Received Form 16? Know all about its nitty-gritty here!
The extended last date for employers to issue Form 16 for 2016-17 to employees was June 15. Salaried individuals should have received theirs by now; if not, you are likely to receive it soon. The Form 16 is an important document through which you can file income tax returns. Know all about what the Form 16 should look like, and how to process it.
What exactly is the Form 16?
The employer calculates employees' net taxable income based on salary and investments made, and also the tax deducted at source (TDS). The Form 16 is a statement of the total amount paid and TDS, which can be used to file for returns, if any.
How to check for accuracy in Form 16
Verify your PAN on the Form 16. If it is wrong, ask the employer to correct it . Also make sure they file the revised details from their side. Verify if the details of investments mentioned in the form correspond to your declarations made to the employer earlier. For donations under section 80G, you have to claim eligible deductions separately while filing returns.
You can also stay updated about tax credits in real-time
Employees can verify TDS with the Form 26AS on the TRACES website. TRACES is an application of IT department which lets PAN-holders view their tax credit on an almost real-time basis. For this, individuals need to hold a net banking account with any authorized bank.
