ITR Form 16: This news is useful for those who pay income tax. Read in detail what is ITR Form 16 and when will it be available?
ITR Form 16: The current financial year 2024-25 has now reached its final stage. Therefore, now it is important to pay attention to things related to taxation. These include Income Tax Return, which gives information about the income earned in the given financial year and the tax paid on it. Form 16 (ITR Form 16) plays an important role in ITR filing. Form 16 is an important document for those working on salary, which makes the process of filing ITR easier. It also helps employers and employees to manage their finances better.
What is Form 16?
Form 16 is a certificate, which the employer submits to the Income Tax Department as per Section 203 of Income Tax Deducted at Source (TDS). It includes the tax amount withheld by the employer and the date of submission to the IT department. This form includes information about the income earned, the amount of TDS deducted and additional deductions under the Income Tax Act.
When will Form 16 be available?
The employer has to issue Form 16 by May 31 in every assessment year, so that employees get enough time to file income tax returns before the deadline. Form 16 for the financial year 2024-25 has to be issued by June 15, 2025. If your employer has withheld TDS between April 24 and March 25, then you have to submit Form 16 by June 15.
If the employer is unable to issue Form 16 by the stipulated time, then they will have to pay a fine of Rs 100 every day till it is issued thereafter.
Types of Form 16
Part A – Part A of Form 16 contains the name, address, PAN and TAN details of the employer along with other details about the employee and the employer. It also provides a quarterly summary of TDS deducted for the business year and all salary payments.
Part B – Part B of Form 16 covers all taxable income, other income, allowances exempted under section 10, Chapter VI-A deductions and salary. It provides details of different salary components as well as any deductions claimed.
ITR Form 16 Eligibility
As per the rules issued by the Ministry of Finance, Government of India, if an employee’s income is taxable, then the employer must deduct TDS. Form 16 is available to every salaried individual whose employer has withheld tax at source.
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