Hi all I want to know what is the use of form 16 and for whom it is required. Please help me out with this. Regards Vignesh
From Ireland
1From Ireland
Hi,
If you are salaried employee in an organization, then you will get the salary after deducting tax by the employer. This process is called as Tax Deduction at Source(TDS). Every company has to get the TIN. TIN is Tax Identification Number. This number is issued to person who is responsible to deduct Tax on payments made to employees.
At the end of financial year, company must issue a form 16 which contains the details about the salary earned by that employee and how much tax deducted. It will have details on each month. In simple terms Form 16 is details about the tax deducted by the employer in behalf of employee. The same will be paid to government by the company. Many people thing that getting the Form 16 alone is enough for the tax filing. Tax payer has to use the Form 16 to file the IT return every financial year end.
From India, New Delhi
If you are salaried employee in an organization, then you will get the salary after deducting tax by the employer. This process is called as Tax Deduction at Source(TDS). Every company has to get the TIN. TIN is Tax Identification Number. This number is issued to person who is responsible to deduct Tax on payments made to employees.
At the end of financial year, company must issue a form 16 which contains the details about the salary earned by that employee and how much tax deducted. It will have details on each month. In simple terms Form 16 is details about the tax deducted by the employer in behalf of employee. The same will be paid to government by the company. Many people thing that getting the Form 16 alone is enough for the tax filing. Tax payer has to use the Form 16 to file the IT return every financial year end.
From India, New Delhi
Form 16 is issued by company to an employee for whom the Payroll tax has been deducted and remitted to the Tax department on behalf of the employee.
Form 16 is a certificate issued by Company giving the details of the Earnings by the employee and the tax deduction and remittance to the Tax department.
This needs to be used by employee to file the employee individual Income Tax returns.
Hope this helps.
Thanks
Showri
From India, Faridabad
Form 16 is a certificate issued by Company giving the details of the Earnings by the employee and the tax deduction and remittance to the Tax department.
This needs to be used by employee to file the employee individual Income Tax returns.
Hope this helps.
Thanks
Showri
From India, Faridabad
Hi
Thanks garima and showri. Hope you are the experts in the business.
If possible can you brief me on the process of Filing of returns because Iam a fresher on to a job and i feel that knowing these details are extremely necesary for my job. I will be indeed thankful for the same.
Regards
Vignesh.R
From Ireland
Thanks garima and showri. Hope you are the experts in the business.
If possible can you brief me on the process of Filing of returns because Iam a fresher on to a job and i feel that knowing these details are extremely necesary for my job. I will be indeed thankful for the same.
Regards
Vignesh.R
From Ireland
Dear Vignesh
First of all you should know some basic details such as :
1. Financial Year - Always starts from 1st April to 31st March. Current financial year is 1.4.10 to 31.3.11
2. Tax deduction - Company has to deduct tax on a monthly basis if your Income exceeds 1.60 Lakhs PA at the following rates:
0 to 1.60 lakhs - 0%
1.60 to 5 lakhs - 10% - Tax amount of Rs. 34,000
5.00 to 8 lakhs - 20% - Tax amount of Rs. 60,000
Above 8 lakhs - 30% -
If your taxable income is 8.50 lakhs PA - then the tax is calculated as 94,000 for upto 8 lakhs and then 30% of 50,000 which is 15000. Total tax amount of Rs.109,000 + Education cess of 3% on (109000) ie., 3270 = 112,270/- would be deducted over a period of 12 months starting April.
During May 2011, Company will issue the Form 16 showing the total income and Total tax deducted and remitted to the Tax department.
You need to file the Income tax returns after receiving the Form 16 from the company before 31st July 2011.
You can file your returns online through myitreturns.com or Online Income Tax Filing | Income Tax Returns | Income Tax Planning | Tax Savings | Income Tax Return Filing | Tax Filing Information | Tax Returns Services or any other portal which is very simple. You just have to replicate the information from the Form 16 and submit it online. There is nominal fee for the services provided by the portal. You can visit the portals to find out more details for filing the online returns.
Hope this helps...
