Form 16 is a certificate issued under section 203 of the Income Tax Act, 1961 by employers to their employees. This certificate offers details of TDS/TCS deducted from employees’ salaries each month (as per the category of their tax slabs).
Form 16 offers a comprehensive summary of salary paid to the employee, the tax deducted at source (TDS) and deposited by employer with the government.
In this blog let’s discuss in detail about Form 16 and procedures related to it like-
- Where to Get form 16?
- How to Download Form 16?
- How to Download Form 16 Using PAN number?
- How to File ITR online using Form 16?
- How to Get Form 16 from previous employer?
What is Form 16?
Form 16 meaning is simple to understand. It is a certificate that showcases the breakup of salary income and TDS amount deducted by employers.
Where to Get Form 16?
If you are an employer in India, you can get Form 16 from official website of the Income Tax Department.
If you are an employee, you can request your employer to issue you Form 16 only if they submit TDS to central government of India.
How to Download Form16?
If you are an employer, you can easily download Form 16 PDF from official website of Income Tax Department as follows:
Step 1: Seach for official website of the Income Tax Department
Step 2: Click on ‘Menu’ and Select ‘Forms/Downloads’ section
Step 3: Now, you can locate ‘Income Tax Forms’ option under Forms/Downloads section.
Step 4: You can see Form 16 Under Income Tax Forms when you scroll down
Step 5: Amongst the ‘PDF’ and ‘Fillable Form’ options available under ‘Form 16’, choose the relevant option as per your needs.
Download your Form 16 and attach it while filling out the ITR.
How to Download Form 16 Using PAN Number?
Some of you might be searching for the easiest way of ‘how to get Form 16’, so we are here to mention the same. But one document that you need beforehand is your PAN Number.
If you are a salaried employee, you need Form 16 while filing ITR to comply with statutory deductions from your employers.
PAN (Permanent Account Number)
PAN is 10-digit alphanumeric number issued by Income Tax Department of Govt. Of India to any person who has applied.
This number links all the transactions of the person with a department that basically includes- tax payments, TDS/TCS credits, returns of income, etc. Thus, PAN acts as an identifier for people with the tax department.
Steps are as follows-
Step 1: Login to TRACES website
Step 2: Sign up user ID, password with your PAN/AIN.
Step 3: Now, go to the ‘download’ tab and click ‘Form 16’ option
Step 4: Choose your financial year and click ‘Search PAN download’ or ‘Bulk PAN downloads’
Step 5: When your details will pop on the screen, click ‘Submit’ and fill KYC details
Step 6: You’ll get ‘reset number’ on your registered mobile number once you complete KYC
Step 7: Track status of your Form 16 with reset number and download Form 16 when it turns ‘Available’
Step 8: Select the format of your choice and download the form.
Form 16 Types
When you file your Income Tax Returns, you have to upload either of the Form 16 as mentioned below. So just to have clarity, which one to upload, have a look on both of them-
Form 16-A
TDS certificate for TDs on income-based salary.
Form 16-A gives the information like TDS deduction by bank from interest income of fixed deposits, TDS on commissions from insurance, TDS from rent payments and other income subjected to similar deductions.
Form 16-B
TDS deducted during sale of immovable property.
Form 16-B act as the proof submitted to government of TDS deducted on selling property (1% of the price paid to seller)
How to File ITR online using Form 16?
Now that you know how to download Form 16, let’s cut to the chase, and fill the mouths of lion. We mean let’s help you with the step-by-step process in submitting your Form 16 while filing ITR.
ITR (Income Tax Returns)
As per the Income tax laws of Govt of India, the returns must be filed every year by an individual or business that earns any income (salary, business profits, income from property or capital gains, other sources during financial year)
To file your returns, you need to fill in the ITR form and have to attach your Form 16 as per the mandatory rules by department.
Here is step-by-step process to file ITR online using Form 16-
Tip: Before filing your ITR form, make sure you have all necessary documents ready- Form 16, copy of PAN and Aadhar card, bank statements and other relevant documents related to deductions.
Step 1: If you are e-filing your returns for first-time, create your account on Income Tax portal
Step 2: Locate e-file section and click on ‘Prepare and Submit Income Tax Return’ to start the process
Step 3: Based on your income and other factors, select the ITR-1 or ITR-2 and assessment year
Step 4: Enter the details like- personal information, income details, deductions and tax payments
Step 5: With the help of Form 16, fill the following details:
- Allowances exempt under Section 10,
- Break up of deductions under Section 16,
- Taxable salary,
- Income (or admissible loss) from house property reported by an employee and offered for TDS,
- Income under the head ‘Other Sources’ offered for TDS,
- Break up of Section 80C deductions,
- The aggregate of Section 80C deductions (gross and deductible amount),
- Tax payable or refund due
Step 6: Upload and cross verify all the details you have entered in your ITR form and Submit
Step 7: E-Verify your ITR form with options like-Aadhar OTP, etc.
Voila! You are Done!
In case you switched your job, you need Form 16 of every employer for filing your ITR in particular financial year but ‘how to get Form 16 from previous employer’
You can either send mail or visit their office to request your Form 16 before filing ITR.
Conclusion
This financial year, empower yourself and your employees by sending them Form 16 rather than just telling them about Form 16 meaning on time with other relevant documents to file ITR. If you want to simplify your payroll process and automate various other operations, you can explore HROne!