Form 16 for Salaried Employees
This post describes all about Form 16 relating to salaried employees under Income Tax Act
Every Salaried Employee whose total income after all eligible deductions under the Income Tax Act exceeds the maximum amount not chargeable to tax is required to get their tax deducted from their employers as per their eligible tax slabs.
Thus the employer has to deduct tax at source from income of every employee whose total income is chargeable to tax and has to deposit the TDS so deducted into the Govt. Account.
Every Employer has to file a TDS return of salary at the end of the Financial year and has to provide Form 16 to every employee whose TDS has been deducted at Source.
Form 16 has to be provided on or before the 15th of June of every year to the employee. The date may be extended by CBDT every year based on circumstances etc.
There are two parts of Form 16. i.e. PART A and PART B.
PART A consists of the following details:
1. Name and address of the Employer
2. TAN & PAN of the deductor i.e. employer
3. Employee name and address including PAN
4. Details of TDS deducted every quarter
5. Period of employment and Asstt. yr.
6. Unique Certificate No.
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PART B consists of the following details :
1. Detailed breakup of the Salary i.e. basic salary, allowances, perquisites, etc.
2. Deductions allowed under chapter VIA
3. Relief under Section 89
4. The tax payable on the Salary income as per Form 16
From the Asstt. yr. 2019-20, both part A and part B have to be mandatorily generated through the TRACES website after the filing of TDS return. Now no person can issue manual form 16 to their employees.
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