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FORMS

Form 16

Form 16 is a type of income tax form which is used to file IT returns by the employees. It contains all the information of the employee which is required to file income tax return. Form 16 is provided by the employer and it is considered as a proof of filing of income tax by the employees. For every employee who falls under the income tax bracket, it is mandatory to file income tax via Form 16. The income tax department verifies the details provided by the employee in Form 16 and it is ultimately used to file income tax returns.

Benefits of Form 16:

  1. Acts as the proof of payment of taxes by an employee
  2. Used by many financial institutions as a verification tool for an individual's credentials while applying for a loan

The components of Form 16 are:

  1. Employee’s personal details like name, residential address, PAN, etc
  2. Details of the employer like name, PAN, Taxation and collection Account Number (TAN)
  3. Details of the salary received by the employee, i.e., aspects of gross and net salary
  4. Education cess and other surcharge details
  5. Details of the tax deductions
  6. Receipt of taxes paid
  7. Details of the tax payment like challan number, cheque number, demand draft number

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Form 16 is divided into two parts, Part A and Part B. Part A contains the PAN details of the employees and the TAN details of the employers. It is more fundamental than Part B of the form. Other details that are required to be filled by the employee in Part A of the form are TDS deducted by the employer, current financial assessment year, name and residential address of the employer and the employee.

Part B of the form contains details regarding the tax deductions made by the employee in the financial assessment year. The details provided by the employee in form B must include-taxable salary, TDS provided by the employer, breakdown of the deductions made under section 80C and any form of tax rebate applicable to the person's salary.

How to verify Form 16

  1. Visit the website of TDS centralized processing cell (https://www.tdscpc.gov.in/app/login.xhtml)
  2. Click on 'taxpayer'
  3. Click on 'verify TDS details'
  4. Enter the following details- Deductor's TAN, Employee's PAN, TDS certificate number, TDS amount deducted as per the certificate
  5. From the drop-down menu, choose the ‘financial year’ and the ‘source of income’
  6. Click on ‘validate’

Form 16 vs 16A

CRITERIA

FORM 16

FORM 16A

EXPLANATION

Section 203 of Income Tax Acts provides this certificate for tax deducted at source from income chargeable under the head of ‘salaries’.

It is a certificate under Section 203 Income Tax for tax deduction at source for income other than salary.

ELIGIBILITY

Anyone who earns a steady and regular income in the form of salary.Anyone who is either self-employed or a professional with document qualification degree.

APPLICABLE TOWARDS

Interest on securities, dividends, interest other than interest on securities, etc.Issued against rent, commission, professional charges, building, plant, machine hired, commission agents, etc.

COMPRISES OF

Proof of income, details of tax paid by employer on behalf of employee, PAN and TAN of employer, PAN of employee, acknowledgement of amount of tax paid, education cess and surcharges.Name, TAN, PAN of employer; Name and PAN of all employees. Amount paid and nature of payment, receipt number of TDS payment.

ONLINE VERIFICATION PROCESS

Can be verified onlineCan be verified online

Form 26AS

It is an official form that contains tax-related information of the taxpayer. Form 26AS also contains the details of tax deducted at source, tax collected at source, advance tax and high-end transactions. Form 26AS is linked with PAN details and the details in form 26AS are listed below

  1. Tax deducted by the deductors on behalf of the taxpayers
  2. Details of the tax collected
  3. Details of tax deposited by the taxpayers like advance tax, self-assessment tax, regular assessment tax
  4. Details of annual information report transactions

Form 26AS consists of three parts - A, B and C. Part A contains details of tax deducted at source. It contains the details of all the taxes that are deducted at the source, whether it is salary, pension income or interest income. It contains details of the deductor along with the details of the tax amount which is deducted.

Part B contains the details of the seller and  tax collected at source (TCS) on the selling price of a commodity.

