Form 16: All You Need to Know
Form 16: The Most Important Document for Indian Tax Payers
Form 16 is a crucial document for a salaried employee to file Income Tax returns. It contains all the required documents that salaried employees need to file their ITR. Let us look at all the details you need to know related to Form 16.
What is Form 16?
Form 16 is a document that has a detailed summary of the salary paid to you and the taxes deducted by the employers. It is helpful for you in the ITR process and is also proof that your employer has deposited TDS to the IT department accurately on your behalf.
Form 16: Components
There are two components of Form 16: Part A & Part B
- Part A: This part of Form 16 has details related to your employer - name, PAN, TAN, and address. It will also have your name, PAN, address, quarterly salary paid, and TDS.
- Part B: It includes details like your total taxable salary, allowances, deductions, pension, tax liability, and other details. This part is prepared by your employers.
How do I download Form 16?
If you are wondering how to get Form 16, the steps for it are simple. If you are a salaried employee, you can download Form 16 online, using the below steps:
- Visit the official website of the IT department.
- Go to the 'Forms/Download' section and look for the option 'Income Tax Forms'. Once you see it, click on it.
- Look for Form 16 under the above option. You will see options linked to it - PDF & Fillable Form.
- Select the option that is relevant to you.
- Once you have selected the option, you can download Form 16 on the next screen.
How to check if your Form 16 is authentic?
You must check the authenticity of your Form 16 before filing ITR. Your employer has to sign Form 16 digitally before sending it to you. It is usually done through a Digital Signature Certificate (DSC) of an authorized signatory that could be your CEO, CFO, or HR. It could vary from organization to organization.
There are multiple ways to check the authenticity of Form 16. You can log on to the TRACES website and give your employer's TAN, PAN, Assessment Year, TDS certificate number, and TDS amount deducted as per the certificate and source of income. Below are steps for the same:
- Login to the IT department website using your username and password.
- Navigate to the 'E-file' tab and select 'View 26AS' under the Income Tax Return option.
- You will be redirected to the TRACES website. Once you are there, click on 'View Tax Credit'.
- Then click on 'Verify TDS Certificate' and fill in the required details.
- Select your income source (salary or non-salary) from the drop-down menu and then click on 'Validate'.
- If your Form 16 is valid, the details will be shown on the website.
- If it is not, the website will show that it is fake or invalid. In such cases, contact your employer immediately.
Details required from Form 16 to file ITR
Once you download Form 16 online, you will need to look for the below details in it:
- Taxable salary
- Allowances that are exempt under Section 10
- Under Section 16, check the break up of deductions
- Income from house property reported by an employee and offered for TDS
- Details of the Section 80C deduction
- Income under the head 'Other Sources' offered for TDS
- Refund due or tax payable
How is Form 16 generated?
There is a separate entity that takes care of Form 16 - TDS CPC. It is generated based on quarterly TDS and TCS statement processing. Your employer will raise a request for the same on the TRACES websites.
How can I get Form 16?
You need to get in touch with your employer if you have not received Form 16 this year to file your ITR.
Do all employers need to issue Form 16?
Yes, employers must issue Form 16 for all employees whose tax has been deducted in a financial year. However, if no TDS is deducted, an employer might not issue Form 16 to the employee.