How to File Income Tax Return Using Form 16

Form 16 is a certificate issued under sec 203 of Income Tax Act for TDS (tax deduction at source) from salary. Form 16 shows a detailed record of tax deducted by the employer from the salary of the employees. Form16 includes complete details of salary, its components paid by the employer as well as the tax exempted from the salary.

Understanding Income Tax Form 16

Form 16 includes two parts, Part A and Part B. Part A serves as the record of TDS by the employer. Whereas, part B is just an annexure that lists your salary, due tax, tax paid, and other income if any. 

The form also contains a monthly statement of the same

Form Part A Includes: –

  • TDS amount Deducted by the employer.
  • PAN number of the employee.
  • Certified by the employers -in this certificate, a summary of tax deducted and deposited quarterly. 
  • Assessment year in which amount deducted
  • Period of employment with the employer. 
  • TAN (Tax Account Number) and PAN of the employer.
  • form 16 downloaded through traces portals.
  • Form 16 has a unique TDS Certificates Number.
  • Name and Address of the employer.
  • The name and address of the employee/taxpayers.

Part B of Form Must Include: –

  • Taxable salary of the employee 
  • The detailed split of salary paid
  • Deduction under sec 80C and 80U 
  • Details of house property income
  • Aggregate tax on income Relief under section 89
  • An individual has more than one job during the year than he/she will have more than one form 16.
  • Part B of Form 16 is issued along with part A and is prepared by the employer manually.

Components of Income Tax Form 16

  • The employees’ details like name, address, PAN number, etc.
  • The details of employers like a Tax deduction, name, PAN, and collection account number (TAN), etc. 
  • The detailed breakthrough of salary; gross salary, perquisites, deductions, etc.
  • Total income and tax deduction.
  • An acknowledgment of taxes paid by the employer. 
  • Education cess and surcharge details.
  • Under section 191A taxes deduction.
  • Declarations of payments of tax from the employer.
  • Receipt of TDS paid.
  • Details of payment of tax like cheque number, challan number, demand draft number, etc

How to File Income Tax Return Form 16?

For Example: –

Part A

Form- 16
[See Rule 31(1)(a)]
Part A
Certificate under section 203 of Income Tax Act,1961 for TDS on salary
Certificate. No -ABCDEFGLast Update On– 28-May-2014
Name and Address of the Employer
Name and Address of the Employee
EMPLOYER INDIA PRIVATE LIMITEDBlock B, Aurobindo Street Gurgaon-122001,HaryanaPhone. Number- xxxxxxxxxx
VARUN AGRAWALBlock C, Right Street Gurgaon-122001,HaryanaPhone. Number- xxxxxxxxxx
PAN ofDeductorTAN ofDeductor
PAN of employee
Employee Reference Number Provided by the Employer (If available)
ABCPA1234ABLRI 00560AAAAPA1111A

CIT(TDS)
Assessment Year
Period with Employer
Address: Income Tax Office AddressFinancialAssessment Year
From01-04-2015

To31-03-2016
Summary of the amount paid/credited and tax-deducted at source thereon in respect of the employee.
QuartersReceipt Number of originalquarterly statements of TDS under subAmountpaid/creditedAmount of Tax DeductedAmount of TaxDeposited/Remitted(Rs)
section(3) of section 200
Q1XYZ57546.00195.00195.00
Q2ABCD84552.002133.002133.00
Q3ABCDEFGH93296.00314.00314.00
Total(Rs)235394.002642.002642.00

The Detail Furnish in the Form: –

  1. Employer details: Name and address of the employer.
  2. Employee details as per the company records: Name and designation of the employee.
  3. PAN (Permanent Account Number) of the employer.
  4. TAN (Tax Deduction and Collection Account number) of the employer.
  5. PAN (Permanent Account Number) of the employees.
  6. Income Tax Commissioner’s office details.
  7. Assessment year and time.
  8. Summary of the quarters.

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