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Understanding the Components of Form 16 Format

Author: Amol Kale
by Amol Kale
Posted: Aug 31, 2017

As per the income tax rules in India, your employer is required to deduct some amount from your salary as TDS as per your income bracket if your annual earnings are more than Rs 2.5 lakhs. When the TDS is paid, you are issued a Form 16 which is a detailed record of all the income tax that you have paid. Also, known as Salary Certificate, the form has all the details of your salary too.

If it is the first time that you have paid TDS, Form 16 issued to you might appear confusing. To eliminate this confusion, we will help you understand all the important components of this form.

Structure of Form 16Form 16 Format is divided into two parts- Part A and Part B. Let us have a detailed look at both of these parts:

What is Part A of Form 16?

Part A of Form 16 is your TDS certificate. It works as a proof of your employer deducting TDS from your salary and paying the same to the government. Employers usually deduct and pay TDS every quarter and all the information about the same are mentioned in Part A.

Apart from this, it also has other details like the BSR code of bank through which the payments have been made to the government, challan number, etc.

Important Components of Form 16 Part A

Form 16A has the following details-

  • Name of the employee, address, PAN
  • PAN, TAN, and address of the employer
  • Duration for which an employee has worked for the employer in the current financial year
  • Assessment year
  • Detailed information of all the taxes deducted from the salary of the employee and paid to the government

What is Part B of Form 16?

Part B of Form 16 has details of the total salary paid to the employee, other income and TDS paid on other income, tax paid and tax due. It also has details of all the exemptions claimed under section 80C to 80U and section 10 of the Income Tax Act.

Important Components of Part B of Form 16

Form 16B has the following details-

  • Gross salary
  • Exemptions claimed as per IT Act
  • Taxable salary after the exemptions
  • Deductions under IT Act
  • Details of income from property
  • Total tax on income
  • Total tax paid, due and refund

As Form 16 has the complete record of all the income earned by an employee and total taxes paid, it is an integral piece of document for filing taxes. Moreover, it also comes handy in many different transactions like when you have to apply for a loan, etc. It works as proof that you have correctly paid your taxes and are a tax-paying citizen of the country.

About the Author

I am Amol Kale.. In this post, we’ll have a look at the important components of the Form 16 Format.

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Author: Amol Kale

Amol Kale


Member since: Jul 19, 2017
Published articles: 3

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