Download Automatic Form 16 Part A&B and Form 16 Part B for the F.Y.2021-22 in Excel |
Meaning of Form 16, Form 16A, downloads Form 16 Part B: Form 16 is a key document for
an employee, especially if the employer has withheld income tax. Form 16 is essentially a
certificate provided by the employer to the employee, which indicates the amount of tax
withheld from wages.
When an employee files a tax return, Form 16 helps you see how much taxes have already been paid and what still needs to be paid. Employers must issue Form 16 to their employees by June 15 of the fiscal year following the fiscal year in which wages were paid and taxes were deducted.
What is Form 16?
Form 16 records tax withheld (TDS) during the year. The employer-deductible TDS is filed with the Department of Income Tax. In addition, Form 16 also shows any additional income claimed by the employee and various deductions that the employee used to reduce the tax burden.
Who is eligible for Form 16?
Any employee who has taxable income and tax has been deducted at source by the employer is eligible to receive a Form 16. If the employee's annual income is below the base tax exemption limit, the employer is not required to issue a Form 16. However, if the employer withheld TDS from the employee's monthly income, the employee must provide form 16.
Is Form 16 mandatory for employees?
Form 16 must be mandatorily provided by the employer to the employee if the former deducted TDS from the latter's income, since Form 16 is a tax statement that shows all the details of income received and TDS deducted during the year. Form 16 helps an employee file an ITR, especially if the employee has no income from other sources.
How to get from 16 Part A? Can I get Form 16 Part A online?
Download Form 16 Part A for employees: Form 16 Part A can be downloaded by the employer from the TRACES portal before it is given to the employee. A detailed breakdown of the benefits and benefits received by the employee, along with the standard deduction, must be shown on Form 16. Form 16 consists of two parts, one is Form 16 Part A and the other is Form 16 Part B.
What is Form 16 Part A for Employees? Form 16 Part A components:
Part A of Form 16 provides a summary of tax collected on behalf of an employee on wage income and remitted to the public account. The components of the 16 Part A module are listed below:
• Employee and employer personal information: eg employer and person name, address data, PAN data of both (person and employer) together with employer TAN data. The TAN is the number assigned to the account responsible for deducting and collecting tax.
• Assessment Year or A.Y: refers to the year in which income is assessed, which means that this is the year in which the taxpayer must work on tax return procedures. For example, for income accrued between April 1, 2019, and March 31, 2020, the Assessment year would be 2020-21
• Period of time: the period during which the taxpayer worked for the employer/organization in the fiscal year in question.
• Summary of wages paid to the employee
• Date on which tax was deducted from wages
• Date the tax was paid into the public account
• Summary of deducted taxes and submitted quarterly to the Internal Revenue Service.
• TDS payment confirmation number
What is Form 16 Part B?
Form 16, Part B, is a consolidated statement containing information about any other income disclosed by an employee of the organization, about wages paid, the amount of tax paid and any tax payable. The components of the 16 Part B module are listed below:
• Salary Received: This section shows the employee's overall salary structure. The salary is further divided into various components such as travel allowance (LTA), vacation pay, rental housing allowance (HRA), tips and others.
• Allowed Benefits: These benefits are available to employees under section 10 of the Income Tax Act of 1961 for transportation, HRA, and children's education. Even the cost of the hostel, treatment, etc. is mentioned in Form 16 Part B.
• Wage deductions: the maximum limit is Rs 1.5 lakh. Under section 80C/80CCC/80CCD, this includes contributions paid for investments such as government pension funds, pension plans, life insurance policies, tax savings mutual funds, Sukanya Samriddhi scheme, and others. Also included are deductions in other sections such as section 80D and section 80E.
• Gross income: Gross income is the sum of the total wages received from the employer and any other income claimed by the employee, including income from home or property, etc. At the investment submission stage, the employee must inform the employer of information about other income.
• Net taxable wages: total deductions are deducted from gross income to calculate taxable income. The tax burden of the taxpayer is calculated on this amount.
• Also included Cess Education and add-ons, Section 87A discount, Section 89 exemption.
• Also shown is the total amount of income tax payable, tax withheld, and the balance of applicable tax or refund.
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