Understanding Form 16, Income Tax Filing, and Tax Deduction Process

Sir,

If Form 16 is not available, how can I fill my Income Tax Return? Tax deduction details are available in Form 26AS.

Total Yearly Earnings for FY 2009-2010:
- Basic Salary: 144000/-
- House Rent Allowance: 24000/-
- Project Allowance: 24000/-
- Food Allowance: 17450/-
- Overtime: 47633/-
Total: 257083/-

Deduction Details:
- Provident Fund Contribution: 9360/-
- Tax Deducted At Source: 1674/-
Total Deduction: 11034/-
Total Paid: 246049/-

As per the Salary Certificate provided by the company, if Form 16 is not available, how can I fill my Income Tax Return? Tax deduction details are available in Form 26AS.

Rakesh Kumar Thakur
Raigarh (Chhattisgarh)
Contact No: 9300788674

If an employee takes up a new assignment in another company during the financial year, i.e., let's say the person has joined a new firm w.e.f. 1st Oct '10.

How about the Form - 16? Should the person submit two Form-16s from both employers or a consolidated Form - 16 from the last employer?

Hi,

From the current year, Form 16 is no longer needed. In fact, there is most likely going to be a circular from the tax department asking not to issue it. All TDS is now credited to the account of individual taxpayers identified by PAN number. You now need to go to the income tax website or NSDL website and register. After that, you can check your TDS credit at any time. Each quarter, after the company files its TDS returns, your account will reflect the correct balance.

The Income Tax Department no longer requires Form 16 with income tax returns. It is, in fact, ignoring all that is on Form 16 and only going by what's in your tax account (I think that's called 26AS). You should check and ensure that the TDS amounts deducted from your salary are reflecting in the account. Otherwise, you will have to follow up with your employer to get the same corrected.

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If an employer has deducted the tax, it is mandatory for the company to issue the Form 16. This is required as per the Income Tax Act. You need to check with your company about your Form 16 and obtain the same. Without the Form 16, you will not be able to file the Income Tax returns since you will not be able to calculate the taxable income on which the tax has been deducted.

Regarding the question of someone joining during the financial year, let's say on 1st October 2010, the employee needs to submit the Income Tax calculation statement along with Form 12B declaring the previous employer's income to be considered while calculating the current employment payroll taxes. The payroll team has to consider the previous employer's income as well as the tax deduction and then calculate the tax.

While issuing the Form 16, the current employer can either remove the previous employer's income and then show only the current employer's income and the tax deducted at the current employment. This Form 16 will likely show a refund.

When the employee files their Income Tax returns, they need to add both the income and the tax deduction and then file the returns.

Thanks,

Showri

Saving for tax is maximum ₹1,00,000. How will you show this calculation in income tax saving.

With regards,
SANJAY

Form 16 is no longer compulsory. Instead, you need to register with the income tax department and check your TDS credit status online. In fact, the IT department has been sending out emails to assesses informing them of this. Towards the year-end, they are going to issue a notification stopping Form 16. Also note that they are no longer accepting Form 16 as a part of returns anymore.

"If an employer has deducted the Tax, it is mandatory for the company to issue the Form 16. This is required as per the Income Tax Act. You need to check with your company about your Form 16 and obtain the same. Without the Form 16, you will not be able to file the Income tax returns since you will not be able to make out the calculation for arriving at the taxable income on which the tax has been deducted.

As regards the question on someone joining during the financial year say 1st Oct 2010, the employee needs to submit the Income Tax calculation statement along with Form 12B declaring his previous employer's income to be considered while calculating the current employment payroll taxes. The payroll team has to consider the previous employer's income as well as the tax deduction and then calculate the tax.

While issuing the Form 16, the current employer can either remove the previous employer's income and then show only the current employer's income and the tax deducted at current employment. This Form 16 probably will show a refund. When the employee files his/her Income tax returns, he/she needs to add both the income and the tax deduction and then file the returns.

Thanks, Showri"