Hi, please assist me regarding Form 16. Here in my office, there are a few members who are provided with Form 16. What will be the salary range to get this form? Please let me know what the procedures and eligibility criteria are.
From India, Bangalore
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Form 16 is a certificate issued by your employer under section 203 of Income Tax Ac 1961.
It gives information on the tax deducted at source (TDS) from income chargeable under the head “salaries”
Form 16 has two sections—part A and part B.
Part A consists of your personal details - your name and address, your employer’s name and address, Permanent Account Number (PAN) of both, the employer’s Tax Deduction Account Number (TAN). These details help the I-T department track the flow of money from your and your employer’s accounts.
Part A additionally gives details ----the assessment year (AY)—the year in which your tax liability is calculated for the income earned the previous year. For example, for income earned between 1 April 2013 and 31 March 2014, Assessment Year will be 2014-15.
This portion of the form also gives details of your period of employment with the current employer.
Next, it gives a summary of the TDS by the employer on behalf of the employee. This is the amount that the employer deducts from your salary as tax periodically and credits it to the I-T department. For instance, if every month your employer deducts Rs.6,000 as tax from your salary, it will be shown in the Form 16 as deposited by your employer to the government. The summary space will be divided based on the periodicity of how your employer credits the tax to the I-T department.
Part B of Form 16 is the one that gives the details that one needs to file I-T return, -- salary paid, other income, tax deducted, and more. Your gross income is mentioned first.
Next, deductions are included. These include those under sections 80C, 80CCC and 80CCD (contributions towards Public Provident Fund, life insurance policies, pension, among others). Then come the deductions under other sections such as 80D (health insurance premium), 80E (interest on education loan), 80G (donations), and others.
The total deductions are reduced from the gross income to arrive at the taxable income. Tax is calculated on this amount based on your tax slab.
How to use your Form 16?
Form 16 is one of the many documents that you need to keep handy while filing your ITR, which has to be done till 31 July.(This year 31 August 15)
While all deduction related details are mentioned in Form 16, you should cross-check the amounts with your investment and other documents. Is the health insurance premium mentioned correctly? What about life insurance premium?
“If there is an error in your Form 16, you will have to ask your employer to rectify it since it is the employer who has generated it for you. For instance, if you have paid a premium of Rs.15,000 for a health insurance policy but the Form 16 shows only Rs.14,000, you will have to tell your employer to correct the mistake.
Remember Form 16 only declares TDS from salary. For other incomes, there are other forms. For instance, income from bank fixed deposit (FD) will be in Form 16A. You can get this form from the source. So, if you have interest income from a bank FD, you will have to get Form 16A from the bank.
Another vital form -- Form 26AS, the tax credit statement. It will help you verify details of TDS. Using this form you can check if your company or bank has indeed paid the tax and correctly reported to the I-T department. Form 26AS is available on the I-T department’s website. All tax payers should register on IT site and check their 26AS regularly to verify credit of tax.In case you have changed your job during the year, you have to get Form 16 from both employers and then file your ITR.
Who has to e-file?
If your annual taxable income exceeds Rs.2.5 lakh, you have to file income-tax returns. And if this is above Rs.5 lakh, you have to compulsorily e-file your ITR.
.
From India, Pune
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3180It gives information on the tax deducted at source (TDS) from income chargeable under the head “salaries”
Form 16 has two sections—part A and part B.
Part A consists of your personal details - your name and address, your employer’s name and address, Permanent Account Number (PAN) of both, the employer’s Tax Deduction Account Number (TAN). These details help the I-T department track the flow of money from your and your employer’s accounts.
Part A additionally gives details ----the assessment year (AY)—the year in which your tax liability is calculated for the income earned the previous year. For example, for income earned between 1 April 2013 and 31 March 2014, Assessment Year will be 2014-15.
This portion of the form also gives details of your period of employment with the current employer.
Next, it gives a summary of the TDS by the employer on behalf of the employee. This is the amount that the employer deducts from your salary as tax periodically and credits it to the I-T department. For instance, if every month your employer deducts Rs.6,000 as tax from your salary, it will be shown in the Form 16 as deposited by your employer to the government. The summary space will be divided based on the periodicity of how your employer credits the tax to the I-T department.
Part B of Form 16 is the one that gives the details that one needs to file I-T return, -- salary paid, other income, tax deducted, and more. Your gross income is mentioned first.
