Form 16 : TDS Certificate issued by Employer

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Hiral Vakil

Form 16
Form 16A
Form 16B
TDS Certificate

Employers issue Form 16, TDS certificate to employees every year. Due date to issue Form 16 is 15th June.

What is Form 16?

Form 16 is a certificate of TDS on salary. It contains details of income earned and the taxes deducted.

15th August 2020
The due date to issue Form 16 by employer to an employee for FY 2019-20
15th August 2020
The due date to issue Form 16 by employer to an employee for FY 2019-20

It is divided into two parts: Part-A and Part-B. The employer can download Form 16 Part A and Part B from their account on TRACES.

It is easier to file your Income Tax Return using Form 16. You can simply upload it on Quicko and ITR will be prepared automatically.

Upload Form 16
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Upload Form 16

File ITR Online

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Other important income tax documents include Form 26ASForm 12BBForm 10BA, and Form 15G/15H.

Form 16 – Part A

It contains details of TDS deducted by an employer. Part-A is generated by TRACES.

Part A includes the following details:

Sample Form 16 – Part A

Form-16-Part A_Sample

Form 16 – Part B

Form 16 Part-B is an annexure containing details of Income Chargeable under the head of ‘Salary’. Salary breakdown includes allowances, perquisites, bonus, income tax deductions, Taxable Income, Taxes, and TDS. From FY 2018-19 Part-B should be issued in a standardized format.

Sample Form 16 – Part B

Form-16-Part-B_Sample
Download Form 16 PDF from the Income Tax Department
ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
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ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
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Salary Breakdown

Gross Salary

Gross salary is the employee’s total remuneration. It includes basic salary, allowances, overtime, bonus and any other amounts before any deduction made.

How to file ITR with Multiple Form 16?
Taxpayer needs to take into account both the Form 16 while filing ITR.
Read More
How to file ITR with Multiple Form 16?
Taxpayer needs to take into account both the Form 16 while filing ITR.
Read More

Allowances u/s 10

Additional compensation received by employees over and above their salary is Allowances. Employers give allowances to their employees to help them meet certain particular requirements. Some of the common allowances include:

Deductions u/s 16

Tax deductions are subtracted from taxable income (adjusted gross income). An employee is eligible to claim these deductions based on the investments made and expenses incurred during the year. These deductions help reduce the overall tax liability. Some of the most commonly used deductions u/s 16 are:

Total Income from Salary

Total Taxable Salary is after deducting the allowances u/s 10 and claiming deductions u/s 16.

Other Income

Other Incomes under this Form include:

Chapter VI-A Deductions

Total Taxable Income

It includes the total income earned from salary, house property and other sources, after claiming all the exempt allowances and deductions during the financial year.

Net Tax Payable

Net Income: Tax deducted on income at the slab rate. Tax includes Income Tax, Surcharge, Health & Education Cess, Interest Penalties, etc.

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
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Tax Payable: Tax calculated at Slab Rate on Net Income. Surcharge and
Health & Education Cess is levied on it. Rebate u/s 87A and Relief u/s 89 are given based on total income earned by an employee.

FAQs

Which ITR should I file if I have multiple Form 16?

You can file ITR-1. Any individual who earns only salary income can file ITR-1.

What if my employer has not provided me with a Form-16?

If your employer has not provided you with a Form 16, no need to worry. You can always download Form 26AS from the income tax e-Filing website to check TDS credit. And you can use salary slips to determine taxable salary income.

How to download Form-16 online?

A salaried individual cannot download his/her Form 16. It can only be downloaded by the deductor (employer) from his TRACES account.

Can I claim the deductions which are not shown in Form 16?

Yes, you can claim deductions that are not shown in the form while filing your ITR. But make sure to keep supporting documents with you for future reference.

Can I file ITR with multiple Form 16 with Quicko?

If someone has switched jobs during the year, he’ll have multiple Form-16. You need not worry. Just upload one, save it and add another. Quicko will add up all your salaries and deductions from multiple Form-16s.

Can an employer issue Form 16, if no TDS is deducted on salary?

Yes, an employer can still issue Form­ 16 to you. An employer will not issue Form 16 Part-A since no tax is deducted at source. However, your employer can issue Form 16 Part-B which is a salary statement.

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