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Form 16: What is Form 16? How to Download Form 16 For FY 2022-23

The ITR filing due date for FY 2022-23 (AY 2023-24) is 31st July 2023. Form 16 is essential for salaried Indian employees to file income tax returns. 

Form 16, issued under section 203 of the Income Tax Act, 1961, gives details of salary, Tax Deducted at Source (TDS), and TDS deposited with the government by the employer. 

Upload Form 16 and file your ITR easily at The Tax Heaven.

  • Form 16 Explained

  • Form 16 Available for FY 2022-23

  • Importance of Form 16
  • Form 16 Eligibility Criteria
  • Form 16 Format for FY 2022-23
  • Downloading Form 16 from Traces
    •  Form 16 Part A Download
    •  Form 16 Part B  Download 
  • Form 16 Types

  • How do I get Form 16?

  • Is filing income tax return mandatory without Form 16?
  • Form 16 Key Points for ITR Filing
  • How to Fix Form 16 and Form 26AS Mismatch?
  • Form 26AS vs Form 16
  • Income Tax Return vs Form 16
  • Filing ITR after changing jobs within the year
  •  Form 16 Part A
  •  Form 16 Part B

Form 16 Explained

Form 16 is a tax document provided by employers to salaried employees. This document records TDS (Tax Deducted at Source) details and is issued according to the Income Tax Act of 1961. 

Employers should give Form 16 to employees by June 15th of the next fiscal year. Employers missing this deadline can be fined Rs.100 daily until compliance is achieved. 

Important aspects of Form 16 include: 

  • Issuance Deadline: Form 16 should be issued by employers by June 15th of the respective assessment year. For instance, Form 16 for the fiscal year 2022-23 should be issued by June 15th, 2023.
  • Structure: Form 16 has two sections - Part A and Part B. 
    • Part A: This part contains details like employer's and employee's PAN, employer's TAN, summary of TDS, etc.
    • Part B: Part B details the employee's salary, allowances, deductions, taxable income, and other income sources, if any.
  • Role in Tax Returns: Form 16 is essential for filing income tax returns. It contains crucial information about salary, TDS, and deductions.
  • Verification: Employees should cross-check the information in Form 16 with salary slips, bank statements, and Form 26AS. Any discrepancies should be immediately reported to the employer.
  • Significance: Form 16 is proof of tax payment and helps in reconciling income and tax. It facilitates tax calculations, deductions, and determines tax liabilities.

Form 16 Available for FY 2022-23

Form 16 for FY 2022-23 should be issued by 15th June 2023 if TDS was deducted from an employee's salary between April '22 and March '23. Lost forms can be replaced by the employer. Alternatively, Form 26AS can be downloaded from the tax e-filing portal. This form provides TDS details and can serve as proof of TDS deduction and deposit.

Importance of Form 16

Form 16 provides: 

  • Evidence of tax payment to the government.
  • Assistance in income tax return filing.
  • Salary income proof.
  • Credentials verification for loan applications.

Form 16 Eligibility Criteria

  • Taxable income earners are eligible for Form 16 as per Indian Government's Finance Ministry rules.
  • Non-taxable income earners may not receive Form 16 as Tax Deducted at Source is not applicable.
  • Still, many firms issue Form 16 to all employees as it provides a comprehensive income summary.

Form 16 Format for FY 2022-23

Form 16 Part A

This section includes details about the employer, employee, and tax payments. It provides a quarterly summary of your tax payments to the government. Details include: 

  • Employer's name and address
  • Employer's PAN and TAN
  • Employee's name and address
  • Employee's PAN
  • Quarterly summary of tax deductions and deposits by the employer

Form 16 Part B

Part B details how your income is computed for tax purposes. It shows your salary breakdown, any deductions or exemptions, and how your tax is computed according to tax slab rates. 

- Taxation option under section 115 BAC: Yes or No
For more on 115 BAC, see our guide. 

A. Gross Salary(Column 1): It includes details of salary as per section 17(1), perquisites, and any profits in lieu of salary according to sections 17(2) &17(3). 

