What is Salary Certificate Form 16? Form 16 is a certificate issued for the deduction of withholding tax (TDS) from income under the "Salary" section under section 203 of the Income Tax Act, 1961. It is issued by the employer after deduction of the imposed by the employee's salary and deposit it with the employee
The certificate provides a detailed summary of the amount paid or deposited to the employee and the TDS on it. This form is released annually
The provisions of the Income Tax Act (I-T Act) are generally enacted after the end of the financial year for which it was enacted. If the tax has been deducted from the salary by the employer, it is mandatory for the employer to issue a certificate to the taxpayer.
Form 16 helps make it easier for an individual to submit ITR as the salary, tax exemption information available on it is readily available. The TDS certificate consists of two parts: part A and part B. Make sure there should be a trace logo on both parts.
What is Part A of Form 16?
Part A of Form 16 contains details of the withholding tax on salary. Form 16 Part A downloaded by the employer from the Income Tax TRACES portal.
• Part A of Form 16 covers the following:
• Name and address of the employer
• PAN and TAN of the employer
• PAN of the employee
• Summary of the amount paid or paid and tax deduction at source as indicated for the employee
Photograph of form 16 part A
What is Part B of Form16?
This is an attachment to Part A of Form 16 to be issued by the employer.
Part B of Module 16 includes the following:
• Detailed salary breakdown
• Tax deductions on income to the extent permitted by section 10. is exempt from tax pursuant to art
• The deduction is allowed under Chapter VI-A of the Income Tax Act such as section 80C, 80D etc.
• Any other deductions such as the standard deduction available for salaried employees.
• Section 89. relief under
Photograph of form 16 part B
If you have worked with one or more employers?
If you worked with an employer during the financial year, Form 16 will be issued by that employer for the full financial year. It will contain the details of the taxes deducted and filed for all quarters of the year.
If you have worked with more than one employer during the financial year, each employer will issue Form 16 for the period that you have worked with each of them. However, Part B of Form 16 can be issued by any employer or final employer at the choice of the taxpayer.
You should also know that if an employer delays or fails to issue Form 16 by the specified date, he or
she is required to pay a fine of Rs 100 per day as long as the non-compliance persists. However, the
fine must not exceed the amount of the tax deducted
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