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income tax return: Form 16 is an annual certificate issued by companies. It contains information about the employee's income and tax. This is important for all the salaried class because how much annual income was earned, how much tax was deducted and from which section you saved tax, all this information is available from Form 16. The company releases it on or before June 15. assessment year. If you have worked at multiple places in a financial year, you will have to take separate Form 16 from each company. Let us tell you all the important things related to Form 16.
Why is Form 16 so important?
While filing taxes, you must provide Form 16 as definitive proof of your income and taxes paid. Apart from this, this form works as income proof for you. While taking a loan, you can give it to the bank or other financial institution as proof of your income. Through Form 16, you also get accurate information about whether the tax paid by you is correct or not.
The form has two parts
Form 16 has two parts, Form 16 Part A and Part B. Part A contains the TAN of the institution, PAN of the institution and employee, address, assessment year, period of employment and brief details of TDS deposited to the government. Whereas in Part B, information about salary breakup like basic salary, house rent allowance, provident fund contribution, TDS, professional tax etc. is recorded. There is information about tax exemptions like HRA, medical allowance and other allowances etc. Further, any exemption claimed under Chapter VI A of the Income Tax Act, 1961 or paid to the tax fund is recorded along with information about the amount of tax fund and tax payable. Refunds.
It is mandatory for companies to issue
Under the Income Tax Act, 1961, it is mandatory for a company to issue Form 16 to employees whose annual income is more than ₹ 2.5 lakh. If the company does not issue Form 16, it may be fined. Under Section 272 of the Income Tax Act, a fine of Rs 100 can be imposed per day.
download from here
To download Form 16, visit www.tdscpc.gov.in.
Log in to TRACES and enter User ID, Password, PAN and Captcha.
From the dashboard, go to Downloads and go to Form 16.
After downloading the form select the financial year and PAN. You will get Form 16.