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Form 16- File Your Income Tax Return with Form 16

Updated on October 16, 2019 , 1993 views

Form 16 is the most heard form, especially if you are a salaried person. Form 16 is a certificate issued by an employer validating the fact that TDS (Tax Deduction at Source) has been deducted and deposited with the authorities on behalf of the employee. Let’s understand about form 16 in detail through this article.

What is Form 16?

In simple words, form 16 is an acknowledgement, which states that your deducted tax has been deposited with the Income Tax department. Form 16 is an important document that is issued in accordance with the provisions of Income Tax Act,1961. Form 16 contains the information you need to prepare and file your Income Tax Return. The form is issued annually, usually before 15th June of the next year. It immediately follows the financial year in which tax is deducted.

Understanding Form 16

Form 16 has basically has two components to it- Part A and Part B. In case an employee loses Form 16, a duplicate can be issued by the employer.

Part A

This part of Form 16 is issued by the government. It is generated and downloaded by the employer through the TRACES portal. This form shows quarter-wise details of your tax deposited with the government. If an individual changes the job in one financial year, every employer will issue a separate Part A of Form 16, for the period of employment.

The details mentioned in Part A are:

Form16A

Part B

Part B of Form 16 is an annexure to Part A. The form contains the breakup of the salary earned by the employee, deductions and exemptions, along with the tax computation after considering all the components on the basis of current tax slab rates.

The details are-

Form16B

Why do you need Form 16?

  • Form 16 is important as it serves as a proof that the government has received the tax deducted by the employer

  • The form helps in the process of filing income Tax Return with the Income Tax Department

  • When you apply for loans, many banks and other financial institutions demand form 16 for verification of the person’s credentials

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Process of Form 16

The last date to deposit the TDS for the month of march is 30th April. The TDS return for the last quarter i.e., Jan to March is to be filed latest by 31st May. As per the process laid by the IT Department, the TDS entries get updated in the department's database once the employer files the TDS return. After the TDS return is filed, it takes 10 to 15 days to reflect the entries in the department’s database.

Then after, your employer downloads the Form-16 and issues it to you.

Where can you get Form 16?

Form 16 is given by your employer. It is a must for an employer to issue Form 16 to the employee in case there is any Tax Deduction at Source.

Form 16 FAQs

1. Will I get Form 16 even if there is no TDS?

Form 16 is issued only when there is tax deducted. The purpose of form 16 is to serve as a proof of tax deducted and deposited on behalf of the employee. If there is no tax deducted, employer is not required to issue Form 16 to the employee.

2. The TDS is deducted but certificate is not issued?

As per The Income Tax, every person who deducts TDS from the salary must furnish a TDS certificate. It is mandatory for an employer to furnish a certificate, in the format of Form 16.

3. How to get Form 16 from previous employer?

As per provisions in the Income Tax Act, it mandatory for an employer to issue Form 16 to the employee if TDS has been deducted from the employee's salary. If you need Form 16 for any previous year, you can ask your employer to issue you the same.

4. Can Income Tax Return be filed without Form 16?

One can still file a tax return even if you don't have a form 16. However, one will need several other documents related to their incomes & expenses like your payslips, Form 26AS, TDS certificates from banks, rent receipts, Tax Saving Investment proofs, travel expense bills, home & education loan certificates, all bank statements etc.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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