Part C contains the details of direct taxes paid by the taxpayer, advance tax and self-assessment tax

How to view form 26AS

One can view form 26AS by two methods:
TRACES or TDS reconciliation analysis and correction enabling system facility: The taxpayer needs to register with the TRACES in order to use the facility. An employee needs to follow these steps in order to view form 26AS:

  1. Visit the e-filing income tax website, i.e, https://www.incometaxindiaefiling.gov.in/home and locate the form 26AS on the website.
  2. Login to the account using PAN details, password, date of birth or date of incorporation.
  3. Give confirmation to be redirected to TDS-CPC website.
  4. Click on the link at the bottom of the page.
  5. Choose the assessment year.
  6. Choose the format in which you want to view the form.
  7. Download the form

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An employee can also use the netbanking facility to view 26 AS. Any person with a  PAN card and who has an account with any of the authorized banks can use this service for free of cost. Viewing the form is more convenient with netbanking

How to view form 26AS without registering

You can view form 26AS without even registering with net banking facility. You can view form 26AS from TRACES website. Registering your credentials with the TRACES website is not mandatory to view the form, you can also view the form if your account number is linked with any of the authorized banks. The list of banks who have the facility of viewing form 26 AS are:

  1. Allahabad Bank
  2. Kotak Mahindra Bank Limited
  3. Andhra Bank
  4. Oriental Bank of Commerce
  5. Jammu and Kashmir Bank Limited
  6. Karnataka Bank Limited
  7. Vijaya Bank
  8. Indian Overseas Bank
  9. United Bank of India
  10. Indian Bank
  11. Union Bank of India
  12. IDBI Bank Limited
  13. UCO Bank
  14. ICICI Bank Limited
  15. The Saraswat Co-operative Bank Limited
  16. HDFC Bank
  17. The Karur Vysya Bank Limited
  18. Dena Bank
  19. Corporation Bank Syndicate Bank
  20. The Federal Bank
  21. City Union Bank Limited
  22. State Bank of Travancore
  23. Citibank India
  24. State Bank of Patiala
  25. Central Bank of India
  26. State Bank of Mysore
  27. Canara Bank
  28. State Bank of India
  29. Bank of Maharashtra
  30. Bank of Hyderabad
  31. Bank of India
  32. State Bank of Bikaner & Jaipur
  33. Bank of Baroda
  34. Punjab National Bank
  35. Axis Bank

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Forms 15G and 15H

When the interest income of an individual is more than 10,000 annually, the banks need to deduct TDS from that particular account. When a salaried individual’s income is below the taxable limit, to avoid tax deductions from their income, they need to submit form 15G or 15H to the bank, requesting them not to deduct TDS from the amount of interest that is earned by the person.

Form 15H

Form 15H ensures exemption of TDS deduction from a person’s bank account. It is only applicable for an individual who is 60 years or older. It is a declaration under section 197A of Income tax act, 1971.

Eligibility criteria for submission of form 15H

  1. The individual must have attained 60 years of age at the time of submission.
  2. The individual should not have paid any taxes in the previous year.
  3. The form needs to be submitted to all the branches where the individual is drawing interest from.
  4. It is preferable that the individual submits the form before drawing the first interest income since that could avoid any TDS cuts from the beginning.
  5. If the individual has accounts with different banks, then even if the interest income earned from one of the banks exceeds 10000 annually, he/she needs to submit form 15H.
  6. If the individual is earning more than 5000 as an interest income from sources other than deposit like interest on loans, advances, debentures, bonds etc

Form 15G

While form 15H is supposed to be submitted by senior citizens (>60 years of age), 15G is applicable for all the other individuals who earn an income from sources like deposits, loans, advances, etc.

Eligibility criteria for submitting form 15G

  1. The individual must be less than 60 years of age
  2. Form must be submitted before the receipt of first interest income on the deposit
  3. The total exemption must be less than the minimum  income during that year’
  4. Individual must be a resident Indian
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