Form 16 is a form that firms give to their workforce. It verifies that TDS has been collected and remitted on behalf of the individual with the appropriate authorities. We’ll show you how to analyze this form throughout this section.
Form 16 is an employer-issued certificate that holds the data you’ll have to compile and submit your tax return. Companies should provide it before the date 15th of June of the subsequent year, directly following the economic year in which the tax is withheld. Part A and Part B are the two halves of Form 16. If you misplace this form, then you can ask your company for a replica.
Form 16A- Employees can ask their employees for Form 16A. Form-16A contains various details about the employee and the employer. These details include:
Form 16 B- This part of Form 16 includes a breakdown of how your tax was computed considering all the investment declaration you have made. It also includes additional details such as:
This application is mainly produced by your deductor, and it indicates the total income and total income taxes collected for the current fiscal year from other income sources other than your wage. You can obtain Form 16A by visiting the Income Tax Department’s online website. The form is accessible in PDF and fillable form formats on their web page.
Form 16A is necessary once you register your annual income tax returns with the IRS and have earnings from means other than your pay that has tax imposed on individuals (TDS). When you submit an application of any sort, such as a house loan, consumer loan, auto loan, or personal loan, many banks and commercial institutions use this documentation as part of their authentication process.
Form 16 acts as a proof that the employee and the employer has deposited the TDS amount with the Central Government. Along with this benefit there are so many benefits of this form:
It is necessary for employers to issue Form 16 for any tax deductions done at source. If you have Form 16 you can
As per law, all the employers are required to provide Form 16 to their employees in case tax has been deducted at the source. You can ask your employer to issue Form 16. You can also check if the employer has deposited in Central Bank TDS account.
If the employer has not submitted the TDS amount you can your TDS and claim that amount later from your employer.
If the employer has deposited the TDS but has not provided Form 16 you have to go back to previous step. Though it is a tedious tax but still you have to do so in order to fill returns on time.
It is necessary to file Income Tax returns otherwise you have to face several consequences.
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