What is Form 16

How to Fill & Download Form 16, Form 16A, and 16B

Every salaried person in India is supposed to file the Income Tax Return or ITR in a financial year, and filling out Form 16 is an integral part of this procedure.

What is Form 16?

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.

What Is the Difference Between ITR Form 16A, and 16B?

Knowing the difference between Form 16A and 16B is essential to fill your ITR without any errors.

1. ITR Form 16A: It is a TDS certificate stating that tax has been deducted at source by the employer for the employee. This form contains essential information about the employer and the employee, such as their names, addresses, PAN numbers, and the summary of the tax deducted and deposited by the employer.

2. ITR Form 16B: A TDS certificate confirming tax deduction on income from immovable property purchase. Includes gross salary, deductions, exemptions, net taxable income. Must mention employee's Section 80C investments.

Form 16

Definition : Certificate of a tax deduction by the employer for the employed on the earned salary

Time of Issuance : Issued annually by the employer

Eligibility : Mandatory for employees earning over Rs. 2.5 lakhs

Form 16A

Definition : Certificate of a tax deduction on any non-salary income, including rent, and interest on investments

Time of Issuance : Issued quarterly or annually

Eligibility : Mandatory for people whose non-salary income is beyond a set limit

Form 16B

Definition : Certificate of a tax deduction on earnings from the sale of an immovable property

Time of Issuance : Issued depending on the number of transactions

Eligibility : Mandatory for each transaction exceeding Rs. 50 lakhs

How to Download Form 16?

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.

How Can an Employer Download Form 16?

An employer must follow these steps for a quick Form 16 download:

1. Visit the TDS Traces portal

2. Login with correct user ID, password, PAN,      TAN, and CAPTCHA.

3. Choose the ‘Form 16’ option under the      ‘Downloads’ tab

4. Choose the financial year

5. Enter the name and the PAN details of      the employee

7. Choose the TDS date before and then      add the total tax collected and deducted

8. Click on the ‘Submit’ for downloading      Form 16

9. Choose the ‘Requested Downloads’ from      the ‘Downloads’ tab

6. Fill in the TDS receipt number

10. Download files once 'Available' status for       Form 16A and 16B is displayed.

Why is Form 16 Important for ITR Filling

After receiving Form 16 downloaded by your employer, you may use it as a statement of income from salary to get the following benefits:

1. Proof of income

2. Visa issuance

3. Load assessment as well as approval

4. Tax benefits

5. Switch to a new job

6. Check tax-saving investments in a      financial year

7. File ITR

How to File ITR with Form 16?

Once the employer download form 16 for salaried employees, the employees can follow these steps to file their ITR online using this form:

1. Visit the official Income Tax e-filing portal

2. Enter PAN

3. Log in with your correct user ID and      password

4. Fill the online ITR form with other      mandatory details such as date of birth,      address, email ID, and mobile number

5. Submit the ITR for verification

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