Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
Top Headlines »
Open DEMAT Account in 24 hrs
 Tax saving options under New Tax Regime most taxpayers may not be aware of
 Will you save more tax by opting for the old income tax regime?
 You could lose section 80C tax benefit on EPF contribution; here's why
 Income Tax Return Filing: Why you should wait until June 15 to file ITR for FY 2023-24
 Section 43B of Income Tax Act: Expenses businesses can cover apart from payment to MSMEs
 Direct tax collections reflect disparities
 Dealing with income tax notices, intimations or letters? This new feature in ITR portal will make your life easier
 Income Tax Slabs FY 2023-24 & AY 2024-25 (New & Old Regime Tax Rates)
 How can Form 15G & Form 15H save TDS on interest income?
 How are e-filing and e-payment of taxes different? Know details here
 Income Tax return (ITR) filing 2024: What is Form 16, when is issue date and why is it crucial? Explained
 Step-by-Step Guide To File Income Tax Return FY 2023-24
 
 
 

Income Tax return (ITR) filing 2024: What is Form 16, when is issue date and why is it crucial? Explained
May, 01st 2024

Income tax return filing: The deadline to file the Income Tax Return (ITR) for the financial year 2023-24 (assessment year 2024-25) is July 31, 2024. Salaried individuals can commence filing their ITR for the financial year 2023-24 from June onwards, after receiving their Form 16.  

What is Form 16?

Form 16, issued by employers to employees, plays a crucial role in filing Income Tax Returns (ITR) for salaried individuals. It contains the tax deducted from the salary during a financial year and deposited with the government. This includes information about the employee's PAN (Permanent Account Number), the employer's TAN (Tax Deduction and Collection Account Number), salary income, deductions under various sections of the Income Tax Act, and the tax deducted at source (TDS). 

Form 16 serves as proof of the TDS deducted by the employer, facilitating the accurate filing of employee income tax returns.

Form 16 issue date

Form 16 is typically issued by employers to their employees on or before June 15.

 

Form 16 has two parts: Part A & Part B

Form 16A generally contains the following information:

-Permanent Account Number (PAN) or Aadhaar of deductee

-Tax Deduction and Collection Account Number (TAN) of the deductor details TDS deducted and deposited quarterly

-Book Identification Number if tax is deposited by the Govt. Office without production of challan

-Challan Identification Number in case of payment through bank

Form 16-B summarises the employee's income, showing their salary details and deductions approved under Chapter VI-A. It's an attachment to Part A and is prepared by the employer.

 

Why is Form 16 important?

Form 16 is important for several reasons:

 

  • It serves as proof of income earned by the employee during the financial year.
  • It provides evidence of tax deducted at source (TDS) by the employer on behalf of the employee.
  • It contains all the necessary details required for filing Income Tax Returns (ITR) accurately, such as salary income, deductions, and TDS.
  • It is an important document for salaried employees as it helps them claim tax refunds.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting