Form 16 - What Is The Meaning Of Form 16 And Its Importance | HRMantra HR Software

Form 16 - What Is The Meaning Of Form 16 And Its Importance | HRMantra HR Software

6-7 minutes 

Form 16 is a certificate, issued under Section 203 of the Income Tax Act, by the employers to their employees. This certificate includes the details of TDS/TCS deduction that is attributable to employees'' salary every month, based on the classification of their tax slabs.

Form 16 is a statement of total salary paid to the employee, tax deducted at source by the employer, and deposited by him with the government.

In this blog, there has been a thorough written explanation about what Form 16 is and procedures related to it, such as the following:

• Where to get Form 16
• How to download
• How to download Form 16 with PAN number
• Online filing of ITR using Form 16
• What is required to bring back Form 16 from the old employer of the candidate?

In fact, Form 16 does not mean anything. It is some certificate being referred to by which break-up can be showcased towards salary income and TDS deducted by employers.

Where to Get Form 16?

Form 16 can be deducted particularly from the official site of the Income Tax Department.

In case of employees, in case they deduct a TDS, one can ask the employer for Form 16 to be issued only once they go ahead and pay the respective TDS to the central government of India.

How to Download Form 16?

In case of an employer, the process of downloading Form 16 PDF through the official website is as follows:

1. Search for the official website of the Income Tax Department
2. Click on ''Menu'' and Select ''Forms/Downloads'' section
3. You will find there ''Income Tax Forms'' option under Forms/Downloads section.
4. Scroll down, and you can see ''Form 16'' under Income Tax Forms.
5. Click on the required option out of ''Form 16'' - ''PDF'' and ''Fillable Form'', as per your need.

Download your Form 16 and attach it while filling out the ITR.

How to Download Form 16 Using PAN Number?

Some of you might be searching for the easiest way of ''how to get Form 16'', so we are here to mention the same. But one document that you need beforehand is your PAN Number.

If you are a salaried employee, at the time of filing ITR, you will need Form 16 to remain in compliance with the statutory deduction laws by your employers.

PAN is a 10-digit alphanumeric number issued by the Income Tax Department of the Govt. of India to any person who applies for it.

This number connects all the transactions of the person with a department that basically includes- tax payments, TDS/TCS credits, returns of income, etc. Thus, PAN acts as an identifier for people with the tax department.

Steps are as follows:

1. Visit the website of TRACES and then log into this website.
2. Now register your PAN/AIN by using the ''Sign up'' into a user ID, and password.
3. And now, get into the ''download'' tab and click over ''Form 16'' option.
4. Choose your year of assessment and afterward, ''Search PAN download'' or ''Bulk PAN download''.
5. Click ''Submit'' when the information reflects on a screen and fill in KYC details.
6. Once you complete your KYC, you will receive a ''reset number'' on your registered mobile number.
7. Track the status of your Form 16 with the reset number and download it when it shows ''available''.
8. Download the form in a format of your choice.

Types of Form 16

While filing your Income Tax Returns, you have to upload any one of the Form 16 as mentioned below. So just to have clarity as to which one to upload, have a look on both of them:

Form 16-A

TDS certificate for TDS on income by way of Salaries.

Form 16-A clears issues, such as TDS deduction by banks from the interest income on fixed deposits, TDS on commissions from insurance, TDS on rental payments, and other incomes that are subjected to such deductions.

Form 16-B

In this case, deduction of TDS is taken at the stage of sale of immovable property.

Form 16-B gives proof for government submission that 1% commissions have been deducted to pay to the seller.

How to file ITR online using Form 16?

Now that you know how to download Form 16, let''s cut to the chase, and fill the mouths of lion. We mean let''s help you with the step-by-step process in submitting your Form 16 while filing ITR.

As per the Income tax laws of Govt of India, the same is supposed to be filed every year for an individual or business whoever earns any income (salary, business profits, income from property, capital gains, and other sources during the financial year).

One is required to file the IT form for the respective category and has to attach and submit the Form 16.

Here, we further provide a step-by-step process for filing the ITR online using Form 16.

Remember: Before filing the ITR form, all important documents should be handy: Form 16, copy of the PAN and Aadhar card, bank statements, and other important documents showing the validity of deductions.

1. Firstly, in case it is the first time you are filing the returns electronically, open the site of the Income Tax Department.
2. Go to e-file section and click ''Prepare and Submit Income Tax Return''.
3. Choose ITR-1 or ITR-2 depending on your income and other criteria and also the AY applicable for the return.
4. Fill in details like personal information, income details, deductions, and tax payments.
5. For the details, fill in the following from Form 16:
   • Section 10 allowances exempt on,
   • Breakup of deductions under section 16,
   • Taxable salary,
   • Income (or admissible loss) from house property by an employee,
   • Income under the head ''Other Sources'' offered for TDS,
   • Breakup of 80C deductions,
   • Amount exempt under Section 10 (10),
   • Tax payable or refund.
6. Upload and Verify All Details Entered in Your ITR form and Cross Verify.
7. E-Verify your ITR form with options such as Aadhar OTP, etc.

Voila! You are Done!

In case you have switched jobs, you would need the particular applicable year-wise Form 16 of every employer to be able to file your ITR, but ''how do I get Form 16 from my previous employer?''

This is to obtain your Form 16, and you do it even before ITR to be filed at mail or a visit to their office.

Conclusion

Empower yourself along with your employees this financial year by sending them the Form 16 even before not just missing the due dates of filing ITR along with other related reports. All this and more—To make your payroll process more simple and for automating other various operations, look at HRMantra!

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