What is Form-16 and how to file Income Tax Returns with it?

What is Form-16What is Form-16 and how to file Income Tax Returns with it?

Now, it is the time for Income Tax Returns. Employees would have received Form-16 or still waiting for Form-16 from their employers to file income tax returns. What is this Form-16 meant for employees? What does Form-16 contain? How to use this Form-16  to file income tax returns in India?

What is Form-16?

Form-16 is a document issued by employer to employee about salaries paid, Perquisites offered, details of deductibles and TDS deducted pertaining to the previous financial year. This is the basic document which is required by the employee to file income tax returns.

Also Read: How to claim deductions in last minute while filing income tax returns?

Sample Form-16 is shown below


FAQ’s about Form-16 and filing income tax returns with this

When Form-16 would be issued by the employer?

Form-16 is a document pertaining to the previous financial year which is issued after deducting necessary taxes pertaining to the previous financial year. It is mostly issued in May/Jun month.

What does Form-16 contain?

Form-16 contains gross salary paid, taxable perquisites like car, home, etc., deductions u/s 80C and finally TDS deducted for the previous financial year.

Where to look for Income in Form-16 to file income tax returns?

Form-16 contains income chargeable under the head “Salaries” which is the taxable salary. The same needs to be indicated in Income Tax Returns.

My employer deducted TDS, but not issued Form-16, what to do?

Employers should issue Form-16 after completion of the financial year. You should demand Form-16 from them in case they have not sent to you in May or June.

My gross salary is not taxable, still my employer would issue Form-16?

In case there is no TDS deducted by the employer, they need not issue Form-16. However large corportes would issue Form-16 irrespective whether TDS is deducted or not.

Will perquisites offered to me would be part of Form-16?

All taxable perquisites would be forming part of Form-16 as necessary TDS would be deducted.

I have done bank FD, TDS deducted, however, not reflecting in Form-16 why?

TDS deducted by the employer against salaries / perquisites paid would only reflect in Form-16. You need to download Form 26AS (Traces) to know complete TDS deducted against your PAN.

My employer has deducted excess tax and indicated in Form-16, how to claim refund?

In case your employer has deducted excess tax and indicated in form-16, while filing income tax returns, you need to indicate the same and claim for income tax refund. IT authorities would verify and refund the income tax. You can verify your income tax refund online.

I have switched over jobs and have multiple Form-16’s. What should I do?

If you have switched over jobs, your new employer would ask for Form-16 of previous employer to deduct correct income tax at the time of joining a new company. If you have submitted the same, TDS would have got deducted accurately. However, in case previous employer has not provided form-16 on time and you were unable to submit to a new employer, they would have deducted income tax assuming there is no income for previous period which you worked with previous employer. You need to club both these Form-16’s and file income tax returns. There could be chances that you need to pay balance income tax before filing income tax returns.

Also Read: Best Tax Saving Investment Options to invest in 2015

What is the difference between Form-16 and Form 16-A?

While Form 16 is for only salary income, Form 16A is a TDS Certificate issued other than income from salary. For example Form16A shall be issued to you when a bank deducts TDS on your interest income from fixed deposits, for TDS deducted on insurance commission, for TDS deducted on your rent receipts. Both the forms are important and are required to help you file your return smoothly.

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What is Form-16 and how to file Income Tax Returns with it

Suresh KP


    1. Nitin, As indicated in one of the point, you need to club all Form-16 taxable income and indicate the same in IT Returns submission form. System should automatically indicate you the income tax paid and balance (if any) payable by you. Based on that you can file returns.

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