Form 16 is an income tax certificate issued by an employer giving details of how much tax was deducted and when it was submitted to the IT (Income Tax) department. Therefore, It is issued as proof of tax deduction and filing. Form 16 can also be considered as salary TDS certificate. It is also considered the source of proof of employee’s tax return. Form 16 consists of two parts, Part A and Part B.
16. Part A of Form 16
In other words, Part A of Form 16 contains the details of withholding tax on salary. This includes the name and address of the employer, PAN (Permanent Account Number) and TAN (Tax Collection and Deduction Account Number),However, amount deposited and summary of taxes deducted.
16. Part B of Form 16
For instance, It must be issued by the employer. Contains details of pay break. It also includes deductions allowed under the Income Tax Act (Chapter VI A).
After that, Eligibility for Form 16
Above all, As per the rules issued by the Ministry of Finance, Government of India, any person earning salary and filing tax return is eligible for Form 16. Employers use this certificate to track their earnings.
Download all types of Form 16 for the financial year 2021-22 from the link given below.
Automated Form 16 Part B and Part A&B for FY 2021-22 & Ass Yr 2022-23