Income Tax Form 16 (Complete Information)

The income tax act of India has several sections, sub-sections, and forms. They help you ease the process of your tax filing. One such form is Income Tax Form 16.

It is a certificate given by your employer in a financial year. Form 16 has all the particulars about how much tax the employer has deducted from your source, TDS, and other necessary details.

Suppose you might have switched jobs during the year or worked with different employers at the same time your tax will be deducted at all places.

To avoid this situation, you might ask for a separate form 16 from each one of them. However, if your employer did not deduct any tax at source from your salary, they may not issue Form 16.

If your employer fails to provide Form 16, you can download it from the Income tax portal. Anyone can download form 16 online. However, if your employer fails to do TDS return on your Form 16 you will not be able to download your Form 16. You must ask your employer to issue Form 16 in such a case.

Let us know more about Form 16 and Form 16 downloads.

What is Form 16 used?

Your employer gives you Form 16. It is a TDS certificate to validate the financial deductions they made. It helps while you file your income tax returns, acts as your income proof, and helps while you process your visa.

When your employer deducts TDS from your salary, they must provide a TDS certificate on or before May 31 as per the income tax department.

Employers must provide this certificate once a year, similar to banks that issue TDS certificates for tax they deduct from your interest income.

Mainly Form 16 acts as proof of tax paid on time. It also verifies the authenticity of your income and validates and records it with the Indian Government. If your income is less than Rs.2.5 Lakhs in a financial year, you are not liable to pay tax. If you earn a higher salary than the given limit, you should pay tax and be eligible for Form 16.

Uses of Form 16 mainly are,

1. Acts as your income proof.
2. Help to file your returns.
3. Verify that the employer deposits the TDS to the Government.
4. Compute your tax liabilities.
5. Help when you apply for a credit card.
6. Easy process of a loan.
7. Processing of your visa.

Can we file ITR without 16?

Yes, you can. However, you should obtain Form 16 from your employers to file Income Tax Return if you are a salaried employee.

Form 16 is a record of Tax Deduction at Source (TDS), and it carries the details of the total tax paid in a financial year by you. Form 16 is the TDS certificate issued by an employer at the end of the financial year.

However, at times you may not receive Form 16 due to multiple reasons. In case the employer faces financial issues or plans to shut down the business, there will be a delay in getting Form 16.

If you switch jobs in a financial year without proper exit formalities, you may receive your Form 16 after some time. Still, you can file your Income Tax Return without getting Form 16.

If you don’t have Form 16, you can file ITR using your salary slip. The monthly salary slip also contains the details of all deductions.

 You can calculate the total income in a financial year by putting together the amounts you receive every month. If you switched jobs in a financial year, including the salary from the new employer.

The salary slip should have the details like TDS, Provident Fund deductions, basic salary, allowances, and perks. 

So, you can file your ITR without Form 16 using your salary slip during unavoidable situations.

Who is eligible for Form 16?

You can get Form 16 if you are a salaried person and your employer deducts your salary at the source. Whether your income falls under the tax exemption limit or not, your employer must issue a Form 16 if they have deducted tax at source.

What is the Form 16 eligibility salary?

The Eligibility salary for Form 16 is Rs.2.5 Lakhs annually.

So, if your annual income for the assessment year is within ₹2,50,000, you need not file ITR using Form 16.

Can I get Form 16 online?

You can obtain your Form 16 from your employer. Your employer should provide you with Form 16 even after you left your job. It is the employer’s responsibility to record the amount deducted from the source and issue you Form 16.

If the employer fails to provide you with form 16 within the stipulated time, you may download it online from the income tax portal.

You can download Income Tax Form 16 in these easy steps.

• Go to the website of the Income Tax Department.
• Next, go to Forms/Download and click on Income Tax Forms.
• Here, you will see both the PDF and Fillable Form choices.
• Click on PDF to download it.

You can download the PDF and fill out your Form 16 offline. If you want to fill it out online, you can use any PDF editor available on the Internet.

However, if your employer fails to file your TDS in the income tax portal, you may not be able to download form 16.

How do I ask for Form 16 from a previous employer?

You will ask your previous employer to provide you with Form 16 in case you missed getting the same. Your previous employer must have deducted your salary from the source and filed a TDS return. They can download your Form 16 from TRACES. So, it is better to reach out to your previous employer for your Form 16. 

FAQS- Income Tax form 16

1. How can I get my form 16 if the employer is not giving it?

If your employer fails to issue the TDS certificate, he is liable for a penalty of Rs.100 each day.

The only alternative if your employer refuses to issue you a TDS certificate is that you can complain to the respective assessing officer in writing. He will take proper action or initiate penalty proceedings against the employer. 

You can still file your returns and claim your deductions. The income tax department will raise a demand on your employer.

2. Is Form 16 mandatory for salaried employees?

You can file your returns without form 16 using your salary slip. However, Form 16 is an important certificate with all details regarding your deductions, income, etc. If you face any discrepancy during the process of your returns, you must furnish your Form 16 to the income tax department to analyze the same.

Form 16 is also important because financial institutions or government administrations validate it to check your salary breakup.

Thus, Form 16 is mandatory for employers to provide to their employees. Employees may have it, as Form 16 has all the necessary details about your financial background.

Bottomline

Form 16 is a certificate given by your employer in a financial year. Income Tax Form 16 has all the particulars about how much tax the employer has deducted from your source, TDS, and other necessary details. You can download your Form 16 online. However, if your employer fails to do TDS return on your Form 16 you will not be able to download your Form 16. You must ask your employer to issue Form 16 in such a case.

Form 16 acts as your income proof, eases your return filing process, verifies that your employer deposits the TDS to the Government, helps to compute your tax liabilities, and eases the process of your loan, credit card, and visa.

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