{"id":6517,"date":"2022-07-22T12:36:06","date_gmt":"2022-07-22T07:06:06","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=6517"},"modified":"2022-07-22T12:40:39","modified_gmt":"2022-07-22T07:10:39","slug":"form-16","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/form-16\/","title":{"rendered":"Form 16 | Meaning, Eligibility, Benefits &#038; More"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Form 16, also known as the TDS certificate, is a certificate that employers issue to employees. It is valid proof that TDS has been deducted and deposited with the employer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">TDS (Tax deducted at source) is the tax collected at the very source of income. But what happens to this amount deducted from employee salary?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As per the <\/span><a href=\"https:\/\/dor.gov.in\/sites\/default\/files\/IT%20Act%20%28English%29_0.pdf\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">Income Tax Act, 1961<\/span><\/a><span style=\"font-weight: 400;\">, employers in India must deposit this TDS with the government. Now you must be wondering, is there any way to verify that the TDS was deposited with the government. This is where<\/span> Form 16<span style=\"font-weight: 400;\"> comes in. This article will detail everything about Form 16 &#8211; its components, eligibility, benefits and more.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e395509213c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e395509213c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#What-does-Form-16-mean\" >What does Form 16 mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Part-A-B-of-Form-16\" >Part A &amp; B of Form 16<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Form-16-%E2%80%93-Part-A\" >Form 16 &#8211; Part A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Form-16-%E2%80%93-Part-B\" >Form 16 &#8211; Part B<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Form-16-Eligibility\" >Form 16 Eligibility<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Form-16-vs-form-16A-vs-Form-16B\" >Form 16 vs form 16A vs Form 16B<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Form-16\" >Form 16<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Form-16A\" >Form 16A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Form-16B\" >Form 16B<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#How-to-get-Form-16\" >How to get Form 16?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Benefits-of-Form-16\" >Benefits of Form 16<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#Filing-ITR-with-Form-16-Process\" >Filing ITR with Form 16 Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/payroll\/learn\/form-16\/#-FAQs\" >\u00a0FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-does-Form-16-mean\"><\/span><span style=\"font-weight: 400;\">What does Form 16 mean?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It consists of the salary details, the amount of TDS deducted and when it was deposited. Form 16 not only helps verify the details of TDS but also provides the necessary information to file income tax.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Part-A-B-of-Form-16\"><\/span><span style=\"font-weight: 400;\">Part A &amp; B of Form 16<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Form 16 consists of two parts &#8211; Part A and Part B. While part A consists of the details of TDS deducted and deposited, part B is the annexure to part A and consists of the detailed salary breakup and the details of TDS deducted. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The employer prepares this part for the employee. It also consists of the details of exempted allowances and deductions. Let us look at their components in detail &#8211;<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form-16-%E2%80%93-Part-A\"><\/span><span style=\"font-weight: 400;\">Form 16 &#8211; Part A<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name and address of the employee<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employer\u2019s PAN number and TAN number<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Summary of the tax deduction quarterly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Year of assessment<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Part A of <\/span>Form no 16 <span style=\"font-weight: 400;\">can be downloaded through the TRACES portal.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form-16-%E2%80%93-Part-B\"><\/span><span style=\"font-weight: 400;\">Form 16 &#8211; Part B<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The breakup of salary paid<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deductions from salary approved under Chapter VI A of the Income Tax Act, 1961.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The relief provided under section 89<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Part B of Form 16 has to be prepared by the employer and shared with the employee. <\/span><span style=\"font-weight: 400;\">Payroll software such as <\/span><a href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_Form16\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">RazorpayX Payroll<\/a><span style=\"font-weight: 400;\"> provides Part A and B of Form 16.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form-16-Eligibility\"><\/span><span style=\"font-weight: 400;\">Form 16 Eligibility<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Employees whose total salary falls under the taxable income slab are eligible to receive Form 16 from their employers. According to the Finance Ministry of India, if an individual\u2019s income does not exceed the minimum slab rate and is taxable, they do not require a TDS certificate or Form 16, and the employer is not obligated to provide the same.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if an individual\u2019s salary does not fall under the taxable income slab, they must furnish form 15G to the employer. This acts as proof of income, and the employer does not deduct TDS.\u00a0<\/span><\/p>\n<p>Refer to the below table for tax slabs in India against the annual income:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Form-16-vs-form-16A-vs-Form-16B\"><\/span><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"aligncenter wp-image-5993 size-large\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2022\/02\/Facebook-post-16-1024x538.png\" alt=\"how to calculate income tax on salary with example\" width=\"1024\" height=\"538\" srcset=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2022\/02\/Facebook-post-16-1024x538.png 1024w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2022\/02\/Facebook-post-16-300x158.png 300w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2022\/02\/Facebook-post-16.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>Form 16 vs form 16A vs Form 16B<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are three types of Form 16 &#8211; Form 16, Form 16A and Form 16B. Let us look at the difference between these.