Income tax laws mandate that Form 16 must be issued within 15 days of the TDS return filing due date. For the fourth quarter of the financial year, the TDS return filing due date was May 31, 2024.
Therefore, employers must issue Form 16 to their employees by Saturday (June 15, 2024). Employers can issue it earlier but only after filing the TDS return for the fourth quarter of the previous financial year.
For example, for FY 2023-24 (AY 2024-25), employers will issue Form 16 for tax deducted on salary paid between April 1, 2023, and March 31, 2024.
Tax Filing with Form 16
Getting Form 16 from your employer simplifies the process of filing your income tax return (ITR) as a salaried individual. This TDS (Tax Deducted at Source) certificate, issued by your employer, provides essential details for accurate tax filing.
It details the salary income paid, the tax regime chosen by the employee for TDS on salary, the total tax deducted and deposited, and the eligible deductions claimed during the financial year.
Two Parts of Form 16
Form 16 is separated into two parts: Part A and Part B. Employees must ensure they receive both parts, which should have the TRACES logo to confirm authenticity.
Part A: This part shows the total tax deducted from salary in each quarter, along with the PAN of the employee, and the PAN and TAN of the employer. It also contains the names and addresses of both parties.
Ensure the total tax deducted matches the amount shown in Form 26AS. Inform your employer of any inconsistencies so they can be fixed.
Part B: This part indicates the tax regime chosen by the employee (new or old). It details the gross salary, including allowances and perquisites, deductions and exemptions claimed, and net tax paid. It will also state whether the employee opted for taxation under section 115BAC (new tax regime).
Matching Form 16 with Form 26AS
Form 26AS is a tax passbook showing all TDS and TCS transactions during the financial year. To ensure accuracy, compare Form 16 with Form 26AS.
Also Read: ITR Filing Due Date for AY 2024-25 for Different Taxpayers: Don’t Miss These Deadlines!
– Obtain Form 26AS from the income tax e-filing portal by logging in with your PAN and password.
– Go to e-file > Income Tax Returns > View Form 26AS.
– View or download the form for the relevant assessment year.
Match the total tax deducted and deposited, as well as the total amount paid/credited in both Form 16 and Form 26AS. If they match, you can proceed to file your ITR. If there’s a discrepancy, contact your employer for correction.
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