As the financial year 2023-24 comes to a close, salaried taxpayers must focus on completing their income tax returns. A critical document in this process is Form 16, a certificate issued by employers under Section 203 of the Income-tax Act, 1961. This form provides a detailed record of the tax deducted at source (TDS) from an employee’s salary and deposited with the government.
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What is Form 16?
Form 16 is divided into two parts:
Part A includes details of quarterly TDS deductions:
–Names and addresses of both the employer and employee
–PAN (Permanent Account Number) of the employee and TAN (Tax Deduction and Collection Account Number) of the employer.
–The period for which tax was calculated
–A summary of salary paid and TDS deducted
Part B provides a comprehensive breakdown of the salary and tax details:
–Gross salary details, including allowances and perquisites
–Exemptions claimed under various sections of the Income-tax Act
–Any deductions under Chapter VI-A, such as those in Section 80C and 80D
–Relief under Section 89, if applicable
–The tax regime opted for (old or new)
Read More: 10 steps to check your Income Tax Refund status on Income Tax Portal
Why is Form 16 Important?
The Form 16 is crucial for accurate tax filing as it consolidates all the necessary details about salary and tax deductions. It helps ensure that all income and deductions are properly accounted for, minimising the risk of discrepancies in tax returns.
How to Download Form 16?
Taxpayers can download Form 16 from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website or through their employer’s portal.
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Here are the steps to follow:
–Visit the TRACES Website: Go to TRACES.
–Login or Register: Use your PAN as the User ID. Complete the registration process if you are a new user.
–Navigate to Downloads: Select ‘Form 16’ under the ‘Downloads’ tab.
–Choose Type and Financial Year: Specify whether you need Part A or Part B, and select the relevant financial year.
–Verify Details: Confirm your PAN and other required information.
–Submit Request: Enter the TDS details (receipt number, date, and amount) and submit.
Retrieve Form 16: Download the certificate from the ‘Downloads’ section once available.
