Form 16 is the most important document for all employees to file income tax returns. So, what is this Form 16? What details does it include? Only file tax returns with this Form 16. What are financial experts’ suggestions, and what is the importance of Form 16 in Submitting ITR? Let us know the complete information now.
The Income Tax Department has started accepting Income Tax Returns (ITR Filing) for the financial year 2023-24 from 1st April. The department has already notified ITR Forms 1, 2, 4 and 6 for tax returns. These forms are currently available on the e-filing portal. The Central Board of Direct Taxes has announced that taxpayers have started filing their IT returns, with about 50,000 already completed. Salaried employees can use ITR Form-1, and it is essential to have Form 16, which the company provides, to complete the process.
Form 16 is a document the company issues where an employee works. It contains details of tax deducted from the employee’s salary, including salary, taxes, and deductions claimed. This form is useful in avoiding mistakes while filing ITR. Form 16A, on the other hand, contains details of taxes deducted by the company, such as tax deducted at source, while Form 16B includes salary, taxable income, and deductions claimed. According to Section 203 of the Income Tax Act 1961, Form 16 must be issued by the company’s proprietor by 15th June in every assessment year.
It’s essential to note that Form 16 is not required for filing income tax returns, but it’s highly recommended to wait for the company to provide this form before filing ITR. Financial experts suggest that employees compare Form 16 with Form 26AS, Annual Information Statement, Tax Information Summary, etc., to ensure no discrepancies. Any differences in the details should be corrected immediately for faster ITR processing. However, if the details are correct, taxpayers can file their IT returns through the e-filing portal in advance.
