Form 16 is nothing but aTDS certificate .that employers issue to their employees as per the laws under the Income Tax Department. This form certifies that the Tax Deducted at Source (TDS) has been deducted from the employee’s salary by the employer. Therefore, 16A Form helps an individual file his income tax return easily and lawfully. In addition, by referring to Form 16, an individual can have an idea of how to fill TDS claims in a better way.
For salaried employees, complete awareness about the rules and regulations pertaining to Form 16 is critical as this form acts as a certificate for the salaried. It acts as a Tax Deducted at Source certificate verification form, which is issued to the employees by the employers they work with in a single financial year. There are two forms in Form 16 - Form 16A and Form 16B.
Components of Form 16A and Form 16B
16A Form has the details of the quarterly deposited TDS, along with the TAN of the employer, name and address proof of the employer and employee, as well as the PAN of the employee.
Form 16B is also a part of the TDS claim process that has the complete break up of salary, other income sources, and the amount declared by the employee, alongside the deductions under chapter VI A, tax deducted at source, relief under section 89, and net income tax payable or refundable.
Tips to fill Form 16 for salary
For individuals who earn income via salary, filling Form 16 is required. Your employer must have asked you to declare your investments and income from other sources as a working professional. You must provide the correct information so that your Form 16 is pre-filled. So, you just have to check and verify those details while filling your TDS claims.
To gain the certificate for the salaried, the following is all that you need to fill:
- Your gross salary
- Deductions such as professional Tax, standard deduction
- Deduction under chapter VI A
- Deduction under section 80C .for investments like life insurance premiums, PPF investments, etc.,
- Deduction under section 80CCC for contribution to pension funds
- Deduction for employee’s contribution under section 80CCD (1) to a pension scheme
- Deduction under section 80CCD (1B) for taxpayer’s self-contribution to a notified pension scheme
- Deduction under section 80CCD (2) for employer’s contribution to a pension scheme
- Deduction under section 80D .for health insurance premium
- Deduction under section 80E for interest paid on loan taken for higher education
- Deduction under section 80G for donations
- Deduction under section 80TTA for interest income on savings account
- Total taxable income of the employee
- Rebate
- Tax amount after rebate
- Tax amount payable or refundable
The TDS claims process is simple if you fill in these details carefully. Usually, the organization you are working with has a finance department that takes care of Form 16. Still, if you want to fill in the particulars or make any changes, you will have to take care of and declare your income and investments carefully.
- A Consumer Education Initiative series by Kotak Life
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Reviewed By :
Prasad Pimple
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
