Income Tax Form 16

Income Tax Form 16 is a certificate issued under section 203 of Income Tax Act for tax deduction at source from salary.Form 16 shows a detailed record of income tax deducted by the employer from the salary of the employees.Form16 contains complete details of salary, its components paid by the employer as well as the tax exempted from the salary.

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Understanding Income Tax Form 16

The form 16 comprises of two parts, Part A and Part B. Part A serves as the proof of Tax Deducted at Source (TDS) deduction by the employer. Whereas, part B is just an annexure that lists your salary, due tax, tax paid and other income if any. The form also contains a monthly statement of the same

Form Part A Includes:-

TDS Deducted by the employer.
PAN of the employee.
As certified by the employers, summary of tax deducted and deposited quarterly.
Assessment year.
Period of employment with the employer.
Tax Account Number and PAN of employer.
Form 16 Part A must be generated and downloaded through traces portals.
Form 16 part A also has a unique TDS Certificates Number.
Name and Address of the employer.
The name and address of employee/tax payers.

Part B of Form must Include:-

Taxable salary of the employee
Detailed breakup of salary paid
Salary deduction under section 80C and 80U
Details of house property income
Aggregate tax on income
Relief under section 89
In an individual have more than one job during the year, than he/she will have more than one form 16.
The Part B of form 16 is issued along with part A and is prepared by the employer manually.

Components of Income Tax Form 16

The employees’ personal details like name PAN number, etc.
The details of employers like Tax deduction, name, PAN and collection account number (TAN), etc.
Detailed breakthrough of salary; gross salary, net salary, perks, deductions, etc.
Total income and tax deduction.
An acknowledgement number of taxes paid by the employer.
Education cess and surcharge details.
Under section 191A taxes deduction.
Declarations of payments of tax from the employer.
Receipt of TDS paid.
Details of payment of tax like cheque number, challan number, demand draft number, etc.

How to Fill Income Tax Return Form 16

Form- 16
[See Rule 31(1)(a)]
Part A
Certificate under section 203 of Income Tax Act,1961 for tax deducted at source on salary
Certificate. No -ABCDEFG			Last Update On- 28-May-2014
Name and Address of the Employer			Name and Address of the Employee
EMPLOYER INDIA PRIVATE LIMITED Block B, Aurobindo Street Gurgaon-122001, Haryana Phone. Number- xxxxxxxxxx			VARUN AGGRAWAL Block C, Right Street Gurgaon-122001, Haryana Phone. Number- xxxxxxxxxx
PAN of Deductor		TAN of Deductor	PAN of employee		Employee Reference Number Provided by the Employer (If available)
ABCPA1234A		BLRI00560A	AAAPA1111A
CIT(TDS)		Assessment Year	Period with Employer
Address: Income Tax Office Address		Financial Assessment Year	From 01-04-2015		To 31-03-2016
Summary of the amount paid/credited and tax-deducted at source thereon in respect of the employee.
Quarters	Receipt Number of original quarterly statements of TDS under sub section(3) of section 200		Amount paid/credited	Amount of Tax Deducted		Amount of Tax Deposited/Remitted (Rs)
Q1	XYZ		57546.00	195.00		195.00
Q2	ABCD		84552.00	2133.00		2133.00
Q3	ABCDEFGH		93296.00	314.00		314.00
Total(Rs)			235394.00	2642.00		2642.00

Employer details: Name and address of the employer.
Employee details as per the company records: Name and designation of the employee.
PAN (Permanent Account Number) of the employer.
TAN (Tax Deduction and Collection Account number) of the employer.
PAN (Permanent Account Number) of the employee’s.
Income Tax Commissioner’s office details.
Assessment year and time period.
Summary of the quarters.

Part B of the Form as mentioned below:

Part B (Annexure)
Details of Salary Paid, Other Income and Tax Deduction
				Rs			Rs		Rs
1. Gross Salary
(a) Salary as per provisions contained in section 17(1)				2,41,500			-		-
(b) Value of perquisites u/s 17(2)(as per Form.No-12BB wherever applicable				20,000			-		-
(c) Profit in lieu of salary section 17 (3) (as per Form.No-12BB wherever applicable)				-
(d)Total							2,61,500

2. Less: Allowance to extent exempt U/s 10
Allowance		Rs
X		1000
Y		8000
Z		3500
							12,500

3. Balance(1-2)							2,49,000
4. Deductions
(a) Entertainment Allowance
(b) Tax on Employment
5. Aggregate of 4(a) and (b)
6. Income chargeable under the head Salaries (3-5)									2,49,000

7. Add: Any other income reported by the employee
Income	Rs





8. Gross Total Income (6+7)									2,49,000

9. Deduction under chapter VI A
(a) Section 80C,80CCC and 80CCD


Section 80C						Gross Amount		Deductable Amount
I. Provident Fund						2,000		2,000
II. Life Insurance Premium						5,500		5,500
III. NSC						5,000		5,000
IV. Contribution to PPF						3,500		3,500
V. Senior Saving Schemes
VI. Equity Linked Saving Schemes
VII. Housing Loan Principal Repayment
VIII. NSC Interest
IX. Mutual Fund/SIP
X. Children Education Fees
XI. ULIP
XII. Fixed Deposit/POTD
(b) Section 80CCC
(c) Section 80CCD
						16,000		16,000

10. Aggregate of deductible amount under chapter VI-A								16,000
11. Total Income (8-10)								2,33,000
12. Tax on Total Income								4,300
13. Education Cess @3%(on tax computed at S.No 12)								129
14. Tax Payable (12+13)								4,429
15. Less: Relief under section 89(attach details)
16. Tax Payable (14-15)								4,429
Verification
I,----------------your name ----------------son/daughter of ----------------Father’s name -------------Working in the designation ----------------- do herby certify that a sum of Rs----------(in numeric)------------[Rs ------------(in words) has been deducted and deposited to the credit of the Central Government. I further certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, TDS deposited and other available records.
Place			City
Date

					Signature of person responsible for deduction of tax
Designation:					Full Name: Tax Payer

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This section includes:

Gross salary is the salary without any deduction plus any perquisites that is received by the tax payer.
Under part B of form 16 the allowances offered by the employer are covered.
The total income is chargeable under salaries.
Gross total income is the amount on which the taxes are calculated.
Under This section all the investments made by the employee are covered and the employees also receive tax relief for the same.

Helpful Resources: How To Calculate Income Tax

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