Form 16 is a certificate that employers issue to their employees. It is a validation that the TDS has been deducted and deposited with the government authorities on behalf of the employee of the organization.
Form 16 gives a detailed summary of the salary paid to the employees and the deducted TDS. TDS Form 16 contains all the information that an individual needs to prepare and file the income tax return.
The employers are required to issue a Salary TDS certificate every year on or before the 15th of June of the coming year immediately after the financial year in which the tax is deducted. There are two components of Form 16 Part A and Part B. If an individual loses Form 16 he can request a duplicate Form from the employer.
IndiaFilings can help you manage TDS compliance online. Our TDS experts will help you file all the TDS returns pay any overdue TDS deposits and also the issuance of Form 16 to the employees.
It provides the details of the TDS that is deducted and deposited. This form can be generated by the employers through the TRACES portal.
The employer must verify the contents before issuing the certificate. Here are a few components of Part A of the salary TDS certificate.
It is an annexure to Part A, Part B is prepared by the employer for its employees and it contains details of the breakup of the salary deductions approved under Chapter VI-A. In case of a job change in one financial year, Form 16 should be obtained by both employers. Some of the components of Part B are:
TDS is calculated on the income tax rates that are prescribed for the financial year in which the payment of the employee is made. An individual responsible for paying the taxes can increase or decrease the amount that is deducted based on any adjustments in the previous deficiency or excess deduction.
The total amount of the TDs will be determined by the following elements:
|Exemption Limit||Leave Encashment||Notified Allowances|
|House rate allowance||Perquisites||Donation by employees under 80G|
|Other deductions||Bonus or incentives||Estimated Salary|
If an individual is employed by more than one employer during a financial year then tax will be deducted on the aggregate salary by one of the employers as chosen by the employee by submitting information in Form 12B.
Thus if an employee has more than one employer in a financial year then he is required to furnish information in Form 12 B to one of the employers. Once Form 12B is submitted it becomes an obligation for the employer to deduct TDS.
The deducted tax from the employees' salary should be deposited by the employer along with an income tax challan ITNS 281 on or before the 7th of every month for the previous month.
Recently, from 2008 all the corporate assessees and assessees are subject to tax audit are required to make all the TDS payment online through an internet banking facility.
An assessee can also make payment of taxes from the account of any other person. However, the challan for making should indicate the PAN of the assessee on whose behalf the payment is made.
TDS return must be filed with the Government every quarter as follows:
|Quarter||The due date for filing TDS return|
|April- May - June||July 31st|
|July- August- September||October 31st|
|October - November - March||January 31st|
|January - February - March||May 31st|
In the TDS return filed by employers on May 31st, various details about the employee must be furnished by the employer along with details of TDS deducted and deposited. Annexure-II of the TDS return has various data-points and must be prepared carefully by the HR and Accountant of the business.
After the TDS returns are filed by the employer, the Government would issue TDS certificates to the employer - which in turn is provided to the employees.
Form 16A provides details about TDS from salary. Form 16B provides details of TDS Other than salary, Form 16C for TDS under Section 194-IB, Form 16A for TDS from other than salary, and Form 27D for TCS.
The due date for issuance of Form 16 is on or before June 15th of the financial year immediately following the financial year in which the tax is deducted. In the case of Form 16A, the same should be issued every quarter.
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Last updated: Apr 19, 2023
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Form 16 Issuance FAQ's
Is it mandatory to file Form 16 for employees?
What is the importance of Form 16?
How much will be required to obtain Form 16?
What if the employer does not give Form 16?
How to download Form 16 for salary?
Is Form 16 available online?
Is Form 16 issued if the TDS is not deducted?
What is the minimum salary to get Form 16?
Is Form 16 necessary while filing a return?
How to check the deductions in Form 16?
How to get Form 16?
How to file returns if I don't have a Form 16?
In case there is no TDS then is the employer required to issue a Form 16?
What if the employer has deducted the TDS and not issued Form 16?
What happens if Form 16 is not filed correctly?
Is there any difference between Form 16 and an income tax return?
Is Form 16 different from Form 60?