If you are a salaried individual, to file your taxes you would need Form 16. And you need to know how to read Form 16. Or at least understand at a very high level what it contains and what information is important from a return filing point of view.

For salaried individuals, Form 16 makes income tax returns a walk in the park. You can file ITR using Form 16. Wondering how? Well, you just need to upload your Form 16 on myITreturn and our system will do the rest for you. You just need to review the information uploaded, post which you can submit your tax return.

What is Form 16?

Form 16 is a salary certificate given by the employer of the assessee to the assessee containing the computation of his income and TDS details. Form 16 certifies that TDS has been deducted from the salary of the assessee by the employer. As per the Income-tax rules, if an employer deducts TDS on salary, he must issue, Form 16 to his employee on or before 31st May of the next year immediately following the financial year in which tax is deducted.

Reading of Form 16

Reading Form 16 is important for preparing and filing Income-tax returns. Form 16 consists of two parts viz Part A and Part B. Part A contains information in relation to TDS deducted and deposited by the employer. Part B contains information relating to the computation of salary and other income and the calculation of income tax liability. 

Part A of Form 16 includes the below details -

1. Unique TDS Certificate Number
2. Name and address of the Employer
3. Name and address of Employee
4. PAN and TAN of Employer
5. PAN and Reference Number of Employee
6. Financial Year and Period of Employment
7. Total TDS Deducted and Deposited for the year

Part B of Form 16 includes the following -

1. Detailed about Salary including bifurcation as Salary, Perquisites and Profits in lieu of Salary
2. Details of Allowances exempt u/s 10
3. Details about deduction u/s 16 including Standard Deduction and Professional Tax
4. Any other income reported by the employee
5. Deductions available against Income
6. Your Net Tax Liability
7. Verification of the employer

In case you do not have your Form 16, you may refer to our guide for how to prepare a return without Form 16.

If you have more than one form16 to enter in your Income-tax return, read our guide for Uploading multiple form-16.

Being aware of the various heads of Form 16 ensures that you do not miss out on any part. If you feel that Form 16 doesn’t contain all the information, you can update any additional information while reviewing the income tax return filing process.

The presence of Form 16 makes the entire tax filing and return filing process a much simpler affair. Unlike tax filing in the past, you just need to upload the form to myITreturn and the rest is well taken care of. After uploading the file, you just need to verify if all the details are accurate. 

Once you are convinced of the details, you can submit the return. And the income tax department will send an acknowledgement of the same after they have received the tax return.

FAQs

1. Where can I get Form 16 from?
   If you are a salaried individual, it is your employer’s responsibility to provide you with a Form 16, if they have been deducting taxes from the source.
   
   
2. Is it mandatory for an employer to provide Form 16?
   As mentioned above, Form 16 would come into the picture if your employer has deducted TDS. If no TDS was deducted, your employer is not mandated to provide you with a Form 16.
   
   
3. Can I file my return without Form 16?
   Yes. Though the presence of Form 16 makes the tax return filing process way easier, you can still file your returns without Form 16.
   
   
4. If I don’t receive a Form 16, does that mean I don’t have to pay taxes?
   Though, your employer must provide you with a Form 16 if TDS is collected, paying taxes if completely your responsibility. If you earn more than the threshold of INR 2,50,000 you are eligible to pay taxes. You must check your tax liability and pay them accordingly.