Income Tax Form 16 Online, Form 16A, Form 12B, Form 12BA

Form 16

Every individual earning a monthly salary is entitled to receive Form 16 from his/ her employer. If you are a salaried individual, you would receive Form 16 from your employer before 31st May 2020. Form 16 is a certificate that certifies that TDS has been deducted from your salary by your employer and provides you with all the information required for filing your Income Tax return.

Parts of Income Tax Form 16

Parts Description
Part A Details of TDS deducted on income
Part B Details of components of salary, tax due, tax paid

PART A of Form 16, 2020

Part A of Form 16 provides the amount and details of tax deducted from your income and deposited to the government as per monthly and quarterly TDS filed by your employer. It includes:

  • Your personal details such as name, address and PAN number
  • Details of your employer such as name of the firm, TAN number and PAN of your employer
  • Amount of TDS deducted and deposited quarterly along with other details including date of deposit, BSR code of the bank branch through which tax is deposited, challan serial number relating to each amount of tax deposited by your employer
  • Assessment year
  • Your period of employment with the current employer

PART B of Form No. 16, 2020

Part B is an annexure to Form 16 which includes details and components of salary paid, tax due and tax paid. It is a detailed computation and a systematic record of your taxable salary after allowed deductions and exemptions. Form 16 Part B includes the following information:

  • Gross Salary as broken in components such as basic salary, Dearness Allowance, HRA, Medical allowances, provident fund contribution by both employer and employee, leave travel concession, professional tax (if any), transport allowance, and others
  • Exempted allowances under section 10 of income tax act such as conveyance allowance, house rent allowance, children allowance, medical allowance etc.
  • Deductions allowed under chapter VI A of Income Tax Act
  • Relief under section 89 of Income Tax Act
  • Amount of tax due or paid on income
  • The form will also showcase the amount of tax refund if excess tax has been paid.

Why is Form 16 needed

  • Form 16 is a detailed record of your salary and tax paid by your employer. You require Form 16 at the time of filing income tax return.
  • Form 16 is also accepted as an income proof in various transactions such as loan processing.
  • Form 16 can also be used to verify whether correct taxes have been deposited with the government account by comparing the same with your Form 26AS.

What happens if Form 16 is not available

In case you have not received Form 16 from your employer, you can refer to your Form 26AS available online. Form 26AS contains the details about the tax deducted from your salary and deposited into government account. However, you should also request and ensure that your employer issues Form 16 to you.

Form 16 precautions while filing income tax return

  • All pages of Form 16 Part A must be signed by the employer either digitally or manually.
  • Form 16 is generated by Income Tax department, when an employer fills the details of employee such as his gross salary, deductions and allowances as per the information furnished by employee. Employer issues Form 16 to the employees once in an assessment year.
  • If you have worked for more than one employer then you are required to collect Form 16 from each of your employers as the same would be required at the time of filling your Income Tax return.

Form 16A for other incomes

Form 16A is a certificate capturing details of TDS deducted on income other than salary. TDS on salaries is deducted at an average income tax slab as estimated based on the income of the employee, while TDS on income from other sources such as interest income, rent etc is deducted at the rate specified by the government. Form 16A is issued by deductor within the 15 days after the quarter ends. For example- for December quarter 2016, Form 16A will be issued before 15th January, 2017.

Form 16A is issued by the deductor that could be your bank or your employer or any other deductor. Form 16 A is issued by the bank when TDS is deducted from your income in respect of interest on FD, insurance commission, rent receipts or any other income earned. TDS deduced on other payments are also reflected in Form 16A.

Components of Form 16A

  • Name and address of the deductor
  • TAN and PAN number of the deductor
  • Name and address of deductee
  • PAN of deductee
  • Nature of payment, amount paid and date of payment
  • Receipt number of TDS payment
  • Challan details of TDS deposited

Form 12B

Form 12B is required to be furnished in case you join a new organization in the middle of the year. The form furnishes the details of your income earned from the previous employer. You are required to submit Form 12B to your new employer. Form 12B is filled with details from your salary slip and Form 16 issued by your previous employer.

  • Details such as TAN and PAN of your previous employer
  • Breakup of your salary
  • Deductions allowed as per chapter VI of income tax rules
  • Exemptions on allowances
  • TDS on salary deducted by your previous employer
  • Professional tax paid by employee if any

Presenting Form 12B to new employer is not mandatory as per Income Tax Act, but is advisable as non disclosure of your income till date to your present employer may result in lower TDS deduction which may lead to a penalty for nonpayment of advance tax.

Form 12BA

Perquisites are additional benefits that are provided to you by your employer in addition to your salary. Your employer will give you Form 12BA which is a detailed statement of all perquisites, fringe benefits or amenities that are provided to you in lieu of your salary. You will receive Form12BA even when you receive no perquisites from your employer. In this case, the form will mention that you received no perquisites from your employer and hence, the value of perquisites is nil.

Form 12BA provides the value of the perquisites and their taxable amount. Income Tax Act has laid down rules for calculation of the value of perquisites. Perquisites are also mentioned in the Part B of your Form 16 along with TDS deducted. Hence, Form No. 12BA is an additional form provided by your employer that only covers details of perquisites.

Some of the perquisites are:
  • Medical facility
  • Credit card
  • Furnished or non furnished house without rent
  • Education facility for children
  • Interest free loan
  • Car facility

Contents of Form 12BA

  • Name and address of employer
  • TAN number
  • TDS Assessment range of the employer
  • Name and designation of employee
  • PAN of employee
  • Income under the head of salary other than perquisites
  • Value of perquisites
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