Income Tax: Be ready with your Form 16 before July 31

This is the last month to file Income Tax Return for the financial year 2016-17. Most of the companies have already directed its employees to file Form 16. 

Even if you have left your job, your employer will provide you a Form 16. Unfortunately, this income tax form 16, cannot be downloaded from anywhere.

CALCULATE INCOME TAX HERE

Income Tax Form 16 is a certificate from your employer. It certifies that TDS has been deducted on your salary by the employer. If an employer deducts TDS on salary, he must issue income tax Form 16 as per tax rules of India. Form no 16 is issued once in a year, on or before 31st May of the next year immediately following the financial year in which tax is deducted, ClearTax explained. 

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What you need to know about Form 16?

Form 16 has two parts Part A and Part B.

Form 16 Part A has

• Name and address of the employer
• TAN & PAN of employer
• PAN of the employee
• Summary of tax deducted & deposited quarterly, which is certified by the employer
• Assessment Year
• Period of employment with the employer
• Form 16 Part A must be generated and downloaded through Traces portal
• Part A of the Form 16 also has a unique TDS Certificate Number.

For Part A, the taxpayer need to enter seven details: TDS Deducted by Employer, TAN of Employer, PAN of Employer, Name and Address of Employer, Current Assessment Year, Your (Taxpayer’s) Name and Address, Your PAN.

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Form 16 Part B has

• Detailed breakup of salary paid
• Deductions allowed under the income tax act (under chapter VIA)
• Relief under section 89
• If you have held more than one job during the year, you’ll have more than one Form16.
• Part B is prepared by the employer manually and issued along with Part A. (Are you an employer? If you are an employer, file your TDS Return here)

For Part B, the taxpayers need to enter five details: Taxable Salary, Breakup of Section 80C Deductions, Aggregate of Section 80C Deductions(Gross & Deductible Amount), TDS (Tax Deducted at Source), Tax Payable or Refund Due.

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Hence, do not procrastinate further and file it now.