Form 16 is a certificate issued by an employer that substantiates the TDS deducted from the salary and its subsequent submission to the authorities. The certificate is kind of an evidence of the tax deducted at source and this information is required while filing the tax returns.
Form 16 consists of 2 parts: Part A and Part B.
• Part A is downloaded by the employer from the TRACES portal.
• Part B is an annexure to Part A. Part B is required when an individual changes an organisation in one financial year. Part B form is issued either by the previous employer or the current employer or both.
• It is mandatory for employers to issue form 16 to every employee in a financial year.
• Employees who change an organisation in a financial year before form 16 is issued, can obtain the same from the ex-employer through written request or physical collection at the office.
• For such employees part B of form 16 can be collected either from the previous employer or the current employer.
Part A of form 16 can be downloaded online only by the employer and not the employee. An employee does not have any option to collect form 16 online. It has to be issued by the employer and it is mandatory for any organisation to do so. Non issuance of form 16 is a non-bailable offense hence every organisation has to provide the form 16 to its employees every financial year. Normally the softcopy of form 16 is issued to all the employees via e-mail. In case an employee changes an organisation, then the previous employer is liable to issue the form 16 by email or the same can be collected by the employee from the ex-employer’s office.
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