{"id":5418,"date":"2020-08-27T11:10:00","date_gmt":"2020-08-27T05:40:00","guid":{"rendered":"http:\/\/www.financialhospital.in\/blog\/?p=5418"},"modified":"2021-08-23T12:24:36","modified_gmt":"2021-08-23T06:54:36","slug":"what-is-form-16-upload-form-16-and-file-income-tax-return","status":"publish","type":"post","link":"https:\/\/blog.fintoo.in\/blog\/what-is-form-16-upload-form-16-and-file-income-tax-return\/","title":{"rendered":"What Is Form 16?"},"content":{"rendered":"\n

Form 16 is the most important document for which any salaried individual waits for. This document is issued by the employer mostly till 31st May for previous financial year. Being a valuable document for return filing for any salaried individual, I<\/span>t is very easy to understand and this article will give you insights on the same. <\/span><\/p>\n\n\n\n

What is Form 16?<\/h3>\n\n\n\n

Form 16 is nothing but TDS Certificate issued by the employer summing up TDS deducted on salary and perquisites as received by the employee for the year. i<\/span>t must be issued by the employer if he has deducted TDS on salary. It is required to be issued on or before 31st May of the next financial year in which TDS is deducted.<\/span>

Must Read: <\/strong>Saving Tax On Long Term Capital Gain – Fintoo Blog<\/a><\/p>\n\n\n\n

Understanding Form 16<\/h3>\n\n\n\n

Form 16 is divided into two parts which are part A and part B. Let\u2019s understand these parts in detail.<\/span><\/p>\n\n\n\n

Part A of Form 16<\/h4>\n\n\n\n

This part contains following details<\/p>\n\n\n\n

  1. Name and address of the employer <\/span><\/li>
  2. Name and address of the employee<\/span><\/li>
  3. PAN of the deductor <\/span><\/li>
  4. TAN of the deductor <\/span><\/li>
  5. PAN of the employee<\/span><\/li>
  6. Assessment Year <\/span><\/li>
  7. Period for which the TDS certificate is issued<\/span><\/li>
  8. Income Tax Circle \/ Ward\/ Office for TDS as applicable to the employer\u2019s TAN<\/span><\/li>
  9. Unique serial number of TDS Certificate <\/span><\/li>
  10. Summary of tax deducted and deposited along with amount deposited and respective receipt number of TDS returns.<\/span><\/li><\/ol>\n\n\n\n

    Part B of Form 16<\/h4>\n\n\n\n

    Part B of Form 16 is the most important part which will display each vital part of salary and perquisites and contains following details<\/span><\/p>\n\n\n\n

    1. Gross Salary <\/span><\/li>
    2. Exempt Allowances <\/span><\/li>
    3. Income Chargeable under the Head Salaries <\/span><\/li>
    4. Any other income reported by the employee (interest on housing loan is also considered here as negative income which will reduce the salary income)<\/span><\/li>
    5. Gross Total Income <\/span><\/li>
    6. Deductions under section chapter VI-A (section 80C, 80D etc.)<\/span><\/li>
    7. Total Income<\/span><\/li>
    8. Tax payable on total income <\/span><\/li>
    9. Relief from tax payable (under section 89 etc.)<\/span><\/li>
    10. TDS deducted <\/span><\/li>
    11. Net Tax payable or refundable<\/span><\/li><\/ol>\n\n\n\n

      Points to be noted<\/h4>\n\n\n\n