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What is Form 16

What is Form 16?

Form 16 is a certificate given by an employer that has the details that are required to file the employee’s Income tax return. This acts as a filed Proof for TDS.
Form 16 has two parts, PART-A and PART-B

What is in PART-A of FORM-16?

Part A of the Form has the following details to be filled in:
• Name and address of the employer
• TAN & PAN of employer
• PAN of the employee
• Summary of the amount paid/credited and tax deducted at source thereon in respect of the employee.

What is in PART-B OF FORM 16?

Part B of the Form has is nothing but the Annexure. The following details are to be filled in the Form under PART-B
• Details of Salary paid and Tax deducted with the complete breakup
• Details of the allowance which is exempt under Section 10.
• Details of Deductions under the Income Tax Act under chapter VIA

Niche fields that have to be specified in regards to deductions :

• Details of Deduction for life insurance premium paid, contribution to PPF, etc., under Section 80C
• Details of Deduction for contribution to pension funds under Section 80CCC
• Details of Deduction for employee’s contribution to a pension scheme under Section 80CCD(1)
• Details of Deduction for taxpayer’s self contribution to a notified pension scheme under Section 80CCD(1B)
• Details of Deduction for employer’s contribution to a pension scheme under Section 80CCD(2)
• Details of Deduction for health insurance premium paid under Section 80D
• Details of Deduction for interest paid on loan taken for higher education under Section 80E
• Details of Deduction for donations made under Section 80G
• Details of Deduction for interest income on savings account under Section 80TTA

What to be done when an employee worked with more than one employer?

If an employee has worked with the same employer in that particular financial year, then Form 16 will be issued by the same employer for that financial year.

In case of change of more than one employer during that particular financial year, every employer will issue form-16. An employer has to furnish the details in all the Form-16 Issued. Part B of Form 16 may be issued by each of the employers or the last employer as per the choice of the taxpayer.

Issue of Form-16

As per the Current Rule, Form-16 should be issued on or before June 15 by an employer to employee. Form 16 Is mandatory If TDS has been deducted from an employee’s salary.

What if Form-16 is not issued?

It is important to note that if an employer delays or does not issue Form 16 by the specified date, then they are liable to pay a penalty of Rs 100 per day till the date the default continues. However, the penalty should not exceed the amount of tax deducted.

Please view the Form 16 form from:
https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007849.pdf

Find Your Form16 here:Form_16