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Showing posts with label ITR. Show all posts
Showing posts with label ITR. Show all posts

July 10, 2013

Know About Your Form - 16

Your Form-16 contains details you need to file your Income Tax Return. Having a basic
understanding about your Form-16 goes a long way to help you file your tax return. See the below annotated image to understand some of the most relevant portions of your Form-16. It is a very brief form packed with information.

After reading this guide, you will be able to understand how the information from the Form-16 is entered while filing income tax returns online. Let's take ClearTax as an example as the tool or e-filing returns.

This is the format of the new Form-16 to be used from this year onwards. This form is generated using TRACES.

Fill your from 16 info to

The corresponding sections in ClearTax where this information goes is:

.PART B of the Form 16, sometimes called Salary Statement

Information your Employer Provides

Taxable Salary

Your employer will provide key information such as Gross Salary, Perquisites, Various allowances and deductibles.

From a tax perspective Field-6, Income Chargeable under the head 'Salaries' is relevant. This is your taxable salary.

Tax Deducted at Source (TDS)

The other relevant information your employer will tell you is Tax deducted at source. This is field-18(a). This tax deducted is what you have paid to the Income Tax Department already.

Information you already have


Deductions under Section 80C, 80D, 80E, 80CCF, 80G, 80DD, 80U, etc are reported by you to your Employer.

You may or may not have reported all deductions to your employer. That is no problem. You can still claim them in your Income Tax Return by filling up the relevant columns in ClearTax.

In general, its a good idea to report your tax deductions to your employer to minimize the TDS by employer.

If you receive any other Income, like interest from a bank account or rent, etc, you may have informed your employer about it. This is mentioned in Field-7.

Most commonly, people who have a housing loan report it to their employers for less tax deduction at source. Don't worry if you have not reported income to your employer.

You can add additional Income to your Income Tax Return in the relevant columns of ClearTax.

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