Form 16 is one of the most important forms for salaried employees, it contains all the information regarding the salary paid and the tax deducted.
Form 16 is divided into 2 sub-parts, both equally important, which are given below:-
Part A of Form 16 gives the summary of tax collected by the employer from an employee’s salary on his/her behalf and deposited with the government. It is a certificate of guarantee that is signed by the employer effectively declaring he/she has already deposited the TDS deducted from employee’s salary.
Part A of Form 16 contains the following details that need to be filled:
This part of Form 16 is generated through the Traces portal of Income Tax Department. Apart from what is mentioned above, it also provides the BSR code of the bank from which payments are done, challan numbers and other specific details for future reference.
It is required that Part A should be signed by the deductor manually or digitally.
Part B of Form 16 is concerned with the statements regarding salary paid, any other income as disclosed by the employee to the employer and things like the amount of tax paid and tax due. This part of Form 16 presents the above-mentioned information is a comprehensive and orderly manner, declaring income earned by the employee with the various exemptions and allowances applicable in a specific format as referred.
Like Form 16, Form 16-A is also a TDS certificate, but it is a TDS certificate for TDS deducted on income other than salary. This certificate includes details such as TDS deducted by your bank on income earned from interest rates on fixed deposits, TDS earned on rent income, TDS on insurance commission and any other income which is liable for such deduction. Form 16-A provides comprehensive details on TDS deducted and deposited on such incomes. Similar to Form 16, Form 16-A also contains the name, address of deductor and deductee, PAN details, TAN details of the deductor, as well as Challan receipts of TDS deposited on these incomes.
Like Form 16-A and Form 16, Form 16-B is another TDS certificate, this one is concerned with the TDS deducted on sales of property and reflects TDS amount deducted on the property is deposited by the buyer with the Income Tax Department. The buyer has to deduct a 1% TDS on the immovable property purchased from the seller and submit it to the income tax department and then later generate and provide Form 16-B to the seller. Form 16-B is proof that TDS on sales of the property has been deposited with the Government.
Form 16 Part B is manually generated by the deductor and issued to the deductee post due verification and authentication along with the Part-A of form B
Generating Digitally Form 16 from Smart Form 16 Software
Although Form 16 is not required while filing Income Tax, it is recommended that employees preserve it for at least 6 years from the date of issuing.
Ans. In case you are not a salaried employee and work for an organization on a contractual basis, you will receive Form 16-A based on the services rendered and the form will show the TDS deducted on payments made to you.
The basic difference between Form 16 and Form 16-A is that Form 16 is rendered exclusively for salaried employees while Form 16-A is rendered for all other sources of income except those related to buying and selling of immovable property.
The responsibility of deducting and submitting TDS is the task of an employer if in case the organization fails to do so in time, they are charged Rs.100 per day of default as per Section 272(A).
If after multiple requests the organization fails to issue the certificate, the employee should immediately contact the Assessing Officer. The Assessing Officer will take the remedial action taking TDS as not submitted.
The Income Tax Department states that it is not necessary to attach Form 16 while filling out your income tax, however, in your own interest, you can attach a photocopy of the same while retaining the original document for a recommended time of at least 6 years after the day it was issued to you.
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