When it comes to online filing of income tax, it becomes focal to ensure that Form 16 is maintained with the assessee for simplifying the return filing procedure. Form 16 is also known as Salary TDS Certificate. The TDS certificates have to be issued within the prescribed time in the prescribed forms as under:
- Form No.16 : For salaries (Salary TDS Certificate)
- Form No.16A : For all other payments (TDS Certificate)
But we will discuss about Form No.16 (Salary TDS Certificate) only. A further insight in of Form 16 has been furnished below:
What is form 16?
Form 16 is a documentary proof for the purpose of filing online return and is available for all people belonging to the salaried class. The Form 16 represents a complete analysis of the income details of an assessee along with necessary adjustments for income tax (Tax Deducted at Source). However, it is only applicable for people who belong to the salaried class.
In other words you can say it is the proof of tax payment which we have paid advance to employer and employer has paid it to the Government on our behalf.
Why it is used for?
Form 16 is used only as a proof for people’s accuracy while filing online income tax returns. Since, the form carries all information with respect to the salary of a person along with various tax deductions; it becomes easier for the assessee to file his return on the basis of furnished data in Form 16. One can also use Form 16 for personal verification purpose by way of matching the TDS details mentioned in the form with Form 26AS such that there are no disparities in the amount mentioned in the two forms.
Why it is so popular?
Popularity of Form 16 mainly comes in from the ease which it provides to the assessee with its pervasiveness. Since every single detail with respect to income of the assessee is mentioned in the form along with provisions and tax deductions, the task of filing online income tax becomes very simple. Additionally, the validity of Form 16 can also not be questioned as it not generated by the employees themselves. Rather, it is furnished to them by their employers as a statement of income that justifies their current salary.
From where I have to obtain form 16?
Form 16 is usually provided by the employer themselves. When people collect their salary, they are also furnished with this form that depicts their distribution of salary and other adjustments such as TDS (Tax Deducted at Source). If the same phenomenon does not exists, then make sure you contact your employer and ask for Form 16 at the earliest. You may also take assistance from professionals if desired so.
Time-Limit for Issue of Form 16
The TDS certificate in form 16 shall be issued annually by 31st Day of May of the financial year next following the financial year in which the income was paid and tax deducted.
What should I do if employer is not giving form 16?
The employer has time-limit to issue form 16/ TDS certificate. There may arise a situation where people may not be provided with their Form 16 by their employers. When this situation persists, it should be understood that though, the employer has deducted TDS from the salary of their employees but has not submitted the same with the IT Department. Under such context, firstly check your Form 26 AS, which should also have details with respect to your TDS. If the other form also is clueless about your TDS deduction, then it is time to demand the same from the employer and if the same is still denied, then one can sue his employer for the same.