Hi community,
Is there any guide to share with first time employees on easy reading and understanding Form 16 in detail?
It would be very helpful.
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Hi Chitra,
To keep it simple and easy for the first-time employees:
What is a Form 16?
Form 16 is a document issued by an employer to its employee to confirm that the TDS has been deducted and deposited with the IT authorities.
What will you find in Form 16?
If you go through Form 16, you will find certain information categorized under Part A and Part B.
Part-A will provide you with the details of the PAN, TAN, and details of the employer, employee PAN and the quarterly TDS deduction deposited.
Part-B will provide you with the salary details, exempted allowances, deductions allowed under the Income Tax Act, taxable salary, etc.
Who is eligible for Form 16?
You are eligible for Form 16 if you are a salaried individual who falls under the taxable salary bracket.
Who is accountable for Form 16 and IT return filing?
Your employer is accountable to deduct TDS, deposit it with the appropriate authorities and issue Form 16 and you are accountable to file your income tax returns.
Hope the above helps.
Regards,
Bhuvana Anand
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