Form 16 is essential for filing Income Tax Returns as it provides a detailed summary of:
- Income earned through salary
- Tax deducted at source (TDS)
- Exemptions claimed under various sections
What are the components of Form 16?
Part A:
According to an ET report, Part A of Form 16 contains the details of quarterly TDS:
- Name and address of the employer and employee
- PAN (Permanent Account Number) and TAN of the employer
- PAN of the employee
- Period for which employer calculated tax on salary
- Summary of the amount paid or credited as salary and tax deducted at source (TDS) as mentioned in respect of the employee
Part B:
It details the salary paid or credited to an employee, along with mentioning the income tax regime an employee opted for – old or new:
- Detailed breakup of gross salary:
- Salary as per provision in section 17(1)
- Value of perquisites in section 17(2)
- Profits in lieu of salary in section 17(3)
- Allowances exempted from income tax under section 10
- Any other deductions such as standard deduction available to salaried employees
- Deductions allowed under Chapter VI-A of the Income Tax Act such as Section 80C, 80D, etc.
- Relief under section 89, if any
It must be ensured that both Part A and Part B of Form 16 bear the TRACES (TDS Reconciliation Analysis and Correction Enabling System) logo to indicate that both parts have been downloaded from the official income tax portal, providing assurance of their authenticity.
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How to download Form 16?
Form 16 can be obtained from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website or through your employer’s portal.
The given steps must be followed:
- Visit TRACES website: Go to contents.tdscpc.gov.in
- Login or register: Use your PAN as User ID. Complete registration if new
- Navigate to downloads: Select ‘Form 16’ under the ‘Downloads’ tab
- Choose type and financial year: Specify Form 16 type (Part A or B) and the relevant financial year
- Verify details: Confirm PAN and other required information
- Submit request: Enter TDS details (receipt number, date, amount) and submit.
- Retrieve Form 16: Download the certificate from the ‘Downloads’ section once available
Alternative Method (Employee Portal):
- Login: Access your company’s employee portal
- Navigate to the tax section: Find and select the tax section
- Download Form 16: Locate and download Form 16 from the available options
- Verify details: Ensure all details are accurate before downloading
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By following these steps, Form 16 can be easily obtained and used to file income tax returns accurately and on time. Form 16 ensures compliance with tax regulations and provides clarity regarding employees’ salary income and tax deductions.
