What is Form 16 for Income Tax in India?
For some who just started working or someone who is new to the world of taxes, you might considerably be confused about different tax forms.
So, today let’s have look at what is Form 16.
Form 16 is one of the most common tax-document.
Form 16 is a certificate of TDS on salary. It contains details of income earned and the taxes deducted under the income head “salary”.
Hence, it is issued on deduction of tax by the employer from an employee’s salary and deposit of the same with the government.
Due date to issue Form 16 is extended to 15th August for FY 19–20.
Form 16 is divided into two parts: Part-A and Part-B. The employer can download Form 16 Part A and Part B from their account on TRACES.
It includes the details of TDS deducted by an employer. Part-A is generated by TRACES.
Part A includes the following:
- Details of employee: Name, PAN
- Details of employer: Name, Address, PAN, TAN
- Details of tax: Tax deducted and deposited on the employee’s behalf
Part-B is an appendix which has details of Income Chargeable under the head of ‘Income from Salary’. Broadly, salary includes allowances, perquisites, bonus, income tax deductions, Taxable Income, Taxes, and TDS.
From FY 2018–19 Part-B should be issued in a standardized format.
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