How to File Income Tax Return Using Form 16

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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.

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

 

  1. Employer details: Name and address of the employer.
  2. Employee details as per the company records: Name and designation of the employee.
  3. PAN (Permanent Account Number) of the employer.
  4. TAN (Tax Deduction and Collection Account number) of the employer.
  5. PAN (Permanent Account Number) of the employee’s.
  6. Income Tax Commissioner’s office details.
  7. Assessment year and time period.
  8. 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

 

You may like to Read: How to efile Income Tax 


This section includes:

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

 

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