Form 16 would be an essential document for the salaried class people. They assist the employees to find out the total taxes that would get deducted from their salary income, the gross salary which would be furnished in the fiscal year, tax-exempt allowances, and others. According to the income tax laws, a person should obtain his or her Form 16 via the employer by June 15.
The same is essential for the person to find out their Form 16 once obtained via the employer to ensure that all the data has no error and all the correct data is furnished in the subjected ITR form.
One should learn that Income Tax Return forms pose much more details pre-filled. The same makes it much more essential that you check the data filed in the TDS certificate that is your Form 16.
Form 16 Salary TDS Certificate Segments
Form 16 composes two sections: Part A and Part B. both pose the sections should be downloaded via the TRACES website through your employer prior to it being provided to you. Hence both the sections poses the TRACES logo on them.
Important Things to Check in Salary TDS Certificate Form 16 Part A
To initiate, one should check the PAN specified on the TDS certificate. The tax expert specified that the income tax filing website mentioned that “One must ensure that PAN mentioned on Form 16 is correct. If the wrong PAN detail is mentioned then, the amount of TDS will not reflect on your Annual Information Statement (AIS) and Form 26AS. Consequently, you will not be able to claim the tax credit at the time of filing the ITR.”
Including with PAN, one should indeed verify the name, address, and the employer’s TAN and PAN are shown. Nextly verify the tax summary which gets deducted through your employer. But your employer deducts the taxes on the monthly grounds, the taxes deducted would be shown on the quarterly grounds in Form 16. Hence you should total taxes for every quarter to verify.
A tax expert specified that “One must cross-check the actual tax deducted on salary income matches with the taxes reflected in your Form 16, AIS and Form 26AS. If there is any discrepancy, then the tax amount that you are eligible to claim credit for will be what is reflected in AIS/Form 26AS. You will be required to get your Form 16 corrected from your employer so that the correct details are reflected in your AIS and Form 26AS. Once the correction has been made, a revised Form 16 will be issued to you.”
In Nov 2021, the income tax dept has incorporated the Annual Information Statement (AIS) which consists of the information of all the financial information that a person undertakes in the fiscal year. The information would be written no matter whether the tax would be deducted or not. Moreover, if any taxes would be deducted on the obtained income, then they would be shown.
On the opposite side, Form 26AS is your tax passbook. The document mentioned all the taxes that would be deducted on several incomes and deposited with respect to your Permanent Account Number (PAN). the taxes deducted would be through the salary income obtained from your employer, interest obtained via banks, and dividends obtained via several resources, or firms. Any self-assessment tax deposited would indeed be shown in Form 26AS.
As AIS has incorporated, the same shall occur when it has glitches that do not match with the data mentioned in the Form 26AS and Form 16. Hence one should verify the data with all the 3 documents.
Things to Check in Part B of Form 16 (Salary TDS Certificate)
Part B of Form 16 poses the information of the salary income that is furnished to you through your employer. The information consists of the total salary income, allowances that are privileged from the tax like House Rent Allowance, Leave Travel Concession, and others.), deductions under sections 80C, 80D, and others, to which you are eligible.
Part B mentioned a breakdown of the gross salary furnished to you, allowances that are privileged from the tax, and others. You would verify the data from your salary slips. Moreover, if the amount of the tax-privileged allowances is lower with respect to the calculations these discrepancies should be warned to the employer.
The tax-exempt allowances and the deductions would be shown in your Form 16, furnish you have chosen for the old income tax regime and submitted the documents for that to the employer.
When a person chooses the latest income tax regime during furnishing of the income tax return for the financial year 2021-22 (AY 2022-23) he or she would not be qualified for the tax exemption allowances and deductions. With effect from FY 2020-21, a person has the choice to either carry on with the former income tax regime by claiming the tax exemptions. He or she would choose the new income tax regime and leave the mutually claimed tax exemptions.
You should know that these days the Income-tax return forms arrived with the pre-filled details from several TDS certificates, AIS, or Form 26AS. Moreover, the details shown in Form 16 are in sync with the details asked in the income tax return form beneath the income from the salary. Hence the person could simply verify the details.
What Will Happen When you Switched the Jobs in FY 2021-22
If you change the jobs in the Fiscal year 2021-22 then the pre-filled Income tax return form i.e applied to you would show the salary income details through both the employers (current and the former one). You would be needed to accumulate the TDS certificate via your present and the former employers towards finding out the total taxable salary of the person.
The taxpayer specified, “It may happen that additional tax might be payable by you due to job change. This will be ascertained once the net taxable income (Gross taxable income less of tax exemptions and deductions) has been calculated and total tax liability on it (less of TDS which is deposited with the government).”
