Form 16 is an important document provided by employers to their employees, detailing the amount of tax deducted at source (TDS) from their salary. It is an annual statement that serves as proof of the income earned and taxes paid during the financial year. Individuals primarily use Form 16 for filing income tax returns.
The form includes details such as employee and employer information, PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number) of the employer, salary breakup, exemptions, deductions, and the amount of TDS.
For organisations, issuing certified Form 16s is a regulatory requirement. Failing to issue Form 16 by the specified due date can lead to a penalty.
FAQ
Form 16 is typically issued annually by employers before the 31st of May of the assessment year. It covers the details of the previous financial year's income and tax deductions.
Form 16 includes details such as the employee's PAN (Permanent Account Number), the employer's TAN (Tax Deduction and Collection Account Number), a summary of taxable income, deductions under various sections, and the TDS amount deducted by the employer.
If you notice any discrepancies or errors in your Form 16, it is advisable to bring it to the attention of your employer or HR department promptly. They can rectify the mistakes and issue a corrected Form 16.
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