Income Tax Filing Using Form 16

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Income Tax Filing Using Form 16

Form 16 plays an important role while filing income tax returns for salaried individuals. It forms the basis of proof that the TDS has been deducted by the employer from the salary of individuals. All the necessary information that is required by the individuals for filing their returns is contained in this form. In this article, we will understand important details about Form 16 and how it is used while filing ITR. 

What is Form 16? 

Form 16 is a document that is provided by the employers to their salaried employees or individuals. It is issued in the format as prescribed by the income tax department. This form is to certify that the TDS has been deducted from an individual’s salary. Under the Income Tax Act, it is mandatory to issue form 16 by the employer after deduction of TDS. Form 16 is issued only once a year. The due date to issue form 16 is on or before 15th June of the next year immediately following the financial year in which the tax is deducted. 

One important condition relating to form 16 is that it must be authenticated by the employer before issuing it to the individual. The employer should check and authenticate all the information given in the form.

Different Parts of Form 16 

Form 16 is divided into two parts, Part A and Part B. Part A contains all the information related to the employer and employee while Part B is an annexure of Part A and contains all the other required information. 

Part A contains the following: 

  • Name of the employer and employee 
  • Address of the employer and employee 
  • PAN of the employer and employee 
  • TAN of the employer 
  • A.Y. and the duration for which the employee has worked in the organization 
  • TDS certificate number 
  • Summary of the TDS deducted and deposited quarterly.

Information contained in Part B is as follows: 

  • The breakup of the salary of individual 
  • Taxable salary of the individual 
  • Salary deduction available under sections 80C and 80U 
  • Details of any Income from house property 
  • Aggregate tax on the income of an individual 
  • Any other income declared by the individual to his or her employer 
  • Deduction available under Chapter VI-A of the Income Tax Act 
  • Relief available under section 89 of the Act 
  • TDS deducted 
  • Net income tax payable by the individual 

How to Download Form 16.? 

To download form 16, an individual is required to follow the following steps: 

Step 1: Log in to the Income Tax Department website 

Step 2: From the "Download" section, click on "Income Tax Forms"

Step 3: Then select Form 16. There you will find "PDF" or "Fillable Form" options 

Step 4: Select the relevant option and your form will be downloaded. 

Note: you can also download form 16 from the TRACES website. 

How to file an income tax return using Form 16.? 

The steps to file the income tax return with the help of form 16 are as follows: 

Step 1: Log in to the official Income Tax website using the valid username and password of the individual 

Step 2: Generate Form 26AS and Form 16. You can verify your TDS deducted as shown in Form 16 from Form 26AS as form 26AS includes TDS deductions from all sources of incomes including salary.

Step 3: After this, download the applicable ITR form from the website. 

Step 4: Fill in all the incomes and other required information in the ITR form and claim all the available deductions and exemptions. 

Step 5: Once you have filled in all the information, the tax liability will be calculated. 

Step 6: Check for any additional tax payable or refund available 

Step 7: Pay additional tax, if any, through online payment methods 

Step 8: Submit the income tax return 

Step 9: After this, an income tax verification form, ITR-V  will be generated. 

Step 10: e-verify the income tax return filed and after this, the return filing process will be successfully completed. If not e-verified the return, sign and send the ITR-V to CPC, Bangalore within 120 days from the date of filing income tax return.

Income Tax Return Filing in Case of More Than One Form 16

If an individual has worked for two or more organizations in one financial year, then form 16 is required to be issued separately by each such employer. In this case, the income tax return filing shall be made after considering all such form 16. To do so, an individual can follow the following steps: 

Step 1: Generate forms 16 and 26AS and cross verify the amount of TDS shown in these forms 

Step 2: Calculate income received from all employers, in a financial year, as shown in forms 16 and 26AS 

Step 3: claim all deductions and exemptions available to the individual 

Step 4: Calculate the total tax liability and pay the liability, if any. 

Note: There are instances when the employer does not issue or fails to issue form 16. In this situation, the individual can use his payslip to calculate the tax liability.   


Author : Simran

Date     : 12-Jul-2022