INCOME TAX FORM 16

Form 16 now has a new format – Part A and Part B.

Part A primarily has TAN & PAN details of employer & employee and details of tax deducted & deposited which is certified by the employer.

Ø  Part A must be generated and downloaded through Traces Portal. Part A of the Form 16 also has a unique TDS Certificate Number.

Ø  If the person is employed under more than one employer during the year, each of the employers shall issue Part A of Form 16 for the person such a person was employed with each of the employers.

Ø  It is issued annually, on or before 15th June of the next year, immediately following the financial year in which tax is deducted

Part B has other remaining details such as- details of salary paid, amounts deductible under chapter VIA, relief under section 89. Part B is prepared by the employer manually and issued along with Part A.

If you change your job in one financial year, then it is for you to decide if you would want Part B of the Form from both the employers or from the last employer.

Your Form 26AS, will have details of TDS deducted by your employer, you can check your TDS details from there – if the details don’t show up, well it means the employer deducted TDS from you and didn’t deposit with the government.    

*When the employer deducts TDS and does not issue a certificate?

        In case an employer fails to provide you a Form 16 after having deducted TDS – the minimum penalty that the employer will pay is Rs 100 for every day the default continues as per under section 272A(2)(g) of the I-T Act. 

You can write about this failure of your employer to the Assessing Officer who may take appropriate action against the employer, including levying penalty as mentioned above and also carrying out further proceedings against the employer.