Form-16

Form 16

Form 16 – Income Tax

Form 16 is the format which an employer should use for the purpose of issuing an acknowledgement of the TDS withheld on an employee’s salary. Any person responsible for deducting tax at source (TDS) from salary is required to issue this form in the prescribed format to the employee. In this article, we look at Form 16 as described under the Income Tax Act.

TDS Certificates

TDS certificates are issued by persons deducting tax at source (TDS). On deducting tax, a person who deducted tax is required to issue a certificate in the prescribed format to the employee or payee. The prescribed format varies according to the circumstances, as mentioned below:

  • Form 16 is issued for TDS on salary.
  • Form 12BA is a statement of the value of perquisites and profit in lieu of salary.
  • Form 16A is issued for TDS on other income.
  • Form 16B is issued for TDS on purchase of immovable property.

Form 16 Format

Form 16 must be issued in the format specified under the Income Tax Act. Form 16 contains the following information on it:

  • Valid permanent account number of the deductee
  • Valid tax deduction and collection account number (TAN) of the deductor
  • Book identification number or numbers where the deposit of tax deducted is without production of challan, in case of an office of the Government.
  • Challan identification number or numbers in case of payment through bank.
  • Receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of Rule 31A.
  • Receipt numbers of all the relevant¬†quarterly statements in case the statement is for TDS from income chargeable under the head “Salaries”

The format for Form 16 is the following:

Form 16

Due Date for Issuing Form 16

The form must be issued every year on or before the 31st of May for the financial year in which income was paid and tax was deducted. Form 16A must be issued every quarter within 15 days from the date of furnishing the statement of TDS as under:

  • For April – June – 15th August
  • For July – September – 15th November
  • For October – December – 15th February
  • For January – March – 15th April

Part A of Form 16

All tax deductors must issue Part A of Form 16 by generating and downloading the document through TRACES portal. Hence, all tax deductors and employers must have an account on TRACES for deducting tax on salary. Also, if an assessee is employed by more than one employer during a year, then each of the employers can issue Part A of Form 16 for the period employed and Part B may be issued by each of the employers or the last employer at the option of the assessee.

To know about the Vivad se Vishwas scheme introduced by the Government as part of Budget 2020, click here.

Other Related Guides

Form 45 Form 45 - Income Tax Warrant of authorisation under section 132 of the Income -tax Act, 1961, and rule 112(1) of the Income -tax Rules, 1962&nb...
Income Tax Refund Income Tax Refund An income tax refund is an amount returned by the government to a taxpayer. The need to provide a refund arises when the tax liabil...
Income Tax Section 79 Income Tax Section 79 - Set Off and Carry Forward of Losses Section 79 of the Income Tax Act, 1961 deals with the carry forward and set off of losses...
Form 36A Form 36A - Income Tax Form of memorandum of cross-objections to the Appellate Tribunal - IN THE INCOME-TAX APPELLATE TRIBUNAL
Interest on Securities Interest on Securities In income-tax parlance, security is a document possessed by the creditor as a guarantee for the payment indebted to him. Inter...

Post by IndiaFilings

IndiaFilings.com is committed to helping entrepreneurs and small business owners start, manage and grow their business with peace of mind at an affordable price. Our aim is to educate the entrepreneur on the legal and regulatory requirements and be a partner throughout the entire business life cycle, offering support to the company at every stage to make sure they are compliant and continually growing.