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

Retirement planning from a long-term perspective

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds     `HOW green was my valley'. This title comes from a movie I had watched many years ago. A little boy's journey into adulthood and the story of a Welsh valley's turn of-the-century descent from pristine paradise to despoiled coal mining.   I thought of the title because it is comparatively reflective of a person's life ­ the glorious years when he is earning and the sun down years when he is not having his regular job and, hence, his living standards comes down. The reason is a combination of things. Inflation of food items, transport, increase in health related costs in the later years of life and increase in expenses in almost all basic amenities of life. In India, the social security system is almost non-existent. In some states, wherever it is available, the scales of benefits are extremely modest...

CNX Midcap vs BNP Paribas Midcap Fund

BNP Paribas Midcap Fund - Invest Online   Te  performance of BNP Paribas Midcap Fund  – which has across the last 3 years generated superior returns over the benchmark – especially when the markets have gone down the fund has handsomely outperformed the benchmark preserving the capital of the investors. The fund has been able to do this only due to the superior stock selection process ( BMV approach) that is diligently followed at BNPP.   Highlights of BNP Paribas Mid Cap Fund:   Investment Objective : BNP Paribas Mid Cap Fund gives an investor exposure to invest in the various quality midcap stocks. The fund also has some exposure to large as well as small cap stocks.   Investment Approach : BMV ( Quality and scalability of Business →Good Management → Reasonable Valuation ) with Bottom-up stock picking.   Most of the investors are way happier if the fund that they have invested in is a significant Outperformer in tough times than in Good ti...

Investment Strategy - What is Sector Rotation Theory?

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   The economy goes through cycles : it expands for a few years and then contracts. Study of historical data suggests that different sectors tend to perform well on the stock markets during different stages of the economic cycle. While history never repeats itself exactly, some broad patterns tend to recur. Investors can take advantage of the sector rotation theory to move their money from those sectors that have seen their best times to those that are likely to do well in future.   The person who developed the sector rotation theory is Sam Stovall, chief investment strategist at Standard & Poor's. He developed this theory by studying data on economic cycles going as far back as 1854 provided by the National Bureau of Economic Research ( NBER ) of the US.   When trying to correlate stock-market perfor...

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...

Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch this week

The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme ( RGESS ) this week.   Though Finance Minister PChidambaram had approved on September 21, the scheme announced in this year's Budget, and had said that the revenue department will notify the scheme and the Securities and Exchange Board of India ( Sebi ) would issue relevant circulars within two weeks, it is yet to become operational.   A senior finance ministry official said the revenue department was expected to notify the scheme any day now to attract retail investors to the equity segment.   He added that Sebi was not required to issue any circular for the operationalisation of the scheme and that after the issuance of the revenue department's notification, investors would be able to avail of the benefits of the scheme.   The official accepted that implementation of the scheme had been delayed due to the deliberations on inclusion of mutual funds ( MF ) in it.   ...
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