What is Form 16?

March 18, 2012

Income Tax

Print Friendly

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.

also read:

The following are the important points to know about the form 16.

  1. Form 16 contains the details of income and the tax deducted.
  2. It is not compulsory to give the form 16 to the employees if there is no TDS deducted.
  3. If the company don’t have the TAN, they can not deduct the TDS. In that case, they will not provide the form 16.
  4. It is employers responsibility to issue form 16 if they have deducted tax on your salary.
  5. Form 16 may be used for applying the home loans. Some of the banks ask for the form 16 as the income proof.
  6. Form 16A is different from form 16. Form 16a is issued for the TDS other than salary income.
  7. If the information in the form 16 is wrong, you can correct it.
  8. 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.
  9. 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.

Subscribe to our future articles here.

                                       

email
,

135 Responses to “What is Form 16?”

  1. arvind kumar Says:

    Sir,
    It is related to the same Form16 & 16A,I would like to understand while preparing Comutation of Income for filling ITR for the A Y 11-12
    Salary Head -Amount as per Form 16
    Business & Profession-Amount as per Form 16A is correct or what amount shall be in this place.
    Please advise.

    Reply

  2. Vikas Hegde (Bangalore) Says:

    Thank you for the info about form 16.

    It would be great help if you could give info about form 12B also, which is given along with form 16 every year.

    Reply

  3. Ravi Says:

    can any one tell me what is the tax for 1800000/-.Form 16 is neccessary for that?

    Thanks

    Reply

  4. rpmunda Says:

    sir
    can you tell me the last date of issue of form-16
    for the financial year -2011-12

    Reply

  5. Tarun Jain Says:

    Hi Ravi,

    Tax on 18Lacs wud be (considering no PF, no investment and no HRA)

    0 + 32K(from 1.8L to 5L) + 60K(from 5L to 8L) + 3L(from8L to 18L) = 3.92 Lacs

    Reply

  6. Vijay Says:

    Thanks,

    it is helpful.

    Vijay.

    Reply

  7. Pranav Kumar Says:

    Hi

    Thanks for the info.

    Thanks,
    Pranav

    Reply

  8. Balu Says:

    In my office only professional tax of Rs. 200/- is deducted from my salary and there are no any other deductions. In that case, will i get form 16 or not.

    please clarify me.

    Reply

  9. Kumar Says:

    I got 24000per month,form 16 is necessary to us

    Reply

    • krishnas Says:

      Hello Kumar,

      Did you pay any tax for the income to your company?. Check your payslip whether you have paid the tax. If you have paid any tax, get the form 16 that is a proof for the tax payment. Keep it safe for the future reference.

      Thanks,
      Krishna

      Reply

  10. Sreeraj Says:

    Sir,

    I am due to join a new company next month. This is my first job. In the joining formalities, they have asked me to submit form 16 if applicable. What does this suggest? And how to go about it?

    Reply

    • krishnas Says:

      HI Sreeraj,

      Every company issue the Form 16 document on end of the financial year. Probably it will be in the month of April or May. When you are joining the new company, they may ask for the tax computation. But, i am not sure what they will do with your form 16. Form 16 is for you to file the Income tax returns.

      Ask them why they need form 16?. I think they are asking for this year, that you can get only on end of this financial year.

      Thanks,
      Krishna

      Reply

  11. shubham Says:

    I am working in MNC which is providing me form 16, but i am also earning from agriculture cultivation so in this what i have do. kindly suggest

    Reply

    • krishnas Says:

      Hello Shubham,

      I think you have not understood the basic concepts. Form 16 provided by your employer for the tax deduction on your salary. Also you may have the different sources of income like interest on fixed deposit, rent, etc.

      While filing the IT return, you have to use all these details and show your aggregate income. Form 16 is proof that you have already paid tax for that.

      If you are still not clear, please let me know. I can discuss with your and clear your doubts.

      Thanks,
      Krishna

      Reply

    • krishnas Says:

      Hello,

      agriculture income is tax exempt. you need not pay any tax.

