What is Form 16?
Form 16 contains the documentation that you use to prepare and submit your income tax return and the certificate issued by the employer. Employers shall issue it annually, immediately after the financial year in which the tax is deducted, on or before 15 June of the following year. Form 16 consists of two parts, part A and part B. If you skip Form 16, you will order a repeat from your manager.
The income tax department has notified new modifications in Form 16 – Section B. In compliance with the amendments in Form 16-B for FY 2018-19, we have revised the following article. Read more here. Read here. The day on which private taxpayers will return their income tax return for A.Y. Longer to Jan. 10, 2021, 2020-21 (F.Y. 2019-20). It shall be extended to 15 February 2021 for audits and transfer pricing situations.
Form 16 Part - A
The employer can authenticate its contents before awarding the certificate. It is important to remember that each employer will issue a different Part A of Form 16 for an employee’s time if you change his or her work in one business year. Sections of Part A are as follows:
- Name and address of the employer
- TAN & PAN of employer
- PAN of the employee
- Summary of tax deducted & deposited quarterly, which is certified by the employer
Form 16 Part - B
Part B of Form 16 is an appendix to Part A. It is for you to determine whether you like Part B of the Form from all your employers or the last employer if you change your place in one financial year. Part B of the newly notified components for the 2019-20 financial year are:
- Detailed breakup of salary
- Detailed breakup of exempted allowances under Section 10
- Deductions allowed under the Income Tax Act
- Relief under Section 89
What is Form 16A?
Form 16A is a tax deduction certificate issued by employers on a quarterly basis, pursuant to Article 203 of the Revenue Tax Act, 1961. Notably, TDS is responsible for compensation over Rs.30000 and cannot claim deductions.
The report provides a realistic image of the TDS deducted from income sources other than salaries, such as leases, professional costs, fees, etc.
In general, it is the 15th day of a month and the quarterly due date of the TDS return is the successor to it. In this situation, the TDS rate is especially dependent on the form of earnings produced from non-salary sources.
Elements of form 16A :
- Proof of income
- PAN and TAN details of the employer
- PAN details of employee
- Tax paid on employee’s behalf
- Payment acknowledgement number
- Education surcharge and cess
What is Form 27D?
Form 27D is a tax paid at source certificate (TCS) under section 206 of the Act on Income Tax, 1961. This is the return certificate filed in Form 27EQ.
Details both of PAN (permanent account) and TAN are required for the filing of Form 27D. (Tax Deduction and Collection Account Number). Form 27D, not the buyer, is sent by the seller of the products.
Each seller has to charge the buyer for various products. Tax obtained relies not on payment methods but the value of the goods.
The commodities listed below are not subject to tax whether the products are used to make, process, or produce items. The following products are subject to tax. If these items are used for commercial purposes, tax is due.
- Alcoholic liquor for human consumption
- Tendu leaves
- Timber obtained from forest under lease or from any other forest which is not on lease
- Scrap
