It also contains details of how much tax was deducted, dates when the amount was deposited with the Central Government Account, and details of the Challan issued by the government. Part A of Form 16 has basic details of the Employee and the Employer, such as Here's a look at the components of Form 16 in detail: These aspects of Form 16 are crucial when filing IT returns. It has two prominent components – Part A and Part B, which reflect most of your details bifurcated into parts.
The assessment year is the following year in which this income is assessed and taxed.įorm 16 contains the information you need to prepare and file your income tax return. For your understanding, the financial year (FY) is the period between April 1 to March 31, in which you earned income. The employer is required to issue Form 16 on or before May 31 of the assessment year, which gives you enough time to file your Income Tax returns before the due date. These details will help you file your Income Tax returns. This comprises any allowances that your company gave and any other details necessary that may impact the tax amount like house rent, medical bills, loans, etc. It also details how your tax was computed based on the investment declarations you made at the beginning of the financial year. It is proof that the employer did submit the money to the authorities that it deducted as TDS from your salary. Irrespective of the fact whether your income falls under the tax exemption limit or not, the employer must issue a Form 16 if they have deducted tax at source.įorm 16 helps you easily file your income tax returns.
Form 16 EligibilityĪny salaried person whose tax has been deducted by the employer at the source is eligible to get Form 16. However, if your employer(s) did not deduct any tax at source from your salary, considering your income for the year is below the tax-exemption limit, they may not issue Form 16.
If you have switched jobs during the year, or worked with different employers at the same time, and tax has been deducted at all places, you must obtain a separate Form 16 from each one of them. It details how much tax the employer deducted and when it was submitted to the IT department. What is Form 16?įorm 16 is a certificate (issued under section 203 of the Income Tax deducted at source (TDS) by the employer and submitted by them to the Income Tax Department (IT Department). Here's a quick look at income tax Form 16, and how it can help you file your ITR easily.
Form 16 is one of the most common financial documents you would come across when filing your ITR. It is that time of the year when you frequently get reminders from the Income Tax Department to file your income tax returns on time.
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