Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Why is Form 16 Important?

Form 16 is mostly used as proof of timely payment of taxes. It also confirms the authenticity and validity of the employee's earnings.

  • Jan 25, 2022
  • 978 Views

One of the most critical and impactful financial tasks that a salary-earning individual has to perform is income tax filing. Because this is a yearly practice, it is beneficial to have a working grasp of the forms, its rules and regulations, and different components. Form 16 is one of the most important forms without which the discussion about income tax filing remains incomplete.

Read on to know what this form is and what is the importance of Form 16.

Why is form 16 important

What is Form 16?

Form 16 is a deduction certificate of income tax at source, or what we commonly call Tax Deducted at Source (TDS). Provided when the employer deducts tax on behalf of the employees, this form includes details about TDS for various transactions involving the deductor and the deductee. As an employee, you can obtain your Form 16 as proof of tax deducted on your behalf by the organization or employer from your salary income and submitted with the Income Tax Department of the Government of India. Your employer’s duly confirmed certification confirms income tax has been deducted as TDS from your salary.

This form is issued annually, usually after the conclusion of the financial year for which it is issued, in compliance with the provisions of the Income Tax Act. If the employer has deducted the tax from the employee’s salary, the employer must issue the certificate to the taxpayer.

If one has to answer the question “what is Form 16,” the answer in simple terms would be: Form 16 is a deduction certificate that facilitates the submission of an ITR because it contains information about a person’s pay and tax exemptions that are conveniently accessible. It has two parts: Part A and Part B, which play an equally important role in making up this TDS certificate.

Why is Form 16 Important?

Having understood what Form 16 is, the next question that taxpayers commonly ask is, “Why is Form 16 required?”

Form 16 is mostly used as proof of timely payment of taxes. It also confirms the authenticity and validity of the employee’s earnings, which are reported to the Indian government. Individuals earning less than ₹2.5 lakhs in a financial year are excused from paying income tax. However, those who earn more than this amount are subject to taxation and may be eligible for Form 16.

This deduction certificate is a proof of income or “income from salary statement” that can be provided to various agencies upon request. It can:

  • Be used to file ITR
  • Help in computing your tax liabilities
  • Be a single document to check all tax-saving investments
  • Assist in loan assessment and approval
  • Help in issuing new credit card
  • Help in visa issuance
  • Assist employers in calculating tax liabilities and what previous employers have deducted when switching jobs.
  • Be used to check if taxes have been overpaid for refund calculations.

It’s important to remember that all paid employees are entitled to a Form 16 from their employers. If your company deducts TDS from your salary, they must present you with Form 16, a TDS certificate validates if the TDS has been deposited with the government. Agencies, clients, and other deductors who deduct your TDS are all subject to the same rules. Such entities should file Form 16 before the end of the fiscal year, on May 31. They could even provide it every quarter.

As a salaried worker, you must understand the importance of Form 16 and file your income tax returns on time to help you avoid repercussions and penalties. Consider the various options and factors related to the form and its filing process to ensure a smooth and hassle-free financial journey.

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to File Income Tax Return - Everything You Need to Know

How to Check Income Tax Refund Status Online in India

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Section 44AD of Income Tax Act for AY 2021-22

Maximize Your Savings: Tax Tips for Salaries Above ₹20 Lakhs

What is Section 80C - Explained in Detail

How to create wealth through a savings plan?

What is ITR & How to File Income Tax Return?

What is Salary Protection Insurance and Why You Need It

How to View 26AS and Download Form 26AS Online

Easy ways to make personal savings plans

Top 8 Tax-Saving Methods in India- Budget Planning

How to File Form 10E for Tax Relief on Salary Arrears?

Why Tax Planning Should Be an All-year Round Activity

धारा 80डी आयकर अधिनियम, 1961

What is EEE in income tax? 5 tax-free investment options to become crorepat

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Plan your Daughter's Wedding With Best Monthly Savings Plan

All about TDS Payment Online & Due Dates

Are Financial Planning and Tax Planning the Same Thing?

Income Tax Filing Using Multiple Form 16

How to Get Form 16?

Is PF Withdrawal Taxable for NRI?

How to View 26AS and Download Form 26AS Online?

What Investment Options Come with Tax Incentives?

