The Form 16 is a crucial tax sheet that includes all the necessary details required for an employee to file their Income Tax Returns (ITR). Employers are required to provide Form 16 to their employees at the end of each financial year. This form serves as proof that Tax Deducted at Source (TDS) has been appropriately deducted from the employee’s salary and deposited with the government on their behalf.
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In other words, Form 16 is a certificate of tax deduction at source issued by the employer to the employee upon tax deduction. The form is generally released before the end of May for the preceding fiscal year, which runs from April 1st to March 31st.
Types of Form 16
Form 16-A: It is a document that provides a concise overview of the amount of tax deducted by an employer or organization from an employee’s salary and subsequently deposited with the Income Tax Department. Essentially, this form acts as a representation of the employee’s tax deductions and is issued by the employer on the employee’s behalf.
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Form 16-B: It is a type of Form 16 that contains a consolidated statement of various financial details related to an employee’s income. This statement includes information such as the salary paid to the employee, any deductions made from the salary (if applicable), and any other income disclosed by either the employee or the employer.
Steps to file ITR online using Form 16
– Gather all required documents and information, including Form 16, a copy of your PAN and Aadhaar card, bank statements, and any other relevant documents.
– When filing your taxes, make sure to list all of the deductions you are eligible for (like any deductions under 80C, 80D, etc).
– Create an account on the Income Tax e-filing portal. If you already have an account, directly login.
– To begin the process, go to the e-File section and select “Income Tax Return.”
– Based on your income and other factors, select the appropriate Income Tax Return (ITR) form. You can use ITR-1 or ITR-2 if you have Form 16.
– Enter the necessary information, such as personal information, income details, deductions, and tax payments.
– Validate and submit all data entered in the form.
– Once your return has been submitted, e-verify it using any of the available options, such as Aadhaar OTP, etc.
Details required from Form 16 while filing ITR
– Allowances exempt under Section 10
– Break up of deductions under Section 16
– Taxable salary
– Income (or admissible loss) from house property reported by an employee and offered for TDS
– Income under the head ‘Other Sources’ offered for TDS
– Break up of Section 80C deductions
– The aggregate of Section 80C deductions (gross and deductible amount)
– Tax payable or refund due
Additional details required Form 16
– Tax deducted at source by the employer
– Employer’s TAN
– Employer’s PAN
– Employer’s name as well as address
– Present assessment year
– Name and address of the taxpayer
– PAN of the taxpayer
Steps to download Form 16
– Go to the Income Tax Department’s official website.
– In the ‘Forms/Download’ section, find the ‘Income Tax Forms’ option and select it.
– Scroll down to Form 16 in the Frequently Used Forms section.
– Next, under ‘Form 16’, you’ll see the ‘PDF’ and ‘Fillable Form’ options.
– Select the appropriate option.
On the following page, you will be able to download the form.