Everything you need to know about Form 16.

Everything you need to know about Form 16 – You need to file your income taxes. If you are salaried, this happens when your employer issues you a certificate called as Form 16. The certificate contains the information that you need to prepare and file your tax returns. This should be given to you by your employer by 15th June of the financial year prior to which the tax is deducted. The form 16 has been divided into two parts – A & B. Incase you misplace your form 16, do not worry. You can always ask your employer for a replacement. 

Everything you need to know about Form 16.

Here’s all that you know, and everything you need to know about Form 16. From Form 16 part A to Form 16 part B, and things to remember when filing your annual return or as a taxpayer:

Form 16 Part A

This section of Form 16 means that can be generated and downloaded by an employer via the TRACES portal (https://www.tdscpc.gov.in/app/login.xhtml). The employer should authenticate the certificate’s contents before granting it. It is crucial to note that if you change jobs within the same fiscal year, each employer will issue a separate Part A of Form 16 for the duration of your employment. 

Part A includes the following components:

  • Employer’s name and address
  • Employer’s TAN and PAN Employee’s PAN
  • Quarterly tax deducted and deposited summary, certified by the employer
Form 16 Part B

Form 16 Part B is an annexure to Form 16 Part A. If you change jobs within a fiscal year, you must determine whether you want Part B of the Form from both employers or only the final one. Part B components that have recently been notified for the fiscal year 2019-20 are as follows:

  • Detailed salary breakdown 
  • A detailed breakdown of exempted allowances under Section 10
  • Deductions permitted by the Income Tax Act (Chapter VIA):
  1. Section 80C deduction for paid life insurance premiums, PPF contributions, etc.
  2. Contributions to pension funds are deductible under Section 80CCC.
  3. Deduction for employee contributions to a pension plan under Section 80CCD (1)
  4. Section 80CCD deduction for taxpayer’s self-contribution to a notified pension scheme (1B)
  5. Employer contribution to a pension program is deductible under Section 80CCD (2)
  6. Section 80D deduction for health insurance premiums paid
  7. Interest paid on loans for higher education is deductible under Section 80E.
  8. Donations made under Section 80G are tax-deductible.

Section 80TTA allows you to deduct interest income from a savings account.

  • Relief under section 89

When filing your return, you will need to provide information from Form 16.

Regarding the graphic below, this is where you may get specific information for preparing your income tax return for the fiscal year 2018-19. (AY 2019-20).

  • Allowances excluded under Section 10 Deductions broken down under Section 16 Taxable Salary Income (or allowable loss) from house property declared by employee offered for TDS Income under the head Other Sources offered for TDS
  • Section 80C Deductions Broken Down Section 80C Deductions Added Together (Gross & Deductible Amount)
  • Taxes Owed or Refunds Owed

You will also need the following information from your Form 16 when filing your annual return:

  • TDS Employer’s TAN Employer’s PAN Employer’s Name and Address Employer’s Current Assessment Year
  • Name and Address of the Taxpayer
  • Your PAN number. Click here to know what is 44AD

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