2024 ITR filing: After obtaining Form 16, salaried individuals can begin filing their income tax returns for the fiscal year 2023–2024 in June. PAN, TAN, salary information, deductions, and tax deducted at source (TDS) are all included on the form. For salaried individuals filing income tax returns, Form 16 is essential.
Income tax return submission deadline: July 31, 2024 is the deadline for submitting the Income Tax Return (ITR) for the financial year 2023–2024 (assessment year 2024–25). After obtaining their Form 16, salaried individuals can begin filing their ITR for the financial year 2023–24 in June.
Read more:- Income-tax return filing: Should you file your ITR in April or wait until July 31?
What is Form 16?
Form 16 is an important document that employers give to employees when they file Income Tax Returns (ITRs) for salaried individuals. It includes the tax that is withheld from an employee’s pay and deposited to the government at the end of the financial year. This contains details about the salary income, deductions made under different sections of the Income Tax Act, the employer’s TAN (Tax Deduction and Collection Account Number), the employee’s PAN (Permanent Account Number), and the tax deducted at source (TDS).
Form 16 allows for the proper filing of employee income tax returns by providing documentation of the TDS that the employer has withheld.
Form 16 issue date
Form 16 is typically issued by employers to their employees on or before June 15. The Income Tax department has set July 31 as the deadline to file ITRs of the given financial year, unless extended by the government. Therefore, if a company issues the Form 16 on June 15, the taxpayer exactly has 45 days to file his or her tax returns.
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Form 16: Part A & Part B
Form 16A generally contains the following information:
- The deductee’s Permanent Account Number (PAN) or Aadhaar
- The deductor’s Tax Deduction and Collection Account Number (TAN) provides information on TDS deducted and deposited on a quarterly basis.
- Book Identification Number if tax is deposited by the Govt. Office without production of challan
- Challan Identification Number if making a bank transfer
Form 16-B summarises the employee’s income, showing their salary details and deductions approved under Chapter VI-A. It’s an attachment to Part A and is prepared by the employer. offering a comprehensive overview of the individual’s financial situation.
What makes Form 16 significant?
Form 16 is important for the following reasons:
- It acts as documentation of the employee’s earnings for the financial year.
- It provides proof of the tax that the employer deducted from the employee’s salary at the source (TDS).
- It includes all the information needed to accurately file Income Tax Returns (ITRs), including information on salary income, deductions, and TDS.
- For salaried employees, it is a crucial document because it facilitates their tax refund claims.
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