With the tax filing season just around the corner, Form 16 is the current buzzword among salaried employees. This essential tax document is issued to salaried employees as proof of their annual salary and tax deductions and is required while filing ITR. 

If you’ve just started filing your taxes, you must be wondering how to file Form 16. With the e-filing system, filing Form 16 is a cakewalk.

What’s All the Fuss About Form 16?

When filing taxes, you should provide an accurate account of your income and completed tax liabilities. Form 16 provides an in-depth account of your annual salary and, most importantly, your TDS and other tax deductions.

Under Section 203 of the Income Tax Act, employers have to deduct a TDS from the employee’s salary if it exceeds the annual ₹2.5 Lakh mark. Form 16 serves as proof of this deduction that can be claimed while filing your ITR. Since Form 16 outlines your yearly tax deductions, employers issue it annually, latest by the 15th of June. 

Form 16 has two parts:

• Part A: Outlines details about the TDS collected from the salary and deposited with the government. 
• Part B: Outlines details about your salary components, deductions, exemptions claimed, total tax paid, refunds payable, etc. 

How to File Form 16 Online?

If you’re wondering how to file ITR with Form 16, you will first need to get it from your employer. Form 16 can only be filled and generated by your employer. If you’re an employer, you can use the following steps to fill out the Form:

1. Go to https://www.tdscpc.gov.in/app/login.xhtml (TRACES portal) 
2. Log in using your user ID, password, and deductor TAN
3. Move to the ‘Downloads’ tab
4. Scroll down to ‘Form 16’ 
5. Fill in the employee’s details like name, PAN, address, etc.
6. Fill in your own details as the employer.
7. The generated Form 16 can then be downloaded and sent to the employee. 

Once you have the Form, here’s how you can file an income tax return with Form 16 online:

1. Go to the income tax e-filing portal at https://eportal.incometax.gov.in/iec/foservices/#/login.
2. Log in to your account using your ID and password.
3. Enter your PAN and other relevant details.
4. Fill in the mandatory fields like name, date of birth, mobile number, etc.
5. Click ‘Submit’ to verify the ITR.

Conclusion 

In conclusion, Form 16 plays a crucial role in the tax filing process by providing an accurate account of an individual's income and tax liabilities. It serves as proof of the TDS deduction made by employers if the salary exceeds the annual threshold. With its two parts, Part A and Part B, Form 16 outlines essential details such as TDS collection, salary components, deductions, exemptions, total tax paid, and refunds payable. Filing Form 16 online is a convenient process, requiring employees to obtain it from their employers and employers to generate and share it via the TRACES portal. Utilising the income tax e-filing portal, individuals can easily file their income tax returns using Form 16 and ensure compliance with tax regulations.

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Now that you know how to file Form 16, claiming your TDS won’t be an issue. However, until you can claim it, you can make the most of your monthly salary with the Fi Salary Program. With this zero minimum balance account, you get to enjoy perks like a VISA Platinum Debit Card with zero Forex charges, spending insights, goal-based savings and exciting rewards. 

Frequently Asked Questions

How can I submit my Form 16 online?

To submit your Form 16 online, follow these steps:

• Visit the income tax e-filing portal.
• Use your user ID and password to log in.
• Enter your PAN and other details.
• Fill in the fields with the required information (name, number, date of birth).
• Review the details and submit the ITR for verification.

How can I generate Form 16 by myself?

You cannot generate Form 16 by yourself if you're a salaried employee. It has to be generated by your employer and sent to you. However, you can download Form 26AS from the TRACES website, as the Form outlines your total TDS deductions.