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This post aims to help you understand what Form 16 means, and how its two main components 16A and 16B are different from each other. We will also guide you on how to download Form 16and fill it out in an errorless manner.
Also known as the salary certificate, Income Tax Form 16 is a mandatory document to be submitted while filing ITR as per Section 203 of the Income Tax Act 1961. It is a certificate issued by the employer to the employee. It is TDS certificate containing details about an employee’s salary income, tax deductions, and similar information for a particular financial year.
ITR Form 16 has two components: Part A (16A) and Part B (16B).
Knowing the difference between Form 16A and 16B is essential to fill your ITR without any errors.
| Type of Form | Form 16 | Form 16A | Form 16B |
| Definition | Certificate of a tax deduction by the employer for the employed on the earned salary | Certificate of a tax deduction on any non-salary income, including rent, and interest on investments | Certificate of a tax deduction on earnings from the sale of an immovable property |
| Time of Issuance | Issued annually by the employer | Issued quarterly or annually | Issued depending on the number of transactions |
| Eligibility | Mandatory for employees earning over Rs. 2.5 lakhs | Mandatory for people whose non-salary income is beyond a set limit | Mandatory for each transaction exceeding Rs. 50 lakhs |
One big misconception about ITR Form 16 is that any individual can download it. The truth is that only the employer can download and issue Form 16, and there is no provision through which an individual can download his/ her own Form 16. It is important to get this form from the employer before the deadline, May 31st of each financial year.
An employer must follow these steps for a quick Form 16 download:
After receiving Form 16 downloaded by your employer, you may use it as a statement of income from salary to get the following benefits:
Once the employer download form 16 for salaried employees, the employees can follow these steps to file their ITR online using this form:
Conclusion
ITR filling is incomplete without Form 16 for salaried people in India. So, ensure receiving it from your employer before the due date. Moreover, each individual must check the details mentioned in Form 16 and match them with the salary slips and other relevant documents. They must figure out if there is any discrepancy, and should immediately bring it to the notice of the employer.
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ITR Form 16A is issued quarterly. The due date to fill out this income tax form is the 15th of the month after the due date to fill quarterly TDS returns.
No, ITR Form 16 can only be issued by your employer and a person can not download it on his/ her own. It is a right to demand this form from your employer if you are an employee whose tax gets deducted at source from the employer.
ITR Form 16 is a TDS certificate certifying income tax deducted at source on the salary income. While ITR Form 16A is a TDS certificate certifying income tax deducted on non-salary income.
All those salaried people whose employers deduct tax at source from their salary are eligible to fill out Income Tax Form 16. Such people have the right to ask their employer to issue them ITR Form 16.
Yes, ITR Form 16B is mandatory to file ITR in India for people who earn income by selling immovable property except for agricultural land. Non-issuance of this form may lead to a penalty of Rs. 100 per day.
Yes, you can file ITR without Form 16 if you can provide the details asked in Forms 16A and 16B. These are details like your and your employer’s name, address, PAN, and TAN. Besides, you must be able to provide accurate details about your basic salary, deductions, allowance, and gross salary along with any proof of investment documents.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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