Part A has TAN (tax deduction & collection account number) of the employer & PAN (permanent account number) details of both the employer and employee. The name and address of employer and employee is also mentioned. It also mentions the assessment year and provide summary of tax deducted from your income and deposited to the government as per the quarterly TDS return filed by the employer. A monthly detail of TDS deducted and deposited is also certified. Part B is an important part of your Form 16 since it has a consolidated detail of salary paid to you during the year. The breakup of your salary as well as detail of deduction claimed by you under section 80 of the income tax act is mentioned. Deductions under Chapter VIA include details of amounts claimed under Section 80C for EPF, PPF, NSC, life insurance premium or Section 80D for health insurance, Section 80G for donations made are all mentioned here. It also shows your total taxable income and tax deducted on such income.
**What is Income Tax Return: -** Income tax refers to direct tax paid on income to the government within a given financial year. A person has to declare to the Income Tax department at the end of every Financial Year summary of source of his income earning and taxes paid on them in a prescribed form called Income Tax Return. **What is Form 16:-** If you are salaried employee in an organization, then you will get the salary after deducting tax by the employer. Therefore Form 16 is a certificate issued to you by your employer stating the details of the salary you have earned and the tax deducted on your behalf and paid to the government. **Form 16 has 2 parts - Part A and Part B.** **Part A** has TAN (tax deduction & collection account number) of the employer & PAN (permanent account number) details of both the employer and employee. The name and address of employer and employee is also mentioned. It also mentions the assessment year and provide summary of tax deducted from your income and deposited to the government as per the quarterly TDS return filed by the employer. A monthly detail of TDS deducted and deposited is also certified. **Part B** is an important part of your Form 16 since it has a consolidated detail of salary paid to you during the year. The breakup of your salary as well as detail of deduction claimed by you under section 80 of the income tax act is mentioned. Deductions under Chapter VIA include details of amounts claimed under Section 80C for EPF, PPF, NSC, life insurance premium or Section 80D for health insurance, Section 80G for donations made are all mentioned here. It also shows your total taxable income and tax deducted on such income.
Form 16 is actually a document given to you by your employer that tells you exactly how much you earned that year. This information is essential for the government to assess how much you have earned and how much taxes you are liable to pay. Any income you earn in India is taxable and you need to pay taxes to the government each year. The process of tax returns is nothing but using this form 16 and paying the taxes you owe the government. visit [CAKART provides the best video Lecture and Online classes, coaching for Chartered Accountant CA FINAL, CA Intermediate | CA IPCC, CA Foundation | CA CPT Exams; Company Secretary CS FINAL] to avail discount use my ambassador code :CAKARTAMB1671782 for more article visit https://www.cakart.in/blog http://cakart.in
Hie Preetham, 1) Firstly , it is important to understand that Income Tax return is a document which is filed by you stating your Total Income in a Financial Year through various sources of income i.e Salary , business, house property, etc . (Financial Year is the year of your income , and Assessment Year is the year next to it in which the tax is due . Eg - Financial Year 2014-15, Assessment Year 2015-16) It also states the Taxable income on that salary and the Total tax payable with surcharges and Education Cess . The Taxable income has an exemption of upto 2.5 lakh rupees(For an individual, and not a senior citizen) for this assessment year . You also get tax exemptions on various other investments/allowances such as HRA , Fixed Deposits , Insurance Policies , Provident Funds , Children's Education , etc under various clauses of Section 80. People should know that return is filed to intimate the Government of your tax statements and it should not be confused with the Tax-refund one gets if there is a surplus tax paid by you to the Government . Return is not Refund . 2) Government of India collects Income Tax through three modes : **a) TDS - Tax Deduction at Source .** TDS is the system in which any corporation/business as an Employer is supposed to deduct the Income tax of an Employee from his/her salary at source and submit it to the GOI before the end of Financial Year . The tax is deducted regularly from the employee's salary in certain percentage so as to overcome the liability of Total Tax to be paid by the employer for the Financial Year . The Employer issues a TDS Certificate in the form of Form 16 or Form 16A to the Employee which would be used to claim the TDS by the employee while filing his/her return . Form 16 is the certificate issued for the tax deducted under the head Salaries . Form 16A is issued for tax deducted for income through other sources such as interests on securities,dividends,winnings,etc. If the employee has some extra income through other sources , he/she should intimate the Employer about it before so as to include it for TDS . The total tax paid by you through TDS is also available online on the TRACES portal which is linked to your Bank Account and PAN No. for your convenience . You can also generate and validate your Form 16 / 16A from the website to file your return online . **b) Advance Tax and Self Assessment Tax .