Income Tax Return ITR filing 2024: It is that time of the year when thoughts shift from everyday tasks to paying your taxes for the previous financial year. While most people procrastinate and try to delay the process as much as possible, this is quite a counterproductive step.
Ultimately, you have to pay income tax and any delay strategy will not work. In fact, those who do so are subject to punishment and nowadays the punishments are heavy and getting worse. And when things start going bad, it’s hard to try to make a U-turn. So, the sooner you adjust to all the aspects involved, the better off you will be. To help you deal with all this, we explain many things here including what is Form 16, its parts, when is the issue date and much more. Check it out now.
Before we move ahead, the most important thing – salaried individuals can file income tax returns for FY 2023-24 from June, but only after receiving Form 16, reports Live Mint. The last date for filing Income Tax Return (ITR) is 31 July 2024.
What is Form 16?
Form 16 is a certificate given as per the Income Tax Act. This shows how much money someone made from their job and how much tax their employer took from their salary. This ensures that the employer remits the correct amount of tax to the Income Tax Department. Not doing so is a very serious matter.
In simple words, Form 16 is like a report card for your income and taxes for a specific year (usually from April to March) and it serves as proof of TDS deducted by the employer. It is divided into two parts – 16A and 16B.
These all include information such as:
*PAN (Permanent Account Number) of the employee
*Employer’s TAN (Tax Deduction and Collection Account Number)
* salary income
* Deductions under various sections of the Income Tax Act
* Tax Deducted at Source (TDS).
*Challan Identification Number in case of payment through bank
What is the release date of Form 16?
Employers usually give Form 16 to their employees on or before June 15.
What is Form 16A?
What does Form 16A mean, what does it mean or what does it include? Part-A of Form 16 contains information about TDS deducted from your salary every quarter.
What is Form 16B?
Part B of Form 16 is like an additional part added to Part A. It shows things like how your salary is divided, any deductions you can claim on your taxes, how much tax you’ve already paid, how much tax you still owe, and any other extras from your salary. Money you have earned. Employers create this part of the form for their employees.
Why should you check your Form 16 thoroughly?
It is important to check your Form 16 if TDS (Tax Deducted at Source) is applicable on your income. Here’s a step-by-step guide on how to check your Form 16:
First of all, once you receive Form 16 from your employer, carefully review all the information provided to ensure its accuracy. It contains confirmation details like your income earned and TDS deducted.
It is important to carefully double-check every detail on Form 16, such as your income figures and the amount of tax deducted.
If you find any inaccuracies or discrepancies in your Form 16, it is advised to contact the HR of your organization as soon as possible. Notify them of errors and request them to make necessary corrections.
Thereafter, the employer will take steps to rectify the errors by submitting a fresh TDS return with the correct information linked to the appropriate PAN (Permanent Account Number). Once the revised TDS return is processed, the company will issue a revised Form 16 to the employee.
Form 16 holds vital importance for various reasons:
- Firstly, it serves as concrete evidence of the income earned by an employee throughout the financial year, offering a clear record of their earnings.
- Secondly, Form 16 serves as proof of Tax Deducted at Source (TDS) by the employer on behalf of the employee. This is important to ensure compliance with tax regulations and obligations.
- Additionally, Form 16 contains comprehensive details required for filing Income Tax Return (ITR) accurately. It contains important information like salary income, eligible deductions and amount of TDS deducted, facilitating a smooth and accurate tax filing process.
- Moreover, for salaried employees, Form 16 plays an important role in claiming tax refund. By providing detailed information about their income and taxes deducted, it enables employees to accurately assess their tax liabilities and claim any refunds owed to them.
