ITR Filing 2024: For salaried taxpayers, Form 16 plays a crucial role in filing their income tax returns. But what exactly is Form 16 and why does it matter? Form 16 is a certificate issued by employers to employees as per Section 203 of the Income-tax Act, 1961. It details the amount of tax deducted at source (TDS) from an employee’s salary and deposited with the government against their PAN. It also includes investment proofs for employees opting for the old income tax regime.
Form 16 is essential for Income Tax Returns as it provides a comprehensive summary of:
Part A: As reported by ET, Part A of Form 16 includes quarterly TDS details:
Part B: Part B specifies the salary paid or credited to the employee and mentions their chosen income tax regime (old or new):
Both Part A and Part B of Form 16 must bear the TRACES (TDS Reconciliation Analysis and Correction Enabling System) logo, confirming their authenticity as downloaded from the official income tax portal.
Form 16 can be obtained from the TRACES website or through the employer’s portal with the following steps:
Alternatively, employees can access Form 16 through their company’s employee portal by logging in, navigating to the tax section, and downloading the form after verifying all details.
By following these steps, employees can easily obtain Form 16, ensuring accurate and timely filing of income tax returns. Form 16 not only ensures compliance with tax regulations but also provides clarity on salary income and tax deductions for employees.