How Is Form 16 Calculated?

How do you Analyse Form 16?

Part A of Form 16 includes below details -Unique TDS Certificate Number.Name and address of the Employer.Name and address of Employee.PAN and TAN of Employer.PAN and Reference Number of Employee.Financial Year and Period of Employment.Total TDS Deducted and Deposited for the year..

Can I get Form 16 if TDS is not deducted?

Yes, you can still get Form 16 with no TDS . Basically, Income Tax Form 16 is a certificate from your employer. It certifies that TDS has been deducted on your salary by the employer. If an employer deducts TDS on salary, he must issue income tax Form 16 as per tax rules of India.

Why do we need salary certificate?

The salary certificate signifies the association of the employee with that company and it covers information on employee salary and employment period and salary paid for certain timeframe. It is a type of proof that validates that the employee is working in the organisation and getting paid for his duties.

Can I download my form 16 online?

Form 16 can only be downloaded and issued by your employer. Any individual cannot download his / her Form 16. There is a common misconception that an individual a download Form 16 on TRACES website using the PAN number. All salaried individuals are eligible to get a Form 16 from their employers.

What should I do after Form 16?

Form 16 is a certificate issued by an employer and it contains the information you need to prepare and file your income tax return. Employers must issue it every year on or before 15 June of the next year, immediately after the financial year in which the tax is deducted.

How does form 16 look?

Form 16 is the certificate issued under section 203 of the Income tax Act for tax deducted at source (TDS) from income under the head ‘salary’. It is issued on deduction of tax by the employer from an employee’s salary and deposit of the same with the government.

What is the salary limit for Form 16?

Rs 2,50,0001. What is Form 16? Form 16 is your salary TDS certificate. If your income from salary for the financial year is more than the basic exemption limit of Rs 2,50,000 your employer is required, by the Income Tax Act, to deduct TDS on your salary and deposit it with the government.

Is Form 16 equivalent to salary certificate?

Form 16 (or salary certificate in layman’s language) is a certificate issued by an employer to all employees for a particular financial year. It is issued at the end of said year reflecting the total salary paid and amount of tax deducted (‘TDS’) during the year.

How can I get Form 16 for salary?

Steps to generate TRACES Form 16 Part-A.Step 1: Login to TRACES website( by entering the “User ID, Password,TAN of the Deductor and the Verification Code”.Step 2: First check the status of your return 24Q4 for the Financial Year of which you want to generate the Form 16 Part-A.More items…•

Is Form 16 mandatory for all employees?

As per current rules, the deadline for employers to issue Form 16 is June 15 of every year. The provisions in the Income Tax Act make it compulsory for an employer to issue Form 16 to his employee if TDS has been deducted from his/her salary.

How can I get my form 16 if employer is not giving?

Do not worry – If your employer does not provide Form 16, you can still file your income tax return. Gather details from Form 26AS, salary slips and proofs of other incomes. To avoid this in future, check Form 26AS at the end of every quarter.

How can I check my deduction in Form 16?

“An employee can verify from time to time, his TDS (which has been deducted by the employer) in Form 26AS from the TRACES website. The employee can View Tax Credit Statement (Form 26AS) only if his PAN number is mapped to that particular account and this facility is available for free,” says Dr. Surana.