Similarly employers also mention steps to download form 16 with signature, signature authorization is very important for you in future to not only claim refund but also to submit the same documents in Bank for loan or any other requirements
If tax is deducted by your employer during the financial year, Form 16 is the form given by your company, which contains all the details of your income from salary and also tax paid to the income tax department by the company on behalf of you.
Your tax will be deducted if your income crossed the basic exemption limit and you have not submitted relevant documents allowed by the income tax department. For example incase you have not invested in schemes exempted under section 80C or don’t have home loan or could not submit these documents within the specified time, Form 16 will help you to find the amount of tax deducted by the employer, so accordingly you can claim the income tax return from the IT department.
What Is Form 16 Related To Income Tax ?
Form 16 comprises two parts – Part A and Part B. Both sections must be downloaded from the portal given by your employer.
Form 16 Part A
Part A of Form 16 shows the total tax deducted by the employer throughout the financial year, along with details such as the employee’s PAN and the employer’s PAN and TAN, wherein you can match deducted tax amount as per your salary slips and also get to know full years income.
Form 16: Part B
Part B of Form 16 comprises various components, like gross salary, allowances like House Rent Allowance and Special Allowance, and perks like company-provided car or accommodation during the financial year.
When Is Form 16 Generated?
Usually employers generate Form 16 for their employees on or before the 15th of June of the subsequent year, for the financial year in which tax has been deducted.
As per the income tax laws, employers or companies must issue Form 16 to employees by June 15 if tax has been deducted from their salary income.
This year, a TDS certificate will be issued for filing ITR (due by July 31, 2024) for the financial year 2023-24.
Form 16 Password & Signature
All the employers send an email with the details like how to login and download Form 16 from the respective portal given by them. Usually the Form 16 password is a combination of the first five characters of your PAN number in capital letters and your date of birth in the format of DDMMYYYY. For instance, if your PAN number is ABCDE12345 and your date of birth is March 19, 1994, then the password for your Form 16 would be ABCDE19031994.
Kindly follow all the steps given by your employer to open the form 16 and the password mentioned by them.
Similarly employers also mention steps to download form 16 with signature, signature authorization is very important for you in future to not only claim refund but also to submit the same documents in Bank for loan or any other requirements usually Form 16 with authorized signature is asked for. So follow all the steps given by them to validate the signature on Form 16.