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Form 16 Issuance

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Overview

As per the IT Act of 1961, any entity responsible for paying salary to an employee must deduct the tax at source. The tax deducted must be as per the rates on the payable amounts. After deducting the tax, the employer should also issue form-16 to the employees at the end of every financial year. 

Form-16 is a certificate that states all the details about tax deducted at source. It is an essential document needed by all the salaried employees while filing their income tax returns. All the employers must issue form-16 on or before 15th June of the next year. That means they must issue it immediately after the financial year in which tax is deducted. 

TDS on Salary

Tax deducted at source is calculated as per the rates decided by the income tax department. The employer deducts the tax on the payment made to employee. Entity those are responsible for paying can increase or decrease the amount of TDS as per the adjustments.  

However, if a person is employed by more than one, the tax will deduct the total salary by any employer that the employee chooses. The employee can file it by submitting the Form 12B. Once you file Form 12B to a deductor, it becomes an obligation for the deductor to deduct tax at source.

Deposition of Tax by the deductor

The tax that the deductor deducts from an employees’ salary is deposited at the income tax department. According to the IT Act of 1961, all deductors must deposit tax deducted on or before 7th of every month. They also must deposit the income tax challan ITNS281 along with the tax.

Filling TDS returns

As per the IT Act, the deductors must file TDS returns quarterly. They must provide all the essential details about the tax deducted from the salary of an employee. Under the provisions of section 192, all the deductors must file all information in form 24Q. At the time of filling, a deductor needs to provide the following information:

1) TAN of the deductor

2) PAN of the deductor

3) Amount payable to an employee

4)Details of tax along with Challan identification number

5) Amount paid without TDS if any

Due dates for filing TDS:

TDS filed at every quarter must be filed within the following due dates:

1) 1st Quarter- April-June- 31st July

2) 2nd Quarter- July-September-31st October

3) 3rd Quarter- October-December- 31st January

4) 4th Quarter- January-March- 31st May

Issuance of Form-16

Once the deductor files the TDS return to the income tax department, the Government issues a TDS certificate to the deductor. This TDS certificate is provided to the Employee as Form 16. Form 16 includes all the details about TDS from salary. there are various forms under Form 16 such as:

1) Form 16A- it provides all details about tax deduction from other than salary

2) Form-16B- This form provides details of TDS under section 194-IA

3) 16C- it provides details for TDS under section 194-IB

Due dates for issuing Form -16

As per the Income Tax Act, all deductors must issue form 16 on or before 15th June of financial year following the year in which tax is deducted.

Document Required

  • Details of required Form 16

Time Lines

  • (3 to 5 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with department
  • Receipt of Form
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

950*
  • Expert Consultation
  • Upto 25 Form 16

Business

1750*
  • Expert Consultation
  • Upto 50 Form 16

Enterprise

2450*
  • Expert Consultation
  • Upto 100 Form 16
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

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