Tax Return: Form-16 is considered a good starting point for filing income tax return. Before filing ITR, it is important to take care of the following main things in Form-16.
ITR Filing: The last date for filing Income Tax Return (ITR Filing) for the financial year 2022-23 is 31 July 2023. If you have not filed ITR till the last date, then you may have to pay penalty. Form-16 helps you the most in filing ITR. The Ministry of Finance repeatedly warns about Form-16. It is said that you should check it thoroughly, if you do not do so then you may be in trouble. Form 16 gives you various information related to salary and deposits. Form-16 is considered a good starting point for filing income tax returns. Before filing ITR, it is important to take care of the following main things in Form-16.
TAN and PAN
First of all, the employees should check whether the details of Deduction Account Number (TAN) and Permanent Account Number (PAN) number shown on Form-16 are correct or not. TAN is obtained on behalf of all those persons (employer in this case) who are responsible for deducting Tax at Source (TDS) or who are required to collect Tax at Source (TCS).
Tax deduction amount
An employee should match the total amount of tax deducted shown in Form-16 with the actual amount of tax deposited from the monthly pay slip. Also, it should be ensured that all deductions such as house rent allowance (HRA) and standard deduction are duly considered. Life insurance premium, contribution to PF and medical insurance premium etc. are not allowed as deductions under the new tax regime. Information about this has been given in Form-16 itself whether an employee has opted for the new tax regime or not.
Salary details
Part B of Form-16 contains details of salary paid by the employer along with any other income and tax deducted thereon. While filing the tax return, the details of total salary received, exemption allowances and deductions claimed by the person mentioned in Form-16 should be considered.
List of allowances
Allowances like House Rent Allowance which are exempt under Section-10 of the Income Tax Act can also be found in Part B of Form-16 under the Total Salary line. If the salaried class has reported its income to the employer under house property or other sources, it will also appear under this.
If the taxpayer has more than one Form-16?
Taxable income should be calculated keeping in mind all the sources of income. Therefore, if employees have more than one Form 16, they should add up all their income. After that tax should be calculated according to the slab rate.
