What is Form
16:
If you are salaried employee in an
organization, then you will get the salary after deducting tax by the employer.
Therefore Form 16 is a certificate issued to you by your
employer stating the Personal details of the Employee including Name, Permanent
Account Number (PAN) etc , details of the salary you have earned, Perquisites
that has been offered, allowances given , details of Chapter VIA deductions and
the tax deducted on your salary by your Employer and paid to the government. It
also has Employer details like Name, permanent account number PAN, TAN etc.
Download Form 16 Part A&B and Part B for Assessment Year 2016-17[ This Excel utility can prepare one by one Form 16 Part A&B and Part B for F.Y.2015-16]
Download Master of Form 16 Part A&B for Assessment Year 2016-17[ This Excel utility can prepare at a time 50 employees Form 16 Part A&B for F.Y.2015-16]
Download Master of Form 16 Part A&B for Assessment Year 2016-17[ This Excel utility can prepare at a time 100 employees Form 16 Part A&B for F.Y.2015-16]
This is the basic document which is required by
the employee to file income tax returns because Form-16 contains income
chargeable under the head “Salaries” which is the taxable salary. The same
needs to be indicated in Income Tax Returns.
Form 16 has 2 parts – Part
A and Part B.
Part A has TAN (tax deduction & collection
account number) of the employer & PAN (permanent account number) details of
both the employer and employee. The name
and address of
employer and employee is also mentioned. It also mentions the assessment year and provide summary of tax
deducted from your income and deposited to the government as per the quarterly
TDS return filed by the employer. A monthly detail of TDS deducted and
deposited is also certified.
Download Master of Form 16 Part B which can prepare at a time 100 employees Form 16 Part B for F.Y.2015-16
Download Master of Form 16 Part B which can prepare at a time 50 employees Form 16 Part B for F.Y.2015-16
Part B is an important part of your Form 16 since it has a consolidated detail of
salary paid to you during the year. The breakup of your salary as well as
detail of deduction claimed by you under section 80 of the income tax act is
mentioned. Deductions under Chapter VIA include details of amounts claimed
under Section 80C for EPF, PPF, NSC, life insurance premium or Section 80D for
health insurance, Section 80G for donations made are all mentioned here. It
also shows your total taxable income and tax deducted on such income.
Necessity of Form 16 In Filing Income Tax Return: Form 16 is necessary to file an income tax
return in India
because Firstly, Form 16 acts as a checker for you to verify
whether your employer has deposited the whole amount of TDS that he may have
deducted from your salary. Secondly, it will enable you to file Income tax
return disclosing the correct taxable salary income and various deductions from
your salary like EPF, Profession tax and TDS.
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Employer Obligation to provide Form 16 :- Further, it is the obligation
of the employer to provide a Form
16 to all employees by 31 May of
the assessment year (AY), if TDS has been deducted ,
In case no TDS has been deducted by the employer they may not issue you a Form 16.The employer can be liable to
pay a penalty of Rs. 100 for each day by which he delays issuance of this certificate,
also if you have been employed under more than one employer during the year,
each of your employers will provide you a Form
16.
Filing of Income Tax Return without Form16:- Even if Form 16 has not been issued you cannot escape
from the liability to file Income Tax Return , therefore to file income tax
return without Form 16 you need to collect your monthly
salary slip and compute total salary for the year.
Note: The amount credited in your bank statement is after deducting the tax at
source but for reporting in ITR you need to calculate Gross Salary.
An employee receives many types of allowances in
the form of salary while some allowances such as conveyance allowance, medical
allowance, HRA, etc. are exempt
from income tax
while dearness allowance is completely taxable. Hence, the IT Department allows
you to deduct the exempt allowances from salary to arrive at the figure of
taxable salary.
Since you have not received form 16 from your employer, you must verify
Form 26AS to know about the TAN and TDS deducted by your Employer
If you have other income as well apart from
salary then sum up all the income like Income from renting of House property ,
capital gains from sale of assets , income from other sources like interest on
bank deposits, RDs, FDs etc.
Deduct tax benefit from the above computed
income like investments made under NSC, LIC, tuition
fees, PPF, and repayment of principal of housing loan under section 80C.
Similarly, donations made to charitable institutions can be claimed under section
80G, and payment made towards premium of medical insurance policy can be
claimed in section 80D.
After summing up all income and deducting the
tax benefits , the resultant computation will be taxable income. Now, calculate
income tax on this taxable income using the IT slab rates for financial year
2015-16.