Types of Riders in Insurance Policy

Save Income Tax by 31st March: Here Is a Checklist

Income Tax Filing For NRI in India

Problems People Face with Tax Returns after a Job Change

Investing Lump Sum Amount

What is the Maximum Maturity Benefit in Assured Savings Plans?

Have You Considered Term Insurance a Part of Your Tax Planning?

Challan 280 - How to Use Challan 280 to Pay Income Tax

Impact of GST on Life Insurance in India

How can I get Form 16B from traces?

आयकर स्लैब 2021-2022

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

Saving Plans to Give Children a Debt-free College Education

Income Tax Benefits for Doctors

How to File ITR Online

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

E-Filing of Income Tax Returns in India

How to File Form 16 for Salaried Employees?

What is an Endowment Plan?

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

How to e file ITR on Income Tax Government Portal

स्रोत पर कर कटौती (टीडीएस) क्या है?

Tax Saving Guide for 2019-20

When Should TDS be Deducted and Who is Liable to Deduct it?

Saving Income tax in 2017 - 18

Difference between Section 80C, 80CCC, 80CCD & 80D

How can NRIs prevent double taxation in India?

Why PAN Card is Essential for Income Tax Filing?

प्रधानमंत्री सुरक्षा बीमा योजना

How to create a savings plan and make good investment choices

Pradhan Mantri Suraksha Bima Yojana

Tax Exemption and Scope of Coverage

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

What is Form 26AS - All You Need To Know

List of Important Income Tax FAQs

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Section 80C Deductions as per Income Tax Act, 1961

How to File Income Tax Return without Form 16

What is Section 80CCC of the Income Tax Act 1961

Financial Planning and Best investment options for Housewives

What is TDS Refund Process?

Highlights of the Union Budget 2023-24

How To Save Tax Using Life Insurance?

Complete Savings Plan for Low Income Earners

Do Beneficiaries Pay Taxes on Life Insurance?

Best Savings plan for the middle class in India

Guaranteed Return Plans-Why is it a must for you?

Income Tax Deductions Under Section 80C

A Comprehensive Guide to Understand the ITR 7 Form

ITR 2 Form – Complete Guide

What is TDS Slab?

How Should I Allocate A Monthly Savings Plan For Long-Term Benefits?

ITR-6: Guide to filing ITR-6 Form online

What is the TDS Rate on Salary?

Tax Structure in India

Should you prefer a Guaranteed Savings plan over monthly income schemes?

Who Should Invest In Savings Plan

Income Tax Calculator: How Life Insurance Policies are Taxed? Explained

How to save tax for salaried person?

What is Section 80C Deduction Limit?

How to File TDS Return?

Importance of Savings Plan You Need to Know

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

How to Check Income Tax Refund Status Online in India

All about TDS on Salary under Section 192 – Kotak Life

Presumptive Taxation for Business and Profession

What is TDS Exemption Limit?

What is Tax Deduction at Source (TDS)?

How to Boost Your Savings with Guaranteed Results

9 Unusual Investments you Didn't Know for Saving Taxes in India

Should one prefer a guaranteed savings plan over monthly income schemes?

Things to Do After Filing Income Tax Returns

Key Changes of the Union Budget 2023 You Must Know

Home Investment Plan to Buy Dream Home

How to Pay Advance Tax Online in India

Tips to plan your savings in 2022

Basics of Guaranteed Savings Plan

How to Save Tax on Salary Arrears?

How to Download Form 16?

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

Income Tax Deductions for Disabled Persons Under Section 80U

Guide for Tax Calculation on your Salary

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

How to Save Income Tax with Insurance

Income Tax Exemption for Physically Handicapped Dependent

भारत में महिलाओं के लिए सरकारी योजना

What is the difference between TDS and TCS?

धारा 80सी आयकर अधिनियम, 1961

Tax Saving for Self Employed in India

What is Form 16B?

Section 80E: Tax Exemption on Interest on Education Loan

Income Tax Deduction Under Section 80CCC In India

How Much Money This Budget 2019 Can Help You Save

What are Deferred Savings Plans?

Types of Income Tax Return (ITR) Forms

Interest Imposed Under Sections 234A, 234B and 234C

All You Need to Know About Section 80C

Tax Benefits of ULIP Plans Available for NRIs

How to file Form 16 online?

