What’s form 16 ? Why Form 16 needs to each employees :-
Form 16 is a document which is issued by the employer to employee certifying the details of salary one has earned during the year and the amount of TDS deducted.
Form 16 is a proof of income and tax deduced by the employers. It is needed for the purpose of filing returns.
It’s mandatory to file the income tax returns by 31st July of every financial year ,in case of salaried assessees. In order to file the ITR, it is necessary to have the Form 16 document, issued by employer.
Form 16 consists of complete details related to salary paid by the employer of the assessee along with necessary adjustments for income tax.
Form 16 contains the details of tax deducted and the bank where the deducted tax is deposited into the central government account. Generally This certificate is issued at the end of the financial year.
Parts of form 16 :
This part contains details like
1. Name and address of employee
2.Name and address of employer.
6. Details of TDS Deducted
7. Details of bank in which TDS is deposited.
2) Part – B :
This part contains the information related to employee’s total income and tax like
2.Details of income from other heads
if you have worked in two different organization in a single year then you have to collect two different Form 16s from the two employers in order to file the IT returns.
Revised form 16 :
After obtaining the form 16 from the employer assessee has to cross check the figures in the form 16 with the income statement submitted by him to his employer for TDS purpose.
If there are any mistakes like some deductions might not have been considered and some deductions u/s 80 might not be taken into account. In such case one has to consult his employer and and request for Revised form 16 after correcting all the details in the form.