Form 16 is the certification of TDS deduction by the employer and calculation of salary and other income as well as computation of income tax obligations. As per rules employer must issue this record to you if they have deducted TDS on your salary. This must be issued on or before 31st May of the next financial year.
How to read form 16?
You must learn to read Form 16 before preparing and e-filing income tax return. This form consists of two sections, Part-A and Part-B. Part- A of the form furnishes information regarding TDS deduction by the employer. The form is only considered authentic when:
- Downloaded from the government website
- Has watermark of Trace logo in background
Part B contains data regarding calculation of salary and other income as well as computation of income tax obligations. In Part -B of the form the employer mentions your salary and other income as well as the data of TDS deducted on salary using the details accessible to them. Employer provides the same along with Part A to enable you to make your Tax return filing easy and error free.
Understanding Part-A & B of form 16:
Part A of Form 16 includes details as below:
- Exclusive TDS Certificate Number.
- Name and address of the Employer
- Name and address of Employee
- PAN and TAN of Employer
- PAN and Reference Number of Employee
- Financial Year and Period of Employment
- Total amount of TDS Deducted and Deposited for the year.
Part B of Form 16 includes following -
- Details about Salary including as Salary, Gratuities and Profits related to salary.
- Details of exemptions on allowances under section 10 and Profession Tax paid
- Any other income described by you.
- Deductions available against Income
- Your Net Tax Liability
- Verification of employer.
To avoid any discrepancy between your form16 and return file, get help from our experts. To ask an expert click on the link: https://www.allindiaitr.com/expert-plans-for-quick-tax-e-filing.
Comments
1 comment
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