For every employee, Form 16 is a document required for filing income tax returns. Employers annually provide the Form 16A income tax return document to the employees. It is critical to comprehend the information provided in the Form 16 download. Understanding the contents of Form 16 download makes it easier to file your I-T taxes. While Form 16 solely applies to salary income, Form 16A applies to TDS on Income Other Than Salary. Find out more about what it is, how to initiate Form 16 download, and more.
What is Form 16?
Form 16 is issued by the Income Tax Department and is a TDS certificate that employers issue to employees. The certificate includes details of tax deduction at source or tax collected at source for transactions between the employer and employee. It also contains all the information required to file an income tax return, showing the salary breakup and TDS deduction mentioned. Form 16 includes two parts- Part A and B.
Key Takeaways
- Form 16 and Form 16A are different from each other in terms of eligibility, description, and issuance
- The registration for Form 16 is a simple process that you can complete easily
- The process for filling out Form 16 download can be completed by anyone that is a taxpayer
- People who are not taxpayers don’t need to fill out this form
Advantages of Form 16
There are numerous advantages of Form 16. Some of them are-
- Form 16 also serves as income proof and is used for filing ITR.
- The document provides salary breakup, deductions, and exemption of tax.
- With the help of form 16, you can rectify any error in your salary component.
- If applicable, you can use form 16 to claim tax deductions
- Can be submitted as a supporting document while applying for a loan
What is Form 16A?
Similar to Form 16, Form 16A is also a TDS certificate and is applicable for a tax deduction on income from sources other than salary. A Form 16A will be given to you, for example, if a bank deducts TDS on your interest income on fixed deposits, TDS on insurance commission, or TDS on rent revenues. In reality, TDS is deducted from any other income that is subject to such deduction. This certificate also includes the name and address of the deductor/deductee, PAN/TAN information, and TDS challan information. It also contains information about your earnings and the TDS deducted and deposited on those earnings.
Difference between Form 16 and Form 16A?
| Particulars | Form 16 | Form 16A |
| Description | Form 16 is a TDS certificate supplied by the employer to the employee that shows the tax deducted at the source in addition to the pay/income earned. | Form 16A is a TDS certificate that shows the amount of tax deducted at source on non-salary based income. |
| Eligibility | There must be an employer-employee connection, and the employer must give the employee a salary. | It is appropriate for self-employed professionals. |
| The time limit for the issue | Form 16 is issued yearly after the end of the financial year. It is to be noted that form 26 requires to be issued on or before 15th June, just after the closure of the financial year. | Form 16A is to be issued on or before 31st May of the assessment year, leaving enough time for the self-employed individual to file income tax returns (ITR) before the due date. |
| Issued by | The employer provides Form 16 to the employee. | Banks and other financial organizations issue Form 16A. |
| Issued to | An employee receives Form 16. | Form 16A income tax is provided to individuals with income other than wages. |
| Components | PAN information for the employer TAN information for the employer Tax has been paid Employee PAN information Employer and employee names and addresses Payment information | TAN of the deductor PAN of the deductee Tax paid Details of the payment |
| Relevant provisions | Section 203 of the Income Tax Act addresses the issuance of Form 16 on taxable pay. | It is also addressed under Section 203 of the Income Tax Act, which addresses TDS on non-salary earnings. |
How to Download Form 16?
You must know that you cannot download Form 16 online as an employee. Instead, your employer must provide you with ITR Form 16. For Form 16 download by employers, they need to use the TRACES site.
● Visit tdscpc.gov.in/app/login.xhtml to get started.
● Log in with your employer’s login ID and password.
● Navigate to the “Downloads” tab.
● There will be found form 16 download pdf format for you to download form 16 for salaried employees.
● Fill in all the employee’s pertinent information, such as their name, address, PAN, etc.
● The employer must also enter their information.
● The produced ITR Form 16 can then be forwarded to the employee
How to fill Form 16?
