Article explains What is Form-16 (Salary Certificate), What is the Due date to get Form-16 from employer, Contents of Form-16, Is it mandatory to file return of income even after deduction of TDS on Salary by Employer, Some FAQ’s related to Form 16, Due date of filing ITR for individual salaried person.

1. What is Form-16?

India has a population of 125 crores and majority of the population are salaried persons. Govt. receives large proportion of taxes from salaried persons. The reason is liability imposed on employer to deduct tax at source. It means tax is to be deducted at the time of payment of salary. TDS on salary is levied because it would be difficult for Govt. to trace an individual who earns salary and may not file ITR. Form-16 is certificate under section 203 of Income-tax Act, 1961 for tax deducted at source on salary. This certificate is provided by employer to employee.

2. Due Date Of Issuing Form-16

As per income tax laws last date for filing TDS returns for an employer is May 31 and Form- 16 has to be issued latest by June 15, unless the date is extended by Government. Due to Covid-19, last date for issuing Form-16 has been extended to 15th August 2020. After getting Form-16, employees should contact tax expert for filing income-tax return.

3. Contents in Form-16

Form-16 contains details of tax deducted at source from salary of individual income and paid to the credit of account of Central Govt. It contains two sections- Part A and Part B. Part A contains details of tax deposited by employer i.e. challan details. Govt. deductors are allowed to make payment through book adjustment. If payment is through book adjustment than Book Identification Number (BIN) is to be mentioned in Form-16.  Part-B contains details of salary income and deductions claimed to arrive at taxable income as per income tax law and taxes paid thereon. Click here to download Format of Form-16.

4. Is it mandatory to file return of income even after deduction of TDS?

There are many clients who asks me question that Form-16 is received after deduction of taxes. It means tax from salary has been deducted and we are not required to file return of Income? I often smile and say this is the biggest mistake which salaried persons do. It is mandatory to file ITR after receiving Form-16. Employer calculates taxable income on the basis of information it has in his possession. There may be investments made, housing loan repaid, donations given, tuition fees paid, property sold etc. on which tax implications is still required to be calculated. You should always file ITR. Moreover, it is your liability if employer defaults to deduct TDS. You should always declare correct income and pay taxes.

5. Some FAQ’s

Q. Even if no taxes have been deducted from salary, is there any need for employer to issue Form-16 to me?

A. Form -16 is a certificate of TDS. In this case it will not apply. However, employer can issue a salary statement.​

Q. What if you change your job?

A. You will get Form-16 from each employer

Q. From where will I get to know that TDS deducted has been deposited to Central Govt. account?

A. TDS deducted and paid by employer is reflected in Form-26AS which can be seen by logging to your income tax account.

Q. Can I download Form-16 from somewhere?

A. No, You cannot download Form-16 from anywhere. You can only get it from your employer.

Q. What things should be kept in mind while giving details for Form-16?

A. You should give following details to your employer so that he deducts correct TDS- LIC Premium paid, Housing loan taken, Tax savings investments made, mediclaim paid, medical expenditure incurred for serious diseases, donations given, tuition fees paid, etc.

6. Due date of filing ITR for an individual salaried person

 31st July is the due date unless it is extended. The due date of filing return for A.Y.2020-21 has been extended to November 2020 due to Covid-19.

7. Our Comments

Every deductor is required to provide Form-16 to deductee within the required time frame. TDS deducted is reflected in Form-26AS and using these details individual can file ITR. Form 16 is most important document. Many person claim incorrect refund by quoting wrong figures in ITR when compared to Form-16 and invites income tax notice to their life. It is therefore necessary that return should be filed after analyzing all the aspects on the basis of documents.

*****

The above comments do not constitute professional advice. The Author can be reached at companyfinancialtree@gmail.com or visit website www.financialtreecompany.com . My name is CA Divya Agrawal and I am Practising Chartered Accountant, CEO and Founder of FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company) where we have taken an initiative that allows person to Pay from Heart. We also upload educational videos in You tube and name of our channel is FINANCIAL TREE COMPANY. Our aim is to help people in improving their financial health by spreading knowledge and love. Stay Financially Fit and Healthy.

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Location: Bhilai, Chhattisgarh, IN
Member Since: 30 May 2019 | Total Posts: 21
FOUNDER AND CEO OF FINANCIAL TREE COMPANY website-www.financialtreecompany.com Contact No. 9111872247 Email ID- companyfinancialtree@gmail.com (AN ONLINE RETURN FILING AND TAX CONSULTANCY COMPANY) View Full Profile

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12 Comments

  1. JAYALEKSHMI T P says:

    Dear Sir,
    As an employer can I deduct quarterly income tax myself and deposit the same in IT Department? Now it is done by someone else by collecting fees. What are the formalities for the same. Please explain the steps if possible.

    1. Divya Agrawal says:

      Dear Reader,
      You are required to deduct TDS monthly because salary is paid monthly and not quarterly. If you are tax professional and want to do it yourself, you should have good amount of knowledge because effort is required to file TDS returns. If you are layman than it is better to pay fees and get the work done. In next article I will share my knowledge on how to file TDS returns. You can go through it. But it would be my advice to always outsource the work in which you are not expert otherwise you will invite unneccessary notices in your life in long run.
      Thanks and Regards

  2. RAJENDRAPRASAD says:

    As an employer can I deduct quarterly income tax myself and deposit the same in IT Department? Now it is done by someone else by collecting fees. What are the formalities for the same. Please explain the steps if possible.

    1. Divya Agrawal says:

      Dear Reader,
      You are required to deduct TDS monthly because salary is paid monthly and not quarterly. If you are tax professional and want to do it yourself, you should have good amount of knowledge because effort is required to file TDS returns. If you are layman than it is better to pay fees and get the work done. In next article I will share my knowledge on how to file TDS returns. You can go through it. But it would be my advice to always outsource the work in which you are not expert otherwise you will invite unneccessary notices in your life in long run.
      Thanks and Regards

    1. Divya Agrawal says:

      Dear Sir,
      One time relaxation scheme for e-verification of returns has been introduced by Govt. where you can e-verify returns for A.Y.2015-16 to 2019-20 upto 30 sept 2020. You can send it to CPC or e-verify online using aadhar otp. Kindly do it soon as possible because after this Govt. may send notices to persons whose returns are not verified because if returns are not verified than it is considered as invalid return. Kindly do the needful as soon as possible.

  3. Divya Agrawal says:

    Dear Sir,
    If form 16 is received than TDS deducted will be reflected in Form 26AS. Govt has easily traced you because salary received is shown in Form 26AS. In 2018 a large number of cases were reopened on this basis only because transactions is shown in 26AS but assessee has not filed return of income. It is therefore very compulsory that return of income should always be filed.
    Thanks and Regards

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