If you are a salaried person, you must be well familiar with the Form 16. If you understand the Form 16 thoroughly, you can easily file ITR (Income Tax Returns). What is Form 16? It’s nothing but a certificate, which gives information on the tax deducted at source (TDS) from your income, under the head, “salaries”.
In simple terms, it gives details of the tax deducted by your employer. Form 16 is the income certificate issued to you by the employer.
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Form 16 has 2 parts:
Form 16 Part A:
Form 16 Part A gives the summary of TDS deduction. This summary can be on a quarterly/monthly basis.
Example: If Financial Year is 2017-18, then Assessment Year is 2018-19.
SEE ALSO: Submit Form 15G and Form 15H To Save Tax
Your employer deducts TDS from salary and other income. This amount is deposited with the Income Tax Department. How do you know that your employer has deposited the money with the tax department?
This is why you need Form 26AS. Form 26AS is a form which shows you that TDS deducted from salary, has been deposited with the Government.
Form 26AS gives details of TDS deducted from salary, banks and so on. You must check if the TDS deductions in Form 16, match with the TDS deductions shown in Form 26AS. They must be the same.
SEE ALSO: View Form 26AS Before Filing ITR
The Income Tax Department considers the TDS figures from Form 26AS. So if the employer has updated your PAN wrongly, TDS will not reflect in Form 26AS. Make sure your employer rectifies this error. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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