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What is Form 16 and its Part A and Part B?

Highlights

  • Understanding the meaning of Form 16 and its Part A and Part B.
  • Go through all the components of Form 16A and Form 16B.
  • Explore the information required from Form 16 at the time of filing an Income Tax Return.

If you are a salaried employee then you might have been receiving your salary after tax deduction. But do you have a note of all those deductions? Well, your employer has all the details about the tax deductions in Form 16. So, basically, Form 16 is a certificate issued by the employer to their employees. This Form validates that the employer has deducted TDS and has deposited the amount to the government on the behalf of employees. Form 16 consists of a detailed summary of the Salary paid to the employees and the taxes deducted. Form 16 has two parts and they are Part A and Part B. One cannot file an income tax return unless and until he has Form 16. You can ask for a duplicate Form from your employer if in case you lost it.

Two Parts of Form 16 Part-A and Part-B

You must know the fact that Form 16 has two parts and they are also known as Form 16A and Form 16B. So, you must explore all the details available in these forms.

Form 16A

If you go through Part A of Form 16 then you will find the following details on it:-

  • Details of Quarterly Deducted and Deposited TDS and it has to be certified by the employer.
  • PAN of the Employee
  • TAN of the employer and other information related to it.
  • PAN of the Employer
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It is the duty of the employer to authenticate all the information present in Form 16A and make TDS Online Payment. If in case the employee changes his/her job during a financial year then the employer will issue a different Form 16 Part A for the period of employment.

Form 16B

The Part B of Form 16 consists of the breakup salary and deductions approved Under Chapter VI A. If the employee has switched his job during the financial year then he must take Form 16 from both the employees. So, you can see the components of Form 16B below:-

1.Gross Salary

  • Salary as per provisions contained in section 17(1) 
  • Value of perquisites under section 17(2) (as per Form No. 12BA, wherever applicable)
  • Profits in lieu of salary under section 17(3) (as per Form No. 12BA, wherever applicable)
  • The reported total amount of salary received from other employers

2.Less: Allowances to the Extent Exempt Under Section 10

  • Travel concession or assistance under section 10(5)
  • Death-cum-retirement gratuity under section 10(10)
  • Commuted value of pension under section 10(10A)
  • Cash equivalent of leave salary encashment under section 10(10AA)
  • House rent allowance under section 10(13A) 
  • Amount of any other exemption under section 10

3.Total Amount of Salary Received from Current Employer

4.Less: Deductions under Section 16

  • The standard deduction under section 16(ia) 
  • Entertainment allowance under section 16(ii) 
  • Tax on employment under section 16(iii)

5.Total Amount of Deductions Under Section 16

6.Income Chargeable under the Head “Salaries”

7.Add: Any other Income reported by the employee under as per section 192 (2B)

  • Income (or admissible loss) from house property reported by employee offered for TDS.
  • Income under the head Other Sources offered for TDS
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8.Total Amount of other Income reported by the employee

9.Gross total income (Point 6+Point 8)

10.Deductions Under Chapter VI-A

  • Deduction in respect of life insurance premia, contributions to provident fund etc. under section 80C
  • Deduction in respect of contribution to certain pension funds under section 80CCC
  • Total deduction under section 80C,80CCC and 80CCD(1)
  • Deduction in respect of contribution by the taxpayer to a pension scheme under section 80CCD (1) 
  • Deductions in respect of amount paid/deposited to a notified pension scheme under section 80CCD (1B)
  • Total Deduction in respect of donations to certain funds, charitable institutions, etc. under section 80G
  • Deduction in respect of contribution by the employer to a pension scheme under section 80CCD (2)
  • Deduction in respect of health insurance premia under section 80D
  • Amount Deductible in respect of interest on deposits in savings account under section 80TTA 
  • Deduction in respect of interest on loan taken for higher education under section 80E
  • Amount deductible under any other provision(s) of Chapter VI
  • Total of amount deductible under any other provision(s) of Chapter VIA

11.The aggregate of deductible amount under Chapter VI-A

12.Total taxable income ( Point 9 – Point 11)

13.Tax on Total Income

14.Rebate under section 87A, if applicable

15.The surcharge, wherever applicable

16.Health and education cess

17.Tax payable ( Point 13 + Point 15 + Point 16 – Point 14)

18.Less: Relief under section 89 (attach details)

19.Net Tax payable ( Point 17 – Point 18)

Verification
I, .........................................................................son/daughter of .....................................................(designation) do hereby certify that the information given above is true, complete, and correct and is based on the books of account, documents, TDS statement, and other available records.
Place...........................(Signature of person responsible for deduction of tax)
Date.........................Full Name: ...............................
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Information Needed from form 16 while filing ITR

  • TDS Deducted by Employer
  • Employer’s TAN and PAN
  • Name and Address of Employer
  • Present Assessment Year
  • Taxpayer’s Name and Address
  • Taxpayer’s PAN

Eligibility Criteria for Form 16

  • Individuals who fall in the Taxable Slab are eligible for Form 16.
  • The employer is not obliged to provide Form 16 to the employee if he doesn’t fall under the taxable bracket.

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