It's that time of year when the Income Tax Department sends you reminders to submit your income tax forms. When submitting your ITR, Form 16 is one of the most popular financial forms you will see. Here's a quick look at Form 16, and how it may help you conveniently submit your ITR.
Form 16 provides all the information you'll need to prepare and submit your tax return. It displays the breakdown of pay income and the amount of TDS deducted by the employer. It is divided into two parts: Part A and Part B.
Employers are required to deliver it by June 15th of the following year, immediately after the fiscal year in which the tax is deducted.
According to the Finance Ministry of the Indian Government, every salaried employee whose salary falls within the taxable limit is eligible for Form 16. However, in some cases, the company is not obligated to provide Form 16 to the employee.
However, many organisations now provide this certificate to employees as a good work practice since it includes a consolidated picture of the individual's earnings and has several extra purposes.
One of the most important forms required for salaried workers to submit taxes is Form 16. It is evidence that TDS has been deposited on the employee's behalf by the employer. It may also be used as evidence of income for loans, immigration applications, and other purposes.
Form 16 Part A is the certificate of tax deduction at source provided by the employer on behalf of the staff. These certificates describe TCS/TDS for several transactions between the deductee and the deductor.
Form 16 Part B verifies that tax on income obtained from the sale of immovable property (land or building) other than agricultural land has been deducted at source. This is because the property buyer has submitted the TDS to the Income Tax authorities.
Despite the fact that this is one of the most crucial income tax forms, don't be concerned if you don't have it. You may still submit your tax return.
Your Form 16 may be obtained from your employer. Even if you are no longer employed, your company will issue you with Form 16.
Anyone in charge of salary payments must deduct TDS before making a payment. The Income Tax Act requires that anyone who deducts TDS from a payment give a certificate outlining the TDS deducted and filed. An employer, in particular, is required to give a Form 16 certificate.
When TDS is deducted, a TDS certificate on Form 16 is given. If your employer has not deducted TDS, he may not provide you with Form 16.
While the employer is responsible for collecting tax from income and supplying Form 16, you are responsible for paying income tax and completing an income tax return. If your total income from all sources exceeds the minimum tax threshold, you must pay tax, whether or not your employer deducted TDS. Even if he does not give you a Form 16, you must submit an income tax return and pay any taxes owed.