B. Considered exemptions and allowances(Column 2): Previously, this part included combined exemptions under Section 10. With the new Form 16, a list of allowances is provided for completion. 

  • Travel concession (section 10(5))
  • Death/retirement gratuity (section 10(10))
  • Pension value (section 10(10A))
  • Leave salary cash equivalent (section 10(10AA))
  • House rent allowance (section 10(13A))
  • Other exemptions (section 10)

C. Total Salary from Current Employer (Column 3): Calculates the total salary including allowances and perquisites. 

D. Section 16 Deductions (Column 4): Listed below are all deduction columns:

  • Section 16(ia) Standard deduction
  • Section 16(ii) Entertainment allowance
  • Section 16(iii) Employment tax

E. Total Deduction (section 16 (5)) 

F. Income from Salaries (Column 6): Net salary after allowances and deductions. 

G. Other Income (section 192(2B) (Column 7): Employee's additional income with proof. 

H. Total Other Income (Column 8): Total income apart from salary. 

I. Gross Income (Column 9): Total income after exemptions, before Chapter VI-A deduction. 

J. Deduction (Chapter VI-A (Column 10): Disclosed deductions according to a separate list in Form 16. 

K. Total Deduction (Chapter VI-A (Column 11): Sum of all deductions under Chapter VI- A. 

L. Taxable Income (Column 12): Net income after Chapter VI-A deductions. Tax is calculated on this amount.

M. Tax on Total Income (Column ):13strong This column shows the Tax amount based on tax slabs on the income reported in column 12. 

N. Rebate under section 87A, if applicable (Column 14): This Column indicates tax rebate, available if total income is less than Rs. 5,00,000/-, up to 100% of the tax amount or Rs. 12,500/-, whichever is less. 

According to the Finance Act 2023, under the new regime, if total income is less than    Rs. 7,00,000, a tax rebate of 100% of the tax amount is available. 

O. Surcharge, wherever applicable (Column 15): This column shows the additional tax as a surcharge, applicable if income exceeds certain limits (50 lac,1cr, 2cr, and 5cr). 

P. Health and Education Cess (Column 16): This column, introduced in the new Form 16, shows the Health and Education Cess. 

Q. Tax payable (Column 17): Tax payable is calculated as the sum of columns 13, 15,                  16 minus 14. 

R. Relief under section 89 (Column 18): This column includes any relief allowed        against the arrear of salary received in the previous year. 

S. Net tax payable (Column 19)

Downloading Form 16 from Traces

Form 16 Part A Download

Step 1. Log into the TRACES website with your User ID, Password, TAN, and verification code. 

Step 2. Verify the status of your TDS return 24Q for Form 16-Part A. You can check this under the Statement/Payment Tab. 

Step 3. Select the Form 16 option in the Download Tab. 

Step 4. Choose the financial year and download option for Form 16 Part A. You can either download for selected PAN holders or all eligible PAN holders. 

Step 5. Review the Authorised Persons details on Form 16-Part A, then click “Submit”. If changes are needed, click “Cancel” and update. 

Step 6: Fill in the KYC details. Choose between Digital Supported KYC or Normal KYC validation. An authentication code will be generated. 

Step 7. A unique request number will be generated for tracking. Form 16-Part A can be downloaded when the status is 'Available'. 

Step 8. Download Form 16 Part-A from the Requested Download section. 

Step 9. Choose your download type based on the number of files needed. 

Step 10. To convert Form 16-Part A into PDF, download the PDF converter utility 1.4L. 

Step 11.Run the PDF converter utility 1.4L setup to generate the PDF of Form 16-Part A.

Form 16 Part B  Download 

Step 1  Visit the TRACES website at https://www.tdscpc.gov.in.

Step 2   Register an account if you are a new user.

Step 3   Your PAN number will serve as your username after a successful registration.

Step 4   Check your email for an account activation link.

Step 5   Log in to TRACES with your PAN and chosen password.

Step 6   In the download section, select "Form 16B for Buyer."

Step 7   Enter the necessary details to generate Form 16B.

Step 8   Download and print Form 16B after it appears in the Downloads section.

Step 9   Sign the form and give it to the buyer.

