This TDS certificate helps an employee to know the total salary income that they have earned during the previous financial year as well as the total tax that has been deducted from their salary.
As this TDS certificate contains all the important information required to file ITR easily, it is important to ensure that the information here is correct. Currently, the income tax department offers pre-filled ITR form online on the e-filing website. The pre-filled information in the ITR makes it easier to cross-check information with Form 16.
Authenticity of Form 16
Form 16 must have the TRACES logo on it to ensure its authenticity. The TRACES logo must be on both the parts of Form 16. There are two parts of Form 16 – Part A and Part B. A salaried individual should ensure that they have received both the parts of Form 16.
The Form 16 received by you should be digitally signed. The digital signature must be validated by you. A validated digital signature shows a check mark.
Part A of Form 16
This part of the Form 16 focuses on the tax that is deducted and deposited against employee’s PAN from salary income between April 1, 2023 and March 31, 2024. It mentions the challan number of the challan used to deposit TDS with the government. The tax deducted will be reflected on a quarterly basis in Part A of Form 16.
Part B of the Form 16
This part of the Form 16 focuses on the salary paid to employee during the previous financial year. It provides detailed break-up of the salary paid, allowances paid, tax regime chosen for TDS on salary, deductions claimed as per the chosen tax regime etc.
Things to check in Part A and Part B of Form 16
Avinash Godkhindi, CEO & MD, Zaggle – a SaaS Fintech, Tax Filing Enabler lists out three things salaried individuals must do after getting Form 16:
1. Review and verify the information: Salaried individual should carefully examine Form 16 to ensure all details are accurate. This includes your personal information (PAN and Address), employer details (Employer name, Address), salary breakup (basic salary, allowances received such as House Rent Allowance, Special Allowance etc.), tax regime opted for TDS on salary, deductions claimed as per the tax regime chosen and tax deducted at source (TDS) information, etc.2. Compare with Form 26AS: After getting Form 16, a salaried individual should download his/her Annual Information Statement (AIS) and Form 26AS from the income tax department’s website. AIS provides information about all the incomes that the salaried individual has received during the previous financial year along with the tax deducted on it, if any. AIS will show incomes even if there is no tax deducted on them. Form 26AS provides a consolidated view of tax deducted at source (TDS) by all deductors (including your employer).
One should compare the TDS information in all three documents to identify any discrepancies. If there is any discrepancy, then the tax amount reflecting in Form 26AS is what you will be eligible to claim in your ITR.
3. Address Discrepancies (if any): If there are any mismatches between Form 16 and Form 26AS/AIS, reach out to your employer’s HR or finance department to rectify the errors. They can file a revised TDS return to correct the information. Once the errors are rectified, then the employer is required to issue an updated Form 16. Remember last date to file income tax return is July 31, 2024 for FY 2023-24 (AY 2024-25). Hence, errors must be corrected at the earliest to get the updated Form 16 in time.
Changed job during the financial year
Salaried individuals who have changed jobs during the financial year must collect Form 16 from all their employers. The AIS and Form 26AS of an employee will reflect salary incomes from all the employers along with tax deducted on it. Once Form 16 from all the employers are collected, then these TDS certificates should be reviewed and verified as per the steps mentioned above.
What to do after checking Form 16
Once the information in Form 16 is checked and verified, the salaried individual can start preparing to file ITR. Along with Form 16, salaried individual should also collect other necessary documents such as bank statements, interest certificates, capital gains statement, proofs for claiming tax breaks etc. for ITR filing.