Form 16

What is a Form 16?

Form 16 is a certificate employer give to salaried working individuals at the end of every monetary year.

It spells out all the details that employees require when filing their tax returns with the IT department of India.

The two types of Form 16 are:

Form 16-A summarizes the tax collected by the company and deposited to the IT department.

Form16-B is a statement with information like paid salary, deductions, and more.

Form 16:

• Assists with income tax returns 
• Acts as income evidence for the tax credit
• Aids at the time of visa issuance 
• Helps in keeping an eye on tax-saving investments 

So, Form 16 has to be compulsorily given by all businesses to their workers.

If an employer neglects to furnish their employees with Form 16 after TDS deduction- he or she will have to pay a minimum fine of Rs 100 for each day the default continues.

Also, See: IT Declaration