Form 16 is one of the important component on filing your income tax. It has been detailed out in my previous article on What is form 16 and form 16a?. If you read the hundreds of comments posted on the article, it shows that there are many readers who are still having the doubts and looking for more clarity on the topic. This article would summarize the facts about form 16 once again, the points may be repeated from the previous article and new ones based on the comments. If you are looking to read more about form 16, please read on.
What is Form 16?
In simple words, Form 16 is the document proof given by an employer to all its employees with the complete details of income (salary) , the amount deducted as income tax (TDS) for each month and the total tax payment. This document will be used by employee to submit the income tax returns to the government. He need not submit the form 16, it is only proof for his income and the tax payment. It is safe to keep all your form 16, if there is any issue in the income tax returns, form 16 has to be used as the proof. Note that, issuing form 16 is applicable only for the salaried employees. Normally, form 16 would issued after the current financial year.
The following are the important points to know about the form 16.
- Form 16 contains the details of income and the tax deducted.
- It is not compulsory to give the form 16 to the employees if there is no TDS deducted.
- If the company don’t have the TAN, they can not deduct the TDS. In that case, they will not provide the form 16.
- It is employers responsibility to issue form 16 if they have deducted tax on your salary.
- Form 16 may be used for applying the home loans. Some of the banks ask for the form 16 as the income proof.
- Form 16A is different from form 16. Form 16a is issued for the TDS other than salary income.
- If the information in the form 16 is wrong, you can correct it.
- It is not compulsory that everyone need form 16, if you are self employed then there is no way for you to get the form 16. In that case, it is very important for you to submit the income tax returns and show that as proof for your income.
- If you are working in an consultancy and not getting the tax deducted by them, you would not get the form 16 too. Don’t need to try getting it, because you can get form 16 only when the tax deducted from your salary.
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