Basically it is known as a document which is being issued to the employee by the employer, which provides a validation that the tax has been deducted on the salary of the particular employee and have deposited to the government authority on the behalf of the employee and also form 16 provides the detailed summary of the salary paid by the employer per annual and how much TDS has been deducted on that salary.
Form 16 contains the details of the required information which helps taxpayers to file their income tax return. The deductor must have to issue the form 16 to the employee every year after the financial year ends so that the employee can file their return easily on the time. And if the form 16 has lost by the employee they can get that again by requesting to provide that to the employer.
What are the eligibility criteria for form 16?
According to the rule and regulation which is issued by the finance minister of the Indian government, who comes under the bracket of the taxable income the all need to have the form 16.
As if the employee does not comes into the bracket of taxable income then also they are not eligible for tax deduction at source so that’s why they don’t need the form 16.
Form 16 basically has two parts which is part A and Part B so let’s talk about both of the parts in the following.
Part A stand for the details of all the TDS which have deposited and deducted with the tan and pan of the deductor you must thinking that the deductor gets the form 16 so this is as simple as said because the dedutor can generate and download the form 16 on the portal of TRACES. (https://www.tdscpc.gov.in/app/login.xhtml) now there is one more thing is if the employee are planning to change their job within the 1 financial year then in that case the employer have to issue the separate part A of the form 16 for the particular period of employment.
There are content which is present into the Part A of
• name and address of the employer
• Tan and Pan of the employer
• Information of the tax deducted and deposited on quarterly and it is also should be certified by the employer.
• Pan of the employee.
Part B of the form 16 is an annexure to part a. Part B is all about the preparing the details by the employer which contains the details of the employee’s salary and the deduction approved.
There are content which is present into the Part B of the form 16.
• Detailed breakup of the salary
• Detailed breakup the exempted allowance under section 10.