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FAQ On Form 16 & ITR Submission: Q. What Is Form 16?

Form 16 is a TDS certificate provided by employers to employees, detailing salary and tax deducted. It has two parts - Part A provides a summary, while Part B provides detailed income and deduction information. The deadline to receive Form 16 is July 10th. Employees can download it from the ADP portal. If there are errors on the Form 16, employees should contact their employer to rectify it. [/SUMMARY]

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58 views

FAQ On Form 16 & ITR Submission: Q. What Is Form 16?

Form 16 is a TDS certificate provided by employers to employees, detailing salary and tax deducted. It has two parts - Part A provides a summary, while Part B provides detailed income and deduction information. The deadline to receive Form 16 is July 10th. Employees can download it from the ADP portal. If there are errors on the Form 16, employees should contact their employer to rectify it. [/SUMMARY]

Uploaded by

n333arora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FAQ on Form 16 & ITR submission .

Q. What is Form 16?


As a salaried employee, the salary you receive each month is a net pay after the deduction of Tax at
Source (TDS) by your employer. Form 16 is a TDS certificate which provides you with details of TDS
deducted for the financial year from your salaried income.
Form 16 comprises of:
Part A - Generated and downloaded through the TRACES portal by the employer, it provides the
summary of TDS deductions and income credited at each period.
Part B - Generated and downloaded through the TRACES portal by the employer, it provides details of
Income Chargeable under the head of ‘Salary’, the deductions under chapter VI A, and proper tax
calculation.
Form 12BA - A statement comprising of particulars of perquisites, other fringe benefits or amenities, and
profits in lieu of salary thereof granted by your employer to you during the year.

Q. What are the new changes in Form 16?


From Financial year 2018-2019 onwards Form 16 will provide additional income details for each
employee. The additional required would be as below:
 All section 10 exemptions
 Other deduction under section 16 and deduction under chapter VI A.
 Standard deduction
 Income from previous employer

The said changes were made in the format to improve transparency, and to provide proper income and
exemption details.

Until recently, only Part A of the Form 16 was being generated from the Income Tax website (TRACES), and the Part
B would be generated by the employer. However, based on a recent notification issued by the Income Tax
department, the Form 16 Part B will also be generated from TRACES basis quarterly filing data.

Q. When will I receive the Form 16?


The due date for issuance of Form 16 is 15th of June typically. However in the current financial year the
government has extended the due date until the 10 th of July 2019. Your Form-16 will be available to you
on the ADP ESS (Employee Self Service) portal on or before the 10th of July, provided there are cases of
required revision of Form 16 Part A or Part B details which may result in a delay. This would be notified
to all employees accordingly.

Q. How can I download my FORM 16 from the ADP portal?


Steps to download the FORM 16:
1. Login to your ADP ESS portal
2. Select the option "Form 16" from the navigational menu of the left of the screen
Once you click on the file, you can view and download the same as per your convenience.

Q. How do I validate the Digital Signature on the Form 16?


You will have to validate the signatures of the authorized signatory in an event where the same is
reflected as “Invalid/Unknown” in your document.
Steps to validate the signature are:
1. Upon opening the Form 16 PDF document scroll to page 2. The Digital Signature will appear on
bottom right space of your Form 16.
2. Right Click on the box showing the digital signature.
3. Select “Show Signature Certificate” in this window, and click on “Trust”
4. Click on “Add to trusted Certificates”. Now click “OK” and you will be taken back to the previous panel
(Signature Certificates). Click “Close”.
5. Now in the Form 16 page, the Top right you will find the Signature Panel
6. Click on that Signature Panel, You will find that the Signature is validated, and a message “Certified by
…” would display on the Top left of the page

Q. The PAN number mentioned in the Form 16 is wrong. How do I rectify


it?
Always verify that the PAN details reflected in the Form 16 are mentioned correctly. If found to be
incorrect, submit the correct PAN details to your employer requesting a rectification and regeneration of
Form 16.
Note: For such cases your employer is required to make the correction at their end through filing a
revised return of TDS, so that the credit of TDS reflects on the right PAN number.