      Thanks,
      Krishna

      Reply

  12. aliasgar jaliwala Says:

    hi,
    i work in bank,i want to file my return and my ca is asking abt form 16.
    which department should i ask in my bank?
    how to get my form 16?
    kindly help in the above query

    thanks
    ali

    Reply

    • krishnas Says:

      Hello Aliasgar,

      If you work in any company (including banks), if they deduct salary for the employees, they have to issue the Form 16 at the beginning of the next financial year. For example, you have worked in 2011-12 financial year, then starting of the financial year 2012-13 (like in April or May) you will get the form 16. Without asking they must provide. In cases if you are not getting it, please ask your company’s finance department about the form 16.

      If you have any more doubts, please reply here.

      Thanks,
      Krishna

      Reply

  13. Sankar Says:

    Sir, My wife is working in an aided school. Income tax has been deducted from her salary, for the fy 2010-11. Form 16 has not been issued to her till date. They say that they have not sent the required statement to the income tax dept. The tax deducted has not been reflected in her AS26. What to do?

    Reply

    • krishnas Says:

      Hello Sankar,

      It is their responsibility to submit the tax deducted to the govt. If they are not sent to govt. then what they have done? Please ask them the details about why it is not been sent.

      Do they have the TIN? You can complain to the Income Tax office about this issue.

      Thanks,
      Krishna

      Reply

  14. parul sharma Says:

    Hi sir,

    I am getting 14000 Rs. Monthly Salary and as per the govt. rule I am not considered for the Taxable but my company has provided me Form No. 16 , So could u plz tell me why i need this form?

    Reply

    • krishnas Says:

      Hello Parul,

      Did they deducted any tax? If so, that would have been mentioned in the Form 16. You have specified that whether any tax is deducted on me. However, form 16 is proof for your tax payment. This will be used while filing the income tax returns.

      Otherwise, you keep it for any other proof need while taking the loans.

      Thanks,
      Krishna

      Reply

  15. Vrushali Says:

    Hello,

    I got Form-16 from my company.
    But I am confused about the E-filling.
    Tax is deducted from my monthly salary.
    what E-filling and return means ?
    if I have to fill it then please suggest some website.
    Why E-filling is required ?

    Reply

    • krishnas Says:

      Hello Vrushali,

      Filing IT returns means you are submitting the tax details to the govt. Till the end of financial year your company has paid the tax to the govt. on behalf of you. They will issue the Form 16 to you with the details deducted on your salary. You have to use the Form 16 and file the IT returns. This is like acknowledgement to the govt. that you have paid the taxes. It is important activity for racy tax payer.

      Thanks,
      Krishna

      Reply

  16. madhu Says:

    Sir, my monthly salary is around 45,000(gross salary). so annual salary comes around 5,20,000. company already paid around 40,000 as tax after deducting PF amount. Now i have received form 16. i dont have any other income. do i need to file income tax return???…. Last financial year i have not filled income tax return.. i started working from july 2010 & am very new to these things. plz guide me.

    Reply

  17. Garima Says:

    Hi Krishna, suppose a person is working in a company and tax is being deducted every month. After 6 months, he left that company. Now in the new company, how his tax computation will be made? And what about form 16 from former company? Will the employee get two form 16 for the concerned financial year? Pls clarify.

    Reply

    • krishnas Says:

      Yes.he will get the two form 16 end of the financial year. Calculation of the tax by new employer is done using the details provided by you. If yu have not given the incom details of previous company,they will consider only the salary given by them fr the whole financial year. In that case you have to pay the tax while filing the Returns.

      Reply

  18. prachi Says:

    Hello

    My salary is 2.5LPA abt 20,098 nearby.
    please suggest do i need Form 16 as in my sal slip there is prfessional tax deduction .

    Reply

  19. Garima Says:

    Why do we have to pay the tax? It is already deducted by the former company. The details of the tax already paid must be appearing in form 26AS. Right?

