Things you should know about Form 16

It is the certificate of tax deduction at source (TDS) on salary income by employer and submitted by them to the Income Tax Department (IT Department)

It shows how much tax an employer has deducted on the salary of the employee

Any salaried person irrespective of the fact whether your income falls under tax exemption limit or not, the employer must issue Form 16 if they have deducted TDS

Form 16 is an important document to file the IT return. It is the proof that an employer has paid the TDS to tax authority

Employee should receive form 16 on or before May 16 of the assessment year

Form 16 has 2 components Part A and Part B. Your income details are bifurcated into these 2 parts

Form 16 Part A contains: · Name of the employee · Address of the employee · PAN of the employee · Name of the employer · Address of the employer · PAN of the employer .Total salary for the year .Total TDS for the year

Form 16 Part B Contains: · Gross salary  · Allowances, Exemptions · Tax on Employment(PT)  · All deductions under chapter VI A of IT Act . Any other reportable income · Tax on total income · Cess levied · Rebate on Tax · Surcharge

Why Form 16 is important?  · Helpful for filing ITR · Income Proof · For Loan assessment and approval · Visa Issuance · To check the paid tax on salary income