In this fast moving world, young individuals switch job more often with an aim to get a better opportunity and better increment. If you have changed the job in the same financial year, tax authorities require you to sum up the total income from both the employers and file income tax return.
Form 16 is issued by the employer to employee. This certificate provides all details of salary earned and tax deducted at source by the employer. Form 16 will mention the PAN Number of the employer.
Here are 7 must-know points for new employees
1. Form 16 is a very vital document for the salaried employee while filing tax returns.
2. Form 16 is very necessary as it acts as salary proof and tax paid to the government. At the end of the every financial year, the employer provides you with form 16.
3. Your employer will provide key information such as Gross Salary, Perquisites, Various allowances and deductibles.
4. If you receive any other Income, like interest from a bank account or rent, etc. You may have to inform your employer about it.
5. Part A is the certificate of TDS.which will act as proof of the TDS deducted by the employer from salary.
Part B is annexure will have all the details of salary paid, other income, tax due and tax paid.
6. If your salary drawn is below the basic exemption limit, you may not be issued with this certificate by your employer as no TDS is deducted.
7. If a person has changed job, he needs to collect the Form 16 from both the employer at the year end, with the help of both forms only he would able to file his returns.
Many individuals have complained about companies not issuing for 16. Please remember, you can take the matter up with the tax authorities.
There have sometimes been reports that many companies do not even deposit the TDS cut from employees with the tax authorities, leave alone issuing a Form 16 to the employees.