The requirement of Form 16?
Form 16 is a Salary certificate (or document) issued to salaried employees by their employers after tax is deducted from their salary. It is used by companies to inform their employees about the amount of tax deducted from them and paid to the authorities.
The certificate contains full details of the salary that the company or employer pays to the employee in a particular financial year and the income tax payable which is deducted from the individual's salary by the payer. You can think of form 16 as your salary TDS certificate. In that case, the amount of your salary income for the financial year is Rs. 4,00000/- more than the basic discount per limit.
After 2,50,000, your employer will have to deduct the TDS of your salary and submit it to the government. And if the basic exemption limit of your income does not fit, the employer will not waive any TDS in that case.
You may also, like- Automated Income Tax Revised Form 16 Part A&B which can prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21
Form 16 divided into two parts, Form 16 Part A and Part B. Here, Form 16 Part A contains details of employer and employee such as details of PAN and TAN, name and address, deduction and submission of TDS etc.
Form 16 Part B contains details of other income, exemption permission, arrears of salary, tax payable, etc. Form 16 The deductor issued end of each Financial Year before June 15 of the following year, Also, if you lose Form 16, your employer may issue a duplicate.
Why is Form 16 required?
Form 16 is a very useful document. This form 16 is mainly served the purpose of employees filing their income tax returns. Its components include the tax payable, the expected tax return and it helps in tax planning. This is important when clearing tax. In addition, it is used for the purpose of processing income proof certificates and visas.
You may also, like- Automated Income Tax Revised Form 16 Part A&B which can prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2020-21
It is very important to look for loans and take forward losses. Yes, you must have Form 16 if you are a salaried person who is also a responsible citizen of the country who pays all due taxes on time. For example for employees salaried employees online Form 16 material Form 16 is an important document required to file your ITR that you have to receive this document from your employer. Even if you leave your job, you can claim it from the previous employer.
Form 16 includes this part of the form: Your total salary (with no discounts) including the preconditions you have accepted. All allowances paid to you by the company, be it vehicle allowance, housing rent allowance, etc., are total income under the salary. Form Figure 16 Part A of Form 16 Part B looks like this:
This section will cover the tax benefits you have earned as well as all your investments. Here are some key elements of Part B: Taxable Pay Section 80C Exemption Separation Section 80C Exemption Summary, which contains records of gross and deducted amounts. Tax deduction by source, i.e. TDS tax payable or refundable type of Form 16 although they differ from similar hearing Form 16
Form 16 Part A. In this part of the original Form 16, there are two types of Form 16 - Form 16 Part A and Form 16 Part B.
Let us know more about Form 16 Part A and Form 16 Part B:
Form 16 Part A has been created and downloaded by the employer in Form 16 Part. The employer performs this task through the TRACES PORTAL which is the official TDS website.
You may also, like- Automated Income Tax Revised Form 16Part B which can prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21
This is a very significant part and so, before issuing the certificate, it is cross-checked for authentication purposes, so that the employer can verify the provided materials. One important thing you shouldn’t want to lose is that if you switch jobs in one financial year, each employer under which you worked will publish them in a separate part of the form issued for the total duration of your work.
By now you may be curious about the content of this part. Here are some of the key elements of Section A - Personal details such as employer's name and address TAN and the employer's PAN employee's PAN tax deduction and quarterly deposit summary, which must be certified by the employer Date of tax deduction from salary and date of tax credit (A.Y) - This refers to the year in which the income is being assessed or in other words, the year in which the taxpayer needs to work on the tax return processes.
