Why is Income Tax Form 16 necessary, taxpayers should know this important thing..

Form 16: Form 16 is an essential document for filing income tax returns. Form 16 is used to submit ITR. Employed people require Form 16 to file ITR.

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Companies are required to issue Form 16 to their employees by 15th June of the assessment year for which the income tax return is being filed. Form 16 for the financial year 2023-24 (Assessment Year 2024-25) should be issued by 15 June 2024.

What is Form 16?
Form 16 is a certificate issued under Section 203 of the Income Tax Act 1961. It gives information about the salary earned by an employee and the taxes deducted from his salary by the employer (company). Form 16 decides whether the employer i.e. your company has deposited TDS or not. Form 16 is a certificate which contains all this information.

Earned Income of an Employee
allowance
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Tax paid by employee-
Form 16 Income Return (ITR) file provides TDS and other information about your income. Form 16 is required for filing income tax returns. This helps you accurately report your income and deductions. Income Tax also helps in claiming tax refund.

What is Part A of Form 16?
Part A of Form 16 contains information about TDS deducted in each quarter.

Form 16A

Name and address of employee

Company name and address

PAN of employee

PAN number of the company

Employer's Tax Deduction Account Number (TAN)

Form 16 Part B-
basic salary

house rent allowance

transportation allowance

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This includes information about exemption taken under 80C.

Information about exemption taken under 80CCD

Health insurance premium under section 80D

Exemption under section 80E

Exemption under section 80G

Cess and surcharge information

Download Form 16 Online-
Step 1: Visit the Income Tax Department website- https://www.incometaxindia.gov.in/Pages/default.aspx

Step 2: Go to Form Download.

Step 3: Click on the Income Tax Form tab.

Step 4: Select Form 16 in the frequently used forms. Choose Option

Step 5: Select the financial year for which Form 16 is required.

Step 6: Select PDF option under Form 16. The form will be downloaded in the next window.