5 things to know about Form 16
1. Form 16 is a certificate issued by an employer, certifying that the TDS is deducted from the salary of the employee and deposited with the government.
2. The form’s Part A contains employer’s TAN, PAN of employer and employee, address, assessment year, employment period and summary of TDS deposited with government.
3. The Part B of Form 16 consists of salary break-up, details of deductions claimed, total taxable income and tax deducted from the salary.
4. The employer is required to issue Form 16 on or before 31 May of the assessment year. Besides, the employer issues Form 16 if there is a mid-year change of job.
5. Form 16 helps in filing IT returns, is used as proof of income, for loan assessment and sanctioning, attached along with visa application, etc.