Form 16 is important for ITR filing as it is a TDS certificate issued by the employer with all the details of the tax deductions for a salaried taxpayer.
As the deadline to file Income Tax Return (ITR) is approaching for AY 2023-24, it’s important for the taxpayers to keep all the documents ready to avoid any last minute hassle. Form 16 is an important document for salaried individuals to file ITR.
Read More: Last date! Advance income tax payment deadline today: A step-by-step guide on how to do it online
The form contains details of income and tax deductions in the previous financial year of a salaried employee. Form 16 is an annual certificate issued by the employer providing information regarding the tax deducted from the salary of an employee. It is necessary to be issued by an employer on or before June 15 of the assessment year (AY).
The deadline for salaried individuals to file Income Tax Return is July 31, 2023.
Importance of Form 16
It’s important for the employees to check all the details regarding salary and tax deducted at source (TDS) after receiving the Form 16 to avoid any discrepancy.
The form is divided into two parts: Part A and Part B.
Read More: Income Tax Return: ITR-3 Form Available For Download Now; Check Details Here
Part A contains details about the monthly deductions of tax made by the employer from the salaries of the employee and deposits made with the government, along with the details like PAN, address for both employer and the employee.
Part B is the most important section for a salaried individual because it helps them file their I-T Return. It contains all the details about the employer, any other income, total salary paid, and deductions allowed under various sections of Income Tax Act, 1961. In the event of a job switch during the same financial year, a taxpayer must obtain a separate Form 16 from each employer. It also mentions in Part B if the taxpayer is opting for the new regime or the older regime.
As per Section 203 of the Income Tax Act, companies are bound to furnish Form 16 to their employees, encompassing comprehensive information about TDS deductions made.
Read More: ITR Checklist: Keep These Documents Ready for Income Tax Return Filing
Download Form 16 from TRACES.
One can download Form 16 from the Income Tax TRACES portal by following the steps mentioned below. Visit www.tdscpc.gov.in.
- Login to TRACES and enter the user ID, password, PAN, and captcha.
- Navigate towards the downloads from the dashboard and get Form 16.
- Select the financial year and PAN after downloading the form.
