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Income Tax Return
Filing FY 2023-24: By this time, most
salaried employees
should have received Form 16, the
TDS certificate
, from their employers. According to income tax regulations, employers are required to provide
Form 16
to their employees by June 15. This document is crucial for salaried individuals when filing their income tax return (
ITR
).
According to an ET report, Form 16 serves as a comprehensive record of an employee’s total salary income earned during the previous financial year and the total tax deducted from their salary.
The information contained in this TDS certificate is essential for easily filing ITR, making it important to ensure its accuracy.
The income tax department currently offers pre-filled ITR forms online on the e-filing website incometaxindia.gov.in, which allows for convenient cross-checking of information with Form 16.
Form 16 For ITR Filing: Important Details
To ensure the authenticity of Form 16, it must bear the TRACES logo on both Part A and Part B. Salaried individuals should verify that they have received both parts of the document.
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Additionally, the Form 16 received should be digitally signed, and the digital signature must be validated by the recipient. A validated digital signature will display a check mark.
Part A of Form 16 concentrates on the
tax deducted at source
(TDS) from an employee’s salary income and deposited against their PAN between April 1, 2023, and March 31, 2024. It includes the challan number used for depositing the TDS with the government. The tax deducted is shown quarterly in Part A of Form 16.
Part B of Form 16 focuses on the salary paid to the employee during the previous financial year. It offers a comprehensive breakdown of the salary, allowances, tax regime selected for TDS on salary, and deductions claimed according to the chosen tax regime.
Also Read | ITR filing FY 2023-24: Why is Form 16 important for salaried individuals when filing income tax return?
According to the ET report, Avinash Godkhindi, CEO & MD of Zaggle, a SaaS Fintech and Tax Filing Enabler, has listed three essential tasks for salaried individuals once they get Form 16:
1. Check information: Salaried individuals should meticulously review Form 16 to ensure all details are correct. This includes verifying personal information (PAN and address), employer details (name and address), salary breakdown (basic salary, allowances like House Rent Allowance and Special Allowance), the tax regime opted for TDS on salary, claimed deductions according to the chosen tax regime, and information on tax deducted at source (TDS).
2. Form 16 comparison with Form 26AS: A salaried individual should download their Annual Information Statement (AIS) and
Form 26AS
from the income tax department’s website. The
AIS
details all income received during the previous financial year, including any tax deducted. It includes incomes even without tax deductions. Form 26AS offers a consolidated view of tax deducted at source (TDS) by all deductors, including the employer.
Also Read | Form 26 AS: Filing Income Tax Return? Know why Form 26AS is important & how to download it
3. What if there are discrepancies? Salaried individuals should compare the TDS information in Form 16, AIS, and Form 26AS to identify any discrepancies. If there are any inconsistencies, the tax amount reflected in Form 26AS is what the individual will be eligible to claim in their ITR.
If there are any discrepancies between Form 16 and Form 26AS/AIS, it is crucial to contact your employer’s HR or finance department to resolve the issues. They have the authority to submit a revised TDS return to amend the data. After the corrections are made, the employer must provide an updated Form 16.
It is important to note that the deadline for filing income tax returns for FY 2023-24 (AY 2024-25) is July 31, 2024. Therefore, it is essential to rectify any errors promptly to obtain the updated Form 16 well before the deadline.
For salaried individuals who have switched jobs during the financial year, it is necessary to obtain Form 16 from all their employers. The employee’s AIS and Form 26AS will display salary incomes from all employers, along with the tax deducted on it. After collecting Form 16 from all employers, these TDS certificates should be thoroughly reviewed and verified according to the aforementioned steps.
After verifying the information in Form 16, the salaried individual can begin preparations for filing their ITR. In addition to Form 16, the salaried individual should gather other essential documents, including bank statements, interest certificates, capital gains statements, and proofs for claiming tax breaks, etc., to facilitate the ITR filing process.
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