What is form16 certificate and its use?

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what is form 16 salary certificate, and why its useful?

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Posted by ajay
Asked on 2017-06-08 1:16 am
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Form 16 is a certificate issued by an employer to all his employees for a particular financial year at the end of the said year reflecting the total salary paid and amount of tax deducted (‘TDS’) during the year. For a salaried employee, Form 16 is of utmost importance from income-tax point of view as it forms the base of his / her income-tax return. Form 16 is one of the documents that you need to keep handy before or while filing your ITR, while all deduction related details are mentioned in Form 16, you should cross-check the amounts with your investment and other documents. Form 16 only declares TDS from salary. For other incomes, there are other forms.
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Posted by Guest
Answered on 2017-06-17 10:14 am
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To understand what is Form 16, you must first check your salary slips for TDS deductions done by your employer- a few companies deduct it monthly or some of them deduct it yearly. The certificate which is issued against the deducted TDS amount by your organisation is called Form 16. Issuance of Form 16 or salary certificate is commplusory under the Income Tax Act to certify the amount your employer has deducted from your earnings and deposited with the income tax department. This form has two parts- part A and Part B
Components of Part A:
1. Employer’s name, TAN no. and PAN card no.
2. Employee’s Name, PAN card no. & Address
3. Details of tax deducted & deposited quarterly with the government
4. Assessment year for which the TDS has been deducted.
5. Time period of employment with the employer
6. TDS payment acknowledgement no.
Components of Part B:
1. Salary particulars such as: PPF, NSC, Pension, Gratuity, Leave Encashment, etc.
2. Education tax and surcharge
3. Deductions under Income Tax Act
Your employer will issue Part B with Part A.
Benefits:
1. You need it to get approval of home loan.
2. Form 16 is required for Income Tax Return

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Posted by Gunjan (Questions: 2, Answers: 126)
Answered on 2017-06-13 10:23 am
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Form 16 is the TDS certificate that an employer issues to you when TDS is deducted by them. When an employer deducts TDS on salaries, the income tax act requires that a certificate must be issued by the employer, where the details of tax deducted and deposited is certified.
Form 16 section has two sections :Part A and Part B , Part A has TAN (tax deduction & collection account number) of the employer & PAN (permanent account number) details of both the employer and employee. Part B is an important part of your Form 16 since it has a consolidated detail of salary paid to you during the year. Your gross income is mentioned first. Those who need to pay professional tax should note that the tax is not considered on the gross income.
Form 16 is required due to its utility in Income Tax filing. Since it is complete record of income earned and taxes paid it is a single most important document that is accepted for tax filing purposes. It is also accepted as an income proof in various transactions like loan processing etc. This is a proof that correct taxes are deducted from salary and deposited with the government.

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Posted by jigyasa (Questions: 0, Answers: 9)
Answered on 2017-06-10 12:59 pm
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