    Reply

    • krishnas Says:

      Hello Garima,

      If you are not providing the details to the new employer about the previous company income, they will not deduct or will deduct very less tax from you. When you are filing the IT returns for the whole year, you may have to pay the more tax (unpaid tax by the new company).

      Thanks,
      Krishna

      Reply

  20. Sunayana Says:

    Hi Mr. Krishna, my company deducts just Professional tax of Rs. 200 from my salary and Income tax deducted shows 0 in my pay slip. However, my company is ready to give me Form-16 but is it actually needed when they are not deducting any Income tax from my salary? I have a salary of 2.5 lacs p.a. So, do I need to pay Income tax to the Govt.? And if not then do I have to fill ITR at all? Any suggestions would be great. Thanks.

    Reply

    • krishnas Says:

      Hello Sunayana,

      Please get it and check if there in any deduction. Form 16 is not needed fo the ITR. It is only the proof.

      Thanks,
      Krishna

      Reply

  21. Sanjay Says:

    I have worked in my previous company till May 2012 and i got deductions in my april month of salary. as i have resigned from the job..i will get form 16 for finncial year 2011-12. but what about deduction of april month of salary ???

    Reply

    • krishnas Says:

      Hello Sanjay,

      You will get the Form 16 for the month April in the next year April or June only. If they are not sending, remind them and get the form 16.

      Thanks,
      Krishna

      Reply

  22. Govind Says:

    Where do we file the tax returns .what all are the procedures we need to follow while submitting the same

    Reply

  23. suhas Says:

    when ll i get form 16 this year pls tell me date.i am working in data quest entertainment international ltd hyderabad.my ctc is 21150.i want 2 yr form 16 for home loan

    Reply

  24. Nilim Says:

    Hi
    Krishna
    I have changed my Job 2 months back. My previous company deducted Tax from my salary, I joined in a new company, the previous company has not provided me the Form 16 after my repeated demand also. Shall I take any legal action to get the form 16 from my previous company? Please let me know the procedures what to do and how to take any legal action except asking them informally.

    Reply

  25. krishnas Says:

    Hello Nilim,

    Please provide the details of when you left the company and when you joined the new company?

    You need not go for legal action, it can be solved by talking to your company’s HR.

    Thanks,
    Krishna

    Reply

  26. Garima Says:

    Hi. Is it now mandatory for the employers to issue form 16 online? If yes, then from where and how to download the same?

    Reply

    • krishnas Says:

      Hello Garima,

      Welcome back!!

      No. It is not necessary to issues the form 16 online. It is only the provision (online) by the companies. All the companies can not afford that facility.

      I think you confused with online download, it can be given by only your company’s website. It won’t be downloaded outside your company. If any such provision there, please ask your company or finance team where to download.

      Thanks,
      Krishna

      Reply

  27. Zuber Ahmed Says:

    Hi Krishna,

    I have just got my form no 16 from my company. What should I do with the form.Do I have to file somewhere. My package is 3.3 lakhs. Do I have to pay tax because as per latest amendments. Employer doesn’t have to pay until his/her salary reaches 5 lakhs. Kindly suggest.

    Reply

  28. Garima Says:

    Thanks Krishna,
    My client’s company is issuing form 16 for FY 11-12 and the concerned person downloaded the same from tin-nsdl.com based on the TDS returns filed and challans adjusted. And as per my information, this is the first time to issue the form online. Please correct me if any information is wrong..

    Reply

    • krishnas Says:

      Hello Garima,

      Now from F.Y. 2011-12 onwards online TDS certificate in Form 16/16A is mendatory to issue through NSDL site.

      Yes. You are correct. But, you have to provide the certificate number to download the Form 16. This is mentioned in the top corner of Form 16

      Thanks,
      Krishna

      Reply

  29. Garima Says:

    Ok i got it. It is the TDS certificate which is to be downloaded from nsdl site and form 16 is provided by the company from their respective payroll softwares.

    Reply

  30. Chandra Says:

    Hi I am Chandra.

    Currently I am doing a job in MNC company and salary package is 200000/- or 2.0 PA.
    I want to ask you can i eligible for tax pay or not.
    What are the Form 16 benifts?

