Form 16 is a vital part of income tax filing. There are basically Form 16, Form 16A & Form 16B which are to be selected as a TDS certificate for various sorts of incomes.
This Form is for Salaried employees and as per the new rule if you’re under Rs. 2.5 Lakhs annually then you don’t got to file Form 16, Form 16A and Form 16B, however, are different.
Form 16- It’s A TDS Certificate To Certify Your Salary From The Employer
Employers are required to issue the Form 16 on or before 15 June of the year which is immediately after the financial year ends.
Form 16 is split into two components – Part A and Part B. If you lose your Form 16, you’ll be able to request a replica from your employer.
Form 16A- For Income From Other Source- TDS Certificate for Income aside from Salary
Salary may or may not be the sole source of income for the individual but in any case the taxpayer got to mention all the other sources of income aside from the salary in addition in this form.
Form 16B- The TDS Certificate For Sale Of Property
If the other sources of income for the taxpayer includes income from the sale of a property then the individual will need to mention that in this separate form because the income from the sale of property is subjected to tax deduction.
STEP 1. Register yourself
To e-file your income tax return, you’ll have you ever register on the Income Tax Department’s online tax filing site (incometaxindiaefiling.gov.in). you’ve got to produce your permanent account number (PAN), name and date of birth and choose a password. Your PAN are going to be your user ID.
STEP 2. Choose how you wish to e-file
There are two ways of e-filing your income tax return. One needs to visit the Download section to get the requisite form then save it on your computer. Now you’ve got to fill all the details offline , then upload all the documents back online or you may also fill the details online by selecting the quick E-File option.
STEP 3. Select the requisite form
ITR-1: This form is for the individuals earning a salary, pension, or income from property or sources aside from lottery.
ITR-2: This form is for those earning capital gains. The Form ITR 2A is for those owning more than one house but no capital gains.
ITR 3, 4 and 4S: Professionals and business owners.
STEP 4. Keep the documents ready
You will need to keep your PAN, Form 16, interest statements, TDS certificates, details of investments, insurance and home loans handy.
You will even have to download Form 26AS, which basically summarises tax paid against your PAN. With Form 26AS, you’ll be able to then validate your income tax return to check your tax liability.
If you’ve got a complete earning of over Rs 50 lakh, you’ll need to fill an extra column —”AL” or assets and liabilities. you’ll need to disclose the value of your assets and liabilities. Assets ought to be declared at cost.
STEP 5. Fill form and upload
If you decide on to fill the form offline, after you have downloaded the form and fill all the details, click on ‘generate XML’. Then you have to go to the website again and click on the ‘upload XML’ button. You then need to log in to upload the XML file saved on desktop and click on ‘Submit’.
STEP 6. Verify ITR V
On submitting your ITR form, an acknowledgment number is generated. Just in case the return is submitted using a digital signature, you only need to preserve this number. If you submit the return without a digital signature, an ITR-V is generated and is sent to your registered email ID.
Unless the ITR V Form is verified, your tax filing process is incomplete and your ITR will be invalid. Then you’ll then electronically verify or mail the signed ITR V to the processing centre in Bengaluru and you’ve got to do that within 120 days of filing the return.