1. Form 16- Basics
Form 16 is a certificate issued by the employer to the employee and it contains the details of TDS deductions which is essential for any taxpayer planning to file his/her ITR.
Employers must issue it every year on or before 15 June of the next year, immediately after the financial year in which the tax is deducted. Form 16 consists of two parts: Part A and Part B. In the case of misplacement of Form 16, you can always contact your employer to issue a new one.
2. Part A of Form 16
This can be an enlightening discussion for any person who has employed people under him. An employer can download Part A of Form 16 through the TRACES (https://www.tdscpc.gov.in/app/login.xhtml) portal. The contents of the certificate must be double checked and authenticated by the employer before issuing it. For the employees, it is important to note that if they have switched jobs in between a financial year, then both the employers will have to issue a separate Part A of Form 16 for the period of employment.
Some of the components of Part A are:
1- Name and address of the employer
2- TAN & PAN of employer
3- PAN of the employee
4- Summary of tax deducted & deposited quarterly, which is certified by the employer
3. Part B of Form 16
Part B of Form 16 is an annexure to Part A. If you change your job in one financial year, then it is for you to decide if you would want Part B of the Form from both the employers or from the last employer. Some of the components of Part B notified newly for the FY 2019-20 are:
- Detailed breakup of salary
- Detailed breakup of exempted allowances under section 10
- Deductions allowed under the income tax act:
Specific fields are notified for deductions mentioned below:
- Deduction for life insurance premium paid, contribution to PPF etc., under section 80C
- Deduction for contribution to pension funds under section 80CCC
- Deduction for employee’s contribution to pension scheme under section 80CCD(1)
- Deduction for taxpayer’s self contribution to notified pension scheme under section 80CCD(1B)
- Deduction for employer’s contribution to pension scheme under section 80CCD(2)
- Deduction for health insurance premium paid under section 80D
- Deduction for interest paid on loan taken for higher education under section 80E
- Deduction for donations made under section 80G
- Deduction for interest income on savings account under section 80TTA
- Relief under section 89
4 Frequently Asked Questions (FAQs)
Where can you find Form 16?
Form 16 is generally provided by the employer. Even after having left your job the employer must provide you with Form 16. Unfortunately, this income tax form 16, cannot be downloaded from anywhere.
How to file my return without Form 16?
Form 16 is crucial for salaried employees to file ITR. However, if due to some reason you do not have Form 16, you can still file ITR by following the procedure described here.
Should the employer Issue Form 16 if there is no TDS?
In Form 16, TDS Certificate is provided. It is issued in the case that TDS has been deducted. If no TDS has been deducted then in such circumstances, the employer might not provide you Form 16.
When the employer deducts TDS and does not issue a certificate?
If a person is paying salary to his/her employees then it is mandatory that they deduct the TDS before dispersing the salary. According to the Income Tax Act, every person who deducts TDS from a payment, must furnish a certificate with details of TDS deducted and deposited. All employers in particular have to provide a certificate in the format of form 16.
If no Form 16 has been issued to me does it mean I don’t have to pay tax or file a return?
While the provision of Form 16 and deducting tax on salaries being provided is the responsibility of the employer, it is the duty of the employee to file his/her income tax return in full and on time. If your income is above the threshold then you are bound to pay tax regardless of the fact that your employer deducted the TDS or not. In a case where your employer has not issued a Form 16, you must file ITR and pay off the taxes that are due.