    Reply

  31. ANKITA Says:

    Hi Krishna,

    I m working in a bank since last 1.5 yrs. My monthly salary is Rs. 23000 (after all deductions).Rs.200 as professional tax is deducted from my salary. Also, Rs. 90 is deducted as Income tax. My investments are above Rs.100000, Should I ask the bank to provide me form 16? Is it mandatory to have form 16?

    Reply

  32. mukesh Says:

    Hi Krishna

    I have worked in MNC for 6 month now i left previous company and have been selected in another company with growth.
    So my salary in previous company is 16300 and they didn’t deduct any tax or professional tax from my salary and my net take home salary was 12900
    My new Company demanded me form 16 from my previous company
    is it mandatory to give me form 16 by my previous company. because they denied my for giving me any form 16
    what should i do. what did i tell the new company.

    Reply

    • krishnas Says:

      Hello mukesh,

      Your new company don’t have rights to ask you to submit the Form 16 compulsory. Since no tax is deducted, your previous company need not issue a form 16.

      Thanks,
      Krishna

      Reply

  33. Deepu Says:

    I am paying the tax and Unfortunately i didnt fill up the form 16 n time is crossed. What will happen in my case?? Plz suggest me I am really worrying.

    Reply

  34. rama Says:

    Hi Sir,
    I was not filled my form 16 from past 4 yrs, is it mandatory to file the form16s. If you dont file the form16′s, are we not applicable for onsite jobs?

    Reply

  35. Vikram Says:

    Hi,

    i’ve received my form 16 and it has negative balance at the end. what is the negative value impact ?
    What are the further steps have to take ?

    thanks,
    vikram

    Reply

  36. Prasanna venkatesan Says:

    Dear friends..
    I have received form 16 from my employer.I got my PAN Card also.What to do further? Should i have to register once again and render any formalities with IT departments?Or this form 16 is enough to be shown in future,if i buy House or vehicle loans?
    If any furhter action to be done where to approach?How long it would take.
    Regards,

    Reply

  37. Karthik Says:

    Hi Krishna,

    My annual income is 240000/- So I no need to pay IT. I am applying for Home loan in LIC, they asked Form-16 last 2 years. What should I do please suggest me..

    Reply

  38. Limesh Says:

    Hi,

    I am going to submit the Form 16 this July 19th, 2012. So what would be the approximate time it is going take to get credit the amount back in my account?

    Reply

  39. Charan Says:

    Hi,

    In the FY 2011-12. I worked for two different companies. First 5 months in my previous company and last 7 months in my current company. Both of them issued Form-16. My Previous company had issued Form 16 with all details like total income and total deductions( includes reimbersements for medical telephone, LTA etc..) and total taxable income and then TDS details. Where as my current company just gave TDS details(only Part A) with details of how much Tax paid in each quarter of the Year. It does not contain the total income and total deductions( which includes my investments, HRA..etc). In this How can I apply returns ? is there any other way ? please Suggest.

    Thanks,
    Charan

    Reply

    • krishnas Says:

      Hello Charan,

      You can use your salary slip to find your salary and file the IT returns.

      Thanks,
      Krishna

      Reply

      • Charan Says:

        Thanks Krishna.

        I can get my income details from my salary slips. But what about the deuctions like allowances and investments( Originals I already submitted to my employer earlier in this January) ? . I just need to mentions the amount under each category in the returns?. Or do I have to again submit any photocopies of them ?

        Thanks,
        Charan

        Reply

  40. Balu Says:

    Hi,

    My salary in my previous company is 3.6 lacs per year,that did’t gave any form 16 to me.i have worked 2 years in that company.1 year back i joined in new company in this may month thay have sent me a form 16 letter,and recently i got mail like please submit form 16 for previous company.i dont have to submit.what to do now.is this is a big issue.

    Reply

  41. reenu Says:

    i joined my company on january 16 th of 2012…initally i was given a stipend of 15k per month…need I apply for it returns this finacial year…????

