Form is never more than an extension of content”

Income tax Form no 16 is your regular payment TDS certificate. This is a certificate issued to salaried people from their employer once he deducts tax from the worker’s regular payment. In easy words, it’s an acknowledgment that states your subtracted tax has been deposited with the revenue tax department.

Fortunately, we are in the tax filing season. Several employers have already freed Form16 to their staff and also the staff filing their tax returns. For the salaried taxpayers, form 16 is that the primary document supported that they file their IT come back. Therefore, it’s vital to grasp Form 16 and its parts and components. Please keep in mind that Form 16 isn’t associate degree taxation come back. The tax mentioned in Form 16 isn’t a final tax quantity, it may be lesser or quite that. If you have unclear knowledge about your tax details you can very well approach the tax consultants in Chennai.

Brief on Form no 16

The employer deducts tax on the financial gain from the salary paid to the associate worker. The employer is needed to deposit such TDS into a Government Account and furnish an announcement of TDS to the govt… The employer is additionally needed to furnish the small print of such financial gain associated TDS subtracted to a worker in a much-prescribed manner. Such a way is prescribed as form No. 16. The employer is needed to furnish details of TDS to the associate worker in form no 16 before the 31st of the financial year. This statement in type is incredibly necessary for an associate worker to furnish his tax returns and he should examine every column and also the details fitted out by the employer in such columns and fields.

New Standardised Form 16

Since last year, there was different Form no 16 used by all employers as per their suitability. However from this year it is bee regularised by the income tax department. The entire Form no 16 upgraded and it is to be downloaded from the TRACES portal of the Income-tax Department. Form no 16 issued by TRACES has the authentic brand of TRACES imprinted on that. TRACES mean TDS Reconciliation Analysis and Correction enabling System. The form has got to be auto-generated by your employer from this web site and it doesn’t generate this manner till all the TDS dues paid and deposited by the company. 

Portions of Form no 16

The income tax Form no 16 has two components, he first page named has Part A and second page Part B. A includes of the main points of the tax deposited by the employer to the govt. Account. If the employer may be a Government or a Government enterprise, the payment is formed by it via book entry and known through Book number (BIN) and if the employer is aside from Government and semi-Government bodies, the payments area unit done through Challans and known via Challan number (CIN).

The most important point to be noted while filling the Part-A.

  1. Your PAN should be mentioned properly.
  2. TAN of the deductor/employer should be mentioned properly.
  3. Book positive identification (BIN) should be correct.
  4. Challan positive identification (CIN) should be correct.

If any of this is often incorrect, then you will lose the credit of taxes (TDS) subtracted and paid by your employer and you ought to pay that quantity of tax as tax demand.

Find the structure new form no 16 images part –A below

The Part-B is the annexure of Part- A.

It contains details concerning your gain from wage and alternative heads. 

Financial gain from wage is entered by the employer himself from your payslips and alternative incomes are entered from the main points provided by you to the employer. Generally, these are financial gain from house property and financial gain from alternative sources. It additionally contains the main points of assorted deductions and tax savings provided by you to your employer.

The Part –B associate combination of your payslips. So, you need to verify the entries partly with those in payslips. The taxes paid details herein the tax amounts subtracted by your employer and deposited with the govt. whether or not the employer has shown correct tax or not will be verified by cross-verification with form26AS of yourself that can also be downloaded from the TRACES portal. This should contain all the deductions that you just told your leader before he subtracted your tax. Just in case of any discrepancy, you need to contact your deductor and acquire the amended kind sixteen.

Finally, all employees should understand the concept of form no 16 to track their salary deductions and returns to have a correct financial following. Few companies may follow various proportions in deducting the salary from the employees and this cannot be understood as earlier, you may contact the tax consultants in Chennai to make your doubts clear