Mumbai, June 24: It is that time of the year when the Income Tax Department will send you frequent reminders to file your income tax returns. And repeating the norm this year too, the Income Tax Department on June 22 said that the Income Tax Return filing for the assessment year 2022-23 is available on the e-filing portal.
It must be noted that the Income Tax Act 1961 makes it mandatory for a taxpayer to file an income tax return under various scenarios. However, in order to file the IT returns for FY 2021–22 (AY 2022–23), the taxpayer must have Form 16. ITR Filing for FY 2021–22 (AY 2022–23) Tutorial: How To File Income Tax Returns on incometax.gov.in; Read Step-by-Step Guide.
Form 16 is one of the most important components when it comes to filing Income Tax returns. As per the Income Tax department, Form 16 is a document or a certificate issued under Section 203 of the Income-tax Act 1961. Form 16 is issued to salaried professionals by their employers. Form 16 basically computes income tax deducted at source by the employer.
In simple terms, Form 16 contains details regarding the salary given by the organisation or employer to the employee, how much tax the employer deducted, and when they submitted the tax to the IT department. Form 16 not only helps while filing income tax returns but also acts as income proof for clearing tax credits and comes in handy while processing your visa.
According to the IT Department, the employers must issue Form 16 every year on or before June 15. Taxpayers must remember that Form 16 has two components – Part A and Part B. In case a taxpayer loses Form 16 then they can request the employer for a duplicate copy. Form 16 is the TDS certificate issued by employers thereby validating the financial deductions that they’ve made.
Who is eligible for Form 16?
Any individual or a salaried person whose tax has been deducted by the employer at source is eligible for Form 16. Salaried individuals whose TDS gets deducted must note that Form 16 comes in handy when filing income tax returns. Form 16 details how the tax was computed based on the investment declaration made by you at the beginning of the financial year. The form also contains details such as allowances the company gave, house rent, medical bills, and loans among others.
What is Form 16A and Form 16B?
Form 16 comprises two parts – Form 16A and Form 16B. Part A or Form 16A contains details of TAN, PAN of employer and employee, address, assessment year, employment period, and the summary of TDS deposited with the government. On the other hand, Part B or Form 16B consists of salary break-up, details of deductions claimed, the total taxable income, and tax deducted from salary.
Form 16 can be helpful in many ways. Besides acting as a proof of income, Form 16 also helps in filing Income Tax returns, can be used for loan assessment and sanctioning, and attached along with visa application among others.
(The above story first appeared on Fresh Headline on Jun 24, 2022 03:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website freshheadline.com).