An individual needs to have a clear concept of the term ‘Form 16’of Income Tax Act, 1961. The form consists of essential information, which is required while preparing Income Tax return.

Form 16 has two parts that is Form 16 and Form 16A. Both, the form are important and the utility of the forms differs from each other.The TDS figure as per Form 26AS should tally with the figure of Form 16.

Understanding the concept of Form 16?

As per Income Tax Form 16, is a form of certificate by the employer.  It certifies that TDS has been deducted on the salary by the employer. If any of the employers deducts TDS on salary, then he/she should issue Income Tax Form 16 as per the rules and regulation in India.  The form is issued by the employer once in a year, on or before May, 31^st 2016 of the next year immediately following the financial year.

The basic documents and details which is required by a salaried employee to file Income Tax returns including the Name, PAN (Permanent Account Number), details of the salary you have earned. Further, Form 16 is divided into two parts –Part A and Part B.

Part A –

Part A of Form 16 consists of details of both TAN (Tax deduction and collection account number) of the employer and PAN (Permanent Account Number) details of both the employee and employer. It reflects consolidated details of salary paid by the individuals during the year.

Part B –

Part B of Form 16 is an important part, as it reflects the breakup of the salary paid by the individual during the year. It further portraits the total taxable income and tax deduction on such income.

Understanding the concept of Form 16A?

As per Income Tax Form 16A, is a form of certificate which is issued who works as a professional in an organisation. If the individual is salaried individual, Form 16A is not issued by the employer.  TDS is deducted in Form 16A on the fee earned by the individual. The form is issued by the employer in each quarter in a year.

Filing of Income Tax Return without Form 16

In few of the cases, Form 16 is not issued. The individual cannot escape from the liability of filing Income Tax Return. Further, to file Income Tax Return, the individual need to gather all the documents and details in regard to the salary received and compute the total salary of the year.

Penalty

The employee have the right to obtain the TDS certificate in Form 16/Form 16A from his/her employer. In case your employer fails to issue the TDS certificate, then he/she shall be liable to a penalty of Rs. 100 for each day of default under 272(2) (g).

To understand the details procedure of the same one can visit our article-Step by Step guide to file Income Tax Return

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