As the deadline for filing income tax returns (ITR) approaches, salaried individuals can take solace in the convenience provided by Form 16, a crucial document employers issue.
According to an Economic Times article, Form 16 simplifies the tax filing process for salaried individuals, as it provides detailed information about their salary income, tax regime opted, total tax deducted, and eligible deductions claimed during the financial year.
The Income Tax department mandates that employers issue Form 16 to their employees within 15 days of the due date for filing the tax deducted at source (TDS) return, which is May 31 for the fourth (final) quarter of the financial year. This ensures employees have access to the necessary information well before the ITR filing deadline.
Form 16 consists of two parts: Part A and Part B. Part A outlines the total tax deducted from the employee’s salary income in each quarter, along with other details such as the employee’s PAN and the employer’s PAN and TAN. Employees must ensure that the total tax deducted during the year, as shown in Form 16, matches the information in their Form 26AS. This tax statement provides a comprehensive view of all TDS and TCS deductions.
Part B of Form 16 showcases the tax regime chosen by the employee, either the new tax regime under Section 115BAC or the old tax regime. This information is essential for determining the correct tax calculation on the employee’s taxable salary, which includes their gross salary, allowances, perquisites, deductions, and exemptions.
By reconciling the information in Form 16 and Form 26AS, salaried individuals can smoothly prepare and file their ITR, avoiding discrepancies or potential issues with the tax authorities.
Experts advise taxpayers to keep Form 16 and Form 26AS handy during the ITR filing process to ensure a seamless and accurate submission of their income tax returns.