Next, deductions are included. These include those under sections 80C, 80CCC and 80CCD (contributions towards Public Provident Fund, life insurance policies, pension, among others). Then come the deductions under other sections such as 80D (health insurance premium), 80E (interest on education loan), 80G (donations), and others.
The total deductions are reduced from the gross income to arrive at the taxable income. Tax is calculated on this amount based on your tax slab.
How to use your Form 16?
Form 16 is one of the many documents that you need to keep handy while filing your ITR, which has to be done till 31 July.(This year 31 August 15)
While all deduction related details are mentioned in Form 16, you should cross-check the amounts with your investment and other documents. Is the health insurance premium mentioned correctly? What about life insurance premium?
“If there is an error in your Form 16, you will have to ask your employer to rectify it since it is the employer who has generated it for you. For instance, if you have paid a premium of Rs.15,000 for a health insurance policy but the Form 16 shows only Rs.14,000, you will have to tell your employer to correct the mistake.
Remember Form 16 only declares TDS from salary. For other incomes, there are other forms. For instance, income from bank fixed deposit (FD) will be in Form 16A. You can get this form from the source. So, if you have interest income from a bank FD, you will have to get Form 16A from the bank.
Another vital form -- Form 26AS, the tax credit statement. It will help you verify details of TDS. Using this form you can check if your company or bank has indeed paid the tax and correctly reported to the I-T department. Form 26AS is available on the I-T department’s website. All tax payers should register on IT site and check their 26AS regularly to verify credit of tax.In case you have changed your job during the year, you have to get Form 16 from both employers and then file your ITR.
Who has to e-file?
If your annual taxable income exceeds Rs.2.5 lakh, you have to file income-tax returns. And if this is above Rs.5 lakh, you have to compulsorily e-file your ITR.
.
From India, Pune
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TDS is not been detected from my salary.. and my CTC is 2.6L PA. I asked for this FORM and they haven’t provided yet!
From India, Bangalore
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From India, Bangalore
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User input: Gopinath89
Refer to this link: https://www.citehr.com/263547-possib...ction-tds.html
Your pay may be below the taxable limit of Rs. 250,000.
From India, Pune
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Refer to this link: https://www.citehr.com/263547-possib...ction-tds.html
Your pay may be below the taxable limit of Rs. 250,000.
From India, Pune
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Dear NATHRAO,
My annual income is 4.4 lakhs (gross) and approximately 1 to 2 lakhs in a savings account. Except for my salary, I do not have any other source of income. Last year, I did not file an income tax return. I read in the newspaper that an expert gave her opinion that "if you want to work abroad, the previous three years' tax returns are required, and it is compulsory." My question is, can I file the tax returns for the previous three years?
From United States
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My annual income is 4.4 lakhs (gross) and approximately 1 to 2 lakhs in a savings account. Except for my salary, I do not have any other source of income. Last year, I did not file an income tax return. I read in the newspaper that an expert gave her opinion that "if you want to work abroad, the previous three years' tax returns are required, and it is compulsory." My question is, can I file the tax returns for the previous three years?
From United States
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What was your salary in the last three years? Have you filed an IT return at any stage earlier? IT returns filed after the due date are known as belated returns. The basic rule for belated IT returns is that it can be filed any time before the expiry of one year from the end of the assessment year.
For example, the IT return due date for the Financial Year 2012-13 is 31 July 2013; a belated return can be filed before 31 Mar 2015. IT returns are mandatory if your gross total income exceeds Rs 250,000 for the Financial Year Mar 15/16. With an annual income of 4.4 lakhs and SB interest, you would have definitely been in the 10% tax bracket. Did your employer deduct TDS?
Regarding the IT return for three years, please cross-check this information. Many carpenters and workmen go abroad and may not have filed IT returns. Filing three years of IT returns could be time-barred. However, please consult a tax consultant for specific questions about tax liability, penalties for belated returns, etc.
From India, Pune
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For example, the IT return due date for the Financial Year 2012-13 is 31 July 2013; a belated return can be filed before 31 Mar 2015. IT returns are mandatory if your gross total income exceeds Rs 250,000 for the Financial Year Mar 15/16. With an annual income of 4.4 lakhs and SB interest, you would have definitely been in the 10% tax bracket. Did your employer deduct TDS?
Regarding the IT return for three years, please cross-check this information. Many carpenters and workmen go abroad and may not have filed IT returns. Filing three years of IT returns could be time-barred. However, please consult a tax consultant for specific questions about tax liability, penalties for belated returns, etc.
From India, Pune
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Income tax and form 16.xls