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Thus, in this situation, they will not provide the Form 16)

(It should be noted that if an organization does not possess the TAN, they are not entitled to deduct TDS. These details help the IT Department to track the flow of money from the account of employee and employer.

(TAN refers to the number assigned to an account responsible for the deduction and collection of tax). Particulars such as the individual and employer’s name, address details, PAN details of both and employer’s TAN details. Personal information of the employer as well as the employee.It is a certification duly signed by the employer that they have deducted the TDS from the employee’s salary and deposited it with the income tax department. It contains all the information related to the salary received by the employee along with the tax that has been collected from the salary, by the deductor.įorm 16 is sub-divided into the following two parts which include: Form 16 Part Aįundamentally, Part A gives the summary of tax collected by the organization or employer from the salary income, on the employee’s behalf and deposited in the government’s account. One of the most important income tax forms for salaried individuals is Form 16. Employers need to issue the Form 16 to their employees on or before 31 st May of the financial year immediately following the financial year in which the income was paid and tax deducted.

The TDS, so deducted, by the organization or employer is deposited with the Income Tax department and the Form 16 in turn is a proof of the same. Companies usually calculate the tax payable by the employee, on the basis of the forecasted earnings and investment declarations made by the employee at the beginning or during the course of the year.