Form 16 is a very important document which is usually given by the employer for filing income tax returns. In India, those who cross the income tax limit of Rs.2 lakh per annum have to file tax returns mandatorily. Form 16 essentially has two parts. Form 16A provides tax deducted by the employer from the source along with names and addresses of employer and employee, TAN and PAN details. Form 16B gives details on other forms of income one receives along with deductions allowed.
Form 16 is generally given in and around financial year-end to the employee. In case one wants to save taxable income limit, s/he can explore a whole lot of options such as educational or house loans, life insurance, health insurance, saving certificates and provident fund. It is important to note that in case you change your employment in between your financial year, you should collect the Form 16 from both your employers.
Additional Read: What is Form 16A and How can I Get form 16A Online?
You should also make sure that the Form 16 from the employer is free from all kinds of errors and in case of any other sources of income, one should get the form from that source as well. You may not always need professional help to file your income tax returns in case you don’t have several sources of income such as from businesses. The procedure is quite simple and one can file the ITR from the income tax returns website. You can easily benefit from Form 16 by being able to file your income tax returns in a hassle-free manner.