Form 16 for Income Tax Return filing: Key things to check, difference between Part A and B

 


An income tax return form is used to file information about income and tax to the Income Tax Department. Here we talk all about what Form 16 is, what are Part A and Part B of Form 16, and what things need to be checked before filing Income Tax Return.

Form 16 contains two parts — Part A and Part B, which are used to prepare and file income Tax returns (ITR). The form shows the breakup of the salary and the amount of TDS (Tax Deducted at Source) which is deducted by the employer. 

Form 16 is issued latest by 15 June of every year by most organisations and is also known as a salary TDS certificate. If an employee’s salary exceeds Rs 2,50,000 then their employer is required to deduct TDS and deposit it to the government. The form is not issued if an employee’s income does not exceed Rs. 2,50,000.

Read More: Income Tax Return Due Date Extension 2023 Latest News: Will last date of e-filing ITR extend?
Form 16: Understanding Part A and Part B of Form 16

  • Form A contains both employer and employee’s name, address, PAN (Permanent Account Number), and TAN (Tax Deduction Amount Number), the payment details, TDS payment number, period of employment, date of deposit, and the deposited tax amount.
  • Form B consists of a detailed breakup of the salary paid to the employee, details of other income given to the employee apart from the salary, deductions allowed, and tax payable.
  • Form 16 Part A is issued quarterly on income other than the salary, whereas Part B depends on the number of transactions.

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Key things to check-
1.     Employees must make sure the details mentioned like PAN, TAN, name, address, and TDS payment number are correct. And they must recheck all the details twice.
2.      The amount of tax deducted must be the same as the amount mentioned in Form 16. If there is any issue, they must consult with their employer so that changes can be made.
3.      If they changed jobs in a financial year, then they must make sure to get the form 16 from both employers.
4.      In case of any discrepancy in the form, they need to immediately consult with the Finance Department, HR of the organisation, or Payroll, and get the same corrected.
Employees must revise all the details mentioned in Form 16 before filing their Income Tax Return.

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