By Admin 
Form 16: In India, salaried employees may find it difficult to file income tax returns (ITR) many times, but Form 16 makes this process very easy. In this form issued by your employer, how much your salary is and how much tax has been deducted on it, there is complete information about it. This not only makes it easier to file returns, but also helps in claiming refund and compliance with tax related rules.
What is Form 16?
There is a certificate issued by Form 16 Employer, which shows how much you have earned from salary in a financial year and how much tax (TDS) has been deducted from it. This is usually given once a year, after March.
Why is Form 16 necessary?
- Form 16 contains complete information about your total income and tax paid to the government. It proves to be helpful in filing income tax returns (ITR) as it works as an official proof in a way.
- With the help of Form 16, it becomes easy to file income tax returns. Form 16 occurs in two parts. The first part A contains details related to tax deduction and deposits on a quarter with complete information of employees and employees. Part B contains complete information about the salary of the employee. Apart from this, there is also information about cuts under section 80C and 80CD. Since all the information is available in one place, you do not need to investigate many documents while filing tax returns. This also saves time and the possibility of mistakes also ends.
- This also helps you in getting tax refund. If more tax is deducted than your salary, then you can claim refund while filing ITR. Form 16 is easy to understand whether you are eligible for refund or not.
- It is needed while applying for a loan or visa. Banks and foreign embassies often ask for Form 16 as proof of income and tax payment. This makes your financial credibility strong.
- This also helps in cross verification. The Income Tax Department crosses the data in your ITR in Form 16 with the information given by the employer in Form 16. If both data matches, then the possibility of later notice or any other problem is less.
Form 16 is not just a piece of paper, rather it is an essential platform for stress free tax filing. Always collect it from your employer on time and keep a digital copy of it safe.
Also read:
This stock of Adani Group jumped up to 6 percent amid the opening of Vizhinjam Cott, business is getting tremendous