Requirements of Form 16 and 12BA in Income Tax

Form 16 is a TDS certificate issued by employer to the employee for the financial year with the details of tax deducted, tax deposited, Challan number, date of deposit, PAN of the employee and employer.

Every employer at the time of payment of salaries to employee has to compulsorily deduct TDS at the average rate computed on the basis of estimated income of the employee. Income tax slab rates for the financial year in which such income tax at sources is deducted will be applicable to the employee. To know more on TDS on salary read this article.

Form 16 has to be issued on or before 31^st May of the financial year following the financial year in which TDS on salary has been deducted i.e. for the financial year ending 31^st march 2014, it has to be issued to employee on or before 31^st may 2014. 

Following things are to be checked after getting form 16;

• Employee’s Permanent account number (PAN).
• Tax deduction and collection number (TAN) of the employer.
• Challan Identification Number i.e. BSR code, date of deposit
• Book identification number in case the employer is any office of government.
• Receipt number

It’s not mandatory for the employer to issue form 16 in case it is not required to deduct tax at source (TDS) by virtue of claims of exemptions and deductions.

In case you have worked for more than one employer then both the employers will issue form 16. Employee need to calculate income tax based on it and if any tax needs to be paid then that has to be paid before filling income tax return. Employee can also furnish their salary details of past employer to present employer to deduct TDS as applicable to them. Although it is not mandatory to do so, to avoid penal interest for not paying tax in time it is better to disclose it to your present employer. Know more on multiple TDS Certificate.

If employee has lost his form 16 then a duplicate can be obtained from the employer on request. After getting the request, the employer has to compulsorily issue such certificate with his signature on it.

Form 12BA

12BA is issued by the employer along with form 16 to the employee after the financial year is over. 12BA will have breakup of employee’s salary details for the financial year in which TDS has been deducted.

What employee should

Employee after getting form 16 should match the TDS amount deducted and deposited with 26AS (available on line) to know whether the TDS deducted and details mentioned there in are correct or not.

If there is no mismatch then you can fill up your income tax return and file it with income tax department.

It can also be verified online by providing details like PAN number of the employee, TAN of the employer, Certificate number, total amount deducted against the financial year in which TDS amount has been deducted. To verify your TDS certificate details you can visit NSDL site.

After filling your income tax return you need to retain both with you. In case required, these forms are to be produced before the Assessing officer.