** Advance Tax may also be called 'Pay as you earn' Tax . In India one has to estimate his income during the financial year. If your projected tax liability of the current Financial year is more than Rs 10000, you are supposed to pay Advance tax ! This has to be paid in three instalments. 30 % by 15th Sept, 60% minus first instalment by 15th Dec and 100% minus 2nd instalment by 15th March. For individuals who are earning only through salaries , the Advance Tax is taken care of through TDS by the employers and there is hardly any Advance Tax to be paid . But for individuals who have other sources of income , they have to pay Advance Tax . If one forgets to pay he is liable to pay interest @ 1% p.m. Self-Assessment Tax - While filing your Return of Income, one does a computation of income and taxes to be filled in the Return. On computation, sometimes it is noted that the Taxes paid either as Advance Tax or by way of TDS fall short of the Actual Tax Payable . The shortfall so determined is called the Self Assessment Tax which is payable before filing the Return of Income. **c) TCS - Tax Collection at Source .** Tax Collected at Source (TCS) is income tax collected by a Seller from a Payer on sale of certain items. The seller has to collect tax at specified rates from the payer who has purchased these items : Alcoholic liquor for human consumption Tendu leaves Timber obtained under a forest lease Timber obtained by any mode other than under a forest lease Any other forest produce not being timber or tendu leaves Scrap Minerals being coal or lignite or iron ore Scrap Batteries Salaried Individuals are not concerned with TCS . 3) Online Procedure for Filing your Return , Payment of Tax , and viewing/generating your TDS certificate . a) Filing Income Tax Return : The procedure is as simple as it gets . You have to go to the E-filing homepage of the GOI , i.e https://incometaxindiaefiling.go... and login to your account . If you don't have an account yet , you can create it through the 'Register Yourself' link above it . All you need is a PAN No. (obviously) . After logging in , you have to go to the E-file tab and select the 'Prepare and Submit online ITR' option . Alternatively , you can select the 'Upload Return' option to upload your return through an XML file downloaded from the 'Downloads' tab and filled offline by you . You have to enter your PAN No, select ITR Form name 'ITR1' (Form ITR1 is for salaried individuals, income from house property and other income) , select Assessment year and submit . Now all you have to do is fill the form with the tabs Personal Information , Income Details , Tax Details , Tax Paid and Verification and 80G to complete your Return and submit it to the Income Tax Department . The 'Income Details' tab asks for your Total Income through various sources , and Tax exemptions claimed by you under various clauses of Section 80 . It also computes the Income tax liability of yours for that Financial Year . The 'Tax details' tab asks for the TAN (Tax Deduction Account Number) and Details of Form 16/16A issued by the employer/generated by you for TDS . It also asks for Advance Tax / Self Assessment Tax, if paid and the Challan no. of the payment receipt . The 'Tax Paid and Verification' Tab asks for your Bank Account Number and IFSC code . If there is a surplus tax paid by you in the form of TDS/Advance Tax , you will get its refund with interest in a 4 months period by the Income Tax Department . After submitting the Return , you get a link on your registered E-mail id . This link provides you the ITR-V document (an acknowledgement slip) which you have to download , print , put your signature , and send it to the Bangalore division of the Income Tax Department for completion of your Return Filing . The address is mentioned in the document . Alternatively , you can evade the ITR-V process and opt to digitally sign in the beginning of E-filing , but the process requires you to spend money and is to be renewed every year . b) Payment of Tax - You can pay the TDS (Not required for an individual, it is to be paid by the employer) , Advance Tax or Self Assessment Tax through the portal of Tax Information Network , i.e e-TAX Payment System After filling the required form (ITNS 280 for Income Tax) , you pay the tax through your Bank Account , and get a Challan receipt which will be used during filing your return . c) View/ Generate TDS Certificate online . You can do it by logging on to the TRACES portal of the Tax Deduction System , i.e , Page on tdscpc.gov.in You will have to register yourself before logging in through your PAN no. You can view the details of your TDS deducted by the Employer via From 26AS on the portal . Also , you can generate your TDS Certificate in the form of Form 16/16A by entering the TAN No. of your Employer .