How to file revenue tax return utilizing Form 16? A step-by-step information

CA Arpit Jain, Joint MD, Arihant Capital

Form 16 is a certificates issued by an employer in India offering a abstract of the wage paid to the worker through the monetary 12 months and the tax deducted at supply (TDS) on their wage. Form 16 is issued yearly, normally by the top of May, for the earlier monetary 12 months (which runs from April 1st to March thirty first). It is a crucial doc for salaried staff because it helps them in submitting their revenue tax returns and claiming tax refunds, if any. 

The Form 16 has two elements: Part A & Part B.

Form 16-A offers particulars of TDS deducted and deposited quarterly particulars of PAN and TAN of the employer and different data.Form 16-B serves as a consolidated assertion of the worker’s revenue and incorporates particulars of the breakup of wage and deductions, if any, permitted underneath Chapter VI-A. It is an Annexure to Part A and is ready by the employer.

You can obtain the Form 16 from the official web site of the Income Tax Department at https://www.incometaxindia.gov.in/Pages/default.aspx, underneath the Income Tax Forms part.

Here’s a step-by-step information on file your revenue tax utilizing Form 16:

1. You have to first collect all the required paperwork and data together with Form 16, copy of your PAN & Aadhaar card, financial institution statements, and every other related paperwork. Make positive to establish all of the deductions you qualify for whereas submitting your taxes (like several deductions underneath 80C, 80D, and many others)

2.  Register on the Income Tax e-filing portal and create an account. If you have already got an account, log in.

3. Go to the e-File part and click on on “Income Tax Return” to start the method.

4. Choose the suitable Income Tax Return (ITR) kind based mostly in your revenue and different elements. If you might have Form 16, you need to use both ITR-1 or ITR-2.

5. Fill within the required particulars resembling private data, revenue particulars, deductions, and tax funds.

From Form 16, one can find sure data for submitting your revenue tax return resembling

·        Allowances exempt underneath Section 10,

·        Break up of deductions underneath Section 16,

·        Taxable wage,

·        Income (or admissible loss) from home property reported by an worker and provided for TDS,

·        Income underneath the pinnacle ‘Other Sources’ provided for TDS,

·        Break up of Section 80C deductions,

·        The mixture of Section 80C deductions (gross and deductible quantity),

·        Tax payable or refund due.

6. Validate all the info entered within the kind, and submit.

7. After submitting your return, e-verify it utilizing any of the obtainable choices resembling Aadhaar OTP and many others.

 It’s a clean on-line course of and could be completed in a couple of minutes.

Amar Ranu, Head – funding merchandise & Advisory, Anand Rathi Shares & Stock Brokers

Form 16 is your TDS certificates, which you’ll be able to receive out of your employer, financial institution, or different acceptable entity. This certificates particulars all your taxable revenue in addition to numerous tax deductions on the supply. Though the construction of Form 16 stays largely unchanged. 

Part A of a Form 16 incorporates the next data: The Employer’s title and deal with, the Employee’s title and deal with, the Deductor’s and Employer’s PAN and TAN, the Employee’s PAN, and the Employee’s PAN. The quantity paid or credited, Tax is deducted on the level of sale.

Part B of a Form 16 incorporates the next data: Salary breakdown, different revenue declared by the worker to his employer, deductions underneath Chapter VI A, aid underneath Section 89, and so forth. Tax deducted at supply, web revenue tax payable or refundable.

When you might have gathered all the required paperwork, resembling Form 16, Form 26AS, and others, in addition to the ultimate computation of tax legal responsibility, you possibly can start the submitting course of.

Steps to file Form 16

1) Login to the web site together with your credentials.

2) Go to ‘e-File’ and click on on ‘Prepare and submit ITR online’.

3) Select the suitable Income Tax return Form and evaluation 12 months. 

4) Fill within the particulars as requested after which click on the ‘Submit’ button. (there you’d request to add all of the required kind together with Form 16) 

5) Upon profitable submission you will notice a message displaying ITR submit and processed. 

Following that, you will need to e-verify your ITR. There are three strategies for e-verifying ITR on this method. If the return isn’t e-verified, the ITR-V kind (password protected) have to be printed, signed, and returned to CPC inside 120 days of the e-filing date.

Babita Rani, Tax guide

Form 16 is commonly needed for all salaried staff to file their ITR. If, nevertheless, your employer has by no means offered you with a Form 16, you would possibly want pay stubs as a way to estimate and calculate your gross revenue.

Although whereas submitting an ITR with out Form 16 could be completed by staff, it may be time-consuming. An worker should compute the exemption on allowances after figuring out his or her whole compensation utilizing pay stubs. The worker should then disclose all different sources of revenue, resembling actual property and capital beneficial properties. The final tax legal responsibility have to be in comparison with the TDS quantity paid for that monetary 12 months after accounting for investments made underneath Section 80. Employees who’ve paid much less tax than they need to have could make the required fee when submitting their ITR on-line.

Individual taxpayers should file ITR returns by July 31 of every 12 months, though firms and different organisations have completely different submitting deadlines based mostly on their sort.

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