'TRACES,' also known as TDS Reconciliation Analysis & Correction Enabling System, is a website where every PAN holder can see and examine the deducted & deposited taxes against their PAN number during a fiscal year.
If you are a first-timer Income Tax Return filer and are puzzled about what exactly you should check in the updated Form 16, here's everything you need to know.
What is Form 16 and Why is it so important?In the easiest of words, Form 16 is an important yet a basic Income Tax form. Organizations use Form 16 to offer their employees the required details of the deducted tax. On the other hand, an individual can see Form 16 as their TDS certificate. If in case, the income from your annual salary is above the basic tax exemption limit; then, your employer is asked to subtract TDS from your pay and deposit it to the Indian government.
Employer provides Form 16 to their employees as proof of filing the Income Tax Returns for them. If, in case, your annual income is lesser than the exemption limit, no TDS is deducted from your salary, and you shall receive your full salary from your organization.
Concussing all the information in simple words, Form 16 is nothing but a certificate that is given by your company or organization that certifies details regarding the salary you have received during the financial year and the amount of TDS that has been subtracted from your pay regularly.
What Form-16 details do you require when you file your Income Tax Return?Form 16 comprises of two parts known as Part A, & Part B.
- Your Taxable Salary
- The breakup of Section 80C Deductions
- Your TDS (Tax Deducted at Source)
- The aggregate of Section 80C Deductions (Both Gross & Deductible Amount)
- Your TDS as Deducted by Employer
- Your PAN Number
- Your Employer's PAN Number
- Current Assessment Year
- Employer TAN Number
- Complete Name and Address of your Employer
- You as a Taxpayer's Complete Name and Address
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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