What is Form 16?

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. Please subscribe to our facebook fans page.

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, it has to be used as the proof. Note that, issuing this document is applicable only for the salaried employees. Normally, F16 would issued after the current financial year.

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The following are the important points to know about the document.

  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.

When you will get Form 16?

The form 16 document is issued by your employer in the month of April or May. Also note that this document will be issued only if there is any tax deducted on your income or you have submitted the investment declarations. This document would have all the details pertaining to the your salary and tax. If you have worked on the more than one company in a financial year, form 16 for the previous employer also will be issued in the next financial year.

Sample Form 16

If you are interested in looking into the sample form 16 document, please download it from here. It is very simple document which provides the following details:

  • Employer PAN
  • Employer TAN
  • Employee PAN
  • Details of tax submitted to the income tax office and Chalan details with date
  • Complete details of salary, other income and deduction on investments

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Comments

  1. Ajay C says

    Hello,

    I worked in a company and left them without serving the notice and they are not providing me my form 16… But I have their salary slips (Computer Generated), so how I can file my tax, Do I have to fill form 16 by myself or I can submit the salary slips and file the tax return… Please help…

    Thanks,
    Ajay C

  2. Ajay C says

    Hello,

    I worked in a company and left them without serving the notice and they are not providing me my form 16… But I have their salary slips (Computer Generated), so how I can file my tax, Do I have to fill form 16 by myself or I can submit the salary slips and file the tax return… Please help…

    Thanks,
    Ajay C

      • Ajay Choudhary says

        They are not providing the form 16 and I just checked my Form 26AS online they haven’t paid my TDS to govt till now… I checked with my ex colleagues and they also said that the company haven’t paid their TDS also till now but they are saying they will pay with the fine very soon… So I am waiting till the clear other’s TDS according to 26AS… but if they won’t pay my TDS then what I can do, This is what I want to know…

  3. sankarasubramanian says

    Sir, My wife is working in an aided Hr.Secondary School. Rs.26000/- has been deducted from her salary for the month of Feb. 2012. Form 16 has not been issued to her by the management. More over the tax deducted at source has not been reflected in 26AS. A letter was sent to the correspondent in this regard stating the he is responsible to issue form 16 and for the correct credit of the amount deducted as income tax in the PAN Account of the employee. The correspondent has stated that he is only disbursing officer and the Dist.Educational Officer is the drawing officer and he has to issue form 16 as per existing income tax rules. Kindly let me who is responsible for the deduction tax Correspondent/Dist. Educational Officer as per existing income tax rules.

    • rajamani says

      Your Correspondent correct. As the disbursing agency is Government and such Departments are handled by respective District Educational Officers, you may approach the concerned DEO. You may obtain the communication address of the DEO from your Correspondent.

  4. Dr.A.Appala swamy says

    Dear sir,
    What happened to a drawing officer, if a employee is intentionall not submitting income tax returns after receiving the from 16

  5. Dr.A.Appala swamy says

    Dear sir,
    What happened to a drawing officer, if a employee is intentionally not submitting income tax returns after receiving the from 16

  6. dinesh says

    hi ,
    I worked in a xxx company and my complete ctc was full of allowances and there was no tax deduction.How come my employer in that case can provide form 16 if there was no tax deduction.

  7. Vinodhini says

    I have worked in a consultancy for 1 year. Initially i was in a consolidated pay. After 6 months, they started deduct tax from my salary. i have a salary break up. but they have not given any PF number and other deduction details proof.And there is no proof whether they have paid PF properly. Please any one suggest how to claim my PF amount. whether i can get form 16?

    • rajamani says

      Ms Vinodhini – Any establishment whenever they make deductions, they will remit it to the respective authorities viz. PF, Income Tax etc as the case may be. It may take sometime for you to get the details of amount paid into your account, because PF Department will normally issue statement of account only at the end of the year. I understand, now they have simplified the system and you can note the same on line. You may get PF account number from HR Department. For Income Tax, please furnish your PAN number to your Accounts Department, who will remit the Income Tax deducted from your salary against your PAN number to Income Tax Dapartment. For this your Office will issue Form 16 for the TDS.

  8. Basab Chakrabarti says

    If the employer deliberately does not issue Form 16 to employee, what legal recourse can the employee take? Is it possible to file return without Form 16 for a salaried employee?

