ITR Form 16: Whenever there is talk of filing income tax return, Form 16 is definitely mentioned. The most important document for tax is Form 16. Know here the important information related to this form.
ITR Form 16:Â Form 16 is an annual certificate issued by companies. It contains information about the income and tax of the employee. This is important for all the salaried class because information about how much annual income was earned, how much tax was deducted and from which section you saved tax, all this is available from Form 16. The company issues it on or before 15th June in the assessment year. If you have worked at multiple places in a financial year, you will have to take separate Form 16 from each company. Let us tell you all the important things related to Form 16.
Why is Form 16 so important?
While filing taxes, you have to provide Form 16 as definitive proof of your income and taxes paid. Apart from this, this form works as income proof for you. While taking a loan, you can give it to the bank or other financial institution as proof of your income. You also get accurate information about whether the taxes paid by you are correct or not through Form 16.
The form has two parts
Form 16 has two parts, Form 16 Part A and Part B. Part A contains the TAN of the institution, PAN of the institution and employee, address, assessment year, period of employment and brief details of TDS deposited to the government. Whereas in Part B, information about salary breakup like basic salary, house rent allowance, provident fund contribution, TDS, professional tax etc. is recorded. There is information about tax exemptions like HRA, medical allowance and other allowances etc. Also, any exemption claimed or tax fund paid under Chapter VI A of the Income Tax Act, 1961 is recorded along with the amount of outstanding tax fund and information about tax refund.
It is mandatory for companies to issue it
Under the Income Tax Act, 1961, it has been made mandatory for the company to issue Form 16 to those employees whose annual income is more than ₹ 2.5 lakh. If the company does not issue Form 16, it may be fined. Under Section 272 of the Income Tax Act, a daily penalty of Rs 100 can be imposed.
Download from here
- To download Form 16, visit www.tdscpc.gov.in .
- Log in to TRACES and enter User ID, Password, PAN and Captcha.
- From the dashboard, navigate to Downloads and go to Form 16.
- After downloading the form, select the financial year and PAN. You will get Form 16.
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