Issued annually by employers, Form 16 is more than just a document — it’s proof of tax deduction from your salary, essential for filing your Income Tax Returns (ITR). Under Section 203 of the Income Tax Act, 1961, Form 16 represents the deduction of Tax Deducted at Source (TDS) from your salary, a crucial component of your taxable income.

When does Form 16 come into play? It’s issued by employers upon deduction of tax from your salary, indicating the amount deposited into the government’s account.

Form 16 is your lifeline during tax season. It provides a detailed summary of your salary, allowances, and applicable TDS, making it indispensable for filing ITRs.

Basic Essentials of Form 16:

- Form 16 serves as a TDS Certificate for salary income.

- Employers issue Form 16 if your annual salary exceeds Rs. 2.5 lakh (for the Old Tax Regime) or Rs. 3 lakh (for the New Tax Regime).

- If your income falls below the exemption limit, no Form 16 is issued.

• If you’ve worked with multiple employers during the financial year, you’ll receive Form 16 from each.

Details Required from Form 16 for ITR Filing:

For the current Financial Year 2024–2025 and Assessment Year 2025–2026, here’s what you need:

- Salary details

- Exempted allowances under Section 10

- Deductions under Section 16, including Standard Deduction and Tax on Employment

- Breakup of Deductions under Chapter VI-A

Breaking Down Form 16:

Form 16 comprises two parts: Part A and Part B.

PART A includes details like employer and employee information, PAN, and a summary of salary paid and tax deducted.

PART B contains a breakdown of salary, exemptions, deductions under Chapter VI-A, and more.

Remember, Form 16 is more than just a piece of paper — it’s your key to hassle-free tax filing. And with Taxhelpdesk by your side, navigating through tax season has never been easier.