Structure of Form 16

Part A of Form 16

It provides the details of the TDS that is deducted and deposited. This form can be generated by employers through the TRACES portal.

The employer must verify the contents before issuing the certificate. Here are a few components of Part A of the salary TDS certificate.

• Name and address of the employer
• TAN and PAN of employer
• PAN of the employee
• Summary of tax deducted and deposited quarterly, which is certified by the employer.

Part B of Form 16

It is an annexure to Part A, Part B is prepared by the employer for its employees and it contains details of the breakup of the salary deductions approved under Chapter VI-A. In case of a job change in one financial year, Form 16 should be obtained by both employers. Some of the components of Part B are:

• Detailed breakup of salary
• Detailed breakup of exempted allowances under Section 10
• Deductions that are allowed under Income Tax Act (Under Chapter VIA)

Here is the list of deductions

• Deduction for life insurance premium paid, contribution to PPF, etc. under Section 80C
• Deduction for contribution to pension funds under Section 80CC
• Deduction for employee’s contribution to a pension scheme under Section 80CCD(1)
• Deduction for taxpayer’s self-contribution to a notified pension scheme under Section 80CCD(1B)
• Deduction for employer’s contribution to a pension scheme under Section 80CCD(2)
• Deduction for health insurance premium paid under Section 80D
• Deduction for interest paid on loan taken for higher education under Section 80E
• Deduction for donations made under Section 80G
• Deduction for interest income on savings account under Section 80TTA

Annexure-II of TDS Return in May 31st

In the TDS return filed by employers on May 31st, various details about the employee must be furnished by the employer along with details of TDS deducted and deposited. Annexure-II of the TDS return has various data-points and must be prepared carefully by the HR and Accountant of the business.

Issuance of Form 16 to Employees

After the TDS returns are filed by the employer, the Government would issue TDS certificates to the employer – which in turn is provided to the employees.

Form 16A provides details about TDS from salary. Form 16B provides details of TDS Other than salary, Form 16C for TDS under Section 194-IB, Form 16A for TDS from other than salary, and Form 27D for TCS

The due date for issuance of Form 16 is on or before June 15th of the financial year immediately following the financial year in which the tax is deducted. In the case of Form 16A, the same should be issued every quarter.