All You Need To Know About Income Tax Form 16
- Blog|Income Tax|
- 2 Min Read
- By Taxmann
- Last Updated on 6 January, 2021
Income Tax Form 16 is issued by an employer who has a TAN number toward its employees furnishing the details of his salary and tax deductions. The income tax form 16 is issued as per law passed under Income Tax Act, 1961. It is kind of proof that your employer has deducted the TDS from your salary for that financial year and have deposited with the Income Tax Department.
What is Form 16?
Income Tax Form 16 has two parts – Part A and Part B. Part A of Form 16 is issued by government and it showcases the tax that is deposited by you in that year to income tax department. It shows quarterly view of your tax deductions. It contains details like name and address of your employer, details of the employee like his name and address, PAN and TAN of the employer, PAN (Permanent Account Number) of the employee, the period that employed have served with that employee in that financial year and finally quarter wise details of tax that is deducted by employer and deposited to the government.
Importance of income tax form 16:
Income Tax Form 16 serves to be a very important document as it is a proof of your tax submission on your received salary which was deducted by your employer at source; it thus helps one to process the income tax return with Income Tax Department. Also, certain times you will need income tax form 16 as per your verification to calculate your eligibility for passing a loan or as a verification tool of your personal credentials.
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