Remember to determine how to obtain Form 16, and your company must deliver it. Unfortunately, form 16 is not available for you to download anywhere. However, if you have left a prior position, you can contact your previous employer’s HR or finance department and get Form 16 of the Income Tax Act.
The information on Form 16 is required to file your taxes. Income tax Form 16 is required for salaried persons to submit taxes, whether they file the form on their own or with some assistance of a Chartered Accountant.
You may also utilize online portals to upload your Form 16 from your employer, which will pull out the necessary information to file your income tax returns.
How to File Form 16 with ITR (Income Tax Return)?
To file all your income tax returns, you must fill out form 16. To file your ITR with form 16, you will have to follow these steps-
Step 1- Visit the official website of the Income Tax Department
Step 2- Download the ITR form
Step 3- Fill in all the relevant details such as your name, date of birth, registered email id, PAN number, and phone number
Step 4- Now fill all the tax deduction details with the help of Form 16, as it includes Tax structure
Step 5- Attach all the relevant documents as a proof
Step 6- Now, the system will automatically calculate all your tax liability
Step 7- Once your tax liability is calculated, the system will show all the tax details and the due refund amount
Step 8- Fill in bank details
Step 9- Now verify the declaration
Step 10- Now upload the ITR and submit the document
Step 11- Upon successfully submitting the document, you will get the ITR-V document in your inbox as a proof
Step 12- Now e-verify the submitted with the help of the link provided
Documents Required to Fill For 16
The employer must offer authentication before the certificate may be issued. If you change jobs, the new employer must also produce a Form 16. Form 16 must be provided by each new employer. Part A’s essential components are listed below:
● Name and address of the employer
● PAN and TAN of the employer
● PAN of the employee
● Tax details are deducted and deposited quarterly
The following components are included as an annexure to the first portion of Form 16, Part B:
● Salary breakdown (detailed)
● A detailed breakdown of the allowances under Section 10 of the Income Tax Act.
● Allowable deductions under Chapter VI A of the Income Tax Act. Any relief under Section 89 of the Income Tax Act.
What are the Eligibility Criteria for Form 16?
Every salaried individual with annual income that falls under the tax slab is eligible for Form 16. This is a helpful document for when it comes to filing ITR. Also, it is mandatory for employers to issue Form 16 to employees if they have deducted TDS from their salary.
How is Form 16 Important for Salaried Individuals?
As mentioned above, Form 16 is a mandatory document for every salaried individual, especially when filing an income tax return. Also considered income proof, the document contains salary breakup and is proof that TDS is paid.
Conclusion
When an employee gets Form 16, it is their obligation to confirm that all the information is correct. Therefore, one should double-check the information on Form 16, such as the amount of income, TDS deducted, and so forth. If any of the information is misplaced or incorrect, you should immediately contact the organization’s HR/Payroll/Finance department to get it fixed.
The employer would then fix their error by filing a new TDS return and crediting the TDS payment to the right PAN. Once the corrected TDS return is finalized, the employer will provide their employee with an updated Form 16.
Form 16 is issued by the employer to an employee once a year for one fiscal year.
Quarterly, a Form 16A is issued. The deadline for form 16A is the 15th of the month after the quarterly TDS return deadline.
You can use the data from your income and tax deducted at source from forms 16 and 16A to file your income tax return (ITR) and calculate your tax amount.
If you are a pensioner, Form 16 will be issued by the bank where you get your pension. In this instance, your prior employer will not provide Form 16.
No, you must be a registered user on the TRACES website to download Form 16 and Form 16A.
To obtain Form 16, you must first contact your employer.
No, the income tax form 16 download cannot be initiated online. Instead, you will have to ask your employer to provide you the form.
If your employer refuses to give you form 16, you can write a complaint to the Assessing Officer, who will take appropriate action against your employer and help you get Form 16.
For form 16 download, log in at the Income Tax Department’s Traces portal. You can log in by using your username, PAN number, and password. Then, click on the download section and click on form 16 download.
