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Form 16 issuance

Issue Form 16 to your employees on time. Know how to do it.

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    Form 16 issuance

    Form 16 is the TDS certificate issued by the employer to its employees which contains the details of Income (as Salary) received from the employer by the employee and tax deducted thereon after availing the deductions available for that financial year. It is a very crucial document that eases out the process of filing Income tax return of oneself by its employees. It also minimises the chances of errors occurring in Income tax return filed henceforth.

    Form 16 must be issued on or before 15th June of the upcoming year.

    Form 16 consists of 2 parts:

    Part A: An employer can easily download Part A of Form 16 from the TRACES portal by login in to https://www.tdscpc.gov.in .

    Details appearing in Part A are:

    • Name and address of the employer
    • TAN & PAN of employer
    • PAN of the employee
    • Summary of tax deducted & deposited quarterly, which is certified by the employer

    Part B: Part B is an annexure to Part A. It contains the following details:

    • Detailed breakup of salary
    • Detailed breakup of exempted allowances under section 10
    • Deductions allowed under the income tax act (under chapter VIA)
    • Relief under section 89

    Penalty for not issuing Form 16 on time:

    As per the Income Tax Act, it is compulsory for every employer to issue Form 16 to his employee if TDS has been deducted from his/her salary. Non issuance of Form 16 on or before the due date may attract a Penalty of Rs.100 per day for the number of days the default continues.