source (TCS) for various transactions between the employer and the employee.
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