Form 16 Issuance to Employees

Form 16 is a certificate issued by employers to their employees. It is proof that the TDS was deducted and deposited with the government authorities on behalf of the organization's employee.

Form 16 provides a detailed breakdown of the salary paid to employees as well as the TDS deducted. TDS Form 16 contains all of the information required to prepare and file an income tax return.

Employers must issue a Salary TDS certificate on or before the 15th of June of the following year, immediately following the fiscal year in which the tax is deducted. Form 16 is divided into two parts: Part A and Part B.If an individual loses Form 16 he can request a duplicate Form from the employer.

mybusinessfilings can help you manage TDS compliance online. Our TDS experts will help you file all the TDS returns pay any overdue TDS deposits and also the issuance of Form 16 to the employees.

Structure of Form 16
Part A of Form 16

It provides the details of the TDS that is deducted and deposited. This form can be generated by the employers through the TRACES portal.

The employer must verify the contents before issuing the certificate. Here are a few components of Part A of the salary TDS certificate.

  1. Name and address of the employer
  2. TAN and PAN of employer
  3. PAN of the employee
  4. Summary of tax deducted and deposited quarterly, which is certified by the employer.

Part B of Form 16

It is an annexure to Part A, Part B is prepared by the employer for its employees and it contains details of the breakup of the salary deductions approved under Chapter VI-A. In case of a job change in one financial year, Form 16 should be obtained by both employers. Some of the components of Part B are:

  1. Detailed breakup of salary
  2. Detailed breakup of exempted allowances under Section 10
  3. Deductions that are allowed under Income Tax Act (Under Chapter VIA)

Deposit of Tax to Government by Employers

The deducted tax from the employees' salary should be deposited by the employer along with an income tax challan ITNS 281 on or before the 7th of every month for the previous month.

Recently, from 2008 all the corporate assessees and assessees are subject to tax audit are required to make all the TDS payment online through an internet banking facility.

An assessee can also make payment of taxes from the account of any other person. However, the challan for making should indicate the PAN of the assessee on whose behalf the payment is made.

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