What is Form 16?

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Hiral Vakil

Form 16
Form 16A
Form 16B
TDS Certificate

Form 16 is a certificate of TDS on salary. Every employer issues Form 16 to an employee after the end of a Financial year. Employees usually receive it before 15th June of the next financial year. It contains details of income earned and the taxes deducted.

Form 16 is divided into two parts: Part-A and Part-B. The employer can download both the part from his account on TRACES.

How to download Form 16 from TRACES?
Employer can download Form 16 from his account on TRACES after filing TDS Return.
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How to download Form 16 from TRACES?
Employer can download Form 16 from his account on TRACES after filing TDS Return.
Read More

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 from employer HERE
Simply upload form 16 and file ITR in 3 simple steps.
Upload Form 16 from employer HERE
Simply upload form 16 and file ITR in 3 simple steps.

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

Form 16 Part A

Part-A is the certificate of TDS. It contains details of TDS deducted by an employer. Part-A is generated by TRACES. The employer email’s this Form 16 Part A to their employees at the end of each quarter and/or financial year.

Form 16 Part A includes the following details:

Sample Form-16 Part A:

Form-16-Part A_Sample

Form 16 Part B

Part-B is an annexure containing details of Income Chargeable under the head of ‘Salary’. Form 16 in their detailed breakdown of Salary includes allowances, perquisites, bonus, income tax deductions, Taxable Income, Taxes and TDS.

From FY 2018-19 Form 16 Part-B should be issued in a standardized format. An employer can download Form 16 from TRACES.

Sample Form-16 Part B:

Form-16-Part-B_Sample
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1. Salary Breakdown

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

1 b. 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:

1 c. 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:

1 d. Total Income from Salary

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

2. Other Income

Other Incomes under Form 16 include:

3. Chapter VI-A Deductions

4. 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.

4 a. Net Tax Payable

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

Tax Payable: Tax is 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.

Form 16 Changes & How does it affect you? The government has made some major changes regarding Form 16 applicable from FY 2018–19 onward.

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. Form 16 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 Form-16 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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