Form 16

What is Form 16 and How to Download Form 16 - SBI Life

When an individual earns a salary of more than Rs 2.5 lakhs per annum, Tax Deducted at Source or TDS is applied to the income received. This deduction is applied every time your salary is credited to you. Over the course of a financial year, there will be 12 TDS deductions on your salary only. If you want to know the amount of deduction that is done in a financial year, you will have to ask your employer to issue you your Form 16.

Every salaried individual needs to know what is Form 16 and how to download form 16, as it is important while e-filing your Income Tax Returns.

What is Form 16?

Form 16 is a certificate that is issued by your employer, generally, at the end of the financial year. It contains the details of the TDS that has been deducted from your income during the course of the year. Apart from this, it will also hold all the details of salary including any tax and other deductions that have been made in the same period.

You will need to download form 16 before you file your income tax returns. When you look at your form 16 format, you will see two parts of it, Part A and Part B.

Part A will hold the personal details including-

1. Name and address of the employee,
2. Name and address of the employer,
3. Permanent Account Numbers of employee and employer,
4. TAN of the employer,
5. Assessment Year,
6. Quarter-wise payment made
7. Challan details of the payment.

Part B

1. The Top portion will hold the details similar to Part A. Post this part, details of income and deduction will be given in detail
2. Details of the salary paid:
   1. Salary received
   2. Value of perquisites
   3. Any profits received instead of salary
   4. Total Income
3. Deductions under Section 10:
   1. Travel Concession
   2. Death cum retirement gratuity
   3. Commuted value of pension
   4. Amount received as leave encashment
   5. House Rent Allowance or HRA
   6. Any other exemptions
   7. Total deduction availed under Section 10
4. salary received which is the total income (2d) received less Deduction under Section 10 (3g).
5. Deductions under Section 16:
   1. Standard Deduction
   2. Entertainment Allowance
   3. Tax paid on employment or Professional Tax paid.
   4. Total Deduction Applicable
6. Income charged as Salaries will be Salary after deducting Section 10 less deducting Section 16 {(4-5d)}
7. Any other source of Income
   1. Income or loss from house property
   2. Other Sources
   3. Total Income from other sources
8. Gross Total Income = Income from Salaries plus Income from Other sources [(6 +7c)]
9. Deductions Under Chapter VI-A
   1. Deduction Under Section 80C including Life Insurance Premium, Provident Fund
   2. Contribution, etc. Please note you can only claim Rs 1.5 lakhs under this section.
   3. Deduction Under Section 80CCC for certain pension funds
   4. Deduction Under Section 80CCD (1) for contribution in certain pension schemes
   5. Total Deduction under Section 80C, 80CCC, 80CCD(1)
   6. Deduction Under Section 80CCD (1B) for contribution in a notified pension scheme like NPS. You can claim Rs 50,000 per year if you have invested in that year
   7. Deduction Under Section 80CCD (2) for contributions by the employer in a certain pension scheme
   8. Deduction Under Section 80D for health insurance premiums paid
   9. Deduction Under Section 80E for interest paid on loan on education.
   10. Deduction Under Section 80G for contributions as donations done
   11. Deduction Under Section 80TTA for interest on deposits in savings accounts
   12. Any other deductions under Chapter VI-A
   13. The total amount of deductions
10. Total taxable Income: Gross Total Income-Deductions Under Chapter VI-A (8-9l)
11. Tax on total income
12. The rebate, if any
13. Surcharge + Health and Education Cess
14. Total Tax payable: [(11+12+13)]
15. Less relief under Section 89 which is salary received in arrears.
16. Net Tax Payable: 14-15

Form 16 Eligibility

To be eligible to get Form 16 from your employer, you will need to receive income in the form of salary from your employer. TDS will only be deducted if your gross income is more than Rs 2.5 lakhs per year and you file income tax returns. Even if you do not fall in the tax bracket, your employer can still issue you Form 16, if you ask them to.

Benefits of Form 16

Form 16 is a very important document for the salaried individual.

• If you receive income from salary, you will be required to show form 16, especially during the filing of your income tax returns
• It is required as income proof when applying for a loan or a credit card
• You can also submit your Form 16 when you are applying for a visa
• It gives you an overview of your tax savings and whether you have invested adequately.

How to get Form 16?

Ideally, you will need to ask your employer to download form 16 for salaried employees. This can be downloaded from TRACES.

How to Download Form 16

You can get form 16 online from the TRACES website. The method to download form 16 is as below:

• Visit TRACES at https://www.tdscpc.gov.in/app/login.xhtml
• You will see Login where you will see Deductor and Tax Payer as options. Click on Deductor. The deductor is your employer who will be deducting the tax
• If you are a registered user, you will have to enter your username, password, and PAN
• If not, you will need to register yourself.
• After logging in, go to Downloads
• Click on Form 16
• Select the Financial Year and click Go.

How to File ITR with Form 16?

At the time of e-filing your Income Tax Returns, it is imperative to have your form 16 with you as the form 16 format has all the details of your salary income.

If you are eligible to file your ITR, you will get the precise amount you receive as salary, as well as income from other sources and house property.

Form 16 will also give you the break of the deductions under Section 16, Section 10, Chapter VI-A including Section 80C, Section 80CCC, Section 80CCD(1), Section 80CCD(1B), Section 80CCD(2), Section 80D, Section 80E, Section 80TTA

If you have received any refund from Income Tax, paid self-assessment tax, advance tax, or TCS, that information will be available in Form 26AS which you can download from the Income Tax site.

FAQs of Form 16

Is Form 16 mandatory?

If your employer is deducting TDS, it is mandatory for the employer to download Form 16 and give it to the employee.

I don’t have Form 16. How do I file my return?

If you do not have your Form 16 at the time of filing your returns, you can get all the information from Form 26AS.

If there is no TDS deducted, is the employer required to issue a Form 16?

If TDS has not been deducted there is no compulsion for the employer to issue Form 16 to the employee.

When does the employer deduct TDS and does not issue a certificate?

The employer has to mandatorily deduct TDS if your total income exceeds Rs 2.5 lakhs in a fiscal year. If the deduction has been done and Form 16 hasn’t been issued, it means that the employer has not deposited the TDS amount with the government.

If no Form 16 has been issued to me, does it mean I don’t have to pay tax or file a return?

Income tax is paid by an individual if their income exceeds or is more than Rs 2.5 lakhs annually. If your income crosses this threshold you are liable to pay income tax, even if your employer has not deducted TDS and issued form 16 to you.

Can I get a duplicate Form 16 certificate if I misplace the original one?

You can get a duplicate form 16 from your employer or get it from TRACES if you misplace your original copy of the form.

Can Form 16 be downloaded in PDF format?

Form 16 is downloaded in PDF format.