Q. The Name & Address which is reflecting in the Part -A of Form 16 are
incorrect. How can this be corrected?
The name & address reflected in the Part A of your Form 16 is as per PAN records. Thus, if the same is
incorrect, you are required to make relevant corrections in your PAN card, and accordingly apply for
revision of PAN details through the Income tax department.

Q. Is there any reason why gross income in Part A does not match with
that in Part B of the Form 16?
A difference in income between Part A and Part B being erroneous, is debatable. While the tax and
salary figures in Part A and Part B should match in general; a difference doesn’t necessarily mean your
Form 16 is incorrect.

For example, consider an employee who is not under the taxable bracket for a few quarters of the
financial year. The total salary amount shown in Part A of Form 16 will be the sum of salary paid to the
employee for the taxable period. In contrast, the salary figure in Part B of Form 16 would be the total
salary including taxable and non-taxable period. Thus there would be a variance for non-taxable period’s
paid salary.

Q. What action is required when an employee gets an alert message


stating – “The amount of salary disclosed in Income details / Part B is
less than 90% of salary reported in TDS”, while filing their income tax
return?
The above alert gets triggered only if the Part B salary (income chargeable under the head ‘Salaries’) is
less than 90% of Part A income. The figure for income chargeable under the head ‘Salaries’ in the return
utility is computed after Section 10 exemptions (such as the House Rent Allowance and other allowance
exemption), and hence the sum total cannot be equal to the Part A sum total unless there are no Section
10 exemptions. In several instances the variance would be more than 10%, which may trigger the alert.
Hence, if you see this message, but, are confident that the details entered by you are correct. then you
can proceed to file your ITR.

Q. Can I claim additional exemptions on permissible investments,


knowing these were missed while submitting proofs at year end and are
not visible on my Form 16?
Yes, you can show your correct investments while filing individual return to the income tax department.
In general, you may get a notice to provide details for the difference in tax computation. For such
instances you are requested to maintain the original proof documents of investments. These are
mandatory to respond to such a notice.

Q. Are there any scenarios where an individual may not receive his or
her Form 16?
An individual may not receive his or her Form 16 in case the employee was not falling under the tax
bracket, and no tax has been remitted to the income tax department.

Q. What can be done if there is a difference between Form 16 received


and the Form 26AS visible online?
Such differences arise when there is an income apart from the salary, and the same is not reported in
your PAN while computing TDS u/s 192B. This will cause a difference in your Form 16 & Form 26AS.

Note: It’s always better to refer to the Form 26AS before filing your returns to validate all incomes and
taxes deducted thereon.
To check Form 26AS, you need follow below steps:
1. Login to your income tax e-filing login: https://portal.incometaxindiaefiling.gov.in/
2. Select “My account” from the menu options
3. In the drop down list select “View Form 26AS”
4. Once you select, you would be redirected to another page where you would click “Confirm”
5. Further Click on “I agree” and then “Proceed” in the subsequent windows
6. Then click on the “View Form 26AS” hyperlink on the page
7. Select assessment year and select view as (html or pdf or text)
8. After selecting these options, you would be able to view the form. If you need to download the same
click on “Export as pdf”

Q. What is the penalty or interest one would need to pay if he or she


fails to file income tax return (ITR)?
The Due date for filing ITR for an individual is: 31st July 2019 typically.

In any such cases where the due date is missed a penalty would be imposed for an amount ranging
between INR 5000 to 10000 under income tax law section 234F.

If return is not filed after the due date and before the 31st day of December of the assessment year, the
penalty levied would be Rs.5000
&
If the return is filed post 31st December of the assessment year, then the penalty would be Rs.10000.

Note: If the total income of the person does not exceed five lakh rupees: then penalty payable would
be Rs.1000

Also the below Interest under section 234A, 234B and 234C as per income tax act would be payable:
Section 234 A Late filing of return 1% pm of net tax liability
Section 234 B Non Payment of advance tax 1% pm of net tax liability
Section 234 C Deferment of advance tax1 1% pm of net tax liability

To avoid any of these penalties please file the ITR before due date.

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