Form 16: The process of filing an Income Tax Return (ITR) for Financial Year 2024-25 or Assessment Year 2025-26 has started. ITR-1 and ITR-4 forms are ready for online filing. Form 16 and Form 16A have special importance while filing returns. Both these documents are proof of your tax deduction and without them, it can be difficult to file ITR. In this article, we will tell you in detail what Form 16/16A is, what information it contains, and which form is right for you. Form 16 and Form 16A
Form 16 and Form 16A are considered important certificates of Tax Deduction at Source (TDS). Under the Income Tax Act, your employer or any tax-deducting organization issues it to the taxpayer. In simple words, your employer or any organization deducts tax from you and deposits it with the government. A TDS certificate is solid proof of how much tax has been deducted from your salary or income and sent to the government.
What information is there in Form 16
The company or organization in which the taxpayer works deducts TDS while giving him a salary. Form 16 contains complete information about the amount deducted as tax i.e. TDS. It includes the following details:
Certificate Number:- It is a unique identification number.
TRACES Watermark:- This indicates that the certificate has been downloaded from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal, which ensures its validity.
Quarterly TDS Statement:- Detailed information on how much tax was deducted every quarter and how much was deposited with the government.
Employee’s PAN and employer’s TAN:- Permanent Account Number (PAN) of the employee and the Tax Deduction and Collection Account Number (TAN) of the employer are recorded in it.
Salary Details:- Complete details of the salary given to the employee by the company (Form 16 for Salaried Employees), which includes basic salary, allowances, etc.
Deduction claimed:- If the employee has claimed any deduction under Section 80C, 80D, or other sections, then its information is also there in it so that your taxable income can be calculated correctly.
Two parts of Form 16
Form 16 has two parts – Part A and Part B.
Part A: It contains the Summary of TDS, which includes the TAN of the employer, PAN of the employee, and quarter-wise information on TDS deducted and deposited by the employer.
Part B: It contains the details of salary and deductions paid to the employee, such as investment under section 80C, house rent allowance (HRA), etc.
Both Part A and Part B should be downloaded from the TRACES website only, as only that is considered valid. Form 16 filled by hand or received from any other source is not acceptable.
Take care while filing ITR
If your TDS or TCS (Tax Collected at Source) has been deducted, do not file ITR in a hurry. Make sure that your Form 16 or 16A is available with you and that the information given in it matches your Form 26AS (which is available on the TRACES portal). If there is any discrepancy, get it corrected first, only then file ITR.
Where is Form 16A given
The taxpayer receives income in the form of interest, commission, professional fees, etc. on fixed deposits (FD). In such cases, the bank or company that pays the interest, commission, or fee issues Form 16A to the taxpayer.