Form 16
This query is : Open
16 May 2017
ask from the company where you doing job na...
Message likes :
1 times
17 May 2017
You can ask your company or can check tds details in 26as
Message likes :
1 times
19 June 2017
Thanks for your reply,,,, i have to issue TDS certificate to staff,,,,,,,,,, can you tell me the procedure from the beginning to end
19 June 2017
Form 16 and 16A are certificates of tax deduction at source that the employers issues to its employees as proof of the TDS.
Section of IT Act that mandates TDS
The Income Tax(IT) Act, 1961 and IT Rules (1962) govern the payment of income tax by all income earning individuals, companies, organizations, associations and trusts as the case may be. Section 203 mandates that the employer shall deduct tax at source and issue certificates in the Forms 16 and 16A to the deductees as a proof of the same.
Form 16A
Like Form 16 is for salaries, Form 16A is a certificate of tax deduction at source (TDS) by an employer which shows the amount of tax deducted at source, nature of payment, and the tax deposited with IT department on income other than salaries. The IT Act stipulates that TDS to be deducted at source on all payments than Rs. 30,000 unless otherwise exempted.
Also TDS is deducted on salaries as per existing Income Tax rate slabs. TDS on all other income such as interest and house rent as applicable. Form 16A shows TDS deductions made and deposited on all other income except salary.
The basic difference between Form 16 and Form 16A is that the former reflects deductions made from salary and the later shows deductions on income other than salary. Form 16 is usually issued annually while the latter is issued quarterly.
What Form 16A consists of…
The Form 16 A certificate is issued by the employers and carries the following:
Name, TAN and PAN of the employer who deducts tax
Name, TAN and PAN of the employer who deducts tax
Amount paid, nature and date of payment
Receipt No of TDS payment
How Form 16A can be Verified Online
The Income Tax maintains a TDS Reconciliation and Analysis and Correction Enablement System (TRACES) which allows online verification of Form 16A by visiting the following link: http://contents.tdscpc.gov.in/
The employee who wishes to know the details of deduction by his employer can access Form 26 AS at this website by entering the TAN no of employer, his own PAN no, the financial year, certificate no and total amount deducted. In case of any discrepancies, he is advised to contact his employer first.
What is Form 16?
Form 16 is the document or certificate or that Employers in India issue to their salaried employees as proof of TDS. The salaried personnel can then submit the forms while filing Income Tax Returns in India.
Features of Form 16:
Employees working for any employer have to pay tax on their incomes as per IT Act. Form 16 therefore is an important document that helps in the process of filing tax returns:
Employee can submit this as proof of income in case of IT scrutiny
If the employee’s income is below Taxable limit, employer may not issue Form
Definitive Tax Deduction at Source (TDS) Certificate issued to salaried employees
It is also proof of the salary employees receive
Contains details of tax paid by Employer on behalf of the Employee
If Employer deducts TDS, the responsibility to issue it to the employees lies with him
Corrections can be made on a Form 16
Only those employers with TAN (Tax Deduction Account Number) can deduct TDS, and issue a Form 16
What does Form 16 consist of?
The Form 16 usually carries details like names and permanent account numbers of the deductor and the deductees, TAN of the employer, acknowledgement about how much tax is paid, detailed breakoff salary like gross and net incomes, Education Cess and surcharges, balance tax refundable to employees or payable by them, tax payment particulars like challan number or cheque/DD number etc.
Why is Form 16 important?
Form 16 is not only a proof of TDS but a document of importance for tax compliance. It is the only document that an employee has to show that he or she has paid tax and can be shown as proof during IT scrutiny. Banks and other lenders also accept it as a valid income proof and treat it as a proof of income at par with salary slip. Companies at their end should also ensure that all details in columns are duly and accurately filled in and the Form 16 is signed by a responsible officeholder of the company.
Section of IT Act that mandates TDS
The Income Tax(IT) Act, 1961 and IT Rules (1962) govern the payment of income tax by all income earning individuals, companies, organizations, associations and trusts as the case may be. Section 203 mandates that the employer shall deduct tax at source and issue certificates in the Forms 16 and 16A to the deductees as a proof of the same.
