Salaried staff members throughout India are waiting for an essential paper– Form 16– from their company to submit their tax return (ITR). In this short article we set out why Form 16 is a vital paper for staff members to submit their tax obligations, by when you can anticipate to obtain your Form 16, and the essential information it has.
TDS certification
Form 16 is necessary for staff members as it has information of the tax obligation deducted at resource (TDS) by the company. According to the earnings tax obligation guidelines, companies have to provide Form 16 by 15 June 2025.
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It likewise has various other information such as reductions declared under numerous areas of the Income Tax Act, consisting of 80C and 80D, home rental fee allocation (HRA), and others.
Simplifying the procedure
Form 16 simplifies the procedure of declaring tax return, specifically when making use of pre-filled kinds on the earnings tax obligation site. However, in instance of a hold-up from the company, people can still submit their returns by utilizing records such as wage slides, Form 26AS, and the Annual Information Statement (AIS).
“For FY25, the last day to problem Form 16 is 15June In instance of any kind of hold-up in providing Form 16, there is fine of 500 daily on the company,” claimed Mayank Mohanka, creator of Tax Aaram India.
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Even after obtaining Form 16, it is a good idea to confirm the information throughout systems to prevent any kind of disparities that can result in enquiry from the Income Tax Department.
Does everybody obtain a Form 16?
Employers are not needed to supply Form 16 to staff members whose wages were exempt to TDS. For instance, gross income approximately 5 lakh is tax-free under the old tax obligation regimen, and approximately 7 lakh under the brand-new tax obligation regimen.
“For instance, in the old tax obligation regimen earnings approximately 5 lakh is tax-free after availing a refund under Section 87A. In the brand-new tax obligation regimen, earnings approximately 7 lakh is tax-free for FY25. Note that from FY26, the zero tax obligation limit has actually been elevated to 12 lakh under Section 87A”, claimed Mohanka of Tax Aaram India.
Parts A and B
Form 16 is set apart right into 2 components– Part A and Part B.
Part An includes information such as the name of the company and worker, the company’s Permanent Account Number (FRYING PAN) and Tax Deduction and Collection Account Number (TAN), the worker’s frying pan, duration of work, TDS deducted and transferred.
Part B has information such as wage paid, various other earnings, reductions declared, and tax obligation payable, to name a few points.
Switched tasks? You’ll require 2 Form 16s
An employed worker can have 2 Form 16s in a solitary fiscal year if she or he has actually altered tasks throughout the fiscal year. In this instance, the person will certainly require to acquire a Form 16 from both the previous company and the here and now company.
Remember, the last day for submitting IT returns has actually currently been included 15 September 2025 from the common target date of 31 July 2025.
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