ITR FILING: ALL YOU NEED TO KNOW ABOUT FORM 16

By: financestock.in

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Form 16 is an important document for the ITR filing of salaried employees.

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It is the TDS certificate issued by your employer. It contains a detailed description of the salary paid to the employee and the tax deducted from it.

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Form 16 also provides details of deductions claimed by the employee.

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Part A contains the taxes deducted by your employer from your salary, also called as tax deducted at source (TDS).

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Part B of Form 16 contains details of salary income and deductions claimed by the employee to reach the taxable income.

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What Are Form 16A, 16B and 16C? In case, you have bought/sold a property or got rental income, these forms are issued. Form 16A is issued by the tax deductor, 16B by the buyer of immovable property, and 16C is issued by the individual or HUF paying rent.

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Section 203 of the Income Tax Act, 1961, has made it mandatory for employers to issue Form 16 to their employees. The employers issue Form 16 to the employees on or before June 15 of the assessment year.

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Form 16 is not necessary to file the income tax return.

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However, it is advisable to wait for Form 16 for the individual salaried individual as it contains all the necessary tax-related information that will be helpful in filing an ITR