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All about Form 16



All salaried employees have to file their income-tax returns by July 31. For tax calculations, it is necessary to have form 16, issued by your employer. Form 16 has details of the tax deducted and the branch of the bank where it is deposited into the central government account. For example, if a TDS of . 2,000 was deduced from your April salary, form 16 will have its gives. Form 16 is the final certificate issued by your employer giving details of the salary you have earned and the tax deducted on your behalf and paid to the government. It is given at the end of the financial year, generally by April 30. If there has been no TDS on your salary, you just get a salary certificate and not the Form 16.

Form 16a And Form 16:

If you are not a salaried employee and work as a professional for an organisation earning fees, then the certificate that shows TDS details deducted while making payments to you is called Form 16A.

What If You Have Changed Jobs?

At the end of the year, you need to collect the Form 16 from both your employers as that is the basis on which you would file your returns. When you join a new organisation, you should furnish your TDS details from the previous employer to your current employer. This will help your current employer in deducting tax accordingly. If you do not mention your previous organization details to your new employer, then you are liable to show the total income from both employees and calculate your tax liability accordingly.

What If You Cannot Get Form 16 From My Previous Employer?

Your best option then is to fill Form 12B and submit it to your new employer. The employer will take into account the previous salary you earned while deducting tax.

Do You Have To Attach Form 16 With It Returns?

As per the IT department, it is not necessary to attach the original form 16 with your income-tax returns. However, in your interest, you could attach a photo copy of form 16, while retaining the original with you.

What Other Particulars Should Be Checked In Form 16?

The first thing you need to confirm in Form 16 is the PAN number. If it is wrong, you have to ask your employer to rectify it and give you a new Form 16. Besides this, the employer needs to make correction at their end by filing revised return of TDS to credit the TDS proceeds to the correct PAN number.

What If There Is An Error In Figures In Form 16?

You need to tally the figures in Form 16 with the tax declaration statement provided by you to your organisation 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 some bills. If there is an error by the employer, you could request them to rectify it and issue a revised Form 16. If a higher tax has been deducted, you can claim a tax refund while filing your returns.

 

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