Form 16A
Like Form 16 is for salaries, Form 16A is a certificate of tax deduction at source (TDS) by an employer which shows the amount of tax deducted at source, nature of payment, and the tax deposited with IT department on income other than salaries. The IT Act stipulates that TDS to be deducted at source on all payments than Rs. 30,000 unless otherwise exempted.
Also TDS is deducted on salaries as per existing Income Tax rate slabs. TDS on all other income such as interest and house rent as applicable. Form 16A shows TDS deductions made and deposited on all other income except salary.
The basic difference between Form 16 and Form 16A is that the former reflects deductions made from salary and the later shows deductions on income other than salary. Form 16 is usually issued annually while the latter is issued quarterly.
What Form 16A consists of…
The Form 16 A certificate is issued by the employers and carries the following:
Name, TAN and PAN of the employer who deducts tax
Name, TAN and PAN of the employer who deducts tax
Amount paid, nature and date of payment
Receipt No of TDS payment
How Form 16A can be Verified Online
The Income Tax maintains a TDS Reconciliation and Analysis and Correction Enablement System (TRACES) which allows online verification of Form 16A by visiting the following link: http://contents.tdscpc.gov.in/
The employee who wishes to know the details of deduction by his employer can access Form 26 AS at this website by entering the TAN no of employer, his own PAN no, the financial year, certificate no and total amount deducted. In case of any discrepancies, he is advised to contact his employer first.
What is Form 16?
Form 16 is the document or certificate or that Employers in India issue to their salaried employees as proof of TDS. The salaried personnel can then submit the forms while filing Income Tax Returns in India.
Features of Form 16:
Employees working for any employer have to pay tax on their incomes as per IT Act. Form 16 therefore is an important document that helps in the process of filing tax returns:
Employee can submit this as proof of income in case of IT scrutiny
If the employee’s income is below Taxable limit, employer may not issue Form
Definitive Tax Deduction at Source (TDS) Certificate issued to salaried employees
It is also proof of the salary employees receive
Contains details of tax paid by Employer on behalf of the Employee
If Employer deducts TDS, the responsibility to issue it to the employees lies with him
Corrections can be made on a Form 16
Only those employers with TAN (Tax Deduction Account Number) can deduct TDS, and issue a Form 16
What does Form 16 consist of?
The Form 16 usually carries details like names and permanent account numbers of the deductor and the deductees, TAN of the employer, acknowledgement about how much tax is paid, detailed breakoff salary like gross and net incomes, Education Cess and surcharges, balance tax refundable to employees or payable by them, tax payment particulars like challan number or cheque/DD number etc.
Why is Form 16 important?
Form 16 is not only a proof of TDS but a document of importance for tax compliance. It is the only document that an employee has to show that he or she has paid tax and can be shown as proof during IT scrutiny. Banks and other lenders also accept it as a valid income proof and treat it as a proof of income at par with salary slip. Companies at their end should also ensure that all details in columns are duly and accurately filled in and the Form 16 is signed by a responsible officeholder of the company.
19 June 2017
https://www.suretds.com/resources/e-Tutorial-Download-Form-16A.pdf
03 July 2017
HI Rashmi Gandhi once again Thanks for your help......................... we have doubt on GST
Sir, we have air ticket vendor, they are giving commission for us for air ticket booking,,,,,,,, commission only we are going to pay tax,,,,,,, what will be the tax applicable on commission?
Sir, we have air ticket vendor, they are giving commission for us for air ticket booking,,,,,,,, commission only we are going to pay tax,,,,,,, what will be the tax applicable on commission?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- TCS ON SOFTWARE SALES
- Not a CA , can we prepare balance sheet
- Income Type for interest from government bonds
- Accounting treatment for Fixed Assets
- Is correct entry for FDs
- Interest on public Provident Fund
- TDS - Form 26QB - Installment - Final payment Query
- ITR 6 Schedule CFL and UD Issues
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
