Income Tax return (ITR) filing 2024: What is Form 16, when is issue date and why is it crucial? — Explained

2 weeks ago 7

1 min read 30 Apr 2024, 02:50 PM IST

ITR filing 2024: Salaried individuals tin record income taxation returns for FY 2023-24 from June aft receiving Form 16. The signifier includes PAN, TAN, wage details, deductions, and taxation deducted astatine root (TDS)

Form 16 is important for salaried individuals filing Income Tax Returns.

Income taxation instrumentality filing: The deadline to record the Income Tax Return (ITR) for the fiscal twelvemonth 2023-24 (assessment twelvemonth 2024-25) is July 31, 2024. Salaried individuals tin commence filing their ITR for the fiscal twelvemonth 2023-24 from June onwards, aft receiving their Form 16.

What is Form 16?

Form 16, issued by employers to employees, plays a important relation successful filing Income Tax Returns (ITR) for salaried individuals. It contains the taxation deducted from the wage during a fiscal twelvemonth and deposited with the government. This includes accusation astir the employee's PAN (Permanent Account Number), the employer's TAN (Tax Deduction and Collection Account Number), wage income, deductions nether assorted sections of the Income Tax Act, and the taxation deducted astatine root (TDS).

Form 16 serves arsenic impervious of the TDS deducted by the employer, facilitating the close filing of worker income taxation returns.

Also Read | Income taxation slabs FY 2024-25: Experts stock these 8 benefits for taxpayers successful caller income taxation regime

Form 16 contented date

Form 16 is typically issued by employers to their employees connected oregon earlier June 15.

Form 16 has 2 parts: Part A & Part B

Form 16A mostly contains the pursuing information:

-Permanent Account Number (PAN) oregon Aadhaar of deductee

-Tax Deduction and Collection Account Number (TAN) of the deductor details TDS deducted and deposited quarterly

-Book Identification Number if taxation is deposited by the Govt. Office without accumulation of challan

-Challan Identification Number successful lawsuit of outgo done bank

Form 16-B summarises the employee's income, showing their wage details and deductions approved nether Chapter VI-A. It's an attachment to Part A and is prepared by the employer.

Why is Form 16 important?

Form 16 is important for respective reasons:

It serves arsenic impervious of income earned by the worker during the fiscal year.
It provides grounds of taxation deducted astatine root (TDS) by the leader connected behalf of the employee.
It contains each the indispensable details required for filing Income Tax Returns (ITR) accurately, specified arsenic wage income, deductions, and TDS.
It is an important papers for salaried employees arsenic it helps them assertion taxation refunds.

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Published: 30 Apr 2024, 02:50 PM IST