    Reply

    • krishnas Says:

      Hello Reenu,

      What is the total income you have earned during the year?

      Thanks,
      Krishna

      Reply

      • pooja Says:

        hello this is pooja ,i m wo5rkin in a engg coll as faculty,i have my salry
        26700 but due to some reason i have 28 days leave without pay so ultimately my income is reduced,,,u do i need to show the whole salary which was not my salry?what i need to do if tax is reduce as on salary which was not actually given to me?

        Reply

  42. P.B.Gowd Says:

    sir, i was left my previous job on july1st-2011 and joined in new company july7th-2011 and in new company tax was deducted,but form16 not yet given to me.can i get for tow monts form 16 from previous company

    Reply

  43. Anirban Says:

    Dear Krishna,

    I changed my job in October 2011 and had provided the previous salary/tax details to my current employer.

    Now, the Form 16 from my current employer includes the income/TDS totals from my previous employer. I am confused whether I should file my tax with the Form 16 of my current employer only or whether I should declare both the Form 16s and deduct the previous salary/tax from the current Form 16.

    In both the cases the numbers remain the same and I don’t have any tax liability. I need help to understand which is the right way to file the tax.

    Regards,
    Anirban

    Reply

  44. Amaranadh Says:

    Sir,
    I am getting monthly Net salary of Rs.14844/- (Gross. Rs.15812). I am not submitting any Form 16 till now from February,2011. My company is not deducting any Tax ( As per my PaySlip).
    Can you please, suggest me, whether I have to submit Form 16? Is it required or not. What I have to do further, please give details.

    Reply

  45. Katts Says:

    I HAVE NO IDEA ABOUT TAX SUBMISSION.
    I HAVE FORM 16 FROM MY EMPLOYER. WHAT IS TAX FILING BEFORE JULY 1ST,2012? MY take home is 27,896 per month. WHAT SHOULD I DO?

    Reply

  46. chandrabhan Says:

    hello sir,
    i m working as medical officer in mp govt. under contact basis.can i get form 16 online.is there any website which can provide form 16.

    Reply

  47. Prashant Says:

    Sir, i have a strange problem. Last year i worked for march 11 and april 11 in a company. The company gave me a combined sal of 53490 for 2 months. They also didnt deduct any TDS(Form 26AS doesnt show). However they wrongly transferred May and June Salary of 53840, which they reversed swiftly. But the form 26AS shows that they paid 832+832=1634 as TDS.
    I worked for the new comp from aug 16-mar 31, 2012 and as per the form 16 my sal is around 3lk 1 thousand . but in the first month they deducted a higher amount of tax ie 2900 rs.

    Now how should i file my return, and as the branch of former company is in another state what is the option i have?

    Reply

  48. dinesh Says:

    hi krishna,

    Till july 9, I was working in a company for less than 5 lakhs. I have not submitted any IT returns in my previous company, they have not given any form 16. But they have deducted tax for every month in my salary. but now i joined a company where im getting more than 5 lakhs. Do i need to file IT returns now ? IF so, i have to deal only with my previous employer is it ?? My current employer will deal with me(issuing form 16 and all) only from next year march is it. ??

    Pls clarify me..

    Reply

  49. Asmi Gaonkar Says:

    My Gtoss salary 23,500/- and only Professio tax & LWF (Labor welfare tax) deduct from my salary. But company is not providing form 16. I m very confused why company is not providing. Should i eigiable to take loan.

    Regards,
    Asmi Gaonkar

    Reply

  50. soni mishra Says:

    Dear Krishnaji,

    I have a query. I was working with a Company wherein my salary was under the taxable income range, hence no tax was deducted. However, the Company did not issue the Form 16 with Nil tax deduction. Now I have moved on & giving income tax & also received form 16 from my present employer. However, I wanted to apply for a housing loan & one of the prerequisites is last 3 years form 16s. I have asked my last employer to issue me the NIL tax Form 16, but they are not relenting. Pls suggest if I can do anything about this situation.
    Regards,
    Soni

    Reply

Leave a Reply