1. What is Form 16?
Form 16 is a certificate issued by the Employers to its Employees.
It certifies that, under section 203 of the IT Act, 1961, the Employer has deducted Tax at source from the Income chargeable under the head “Salaries”.
In simple words, it is a form giving the details of the TDS by the Employer.
It is issued once in a year, on or before 31st of May of the FY immediately following the FY in in which Tax is deducted.
It contains complete information one needs to file their ITR.
· If anyone has not received their Form 16, they can use the worksheet that the ITD provides to calculate and declare the amount.
· If anyone had held more than one job during any FY, then they’ll get the same number of Form 16.
And this Form 16 has got 2 parts; Part A and Part B.
2. What is Part A of Form 16?
This is the document that contains the details of Income Tax paid to the Department based on the PAN of the Assessee.
This is to be generated and downloaded through TRACES portal only.
This has also got:
· Name and address of the Employer.
· TAN & PAN of the Employer.
· PAN of the Employee.
· Quarterly Summary of Tax deducted & deposited to the ITD.
· Current Year and Assessment Year.
· Period of Employment of the Employee with the Employer.
3. What is Part B of Form 16?
This is the document which is provided to the Employees at the Employer’s end itself.
This is prepared manually by the Employer and issued along with Part A.
This has got:
· Detailed breakup of the Salary paid to the Employee.
· Deductions allowed under the IT Act (under chapter VIA).
· Relief under section 89.
4. How to generate Part A?
Part A has to be generated from TRACES portal only.
5. How to generate Part B (from the application)?
Part B can be generated as under:
· Go to the below path:
Transactions >>> Form 16.
· Select the concerned Employee/s or all Employees.
· Click to Generate.
6. How to merge Part A and Part B (in the application)?
This can be done as under:
· Generate Part B of Form 16 as per the above instructions.
· Upload Part A of Form 16 from the path:
Transactions >>> Form 16 Part A.
· You will get another option called “Merge Form 16 Part A and B”.
· Select all Employees and click on Merge Form 16 Part A and B.
· You will get a Zip file with the Merged Form 16.
7. Why is Tax deducted by the previous Employer not reflected in Form 16 issued by the current Employer?
Tax deducted by the previous Employer will not reflect in Form 16 issued by the current Employer because this would be shown in the Form 16 issued by that previous Employer only.
8. How to generate Form 16 without previous Employment details?
Form 16 will never and should not contain Previous Employment details.
9. Can Form 16 with previous Employment details be generated?
No, the Assessee will get another Form 16 from the previous Employer.
As already explained in Para 1 above, if an Assessee has got multiple Employments during a single FY, then he / she would get same number of Form 16.
The Assessee needs to merge values from both these before filing ITR.
10. How to affix Digital signature on Form16?
One can affix Digital Signature on the Form 16 by using below link.
11. Can Digital Signature be affixed using PFX file?
Yes, Digital Signature can be affixed on Form 16 using PFX File too.
12. Can Fom16 be generated for Employees with zero tax?
Yes, but only Part B of Form 16 can be generated for issue, if requested, to these Employees by their Employer.
Part A of Form 16, from TRACES, will be available only for those who have got TDS in that FY.
13. How to login to the signer? And how to get the Domain name, Username and password?
These details can be got from the HR.
14. How to download Form 16?
Log-in to the application using ESS login credentials.
Go to: Reports >>> Form 16 Part A and Form 16 Part B
15. How can the Employees access Form 16 from their respective ESS logins?
Upload Form 16 under:
Transaction > Form 16 > Upload signed Form 16
Now, the Employees can see them from their ESS logins.
Please note that the Status under Form 16 should be signed.
16. Can Form16 be mailed to the Employees?
It is not required to mail Form 16 to the Employees.
They can download them from their respective ESS Logins.
17. How to generate Form16 for Exit Employees?
This can be done in the same way as done for Existing Employees.
18. Digital Signature is showing as invalid; how to validate the Signature?
When opening a PDF file containing a Digital Signature in PDF Converter Professional that was created from a self-signed certificate on another system, the Digital Signature may display a "Validity Unknown" or "Signature not verified!" message.
This occurs when the DSC and the Digital Signature associated with the PDF file have not yet been verified on the system.
Follow these steps to verify the DSC and the Digital Signatures received from trusted sources:
· Open the PDF file in PDF Converter Professional.
· Left-click on the Digital Signature field.
· Click "Verify Signature".
· Click "Properties".
· Click "Verify Identity".
· Add "Contact information for Certificate owner:"
· Click "Add to List".
· Click "Close".
· Click "Verify Signature".
· The "Validity Status" should now show "Signature is valid".
· Click "Close".
· Digital Signature should now display a check mark and "Signature Valid".
19. How to map the Perquisite components to Form 12BA?
You have to update Perquisite value into application at the below path.
Transaction >>> Perks
20. How to generate Form12BA with Form 16?
Form 12BA will automatically be generated while generating Part B of Form 16.
21. Is it necessary to issue Form 16, even if the Employer has not deducted Tax on Salary?
No, not necessary.
Form 16 is issued only when Tax has been deducted by the Employer.
In case no Tax has been deducted by the Employer, Form 16 need not be issued.
However, on request by the Employees, the Employer can issue them Part B alone of Form 16.
22. Why will Medical Allowance not reflect in Form 16?
Not only Medical Allowances, any other Allowances like LTA, Transport Allowance, etc are also not shown in Form 16.
This is because they are Tax-free components.
The Employees would have submitted necessary documents against those.
23. When will Part A of Form 16 not get imported into the Application?
If PAN is not updated under Personal Details, then Part A of Form 16 will not get imported into the Application.
24. When will Form 16 not reflect at the ESS ends?
If the Form 16 is not uploaded under “Upload Signed Form 16”, then the Employees cannot view their Form 16 from ESS end.
The Status in Part B of Form 16 should always be signed.
Only then, the Employee can view them from their respective ESS ends.
25. When are Employees’ records not visible in Part B of Form 16?
If the Employee type has been updated as “Consultant”, then these people will not be able to view their IT Computation Sheet as well as Form 16.
26. When could total Tax paid reflect 0 in Form 16?
If the TDS remittance details are not updated in the application, then the total Tax paid details will not get reflected in Form 16.
The TDS Remittance can be updated under: Transactions >>> TDS Deposit.
27. Where can the details of the Responsible person be updated / changed?
This can be done at the below path:
Settings >>> Company Profile >>> IT Info >>> Form 16 Signatory info
28. Why cannot some Employees get Part A of Form 16?
Part A of Form 16 will be available only for those Employees who have had TDS in that FY.
29. How one can get Form 16?
Unfortunately, Form 16 cannot be downloaded from anywhere.
One can get this only from their Employer.
Even if the Employee has left the job, the Employer should provide Form 16.