Filling up your Form 16 isn’t as complicated as you think. In case thinking about it worries you, relax! Like always, we’ve got you covered. We’ll simplify Form 16 for you so that you aren’t confused anymore.
Before learning how to fill it, let’s understand the form better.
Additional Reading: Are You An Honest Taxpayer?
What is Form 16?
Form 16 is a tax document that carries all the information a salaried individual requires to file their Income Tax return. As per the tax rules of India, you need Form 16 as proof that your employer has deducted TDS on your salary. It is issued on a yearly basis, and you’re supposed to fill it on or before 31st August every year.
Form 16 has two parts—A and B. Here are the details:
Form 16 Part A/Traces Form 16
It consists of the PAN (Permanent Account Number) and TAN (Tax Deduction & Collection Account Number) details of both the employer and employee. Apart from these, it also mentions various other details like the name and address of both the employer and the employee, the assessment year and the time you spent working with the employer. It also showcases a detailed summary of the TDS deductions from your monthly salary.
Form 16 Part B/Salary Statement/Annexure
Apart from carrying the details of your yearly earnings, this part mentions other crucial details like deductions that you claimed under Section 80 of the Income Tax Act. These include Life Insurance premium, EPF, PPF, NSC, or donations made towards charity. It basically gives your total taxable income.
Who is supposed to fill Form 16?
According to the regulations issued by the Finance Ministry of the Indian Government, every salaried individual who falls under a taxable bracket is supposed to fill this form.
How to get it?
Your employer will provide you with this document, which is also commonly known as a salary certificate. If you fall under a taxable bracket, this form will be indispensable when filing your Income Tax return. In case you don’t receive it from your employer, you can also download the PDF version from the website of the Income Tax Department.
Why do you need to fill it?
- You need Form 16 while filing your income tax returns for the financial year.
- It reflects your total earnings and Income Tax that has been deducted from your salary.
- While applying for any kind of loan, banks will most likely ask for your Form 16 as a part of their verification process.
Now that we’ve covered the essential components of Form 16, let’s show you how to fill your ITR-V using Form 16.
Take a deep breath and relax. It isn’t complicated if you follow these steps carefully and one at a time. Here we go:
Filing your ITR (Income Tax Return) online using your Form 16
Things you can fill directly from Form 16:
- Gross salary details
Check Part B of your Form 16. Your gross salary details will be mentioned as the first point.
- Deductions under Chapter VI-A
The ninth point of Form 16 Part B will give you the details of all deductions under Chapter VI-A.
- Net tax payable
Form 16 Part B again to the rescue! This will be the 18th point on your Form 16, Part B.
- TDS (Tax Deducted at Source)
You’ll find your TDS details in Part B of Form 16.
And you were wondering how Form 16 would help! Filing your ITR is child’s play if you have your Form 16 (both Part A and B) duly filled.
In case you’ve changed jobs during the same financial year, you need to fill more than one Form 16 (depending on the number of job switches). It basically has to be filled separately for each employer.
We hope this helped! Need more? Your wish is our command!