Form – 16
Form 16 is a certificate issued by employers in India to their employees. It provides
details of the salary earned by the employee during the financial year and the amount of
tax deducted at source (TDS) on that salary. Here's some key information about Form 16:
- Purpose: Form 16 serves as proof of the TDS deducted by the employer and is an essential document for individuals when filing their income tax returns. It helps employees reconcile the TDS deducted with their actual income and facilitates the assessment of their tax liability.
- Contents: Form 16 consists of two parts - Part A and Part B.
a. Part A: Part A of Form 16 is generated and downloaded from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal. It contains details such as the employer's name and address, employee's name and address, Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN) of the employer, and summary of TDS.
WHAT WE DID
Filing Income Tax Return: Form 16 assists employees in accurately filling out their income tax return (ITR). The details mentioned in Form 16, especially Part B, help individuals report their income, deductions, and TDS information correctly in the ITR form.