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Insurance and Endowment: Everything You Need to Know!

What is a savings plan?

What is the Difference Direct Tax and Indirect Tax

हाउस रेंट अलाउंस क्या है और इसके छूट की गणना कैसे की जाती है?

Understand ITR4 Form: How to Fill, Structure & Determine Your Eligibility

Tax Season is Coming- Know How to Save Tax

What are Direct Taxes? How to Avoid being Overtaxed?

Union Budget 2023 and Tax Exemptions on Life Insurance Premium Over ₹5 Lakhs

Form 16, Form 16A, and Form 16B?

5 Popular Tax-Saving Schemes in India

Financial Benefits and Government Schemes Every Woman in India Should Know

What is capital gains tax, and how it works?

How To Invest In Guaranteed Return Plans For Higher Returns And Financial Security?

Budget 2019: Impact on the Common Man in India

Invest in Tax-Free Bonds: Understanding the Benefits and Who can Invest?

What is Section 80C Deduction?

What is the Difference between Assessment Year (AY) and Financial Year (FY)?

Tax Deductions You MUST Know

3 Tips to Buy Guaranteed Savings Plan

Tax-Savings Investments and Options in India

What is TDS (Tax Collected at Source)? A comprehensive guide

What is indirect tax and its types?

What is the Percentage of Tax Deducted at Source (TDS)?

Union Budget 2023: Impact on Life Insurance

Tax Benefits for Startups in India

12 Tax Changes in Budget 2022 that May Impact Your Personal Financial Planning

What Is Advance Tax and How Is It Calculated?

Difference Between Gross Income & Total Income in Calculating Income Tax

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

What are the Different Types of Taxes in India?

Difference Between Guaranteed and Assured Returns

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

Income Tax Exemption for Disabled

Why January Is an Important Month for Saving Tax?

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

What is Tax Evasion, and What are the Penalties for Tax Evasion in India?

What is Rule 132 of Income Tax? How Does it Affect You?

ITR 1: Sahaj Form

Money Saving Tips for Single Women

All you need to know About Tax on Inheritance

Tax Planning Tips for a Newly Married Couple

How Do Assured Savings Plans Work and Why You Should Consider One?

Personal Finance - How to Deal with Emergencies When Preparing Finances

Personal Finance - Meaning, Importance, and Tips for Personal Finance

What is better - Guaranteed Savings Plan or Fixed Deposit?

Tax Saving Options for Salaried Employees

What To Do If Your TDS Is Not Deposited With The Government?

Tax Saving Options other than Section 80C

Post Office Savings Scheme - All You Need to Know

sections Under Section 80C of the Income Tax Act, 1961

Tax Planning and Tax Benefits of Life Insurance

इनकम टैक्स रिटर्न कैसे फाइल करें?

Tax Saving Tips: Best Ways to Save Income Tax for 2021

How to E-Verify ITR: A Step-by-Step Guide to Electronically Verify your Income Tax Return

A Complete Guide for Filing ITR 3 Form

TDS rules on the sale of jointly owned property

Income Tax Effects on Salary Deductions in the Union Budget 2023

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

Understanding Tax Exemptions in ULIP (Old and New)

What is Section 10D of the Income Tax Act?

Section 16 of the Income Tax Act (ITA), 1961

How Inflation Affects Savings and Investment?

What is ITR 5 Form and How to File ITR 5?

What is Form 16A?

TDS Due Dates of FY 2022-23 For Return Filing

All You Need To Know About Assured Savings Plan

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

How to Check Income Tax Returns Status Onine?

How much gold can you keep at home? Limits and income tax rules explained

Tax Rate Chart for FY 2022-2023: What is TDS Slab?

How to File Income Tax Return for First Time Tax Payers

Tax Benefit of Investing in Term Plan

Penalty For Late Filing TDS Return

How To Save Tax Better with 80C

Section 80G of the Income Tax Act

8 Things to Help You Select a Savings Investment plan

What is the Difference between Form 16 and Form 16A?

Tax-Free Income in India

How to Claim a Tax Refund?

How to Calculate returns on an assured savings plan?

9 Income Tax Myths That Could Cost You Money while Filing returns