What is Form 16

1. What is Form 16 – Basics, Part A & Part B of Form 16? Form 16 is the certificate issued by an employer for every employee on whose salary TDS has been deducted and deposited to government. The certificate provides details of the amount paid or credited to the employee towards its salary and the TDS deducted & deposited on the same. Every employer must issue form 16 on or before 15 June of the financial year after the financial year to which the tax pertains. Form 16 is divided into 2 parts: Part A & Part B. Let us understand Form 16 more & its parts more transparently. Part A of Form 16 Part-A of Form 16 provides details of the employer, the amount paid by the employer, TDS deducted etc. It contains details such as Name, address, TAN and PAN of the employer along with details such as the summary of tax deducted on salary & the number of TDS deposited quarterly. These details are certified by the employer. An employer can generate and download part A of Form 16 for every employee separately through TRACES portal (https://www.tdscpc.gov.in/app/login.xhtml). Please note that if you change your job within a year for one or more times, you will have multiple employers for that financial year. In that case, every employer will issue a separate Part-A of Form 16 as per the relevant period of employment. Part B of Form 16 Part B of Form 16 is an annexure to Part A of the form. Part B provides the following details of the employee: a. Details of the salary of the employee for the financial year b. Details of allowances exempted under section 10 c. Deductions under Chapter VIA allowed & availed by the employee including deductions under:

2. 1. Section 80C – Life insurance premium paid, contribution to PPF etc., 2. Section 80CCC – Contribution to pension funds, 3. Section 80CCD(1) –Employee’s contribution to pension scheme 4. Section 80CCD(1B) –Taxpayer’s self contribution to notified pension scheme 5. Section 80CCD(2) –Employer’s contribution to pension scheme 6. Section 80D – Health insurance premium 7. Section 80E – Deduction for Interest paid on loan taken for higher education 8. Section 80G – Donations 9. Section 80TTA – Interest income on savings account d. Relief under Section 89 Please Note: If an employee changes his or her job in one financial year ( 1 or more times), then he or she is at the option to take Form 16 Part B from all the employers or the last one. (With whom he was employed with during closing of the year) To know more information please contact here:-https://filingbuddy.in/form-16-details/