Form 16 AY 2023-24: Salaried employees will receive Form 16 this month from their employers. Form 16 contains details of tax deducted at source (TDS) by the employer on behalf of the employee. Apart from TDS, it includes a detailed summary of the salary paid by the employer.
Employers are required to issue Form 16 by June 15. For filing Income Tax Returns, Form 16 plays a crucial role for salaried individuals as it provides a detailed description of the salary paid to the employee, deductions claimed by the employee, and the tax deducted from it.
The due date for filing ITR for AY 2023-24 is July 31. Before filing the ITR, the following are some of the key points that you should check in your Form 16.
Check Tax Regime
First, you should check what tax regime has been considered while computing Form 16.
In case a new tax regime has been selected, compare the regimes using an income tax calculator with the claim of tax deduction and exemptions to see which regime is beneficial
“Taxpayers who are salaried and don’t have any business income are allowed to switch to a more favourable regime at the time of filing their tax return.,”
Check all deductions
You should check whether all your submissions for deductions have been included and allowed in the Form 16.
“If not you can include deductions (those covered under chapter VIA) at the time of filing your return. Usually these forms are auto-generated and several websites allow you to upload them to auto-populate your ITR, which makes filing easy and faster,”
PAN and personal details
You should also verify that the PAN mentioned in Form 16 matches your PAN. Additionally, ensure that your name, address, and employer’s TAN and PAN are accurately mentioned.
Review Part A and Part B of Form 16
You should carefully review Part A of Form 16, which summarizes the taxes deducted and deposited by your employer as TDS. Compare the tax deduction details in Part A of Form 16 with the information in your Form 26AS and Annual Information Statement (AIS).
Part B reflects details of salary income and deductions you claim, leading to your taxable salary income. Make sure that any tax-saving deductions and exemptions you have claimed are correctly mentioned in Form 16.
Cross-verify Tax Deductions
You should compare the tax deducted from your salary income with the taxes in Form 16, Form 26AS, and AIS.
“If you notice any discrepancies, promptly inform your employer and request them to rectify the information in Form 16. Ensuring that the accurate details align with Form 26AS and AIS is essential,
Job changes and multiple employers
In case you have switched jobs in FY 2022-23, you should collect Form 16 from all your employers. This will help you determine the actual taxable salary and ensure accurate reporting. Ideally, at the start of the new job, you should inform your current employer about the income earned from the previous employer to avoid potential tax payment issues.
“By carefully reviewing and verifying the information in Form 16, cross-checking it with your salary slips, Form 26AS, and AIS, and addressing any discrepancies with your employer, you can ensure the accurate filing of your ITR and avoid potential issues with the income tax department. It is always advisable to consult a tax professional or use online tax filing platforms to ensure the correctness of your ITR filing,”