Criteria for tds liability on salary ?

Hi, Priyanka

While preparing form 16 of an employee you need to consider some of the basic aspects of income tax regarding computation of income. Here are the points to be included in form16.

1.       Name and address of employer.

2.       Name and designation of person deducting tax.

3.       PAN and TAN number of person deducting tax.

4.       Challan Identification Number (CIN).

5.       Name and designation of employee.

6.       PAN number of employee.

7.       Assessment and previous year.

8.       Income under various heads. Add all taxable perquisites u/s 17(2) and profits in lieu of salary u/s 17 (3) and Deduct the allowable deduction u/s 10, 16 and 17 (Children Education Allowance, Children Hostel Allowance, Entertainment Allowance, H.R.A, Transportation allowance, Leave Travel Concession, Medical Reimbursement Allowance (If any)) from salary income.

9.       Deduct all deduction u/s 80C to 80U.

10.   Calculate the Tax as per the relevant Finance Act.

11.   Details to Tax Deducted at Source month wise (Date of deduction, date of deposit in bank, Challan number and bank BSR code.

Hope this will help you in solving your problem

Nicely Explained ....by Mr Pujara. 

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Please go through point wise in the Form 16 and try to fill up it completely . 

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Do not forget to gget it signed by the Authorised Person - manually or digitally.

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It is now compulsory to issue tds certificates which are generated from income tax website only. Then why are you preparing Form 16?

Dear Parul,

The form which is to be downloaded from income tax website is TDS certificate Form 16A and what priyanka is asking for is Form 16.

Dear All, 

Thanks for your reply, Can you  provide me exemption criteria for  HRA, pf, housing loan and if other, which is require for form 16 prepration.

Regards

Priyanka