TDS Certificate form 16

Form 16 Part A 

Part A of Form 16 contains information about TDS deducted and deposited quarterly, as well as the employer's PAN and TAN. This section of Form 16 can be generated and downloaded by employers. The employer should authenticate the certificate's contents before issuing it. It is important to note that if you change jobs within the same fiscal year, each employer will issue a separate Part A of Form 16 for the duration of your employment.

Part A includes the following components

• Employer's name and address
• Employer TAN and PAN
• Employee's PAN
• Quarterly tax deducted and deposited summary, certified by the employer

Form 16 Part B

Part B of Form 16 is an Annexure to Part A. Part B is to be prepared by the employer for its employees and contains details of the breakup of salary and deductions approved under Chapter VI-A.

Part B includes the following components:

• Detailed about Salary including bifurcation as Salary, Perquisites and Profits in lieu of Salary
• Details of Allowances exempt u/s 10
• Details about deduction u/s 16 including Standard Deduction and Professional Tax
• Any other income reported by the employee
• Deductions available against Income
• Your Net Tax Liability
• Verification of the employer

Points to be checked in Form 16

• When an employee receives Form 16, it is their responsibility to ensure that all of the information is correct.
• One should double-check the information on Form 16, such as the amount of income, TDS deducted, and so on.
• If any of the information is incorrect, contact the organization's HR/Payroll/Finance department right away to have it corrected.
• The employer would then correct their error by filing a revised TDS return and crediting the TDS amount to the correct PAN. Once the revised TDS return is processed, the employer will provide their employee with an updated Form 16.

What if not received Form 16

If an employee's earnings do not fall within the tax brackets established, they will not be required to have Tax Deducted at Source (TDS). As a result, the company is not required to provide Form 16 to the employee in these circumstances. However, this does not absolve the employee of the obligation to file a tax return.

While the employer is responsible for deducting tax from salaries and providing Form 16, you are responsible for paying income tax and filing an income tax return. If the employee's total income from all sources exceeds the minimum tax slab, he or she must pay tax, whether or not the employer has deducted TDS. Even if your employer does not provide you with a Form 16, you must file an income tax return and pay taxes.

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