All salaried employees have to file their income tax returns by July 31. To do this, it is necessary to have the Form 16 document, issued by your employer. Form 16 gives details of tax deducted and the branch of the bank where it is deposited into the central government account. For example, if a TDS of Rs 2,332 and education cess of Rs 68 are deducted from your April salary, Form 16 details the same. It does so for every month in the financial year. It is the final certificate issued by your employer giving details of the salary you have earned and the tax deducted on your behalf and paid to the government.
This certificate should be issued within 15th June of the financial year immediately following the financial year in which it was deducted. In case there hasn’t been any TDS from your salary, you just get a salary certificate, and not the Form 16.
What is Form 16A and how is it different from Form 16?
If you are not a salaried employee and work as a professional for an organisation and earn fees, then the certificate that shows TDS details deducted while making payments to you is Form 16A.
What if you have worked for more than one company or changed jobs during the year?
At the end of the year, you need to collect Form 16 from both your employers as that is the basis on which you would file your returns. When you join a new organisation, you should furnish your TDS details from the previous employer to your current employer. This will help your current employer in deducting tax accordingly. If you do not mention your previous organisation details to your new employer, then you are liable to show the total income from both employees and calculate your tax liability accordingly.
What if I cannot get Form 16 from my previous employer?
Your best option then is to fill Form 12B and submit it to your new employer. The employer will take into account the previous salary you earned while deducting tax.
Do I need to attach Form 16 to my I-T returns?
As per the I-T department rules, it is not necessary to attach the original Form 16 to your income tax returns. However, in your interest, you could attach a photocopy of Form 16 while retaining the original with yourself.
What other particulars should be checked in Form 16?
The first thing you need to confirm in Form 16 is the PAN number. If it is wrong, you have to ask your employer to rectify it and give you a new Form 16. Besides, the employer needs to make a correction at their end by filing revised return of TDS to credit the TDS proceeds to the correct PAN number.
What if there is an error in figures in Form 16?
You need to tally the figures in Form 16 with the tax declaration statement provided by you to your organisation at the beginning of the year. It’s possible that the figures mentioned are either wrong, or not considered at all.
The result would be that fewer deductions would have been shown, resulting in higher tax liability. You might not have submitted the proofs of all investments, or could have forgotten to submit some bills.
If there is an error by the employer, you could request them to rectify it and issue a revised Form 16. If a higher tax has been deducted, you can claim a tax refund while filing your returns
(Republished with amendments)