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form-16\"><\/span><span style=\"font-weight: 400;\">Form 16<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As mentioned above, <\/span>Form 16 means<span style=\"font-weight: 400;\"> a certificate of tax deducted on source for the income derived in the form of salary. It consists of all the details of the salary amount, the deductions and the amount of TDS deducted.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form-16A\"><\/span><span style=\"font-weight: 400;\">Form 16A<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Form 16A represents the details of TDS deducted on income from sources other than salary. These sources can be interest on investment in fixed deposits, bonds, capital gains, gold etc. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The income on such investments is generally taxable as per the income tax rules. The financial institutions issuing these investments have to deduct TDS and issue a TDS certificate to the individual, known as Form 16A.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form-16B\"><\/span><span style=\"font-weight: 400;\">Form 16B<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Whenever there is a sale of immovable property other than agricultural land, for a consideration of more than Rs 50 lakhs, the buyer is required to deduct 1% TDS and issue a TDS certificate to the seller, known as Form 16B. Form 16B consists of the details of the sale of property and the details of the TDS deducted.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-get-Form-16\"><\/span><span style=\"font-weight: 400;\">How to get Form 16?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can ask your employer to issue Form 16 to you. The employer can log in on the TRACES website with their deductor account, download <\/span>Form 16 online<span style=\"font-weight: 400;\">, and share it with the employees. If your employer uses payroll software like <\/span><a href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_Form16\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><b>RazorpayX Payroll<\/b><\/a><span style=\"font-weight: 400;\">, you can download Form 16 by simply logging in to your account.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits-of-Form-16\"><\/span><span style=\"font-weight: 400;\">Benefits of Form 16<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">From the above discussion, you must have already understood that Form 16 is proof that the deducted amount has been deposited with the government and has not been misused. But, the benefits of Form 16 are not limited to this. There are various other ways in which it can benefit you, such as:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It helps in filing income tax returns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It acts as proof of income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provides details of the amount of salary, exemptions, deductions and computation of Tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Checking if there is an error in the information and getting it corrected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get the details of all your tax-saving investments in a single place\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It helps you claim refunds, if applicable<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Filing-ITR-with-Form-16-Process\"><\/span><span style=\"font-weight: 400;\">Filing ITR with Form 16 Process<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Form 16 is essential for filing income tax returns. But before you go on to file your return, it is important to register on the income-tax website and download the relevant ITR. Here are the steps that you must follow after downloading the ITR &#8211;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fill in the details such as employee name, PAN no., complete address, email ID, phone number and DOB. You must also fill in the details of tax deductions, like the amount deducted and the deduction date. The details mentioned in<\/span> Form-16 are essential for income tax filing.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The next step is to fill in the income details and attach the required documents as proof. After this, the system will auto-populate the tax liability.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After calculating the tax liability, a tab will show the details of the tax paid, tax to be paid and the tax amount due for refund. You have to fill in the bank details and verify the declaration.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The next step involves re-checking the details and uploading the return by clicking on submit.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once you have submitted the return, ITR-V is sent to the mentioned email ID. ITR-V is a verification document that acknowledges that the return has been submitted.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After successfully submitting the ITR, e-verify the details using the link provided.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This article must have helped you understand Form-16, its uses and why it is important to issue it. But, computing Part-B of Form-16 manually for each employee can be time-consuming. Software like RazorpayX Payroll makes it extremely easy. And it offers many other features like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatic Salary computation along with deductions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Auto-generation of Form-16<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leave and attendance management<\/span><\/li>\n<li aria-level=\"1\">Affordable group health insurance<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatic compliance calculation &amp; filing such as TDS, ESI, and PF<\/span><\/li>\n<li aria-level=\"1\">Integrations with leading software such as Slack, Freshteam, and more<\/li>\n<\/ul>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/payroll.razorpay.com\/signup?r=blog_cta_Form16\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Try it for free!<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"-FAQs\"><\/span>\u00a0<span style=\"font-weight: 400;\">FAQs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>Form 16, also known as the TDS certificate, is a certificate that employers issue to employees. Read this blog post to know everything about Form 16.<\/p>\n","protected":false},"author":151156494,"featured_media":6526,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3404],"tags":[],"class_list":{"0":"post-6517","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156494"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=6517"}],"version-history":[{"count":8,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6517\/revisions"}],"predecessor-version":[{"id":6528,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6517\/revisions\/6528"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/6526"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=6517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=6517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=6517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}