Income tax filing: Waiting for your Form 16? Here is what you need to know

Income tax return filing: The deadline to file the Income Tax Return (ITR) for the financial year 2022-23 (assessment year 2023-24) is 31st July 2023. The income tax department has enabled online filing of ITRs 1 and 4. ITR-1 is filed by individuals, including salaried class and senior citizens. The ITR-4 form can be used by individuals, HUFs, and firms (other than Limited Liability Partnership firms), having total incomes up to ₹50 lakh.

Form 16 is commonly used by salaried individuals to file their ITR, however, it is not always necessary.

What is Form 16?

Form 16 is the certificate of tax deducted at source issued by the employer and plays a crucial role in filing an ITR for salaried individuals. It provides a detailed description of the salary paid to the employee, deductions claimed by the employee, and the tax deducted from it.

Part A and Part B of Form 16

Part A summarises the taxes deducted and deposited by your employer as TDS.

Part B of Form 16 reflects details of salary income and deductions claimed by the employee to reach his taxable income.

When is Form 16 issued?

Every salaried individual generally receives Form 16 from their employer on or before the 15th of June of the assessment year. Section 203 of the Income Tax Act, 1961, has made it mandatory for employers to issue Form 16 to their employees, reflecting their total TDS on income

What to watch out for in Form 16 when filing ITR?

Before filing your ITR, it is essential to cross-check and verify the information in Form 16 with your salary slips, AIS(Annual Information Statement), and Form 26AS.

 that when filing the ITR for salaried individuals, it is important to pay attention to the following aspects of Form 16:

PAN 

Archit Gupta, Founder, and CEO, Clear said when reviewing your Form 16, the first thing to check is that your PAN matches the one mentioned in the form. If the PAN is incorrect, the tax deducted from your salary won't be reflected in Form 26AS, and you won't be able to claim credit for it when filing your ITR.

Personal details

Apart from PAN, cross-check the accuracy of your name, address, and employer's TAN (Tax Deduction and Collection Account Number), said Abhishek Soni, Co-founder & CEO of Tax2win.

Part A of Form 16

It is crucial to compare the tax deduction details in Part A of Form 16 with the information in your Form 26AS, which is a consolidated statement of taxes deducted and paid and AIS.

Part B of Form 16

In short, it shows the income paid by your employer. Ensure that any tax-saving deductions and exemptions you claim are correctly reflected in Form 16.

Cross-verify tax deductions

It is vital to cross-check the actual tax deducted from your salary income, comparing it with the taxes reflected in Form 16, Form 26AS, and AIS (Annual Information Statement). If you identify any discrepancies, promptly bring them to your employer's notice and request them to rectify the information in Form 16. Ensuring that the accurate details align with Form 26AS and AIS is crucial.

Job changes and multiple employers

If you switched jobs during the financial year 2022-23, it is important to collect Form 16 from both employers. This will help you determine the actual taxable salary and ensure accurate reporting. Remember that additional tax might be payable due to the job change if you have not informed the current employer regarding the income earned with the previous employer.

“By carefully reviewing and verifying the information in Form 16, cross-checking it with your salary slips, Form 26AS, and AIS, and addressing any discrepancies with your employer, you can ensure the accurate filing of your ITR and avoid potential issues with the income tax department,” said Abhishek Soni. 

The tax authority released income tax return Forms for FY 2022–23 on 10 February 2023. As the Forms were notified well in advance.

Archit Gupta, Founder, and CEO, Clear said additionally, if you opted for the old tax regime and claimed tax-saving deductions, ensure that they are correctly reflected in Form 16. Any last-minute tax-saving investments not accounted for by your employer may not be reflected in your Form 16. Therefore, it's important to review and verify these details.

What to do before getting Form 16?

Before receiving Form 16, employees should keep handy the details of capital gains statements, interest income of fixed deposits, rental income, and any investment made for claiming deductions.