Form 16

Form 16 is a document that specifies the details required to file ITR. Form 16 is provided by the employer at the end of the financial year.

Two types of Form 16 :

Form 16A : Shares the summary of tax collected by the employer or organization from the salary of the employee and deposited with the IT department. This form is on behalf of the employee.

Form 16B : It’s a consolidated statement of salary paid, deductions if any, and any other income disclosed by the employer or employee.

Different parts of Form 16 :

The main components of Part A are mentioned below:

• Employer's name and address
• Employer's PAN and TAN
• Employee's PAN
• Details of the tax deducted and deposited on a quarterly basis

Part B : An annexure to the first part of Form 16, Part B has the below-mentioned components:

• Salary breakup (detailed)
• The breakup of the allowances under Section 10 of the Income Tax Act in detail
• Deductions allowed under Chapter VI A of the Income Tax Act
• Any relief under Section 89 of the Income Tax Act.

Form 16 eligibility :

Any individual who is getting a salary is liable to file ITR and get FORM 16 from the employer. In case individuals need not file tax returns, they don't need to submit Form 16. However, employers issue the certificate so that track of their earnings can be maintained.

Benefits of Form 16 :

• Showcases as ‘income from salary’ statements of the individual.
• Helps in filing ITR
• Works as supporting document for issuance of Visa
• Income Proof
• Helps you in keeping a tab on all your tax-saving investments
• Helps in getting a clear picture of payment, refund, and computation

The process to download Form 16 :

• Log on to the official website of the Income Tax Department https://www.incometaxindia.gov.in/Pages/default.aspx
• Under the 'Forms/Download' section, you will find the 'Income Tax Forms' option, click on it.
• Scroll down the page you will see Form 16 Under Frequently Used Forms.
• Next, you will find the 'PDF' and 'Fillable Form' options available under 'Form 16'
• Click on the relevant option.
• After that, you can download the Form 16

Difference between Form 16, Form 16A and Form 16B :

Form 16	Form 16A	Form 16B
Issued by the employer who deducts the TDS.	Issued by the financial institution WHO deducts the TDS.	Issued by the respective buyer to the seller for the deduction of TDS for sale of immovable property.
Issued for tax deducted at source on salary.	Issued for tax deducted at source for any other income except for salary.	Issued for tax deducted at source for the sale of immovable property.
Applicable only to salaried income	Applicable to income earned as interest, commission, dividends, etc.	Applicable to income earned by selling land or building (other than agricultural land)
Issued annually	Issued quarterly	Issued according to the number of transactions
Employees earning Rs.2.5 lakh and above	Individual having an income beyond a certain threshold	On transactions exceeding Rs.50 lakh

How to File ITR with Form 16 :

Certain bits of information required at the time of filing your ITR. These details can be found on Form 16. They include the following:

• Allowances that are exempt under Section 10 of the Income Tax Act
• A breakup of the deductions under Section 16 of the Income Tax Act
• Income from house property provided for TDS
• Income from other sources provided for TDS

Taxable salary :

A breakup of the deductions under Chapter VI-A of the Income Tax Act covering the deductions under Section 80C, Section 80CCC, Section 80CCD (1), Section 80CCD(1B), Section 80CCD (2), Section 80D, and Section 80E of the Income Tax Act

The aggregate of deductible amount under Chapter VI-A of the Income Tax Act covering the deductions under Section 10(a), Section 10(b), Section 10(c), Section 10(d), Section 10(e), Section 10(f), Section 10(g), Section 10(h), Section 10(i), Section 10(j), and Section 10(l) of the Income Tax Act.

Tax deducted at source by the employer :

• Employer's TAN
• Employer's PAN
• Employer's name as well as address
• Present assessment year
• Name and address of the taxpayer

Here are the steps to file ITR with Form 16 :

• Log on to the official Income Tax e-Filing portal by entering your user ID and password.
• Enter your PAN card number as well as other requested information.
• Provide other important details like your date of birth, address mobile number, etc.
• Upon entering all the details, you can submit the income tax return for verification.

Here is the process to file ITR with Form 16 :

Following are the details of Form 16 Allowance Exempt under Section 10 of the Income Tax Act. The breakup of deductions as part of Section 16 of the Income Tax Act.

• Income from house property provided for TDS
• Income from other sources provided for TDS

Taxable salary :

A breakup of the deductions under Chapter VI-A of the Income Tax Act covering the deductions mainly Section 80C, Section 80CCC, Section 80CCD (1), Section 80CCD(1B), Section 80CCD(2), Section 80D and Section 80E of the Income Tax Act

The aggregate of deductible amount under Chapter VI-A of the Income Tax Act covering the deductions mainly Section 10(a), Section 10(b), Section 10(c), Section 10(d), Section 10(e), Section 10(f), Section 10(g), Section 10(h), Section 10(i), Section 10(j), and Section 10(l) of the Income Tax Act

Additional details from Form 16 required for filing your income tax returns :

• Tax deducted at source by the employer
• Employer's TAN
• Employer's PAN
• Employer's name as well as address
• Present assessment year
• Name and address of the taxpayer
• PAN of the taxpayer