According to an ET report, Form 16 serves as a complete file of an worker’s complete wage income earned throughout the earlier monetary 12 months and the entire tax deducted from their wage.The data contained in this TDS certificates is important for simply filing ITR, making it essential to guarantee its accuracy.
The income tax division presently gives pre-filled ITR kinds on-line on the e-filing web site incometaxindia.gov.in, which permits for handy cross-checking of knowledge with Form 16.
Form 16 For ITR Filing: Important Details
To make sure the authenticity of Form 16, it should bear the TRACES brand on each Part A and Part B. Salaried people ought to confirm that they’ve acquired each components of the doc.
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Additionally, the Form 16 acquired must be digitally signed, and the digital signature have to be validated by the recipient. A validated digital signature will show a check mark.
Part A of Form 16 concentrates on the tax deducted at supply (TDS) from an worker’s wage income and deposited in opposition to their PAN between April 1, 2023, and March 31, 2024. It consists of the challan quantity used for depositing the TDS with the federal government. The tax deducted is proven quarterly in Part A of Form 16.
Part B of Form 16 focuses on the wage paid to the worker throughout the earlier monetary 12 months. It gives a complete breakdown of the wage, allowances, tax regime chosen for TDS on wage, and deductions claimed in accordance to the chosen tax regime.
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According to the ET report, Avinash Godkhindi, CEO & MD of Zaggle, a SaaS Fintech and Tax Filing Enabler, has listed three important duties for salaried people as soon as they get Form 16:
1. Check data: Salaried people ought to meticulously evaluation Form 16 to guarantee all particulars are right. This consists of verifying private data (PAN and handle), employer particulars (identify and handle), wage breakdown (primary wage, allowances like House Rent Allowance and Special Allowance), the tax regime opted for TDS on wage, claimed deductions in accordance to the chosen tax regime, and knowledge on tax deducted at supply (TDS).
2. Form 16 comparability with Form 26AS: A salaried particular person ought to obtain their Annual Information Statement (AIS) and Form 26AS from the income tax division’s web site. The AIS particulars all income acquired throughout the earlier monetary 12 months, together with any tax deducted. It consists of incomes even with out tax deductions. Form 26AS gives a consolidated view of tax deducted at supply (TDS) by all deductors, together with the employer.
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3. What if there are discrepancies? Salaried people ought to examine the TDS data in Form 16, AIS, and Form 26AS to determine any discrepancies. If there are any inconsistencies, the tax quantity mirrored in Form 26AS is what the person will probably be eligible to declare in their ITR.
If there are any discrepancies between Form 16 and Form 26AS/AIS, it’s essential to contact your employer’s HR or finance division to resolve the problems. They have the authority to submit a revised TDS return to amend the information. After the corrections are made, the employer should present an up to date Form 16.
It is essential to notice that the deadline for filing income tax returns for FY 2023-24 (AY 2024-25) is July 31, 2024. Therefore, it’s important to rectify any errors promptly to receive the up to date Form 16 properly before the deadline.
For salaried people who’ve switched jobs throughout the monetary 12 months, it’s vital to receive Form 16 from all their employers. The worker’s AIS and Form 26AS will show wage incomes from all employers, together with the tax deducted on it. After gathering Form 16 from all employers, these TDS certificates must be completely reviewed and verified in accordance to the aforementioned steps.
After verifying the knowledge in Form 16, the salaried particular person can start preparations for filing their ITR. In addition to Form 16, the salaried particular person ought to collect different important paperwork, together with financial institution statements, curiosity certificates, capital good points statements, and proofs for claiming tax breaks, and so forth., to facilitate the ITR filing course of.
