Today, we are going to talk about something very which is very important for the taxpayers in India. Yes, we are going to talk about Income Tax Form 16 today. As you might know, Form 16A is issued after the tax has been deducted from the salary and it is issued by the employer at end of financial year.
In this article, we have listed all the possible information about Form 16 including the uses of Form 16 and the ways to get Form 16. So let us now address these questions one by one.
What is Income Tax Form 16?
Like we have mentioned above, Form 16 is a document which is required by you to file the income tax return. This is the proof of the Tax Deduction at the source when you are an employer. Now, there are two types of Form 16. One is the regular Form 16 and the second one is Form 16A. There is a difference between the two and you must not get confused between these.
Also, there are many components in Form 16. Here are the details of all these components of Form 16.
Part A of Form 16 contains the details listed below
- Personal Details
- Employment Period
- PAN and TAN details
- Details of Assessment Year
- Details of Tax Deducted
- Bank Challan
Part B of Form 16 contains the details listed below
- Gross Salary
- Exemptions Claimed under Section 10
- Net Taxable Salary
- Details of Income From Other Source
- Deductions under Section 80C and 80U
- Total Tax on Income
- Tax Paid
What are the uses of Income Tax Form 16?
Here are some of the common uses of Income Tax Form 16.
- Income Tax Form 16 is required to file the income tax return. Now, for example, the tax that you had to pay was Rs. 10,000 after considering all the deductions but you ended up paying Rs 12,000 because you didn’t have your investment documents ready at the time. Now, in this case, you can claim the return of Rs 2000 by filing an income tax return with help of Form 16.
- Form 16 is also accepted as the proof of income. So when you apply for Loan, the financial companies will usually ask you for Form 16 for last 2 or 3 years. This is a standard practice across the country.
- Many times, the form 16 is also requested by the embassies when you apply for the Visa. This helps them in issuing visa by judging your financial health.s
Read Also: How to Pay Income Tax Online in India?
How to obtain Income Tax Form 16?
As per the standard practice, Form 16 is issued by the employer and your employer will share Form 16 after the financial year is over. You can then download the Form 16 from the intranet portal of your company and use it to file an income tax return.
It should be noted that many people believe that they can get the Form 16 from the Traces website but this is not correct. You cannot get Form 16 from Traces website.
If you have any issues in getting Form 16 then you must get in touch with your employer and they will help you with the same.If the employer doesn’t issue the Form 16 then you can also refer to Form 26AS.
These were all the details about Form 16. As mentioned earlier, there is a difference between Form 16 and Form 16A. Do not get confused between the two. The major difference between the two is that Form 16 is issued to the employer after the tax has been deducted from the salary whereas, Form 16A is issued by other institutes when the tax is deducted but the income is not a part of the salary. For example, Form 16A is issued by the banks when the tax is deducted from the interest income.