Step 10  The buyer can check their Form 26AS for a summary of TDS deductions.

Form 16 Types

Form 16A and Form 16 are Tax Deducted at Source (TDS) certificates. Form 16 is for salary income, while Form 16A is for other incomes. 

Form 16B is a TDS certificate for property purchases over 50 lakhs rupees. It includes details of the buyer, seller, property, and TDS amount. 

Find more information about Form 16A and Form 16B here.

How do I get Form 16?

Form 16 is provided by your employer, typically by June 15th. If not received by then, you can request it. Usually, the HR or accounts department handles this. Even after leaving the job, one can ask for Form 16. 

If Form 16 is not received despite TDS deduction, the Jurisdictional A.O. can be intimated. They can take action, including penalty levy, if the employer is found guilty.

Is filing income tax return mandatory without Form 16?

You can still file your income tax return without Form 16. Here's how: 

  • Collect payslips: Gather all your payslips for the financial year.
  • Determine taxable income: Combine the information from your payslips to compute your taxable income. Consider all salary components and deductions.
  • Check bank statements: Look at your bank statements for other income sources. Add these to your taxable income calculation.

Review Form 26AS: View your Form 26AS via your e-filing account or the Income Tax Department's official site. Ensure the TDS details in Form 26AS align with your computed income details. If not, reach out to the deductor for corrections.

Form 16 Key Points for ITR Filing

  • Check your PAN, personal details, and your employer's TAN and PAN in Form 16.
  • Review Part A for the summary of taxes deducted by your employer as TDS.
  • Ensure Part B shows your salary income and deductions, including any tax-saving deductions and exemptions.
  • Compare tax deductions in your salary with those in Form 16, Form 26AS, and AIS. Report discrepancies to your employer.
  • If you changed jobs in 2022-23, collect Form 16 from all employers and inform your current employer about previous income.

By reviewing Form 16, comparing it with your salary slips, Form 26AS, and AIS, and reporting discrepancies to your employer, you can ensure accurate ITR and avoid issues with the tax department. 

How to Fix Form 16 and Form 26AS Mismatch?

Here's how to correct discrepancies between Form 16 and Form 26AS: 

  1. Inform employer: Let your employer know about the discrepancy and give them the relevant details and paperwork. Request a corrected Form 16.
  2. Work with your employer: Assist your employer with any additional documents or information needed to correct the mismatch.
  3. Update Form 26AS: After your employer issues a revised Form 16, update this information in Form 26AS. This update might take some time.
  4. Verify and reconcile: Check the revised Form 16 and updated Form 26AS to ensure the issues are resolved. The details in both forms should now match.
  5. File tax return: After confirming the correction of the mismatch, file your income tax return using the corrected Form 16 and updated Form 26AS.

Form 26AS vs Form 16

Form 26AS

Form 16

Details of all income tax deducted.

Tax deducted from salary only. Other income details can be included if provided to employer.

Available on Income Tax Department’s site. Based on data from all Deductors.

Provided by your employer.

 

Income Tax Return vs Form 16

No, Form 16 and Income Tax Return are not the same. Form 16 documents your salary income. It's useful if your only income is from salary. You don't need to attach Form 16 to your income tax return.

Filing ITR after changing jobs within the year.

If you switched jobs within a year, you will receive a Form 16 from both employers. The ITR filing will be completed by combining these two forms. However, attention must be paid to ensure that your tax isn't calculated twice considering the basic exemption limit. 

This rule also applies to deductions and allowances. They can only be claimed once, even if displayed in both forms. 

Example: If you worked for company X for 6 months earning Rs. 45,000 per month and then joined company Y earning Rs. 50,000 per month, your salary is Rs. 2,70,000 from X and Rs. 3,00,000 from Y. Both companies will deduct your taxes after considering the basic exemption limit of Rs. 2,50,000. But, when filing your final return, the exemption is only factored in once, hence your tax should be charged on Rs.3,20,000 (Rs. 300000 + 270000 – 250000). 

When you switch jobs in a year, provide the income and TDS details from your previous employer to your new employer using Form 12B.

author

The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

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