Income Tax Form 16


Income tax form 16
is issued by an employer to its employee as a proof of the amount deducted as income tax has been deposited. Income tax form issued on annual basis i.e. every year on or before May 31st.

It’s mandatory for every business to deposit employee income tax using form 16.

This form 16 is comprised of two parts i.e. Form 16 Part A & Form 16 Part B

Part A
Part A consists of some details about employer and employee. This form can be downloaded from TRACES website.

Here is a sample:

Form 16 part A need to file within every quarter in a year.

Part B
Part B provides information regarding salary structure, deductions allowed by income tax etc. It’s the call of the employee whether he/she wants part b form from both employer or last employer if he/she left the last job within one year.

Here is a sample:

Income tax filing is done by the government for the development of our country. The amount collected through income tax are invested in various developmental projects by the government. Also, some employee can apply for reimbursement of some amount from the total deducted amount.

Find other accounting terms or concepts here:  http://blog.slickaccount.com/category/accounting-concepts/

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