Understanding Form 16
Form 16 is basically a proof that the TDS has been deducted from the employee’s salary & has been duly deposited by the employer. Further elucidating on the same, Form 16 is basically a salutation providing for successful deposition of the TDS with the authorities, hence Form 16 contains the salary details of the employee, TDS deduction details and the segregation of salary of the employee. This Form 16 is to be filed with the concerned authorities once a year since it furnishes the income details of one financial year of the employee. Form 16 has two parts, Form 16A & Form 16B, which are to be filled for different purposes.
Difference between Form 16A & Form 16B
Form 16 has to be necessarily filed by the employee furnishing the important details for the concerned authority to understand the payment of taxes that have been furnished. Form 16A & B are different in nature; hence both parts have to be filled. Form 16A is primitive in nature, while Form 16B is much more elaborate.
| Particulars | Form 16A | Form 16B |
| Nature of the form | It’s basic in nature, as it contains the particulars of the employee who is furnishing the form. Not very elaborate in nature | It’s quite elaborate in nature, it further elucidates on the information that has been provided in the part A of the form. |
| Details mentioned in the form | Basic Information is provided in the form; this includes the name, correspondence address, Assessment Year and Period of employment of the employee | Elaborate information about the income segregation of the employee & TDS details of the employee for the year. |
| Documents required | PAN & TAN of the employer, PAN Card details of the employee | Only TDS & Salary documents in support |
| TDS Details in the form | TDS Certification Number of the employee | TDS deduction details for the whole financial year |
| Tax Details | Tax deduction synopsis along with quarterly tax deposit details | Calculations regarding any tax due or tax refund that is pending. |
| Other Details | Period of employment & Assessment Year of the employee. | Investments, Aggregates, Relief & Deductions that are to be mentioned according to the provisions of the Income Tax Act. |
Hence, it is important to note that the filing of Form 16 is extremely essential for the employee, it is important for further filling an ITR i.e. Income Tax Return. The applicant filing the Form 16 should necessarily cross-check details mentioned in the form before submitting it to the concerned authorities this is so because, if there is any discrepancy in the filing of Form 16, no rectification can be done, that’s why it is also advisable to do proper prior calculations before submission of Form 16.Get in touch with Company Vakil for any legal query relating to taxation or any legal registrations
