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 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:
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:
Form 16 Eligibility Criteria
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:
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.
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:
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)
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 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:
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
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:
Form 26AS vs 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.