Form-16

Form 16 provides a thorough breakdown of the salaries given to the employees and the TDS that was withheld. TDS All the information required to complete and submit an income tax return is contained on Form 16.

Employers give Form 16 certificates to their staff members. It verifies that the TDS was taken out and deposited with the government on behalf of the organization's employees. Form 16 provides a thorough breakdown of the salaries given to the employees and the TDS that was withheld. TDS All the information required to complete and submit an income tax return is contained on Form 16. Immediately following the fiscal year in which the tax is deducted, on or before June 15 of each year, employers are required to submit a pay TDS certificate.

Form 16 consists of two parts:
Part A of Form 16 :

It gives information about the TDS that is withheld and deposited. With the TRACES interface, the employer can produce this form.

Before granting the certificate, the employer is required to check its contents. The parts of Part A of the pay TDS certificate are listed below

• Name and address of the employer
• Employer's TAN and PAN
• PAN of the employee
• summary of tax deducted and deposited quarterly, which is certified by the employer.

Here is the list of deductions:

• Deduction for life insurance premium paid, contribution to PPF, etc. under Section 80C
• Deduction for contributions to pension funds under Section 80CC
• Deduction for an employee's contribution to a pension scheme under Section 80CCD(1)
• A deduction is allowed for the taxpayer's self-contribution to a notified pension scheme under Section 80CCD(1B).
• Deduction for the employer's contribution to a pension scheme under Section 80CCD(2)
• Deduction for health insurance premiums paid under Section 80D
• Deduction for interest paid on loans taken for higher education under Section 80E
• Deduction for donations made under Section 80G
• Deduction for interest income on a savings account under Section 80TTA

Part B of Form 16 :

It is a part of Part A's annexure. The employer prepares Part B for its employees, which includes information on the breakdown of the salary deductions authorised by Chapter VI-A. Both employers should obtain Form 16 if a change in employment occurs within one fiscal year. The following are some of the parts in Part B:

• Salary breakdown in detail
• Detailed breakup of exempted allowances under Section 10
• Deductions that are allowed under the Income Tax Act (under Chapter VIA)

Wage Tax Withheld :

The government will provide TDS certificates to the employer after receiving the employer's TDS returns, and the employees will then receive these certificates.

Information on TDS from salary is detailed in Form 16A. The TDS is described in detail in Form 16B. Form 16A for TDS from sources other than salary, Form 16C for TDS under Section 194-IB, and Form 27D for TCS.

Form 16 must be issued no later than June 15th of the financial year that comes after the financial year in which the tax is deducted. The same Form 16A should be distributed each quarter.