Basics of Form 16
Form 16 is a certificate issued by an employer that states the details of TDS that has been deducted from an employee’s salary and deposited to the Government of India. It consists of the salary details required to prepare and file your income tax return. It is issued annually by the employer, on or before 15th June of the next year, it immediately follows the financial year in which tax is deducted by the employer. Form 16 is generally divided in to two parts that is, Part A and Part B. In case you lose your Form 16, a duplicate cope can be issued by your employer.
As we already told you Form 16 is divided into two parts, let’s know more about them.
Part A of Form 16
The Part A of Form 16 is generated and downloaded using the TRACES Website, by the employer. Before this part of Form 16 is issued to the employee, it is checked by the employer for its correctness. In case you change your job, your previous and current employer will issue you the Part A of the Form 16.
The major components of part A Form16 are as follows: –
- Name and address of the employer
- TAN & PAN of employer
- PAN of the employee
Filing Income Tax Return
- Summary of tax deducted & deposited quarterly, that is certified by the employer
Part B of Form 16
If you change your job in a given financial year then in that case, it is on you to decide whether you want part B of your Form 16 from your previous as well as your current employer or you can take it only from your previous employer.
The major components of part B of Form 16 are as follows: –
- Detailed break-up of salary
- Deductions allowed under the income tax act, under chapter VIA
- Relief under section 89