Got your Form 16 from employer? Here's what you should check before filing ITR

As per income tax rules, employers are required to issue Form 16 to salaried employees by 15 June for every financial year. However, receiving this document does not mean that you should immediately proceed with ITR filing.

Form 16 forms the basis of income reporting in ITR. It is important to verify the details mentioned in it, including total income, tax deducted at source (TDS), exemptions, and deductions claimed during the financial year.

Let's understand the key details you should review in your Form 16.

What is Form 16?

Form 16 is a TDS certificate issued by an employer to an employee when tax has been deducted from salary under Section 192 of the Income Tax Act.

The certificate is divided into two sections. Part A contains details of the employer and employee, along with information on the tax deducted and deposited with the government.

Part B provides a detailed breakup of salary income, including allowances, exemptions, deductions claimed, and tax calculations.

What should you check in Form 16?

A mismatch in salary figures, an overlooked deduction, an incorrect PAN, or a tax credit that has not been deposited with the government can lead to refund delays or tax notices. So, here are the key points you need to look for in Form 16.

Verify personal and employment details

Start by checking basic information such as your name, PAN, employer's name, TAN, financial year, and assessment year. Even a small mistake in these details can create issues while claiming TDS credit or filing your return.

Match salary figures with your payslips

Compare the salary details mentioned in Form 16 with your monthly payslips and annual salary statements.

The gross salary, allowances, bonuses, and other components should match your employment records. Any discrepancy should be clarified with your employer before filing your return.

Review deductions and other income carefully

Double-check that all your tax-saving investments are correctly listed under their respective sections. This includes Section 80C for PPF/ELSS/LIC, 80D for health insurance, and 80CCD for NPS.

If you declared other sources of income to your employer, such as home loan interest under Section 24 or income from a savings bank account, verify that they have been included.

Confirm the tax regime used for TDS calculation

Check whether Form 16 reflects the tax regime under which your employer deducted TDS. If you want to change the regime, then you can do it at the time of filing of ITR.

Verify Form 16 details with AIS and Form 26AS

Before filing your return, compare the information in Form 16 with the Annual Information Statement (AIS) and Form 26AS.

This helps verify whether salary income, TDS credits, interest income, dividends, and other financial transactions reported to the Income Tax Department are correctly reflected.

Compare the TDS details in Form 16 with Form 26AS to confirm that the tax credit is reflected against your PAN. If there is a mismatch, you should immediately contact your employer.

Report errors and get them corrected

If you find any mistakes in Form 16, such as incorrect salary details, deductions, or TDS information, contact your employer's HR, payroll, or finance department immediately. The employer may need to file a revised TDS return and issue an updated Form 16 after the correction is processed.

Disclaimer: This is only for informational and educational purposes. Please consult a qualified tax expert for the latest tax laws and regulations.