Income tax return filing: The deadline to file the Income Tax Return (ITR) for the financial year 2023-24 (assessment year 2024-25) is July 31, 2024. Salaried individuals can commence filing their ITR for the financial year 2023-24 from June onwards, after receiving their Form 16.
What is Form 16?
Form 16, issued by employers to employees, plays a crucial role in filing Income Tax Returns (ITR) for salaried individuals. It contains the tax deducted from the salary during a financial year and deposited with the government. This includes information about the employee’s PAN (Permanent Account Number), the employer’s TAN (Tax Deduction and Collection Account Number), salary income, deductions under various sections of the Income Tax Act, and the tax deducted at source (TDS).
Form 16 serves as proof of the TDS deducted by the employer, facilitating the accurate filing of employee income tax returns.
Form 16 issue date
Form 16 is typically issued by employers to their employees on or before June 15.
Form 16 has two parts:
- Part A : It generally contains the following information:
- Permanent Account Number (PAN) or Aadhaar of deductee
- Tax Deduction and Collection Account Number (TAN) of the deductor details TDS deducted and deposited quarterly
- Book Identification Number if tax is deposited by the Govt. Office without production of challan
- Challan Identification Number in case of payment through bank
Part B : It summarizes 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.
Why is Form 16 important?
Form 16 is important for several reasons:
- It serves as proof of income earned by the employee during the financial year.
- It provides evidence of tax deducted at source (TDS) by the employer on behalf of the employee.
- It contains all the necessary details required for filing Income Tax Returns (ITR) accurately, such as salary income, deductions, and TDS.
- It is an important document for salaried employees as it helps them claim tax refunds.
In light of the upcoming deadline for income tax return filing for the financial year 2023-24, it’s essential for salaried individuals to be well-informed about Form 16 and its role in the process. Understanding Form 16 empowers individuals to fulfill their tax obligations accurately and efficiently.
