Form 16 is issued by companies. This form is very useful for all salaried classes because it contains information about the income and tax of the employed.
Income Tax Return: If you work in a company, then you must know about Form 16. This form is issued by companies. This form is very useful for all salaried classes because it contains information about the income and tax of the employed. The company issues it on or before 15 June in the assessment year. If you have worked at many places in a financial year, then you will have to take Form 16 separately from each company. Let us tell you all the important things related to Form 16.
Understand the importance of Form 16
While filing tax, you have to give Form 16 as a definite proof of your income and taxes paid. Apart from this, this form works as an income proof for you. You can give this to the bank or other financial institution as proof of your income while taking a loan. You can also get accurate information about whether the taxes paid by you are correct or not through Form 16.
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 a brief description of the TDS deposited to the government. Part B contains information about salary breakup such as basic salary, house rent allowance, provident fund contribution, TDS, professional tax etc. There is information about tax exemptions such as HRA, medical allowance and other allowances etc. Also, any exemption claimed or tax paid under Chapter VI A of the Income Tax Act, 1961, along with the amount of tax due and tax refund details are recorded.
It is mandatory for companies to issue it
Under the Income Tax Act, 1961, it is 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 can be fined. Under Section 272 of the Income Tax Act, a penalty of Rs 100 per day can be imposed.
Download from here
- To download Form 16, go to www.tdscpc.gov.in.
- Log in to TRACES and enter the user ID, password, PAN and captcha.
- Navigate to Downloads from the dashboard and go to Form 16.
- After downloading the form, select the financial year and PAN. You will get Form 16.
