Skip to main content

Income Tax: FAQs on Form 16

 

 

 

1 What is Form 16 and how is it different from Form 16A?

As a salaried employee, the salary you get each month is after deduction of tax at source (TDS) by your employer. At the end of the year, the employer hands over a certificate to the employee showing these details. This statement is the Form 16. Your employer should hand it over to you by 30 April each year. In case there hasn't been any TDS from your salary, you just get a salary certificate and not the Form 16. If you get income from any other entity, say interest on a bank fixed deposit; the bank would deduct TDS on the interest before paying you. The certificate that shows TDS details other than for a salaried employee is Form 16A.

2 Do I have to attach Form 16 while filing income tax return?

Although, one is not asked to attach any document along with the IT return form, there is no harm in doing so, but retain the original.

3 In FY 2009-10, I received my salary for nine months from one company and for three months from another. Do I need Form 16 from both employers?

Yes. You need to collect Form 16 from both your employers. And it is always better to furnish your TDS details with the previous employer to your current employer at the time of joining. Employers will issue the Form 16 with complete details of your salary, tax deducted at source and the branch of the bank in which the income tax was deposited. Since both companies must have allowed you the basic exemption while calculating your tax liability, you will, in all probability, be required to pay self-assessment tax while filing your income tax return. You will also have to include income from other sources like bank interest and capital gains, if any. The joining bonus received by you, if any, is fully taxable. File your returns in the form applicable to you on the basis of the heads under which your income falls.

4 I changed my job in June last year. I was unable to file the income tax returns for the financial year 2008-09 as my previous company did not provide me Form 16. Is there any way I can file my returns without Form 16? Can I claim the extra expenses I will incur due to the late filing?

It is compulsory to have the Form 16 to claim tax deducted on the salary paid by your previous employer. If no tax was deducted by your previous employer, you can request them to give you a salary certificate stating the gross salary paid to you during that period and, then, you can file your return. There is no way by which you can claim any expenses on late filing of return as it is your personal obligation and your previous employer will not assume any responsibility on account of the delay. Your previous employer, however, can be fined for late issuance of Form 16 by the income tax authorities.

5 The PAN number mentioned in the Form 16 is wrong. How do I rectify it?

The first thing you need to confirm in the Form 16 is the PAN number. If its wrongly mentioned, it needs to be corrected. Ask your employer to rectify it and send you a new Form 16. Also, your employer needs to make correction at their end through filing revised return of TDS to credit the TDS proceeds into the right PAN number.

6 What if the figures in the Form 16 are wrongly mentioned?

Tally the figures in Form 16 with the tax declaration statement provided to you at the beginning of the year. It's possible that the figures mentioned are either wrong, or not considered at all. The result would be that fewer deductions would have been shown, resulting in higher tax liability. You might not have submitted the proofs of all investments, or could have forgotten to submit the bills. If it's an employer mistake, ask him to rectify it and issue a revised Form 16. While filing the tax return, refund, if any, can be claimed.

 

Popular posts from this blog

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...

ICICI Lombard to provide weather cover in 10 states

ICICI Lombard General Insurance Company has been given the mandate to provide weather-based crop insurance for rabi season (2010-11) in Madhya Pradesh, Bihar,Tamil Nadu, Karnataka, West Bengal, Chhattisgarh, Jharkhand and Himachal Pradesh.    The insurance company will cover 69 districts — 30 loanee districts (farmers who have taken loans) and 39 non-loanee districts. The major crops that ICICI Lombard covers for the season are winter paddy, cotton, wheat, mustard, barley, maize, onion, potato, tomato, lentil, peas, arhar, jowar, fenugreek, coriander, cumin, methi, isabgol, brinjal among other crops.    Weather-based crop insurance provides cover against weather-related risks such as excess or deficit rainfall, variations in temperature and fluctuations in humidity. This scheme facilitates immediate compensation based on certified data collected from independent third party bodies such as Indian Meteorological Department ( IMD ) and National Collateral Management Services Ltd. ( NC...

Mutual Fund Review: Reliance Regular Savings Balanced

Reliance Regular Savings Balanced fund has shown great resilience during market crash After a shaky start, this fund has established itself as a strong contender in this space. In the past three years it has ridden the market well by not only delivering during the market run-ups but also displaying resilience during the crash. In 2008, it witnessed the second lowest fall among its category and last year it was amongst the top three performers with a return of 76 per cent (category average: 61%).   The poor underperformance in 2006 can well be credited to the low equity allocation of the fund, which stood at just over 10 per cent for only four months that year. Though the fund has the leeway to go up to 75 per cent in equity, it has never touched that limit. In fact, it has exceeded 70 per cent in just five months in its entire history. During the crash of 2008, the fund managers had no problem going right down to 54 per cent (equity exposure). Fund managers Omprakash Kukian and A...

Feeder funds are the cheapest way to invest in gold

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   There are four ways to put your money in gold — buying physical gold/jewellery , putting money in gold exchange-traded funds ( ETFs ), investing in a gold savings fund and going for the National Spot Exchange's e-gold. Now, some gold ETFs and e-gold even allow taking physical delivery of gold at the end of investment tenure. That might sound good if you wish to possess physical gold. But, given the firm price of gold today (almost ~31,000 per 10g), it is important that gold is bought through acost-effective avenue. Reason: Investing comes at a price. Add to that, India's gold buying is expected to decline in 2012 and 2013, according to the latest World Gold Council ( WGC )report. WGC Director Vipin Sharma feels gold imports may drop to 800 tonnes from 967 tonnes last year. And the mix between the jeweller...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now