ITR Filing: Form-16 is an essential document for salaried taxpayers to file their returns. It contains information about the taxpayer’s gross income, taxable income and tax deducted i.e. TDS. Employers issue Form-16 to employers by June 15
ITR Filing: It is important for salaried taxpayers to check the information given in their Form-16 properly before filing returns. Employers issue Form-16 to employees by 15 June every year. Experts advise taxpayers to file returns only after receiving Form-16. The reason for this is that the information given in Form-16 serves as the basis for taxpayers to file returns.
What information is there in Form-16?
Form -16 contains many important information including taxpayers’ gross income , net income and TDS . It is important for taxpayers to check whether the data given in it is correct or not. If any data is found to be incorrect, then the taxpayer can inform the finance department of his company (employer) about it. The finance department will correct it and issue an updated Form-16.
It is necessary to match the data of Form-16 with 26AS and AIS
Experts say that first of all the taxpayer should check the TDS data given in Form-16. The finance department of the employer deducts tax from the employee’s salary every month. Then it deposits this tax with the Income Tax Department. The employee’s monthly salary slip contains information about TDS i.e. the tax deducted. Then, this information is given in detail for one year in Form-16.
It is important to provide the correct TDS data in the ITR form
Salaried taxpayers should file their returns only after matching the TDS data given in Form-16 with Form 26AS and Annual Information Statement (AIS). The reason for this is that TDS information is also available in Form 26AS and AIS. It is important to match TDS data at all three places. This will enable taxpayers to fill the correct information in the income tax form. This will eliminate the risk of their returns being defective.
In case of changing jobs, do not forget to take both Form-16
If you have changed jobs during the financial year, then you must obtain Form-16 from both your employers. Then you have to check the TDS data in both Form-16. This will prevent taxpayers from getting a notice from the Income Tax Department. If there is no data of income and TDS for the entire financial year, the Income Tax Department can issue a notice to the taxpayer.
