Getting the verification of the amount deducted as tax from the salary is quite necessary. As per the Income Tax Act, 1961- Section 203, a certificate or “salary certificate” is provided to all the employees whose annual salary exceeds the specified limit, i.e., ₹2,50,000. If the salary is more than the amount specified, then, the employer provides the certificate for TDS (tax deducted at source) on the salary of the individual. This salary certificate itself is called Form 16.
1. What is Form 16?
2. Form 16 download- Procedure
3. How to fill Form 16 for salary with example
4. Types of Form 16
5. Generating Form 16A: The procedure
6. Conclusion
What is Form 16?
For all the salaried individuals, Form 16 acts as a certificate in which all the inFormation of the employees, the salary and the employer is specified. Additionally, this Form plays a key role in income tax e-filing. During the income tax e-filing procedure, it acts as proof of the tax paid on the salary by the employee. However, only those employees who come under the specified amount of salary will be eligible for the issue of Form 16. Form 16 is further divided into two parts: Part A and Part B.
Part A contains all the personal details of the employer and the employee, in addition to their PAN and TAN numbers, employment period, TDS details, i.e., the deposit amounts made with the government.
Part B contains all the details regarding the salary slips, deduction amounts, other incomes, etc.
Form 16 Download- Procedure
The Form 16 download can be done either through the income tax portal of the Indian government or the Form 16 download can be done by the employer. In the case of TDS deduction, the employer issues Form 16, before 31st March, i.e., every financial year.
In case the person switches from one job to another during a year, the Form16 download will have to be done again by the other employer.
Wondering how to generate Form 16? This can be done easily in two ways, either through the online portal or by the employer themselves. Form 16 is of utmost importance during the income tax e-filing procedure, along with being a legal proof of the working individual.
How to fill Form 16 for salary with example
Wondering how to fill Form 16 for salary with example. Well, in case, the employer does not provide you with Form 16, you can easily calculate the taxable salary amount, by adding the base salary amount along with adding the allowances and deducting the loan or other credit details. Once calculated, you can know the taxable amount and get your Form 16 by yourself.
Types of Form 16
In case the individual receives their salary from other sources apart from the employer, they will receive the below-mentioned forms depending on the criteria:
● Form 16A: It is also a TDS certificate, but is received on the income apart from the salary by the individual. This can include income from fixed deposits, rent, insurance, and other such sources. This Form contains all the details of TDS, deductor, PAN details, challan details, and others.
● Form 16B: This TDS certificate is issued to the individuals in the case of sale of the property. The TDS amount that gets deducted from the buyer’s amount is submitted to the Income Tax Department. 1% TDS deduction takes place on the property by the buyer (in case of immovable property). It is also proof of the TDS deduction amount.
Generating Form 16A: The Procedure
Along with knowing how to generate Form 16, the Form 16A can be downloaded easily from the TRACES portal after the submission of TDS amount. The first and foremost criteria before downloading the Form 16A are that one must have a valid PAN card, failing which the Form 16A cannot be generated.
The steps to download Form 16A are as follows:
● Open the Cleartds.com portal. Log in on the portal.
● Once done, from the ‘deductor’ option, open the TDS dashboard. Next, click on the option ‘work on this return’.
● To make a request to obtain Form 16A, click on ‘Import from traces’ option.
● Choose the option ‘request for Form 16A’, and enter the TRACES login credentials.
● Next fill in all the PAN, TAN and other details according to the requirements.
● Further, click on the option ‘Submit a request to TRACES’.
● After the submission, the request is processed after 4 hours and the Form 16A is available for download in the zip Format.
Conclusion: –
As such, whether it be a salaried individual or salary through other sources, one has to fill in Form 16 and Form 16A depending on the criteria, for easier ITR filing. Check out more business blog here.