    • rajamani says

      Gentlemen please note, Form 16 is a statement issued by an Office when ever they deduct Income Tax from your Salary for payment to Income Tax Department. It is statutory obligation for any Office to deduct eligible Income Tax. Hence no one will deny furnishing the Form 16 if they pay Income Tax without fail. If they don’t pay, again please note Income Tax Department will expect you to pay at a later date, if necessary with appropriate interest.

  9. ravi shankar says

    sir i got suspension amont from 15 June 2002 to May 2009. I was issued a form 16. the pay drawn authorities have shown the said amount in other source column where ITO 13 of income tax office is objecting. now my question whether this amount should be shown salary column or other source please clarify . I am working in Bsnl dept

  10. Dipak says

    Hello, Sir,
    i am working at thane from last 3 years as a contract basis…is form 16 applicable for contract basis employee…

  11. naren says

    I’m working on a small software company in kolkata, my salary is not under taxable range, & that’s why my company or I myself didn’t pay any tax.
    But, some of my own purpose, I need to show some tax document to bank, like (IT file/Form16), but my office denied to issue me form16,
    because office didn’t issued any TDS from me.

    My question is, if I’m not a taxable range can my office issue a form16 for me, where they (office) put NIL (0) for TDS.?

    Or,
    How can I pay tax from online, I have my PAN card, so, I can show IT file to bank.?

    Before pay tax, should it be necessary to get a form16 from where I work?

    • Jyotirmaya says

      good question.. i think you can submit your it return showing your exact income from salary.. you don’t have to pay tax.

  12. Shamik says

    On final assessment by the DDO, it is found that an employee is liable to pay some additional tax say Rs. 2000/-. This fact can be reflected in form16 under the head “Taxes Payable”. Please clarify whether or not this amount is required to be intimated to the employee before the DDO issues him form 16, so that he can deposit it in the form of bank challan and the receipt no. can be reflected in his form 16, thereby showing taxes payable as nil OR, the form 16 can be issued to the employee mentioning therein the amount of tax payable say rs. 2000/- and the responsibility to deposit this tax lies with the employee himself/herself. Also provide the relevant section of income tax act where this clarification / rule position will be available.

  13. mythili says

    Hi,

    Am currently working in a private company and am drawn a salary 228000 PA whether Form 16 will be applicable for me.

  14. zach says

    How can i get my money back that has been deducted from mu salary as TDS.
    I have just got my Form 16 by my company.Is there any way..plz reply..

  15. ruchi says

    Hi krishnan, my package in previous company was 2,80000 Rs.they used to deduct 200 Rs as professional tax from my monthly salary.so should i ask them for my form sixteen.

  16. says

    Hi,

    I’ve joined a new company and its been 1 year I’m working with them. I received my Form 16 from previous employer few days back. All the figures shown in the form is Rs.0/-. Do I need to do anything with it now? What about current fiscal year?

    Kindly Suggest!

    • says

      Hello Amit,

      If there is no tax deducted then it would be zero. You need not do anything for that. You can file the tax only from the present employer.

      Thanks,
      Krishna

  17. ankit says

    Hi
    Thanks for posting this article on form 16.
    I have a small doubt though.
    My current salary is 3.5 lpa (as of 2013). After all exemptions, the net taxable income comes to be 2.25 lpa and hence no tax is applicable.

    Questions( for financial year 2012-2013)
    1. Will i receive form 16 from my employer if my salary is below taxable limit?
    2. Do I need to file Income Tax Return if my salary is below taxable limit?

    Thanks in advance
    Ankit

    • says

      Hello Amit,

      Thank you for the questions.

      1. If there is no tax deducted, then there is not use for form 16. But, it depends on employer to issue the form 16. It is not mandatory to issue form 16 if no tax is deducted.

      2. Yes. You have to file the returns. Read this : “Every individual whose total income before allowing deductions under Chapter VI-A of the Income-tax Act, exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income”

      Get finance IQ here:
      https://www.facebook.com/thinkplaninvest

      Thanks,
      Krishna

  18. Nitin says

    HI,
    My current annual income is 2.4 lack.I got form 16 from my company with profession tax of rs 200/-so,Is it compulsory for me to file return. ??

  19. Jimmy says

    Hi,

    This article finally brought me lights on things about accounts, finance and taxes. I appreciate you for that. Now as a novice, I have few queries. Currently, my salary is 20K/month and after deducting the Professional tax of 150, I get 19850 INR/month in hand. Now do I need to pay Income taxes? And is it still possible or valid for me to get the said Form 16 from my employer?

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