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Understanding Form 16

Understanding Form 16

Your employer reduces the Tax Deducted at Source (TDS) from your monthly earnings. This is then deposited with the authorities and the employers must file TDS returns every quarter according to the Income Taxcalendar. The employers' issue Form 16 that comprises the details related to TDS. This form is important to file your income tax returns (ITR). If you hold more than one job during the year, you must ensure each of your employer issues this form.

Components of Income Tax Form 16

This form comprises two components, which include Part A and Part B.

1. Part A

The Form 16A includes the employer’s name and address, your PAN, employer’s TAN and PAN details, and a certified quarterly summary of TDS deducted and deposited.

2. Part B

Part B is an annexure to the form’s Part A. If you have changed your job during the year, you have the option to choose if Part B is issued by both the employers or only by your last employer. Some information in this part includes relief under section 89, detailed salary breakdown, and chapter VIA deductions allowed according to the Income Tax Act.

How to fill Income Tax Form 16
1. Part A

It is simple to fill income tax form 16. The employer will input the name and address of the company and your name and designation as an employee. Additionally, it comprises PAN and TAN of the deductor along with your PAN. The employer must fill the assessment year details and a summary of the TDS for each quarter.

2. Part B

This part appears as follows:

Commonly asked questions
1. How to procure Form 16?

Your employer will have to do the Form 16 download and issue the form. You may view Form 16 online too.

2. How to file ITR if you do not have the Form 16?

If your employer does not issue the form, filing your ITR is still possible without any trouble. You may check online to know the procedure.

3. If the employer deducts no TDS, is the company required to provide the Form 16?

If no TDS is deducted, the employer may not issue the form but you may still file your returns.

4. How to file returns if the employer deducts TDS but fails to issue Form 16?

All employers are legally required to deduct TDS and deposit it with the authorities before the due date. Moreover, companies are legally required to provide the TDS certificate to the employees.

Now that you know what is Form 16 , it is important to remember that the onus of filing ITR on time lies with you.

Be informed about how income tax plays a role in health insurance policies so you can save tax on your premiums. Explore our guide about income tax basics, tax slabs, income tax sections to learn more.