What is form 16 under income tax Act 1961

What is Form-16?

When it comes to Income Tax and Income Tax Return Form 16 is the most sought-after form. It is basically used by establishments and companies to provide information regarding tax deducted to their salaried employees. Also, form 16 can be used as your TDS (Tax Deduction at Source) certificate.

What is the due date of issuing Form -16?

The form includes the particulars regarding the income of an employee that needs to be furnished when filing the ITR for the last financial year.

According to Income Tax Act the last date for filing TDS returns for an employer is May 31 and form 16 has to be issued latest by June 15, unless the date is extended by government. The last date of issuing form 16 has been extended to 15^th august 2020 due to covid-19.

What are the components of Form-16?

The components of Form-16 are as follows:

• Tax payable balance payable by the employee, refunds in any form to the employee.
• Information about employer like TAN, name, tax deduction, PAN, etc.
• Information regarding tax payment likes Challan number, amount, demand draft number, cheque number, etc.
• Employee’s personal information like name, salary, PAN, etc.
• Acknowledgement on the employer’s end of the number of taxes paid.
• Deducted tax as per section 191A.
• Tax deductions and total income.
• Information regarding deductions, gross salary, perks, net salary and salary.
• Paid TDS receipt.
• Tax payment declarations by the employer.

Is it mandatory to file return of income even after deduction of TDS?

It is mandatory to file ITR after receiving form 16. One should always file ITR. Moreover it is your liability if employer defaults to deduct TDS. One should always declare correct income and pay taxes.

What is the due date of filing ITR for an individual salaried person?

The due date of filing ITR for an individual salaried person is 31^st July unless it is extended.

The due date of filing return for assessment year 2020-21 has been extended to November 2020 due to Covid-19.

FAQ’s on Form-16

1. What if you change your job?
   You will get Form-16 from each employer.
2. From where will I get to know that TDS deducted has been deposited to Central Government account?
   TDS deducted and paid by employer is reflected in Form- 26AS which can be seen by logging to you income tax account.
3. Can I download Form-16 from somewhere?
   No, you cannot download Form-16 from anywhere. You can get it from your employer.