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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.

 

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