From India, Faridabad
First of all you should know some basic details such as :
1. Financial Year - Always starts from 1st April to 31st March. Current financial year is 1.4.10 to 31.3.11
2. Tax deduction - Company has to deduct tax on a monthly basis if your Income exceeds 1.60 Lakhs PA at the following rates:
0 to 1.60 lakhs - 0%
1.60 to 5 lakhs - 10% - Tax amount of Rs. 34,000
5.00 to 8 lakhs - 20% - Tax amount of Rs. 60,000
Above 8 lakhs - 30% -
If your taxable income is 8.50 lakhs PA - then the tax is calculated as 94,000 for upto 8 lakhs and then 30% of 50,000 which is 15000. Total tax amount of Rs.109,000 + Education cess of 3% on (109000) ie., 3270 = 112,270/- would be deducted over a period of 12 months starting April.
During May 2011, Company will issue the Form 16 showing the total income and Total tax deducted and remitted to the Tax department.
You need to file the Income tax returns after receiving the Form 16 from the company before 31st July 2011.
You can file your returns online through myitreturns.com or Online Income Tax Filing | Income Tax Returns | Income Tax Planning | Tax Savings | Income Tax Return Filing | Tax Filing Information | Tax Returns Services or any other portal which is very simple. You just have to replicate the information from the Form 16 and submit it online. There is nominal fee for the services provided by the portal. You can visit the portals to find out more details for filing the online returns.
Hope this helps...
From India, Faridabad
Hi Showri Thanks for the inputs. Could you brief me what is an Education Cess and why some percentage is added to the tax. Thanks again for your patient reply. Regards vignesh. R.
From Ireland
From Ireland
Dear Vignesh
The Education cess is a levy of tax by the Government of India and this amount is exclusively used for development in Education sector. The % is decided by the Government and is looked at as a review on an yearly basis during the time of Union Budget.
You should try and google these things where you may get more information or detailed explanation.
Thanks
From India, Faridabad
The Education cess is a levy of tax by the Government of India and this amount is exclusively used for development in Education sector. The % is decided by the Government and is looked at as a review on an yearly basis during the time of Union Budget.
You should try and google these things where you may get more information or detailed explanation.
Thanks
From India, Faridabad
Hi showry, thanks for giving such valuable information, still i have a doubt. I understood up to what you said like filing tax returns. After completion of filing tax returns what we need to do, what is the use of filing tax returns. Actually i don't know the full knowledge that's why i am asking you.
Thanks & Regards
Murali Krishna.
From India, Kurnool
Thanks & Regards
Murali Krishna.
From India, Kurnool
thanx a lot. this will be very useful for me. i am completely fresher in hr. please send me some tips to manage the people. i am now in Gupta Power Infrastructure Ltd.
From India, Bhubaneswar
From India, Bhubaneswar
Thank you verymuch for all your appreciation. I am happy that it was useful to may of you.
As regards to one of the question what happens after filing the Tax returns, the answer is that, The Filing of Tax returns is an obligation on the part of every Individual, Corporate firms and others who has Income from various sources like Salaries, Income from Business & Profession etc., to file the Income tax returns on an yearly basis.
This is to ensure that Individuals & Companies are disclosing their earnings/revenue/profit and also ensure payment of tax on the same.
If you pay the taxes regularly and does not file the returns, then how will the government know that you have paid the taxes correctly and also have disclosed the actual earnings/profits.
The Income tax returns are very useful in future for any Loans you may want to borrow from Bank, for applying for Passport etc., Every bank will ask for Tax returns filed for the past 3 years incase you go for a Loan.
Hope this helps.
Thanks
Showri
+919900103820
From India, Faridabad
As regards to one of the question what happens after filing the Tax returns, the answer is that, The Filing of Tax returns is an obligation on the part of every Individual, Corporate firms and others who has Income from various sources like Salaries, Income from Business & Profession etc., to file the Income tax returns on an yearly basis.
This is to ensure that Individuals & Companies are disclosing their earnings/revenue/profit and also ensure payment of tax on the same.
If you pay the taxes regularly and does not file the returns, then how will the government know that you have paid the taxes correctly and also have disclosed the actual earnings/profits.
The Income tax returns are very useful in future for any Loans you may want to borrow from Bank, for applying for Passport etc., Every bank will ask for Tax returns filed for the past 3 years incase you go for a Loan.
Hope this helps.
Thanks
Showri
+919900103820
From India, Faridabad
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