Form 16 Issuance

Form 16 is a TDS certificate issued to an employee whose TDS has been deducted from salary by his employer for a particular year. With ICI, you can fulfill the Form 16 & related compliance with ease.

Form 16 Issuance

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Form 16 issuance

An employer paying a salary is required to deduct tax at source under section 192 of Income Tax Act, 1961, on the salary payable and issue Form 16 to the employees at the end of each financial year. We can assist you in managing your TDS compliance through our platform efficiently. After subscribing to our services, our team will help you to:

  •  File TDS returns (Form 24Q) for all four quarter
  •  Complete guidance in depositing TDS
  •  Keep you updated with the amendments and latest circulars to avoid penalties.
  •  Issue Form 16 to your employees at year-end.

Table Of Contents

What is Form 16?

Form 16 is a vital document for a salary taking individual, especially if the employer has deducted tax on his/her income. Form 16 is basically a certificate provided by the Employer to the employee displaying the amount of tax deducted from the salary income and deposited with the Government. When an employee files his income tax return, Form 16 helps him to see how much tax has already been paid and to avail the credit for the same while filing the Income-tax return.

Structure of Form 16:

Form 16 comprises of 2 major parts, i.e. Part A & Part B.
Part A of Form 16 gives the following summary:
Form 16 Part B is a consolidated statement covering the following details:

Rate, Deduction & Deposit Of TDS On Salary By Employer To The Government:

TDS Returns By Employer

The Employer has to file the details of salary paid, TDS deducted on such payment to its employees in Form 24Q. The compliance of form 24Q is to be done quarterly.

Further, 24Q consists of 2 annexures – Annexure I and Annexure-II.

Annexure I has to be submitted by the Employer for all 4 quarters of an FY.

Annexure II, unlike Annexure I, is not required to be submitted for the first three quarters but only for the last quarter (i.e. 4th quarter).

Due Dates Of TDS Returns

Quarter Due dates
Q1 – April to June 31st July
Q2 – July to September 31st October
Q3 – October to December 31st January
Q4 – January to March 31st May

Note: The due date to file TDS return in Form 24Q for the Q1 & Q2 for the FY 2020-21 is 31st March 2021.

Issuance Of Form 16 To Employees:

Late Fee/Penalties Associated With Form 24Q:

FAQs

a. What is section 192 in income tax?

Section 192 in the income tax highlights the provisions regarding deduction of tax on salary income at source. As per the provisions, the Employer at the time of paying salary to his employee is required to deduct tax at source TDS.

b. If no TDS is deducted, is Employer required to issue a Form 16?

TDS certificate in Form 16 is issued when TDS has been deducted. In case no TDS has been deducted by the Employer, Form 16 may not be issued.

c. Is advance salary liable for TDS?

TDS on salary is liable for deduction at the time of payment of salary. Similarly, in the case of advance salary, the TDS is to be deducted at the time of payment of advance salary and not when the salary is due.

d. What happens if TDS is deducted but not deposited by the Employer?

Suppose TDS deducted is not deposited by the Employer. In that case, the Employer is liable to pay interest for late deposit @ 1.5% per month from the date on which tax was deducted till the date on which TDS was deposited to the credit of the Government.

e. Still have doubts?

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