Form 16
An employer must provide its employees with Form 16 as proof of their TDS (Tax Deducted at Source) and salary income for the fiscal year. Every salaried worker is required to obtain this crucial document from their employer. The structure contains data like the employees Skillet (Super durable Record Number), subtleties of TDS deducted by the business, pay subtleties, and other related data. Employees are required to submit Form 16 with their income tax returns, which is typically issued annually.
Form 16 consists of two sections: Parts A and B contain information about the employer and employee, including their names and addresses, PAN information, and the employer’s TAN (Tax Deduction and Collection Account Number). Additionally, it contains information regarding TDS deposits made by the employer with the government. Part B of Structure 16 contains compensation subtleties, for example, the gross compensation, allowances under different segments of the Annual Duty Act, net compensation, and expense payable or refundable.
As proof of their TDS and salary income for the fiscal year, Form 16 is an essential document for employees. It is also necessary for filing income tax returns because it helps determine the correct amount of tax that must be paid or refunded. Form 16 must be distributed to employees by the 15th of June of the following fiscal year. Employees should immediately notify their employer of any discrepancies or errors to have them corrected.