{"id":24358,"date":"2024-06-17T12:50:31","date_gmt":"2024-06-17T12:50:31","guid":{"rendered":"https:\/\/akriviahcm.com\/blog\/?p=24358"},"modified":"2025-05-15T07:02:00","modified_gmt":"2025-05-15T07:02:00","slug":"guide-to-understanding-form-16-india","status":"publish","type":"post","link":"https:\/\/akriviahcm.com\/blog\/guide-to-understanding-form-16-india","title":{"rendered":"HR\u2019s Guide to Understanding Form 16 in India"},"content":{"rendered":"

Over 8.18 Crore<\/a> 5ITRs (Income Tax Returns) were filed for the assessment year 2023-2024, which is an increase of 9% YoY.<\/p><\/blockquote>\n

When it comes to filing income tax returns, Form 16 is a financial document everyone is likely to need. We take a quick look at what exactly it is and its significance in facilitating the filing of Income Tax Returns (ITR).<\/p>\n

What Is Form 16?<\/h2>\n

Form 16 is a certificate provided by employers under Section 203 of the Income Tax Act. It outlines the amount of tax deducted from an individual\u2019s taxable salary by their employer.<\/p>\n

People may have changed jobs during the year or worked for multiple employers simultaneously, receiving tax deductions from each. In that case, Form 16 must be collected individually from each of the employers. However, if no tax deductions were made as their income for the year was below the tax-exemption threshold, then it is not required.<\/p>\n

Who is Eligible to get Form 16?<\/h2>\n

Every salaried individual whose employers have deducted tax at the source is eligible for Form 16. Regardless of whether their income is below the tax exemption<\/a> threshold, the employer is obligated to furnish Form 16. This is if tax has been deducted from the salary.<\/p>\n

What\u2019s the Role of Form 16?<\/h2>\n

Form 16 makes it easy to file IT returns. It is evidence that the employer reported the tax deducted at source (TDS) from a person\u2019s salary to IT authorities. It also outlines how tax liability was calculated based on the investment declarations provided by a person at the beginning of the fiscal year. This helps in the accurate filing of income tax returns.<\/p>\n

When is Form 16 Expected to Come?<\/h2>\n

This document should be provided by the employer on or before May 31 of the assessment year. This gives everyone ample time to file their Income Tax return before the deadline.<\/p>\n

PS: In India, the fiscal year (FY) runs from April 1 to March 31, during which the income was earned. The assessment year is the subsequent year when this income is evaluated and taxed.<\/p>\n

What is Form 16A?<\/h2>\n

Form 16 comprises two essential parts: Part A and Part B. Both these segments are important when it comes to filing IT returns.<\/p>\n

Part A of the document gives essential details about both the employee and the employer, including:<\/p>\n