Form 16: What Is It for ITR Files? Is Filing An Income Tax Return Required? Everything You Must Understand

Even though the income tax department just made it possible to file ITR-1 and ITR-4 electronically, the online income tax return (ITR) filing process has already begun. Salaried people submit their ITR-1 using Form 16, which is given to them by their employer. Understand what Form 16 is and whether it is necessary to submit the ITR without it.

Form 16: What is it?

Form 16 is a crucial document for salaried workers’ ITR filing. It’s the TDS certificate that your employer gave you. It includes a thorough explanation of the employee’s pay and the taxes withheld from it. The employee’s claimed deductions are also detailed on Form 16.

What Are Parts A and B of Form 16?

The taxes that your employer withholds from your pay—also known as tax deducted at source (TDS)—are included in Part A.

Details of the employee’s claimed deductions and salary income are included in Part B of Form 16 to determine their taxable income.

Form 16A, 16B, and 16C: What Are They?

These documents are provided if you have purchased or sold real estate or received rental income. The tax deductor issues Form 16A, the buyer of real estate issues Form 16B, and the person or HUF making rent issues Form 16C.

When Is Form 16 issued by the employer?

Employers are required by Section 203 of the Income Tax Act, 1961, to provide Form 16 to their workers. On or before June 15 of the assessment year, employers provide Form 16 to their staff members.

An income tax expert states that before filing the return, it is crucial to check and reconcile the data entered on Form 16, Form 26AS, the Annual Information Statement (AIS), and the Tax Information Summary (TIS). If there are any inconsistencies, the expert advises taking corrective action. It is your responsibility to make sure the credit for taxes paid via advance tax, TDS, and TCS is correctly represented. This will speed up the processing of tax refunds and lessen the likelihood that your return will be selected for examination or tax demands.

No, Form 16 is not required in order to submit your income tax return. Form 16 is not required to submit an ITR. For the individual salaried person, however, it is best to wait for Form 16, since it has all the relevant tax-related data that will be useful in completing an ITR. On the income tax site, the Form 16 data is also shown as a pre-filled ITR form.