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If a salaried agent does not acquire Form 16, he can still book the I-T Acknowledgment with the advice of his bacon block and Form 26 AS.
The aftermost date to book your assets tax acknowledgment (ITR) for banking year 2020-21 has been continued till September 30, 2021.
Keeping in apperception the Covid-19 situation, the tax administration has continued a few deadlines.
For instance, as per the Assets Tax Act, administration should affair Form-16 to the agent afore June 15 of the appraisal year — the 12-month aeon that follows the banking year for which your assets is to be adjourned for tax.
For FY21, CBDT has continued the due date to affair Form 16.
The new borderline for administration to affair Form 16 to advisers is July 31, 2021.
Chartered Accountant Rahul Agarwala, business partner, AGSM Advising Private Ltd, says, “Form 16 is a affidavit issued by an employer to its agent beneath area 203 of the Assets Tax Act, back the employer deducts tax at antecedent (TDS) from the bacon of employee.”
This affidavit provides capacity about the bacon an agent has becoming during the banking year and the bulk of TDS that has been deducted on his/her pay and deposited to the Assets Tax Department.
Agarwala says, “It is binding for employer to affair Form 16, if tax at antecedent has been deducted from the employee’s salary.
“Further, in case an agent has afflicted jobs or formed for two or added administration at the aforementioned time during the year and the tax has been deducted by added than one employer, again agent will be issued abstracted Form 16s by those employers.”
Form 16 has two components, namely, Allotment A and Allotment B.
Part A: Archit Gupta, arch controlling officer, (CEO) Cleartax says, “Part A of Form 16 provides capacity of the tax every division and deposited in the government’s treasury.
“It will additionally accept capacity of the abiding annual cardinal (PAN), tax answer annual cardinal (TAN) of the employer, and added information.”
The employer can accomplish and download Allotment A of Form 16 through the TRACES portal.
Components of Allotment A of Form 16 accommodate the name and abode of the employer, PAN, TAN and arbitrary of annual tax deducted and deposited, appropriately certified by the employer.
Part B: It consists capacity about added income, deductions allowed, bacon paid, tax payable etc.
Agarwala says, “Part B of Form 16 has the abundant alienation of tax computation, gross bacon paid/credited, exemption/deduction claimed, any added assets declared by agent etc as an annexure to Allotment A of Form 16.
“In short, it’s safe to say it is the abundant ciphering of tax on assets of salaried employees.”
Don’t abash Form 16 with Form 16 A: Form 16A is additionally a TDS Certificate.
While Form 16 is for alone bacon income, Form 16A is applicative for TDS on assets added than salary.
For example, Form 16A shall be issued to you for tax deducted by a coffer on the absorption you’ve becoming on anchored deposits, TDS on allowance commission, TDS on your hire receipts.
In added words, it includes TDS on any assets — added than bacon — that is accountable for such deduction.
All capacity in Form 16A are additionally accessible on Form 26AS.
What to do: Ideally, you should accept got your Form 16 from your employer by now.
If you haven’t yet, again you should get it by July 31, the new deadline.
What do you do if you accept afflicted or absent your job, or if your aggregation has shut down?
Even if you don’t accept Form 16, you can still book returns.
Suresh Surana, founder, RSM India says, “If a salaried agent does not acquire Form 16, he can still book the I-T Acknowledgment with the advice of his bacon block and Form 26 AS.”
Salary block will advice an assessee ascertain his assets from bacon for the accordant tax year and additionally the capacity of profession tax, assets tax and added deductions such as contributions appear Provident fund.
It additionally contains capacity of allowances basal allotment of salary, which would advice a aborigine to ascertain whether the allowances are absolved or taxable.
Surana says, “Form 26AS is a account of TDS/TCS which will advice an assessee actuate the bulk of TDS/TCS as able-bodied as the bulk of beforehand tax and self-assessment tax for that banking year.”
Apart from those mentioned above, an assessee should booty into application the incomes from added sources (such as rental income, absorption income, dividends, etc.) and basal assets that accept accrued during the accordant tax year while accretion the absolute income.
If an assessee is in cancellation of House Hire Allowance (HRA), he should account the bulk of absolution beneath Area 10(13A), if eligible.
He should additionally accede accepted answer (up to Rs 50,000) on gross bacon and deductions beneath affiliate VI A such as area 80C.
Surana says, “However, if the aborigine opts for the new tax administration which provides for a lower tax rate, again he should agenda that he shall not be able to affirmation any tax deductions or exemptions as discussed.”
What if there is no TDS? Is the employer appropriate to affair a Form 16?
Manish P Hingar, founder, Fintoo, a tax and advance advising firm, says, “If no tax has been deducted, the employer needn’t affair Form 16.
“However, the agent can appeal the employer to affair Form 16 Allotment B, which will advice him to book returns.”
And what should you do back the employer deducts TDS and does not affair a certificate?
Surana says, “If the employer deducts TDS and does not affair a affidavit beneath Form 16 aural the assigned time limit, he shall be accountable to pay amends of Rs 100 per day beneath area 272A(2)(g) of the IT Act, till the affidavit is issued to the employee.”
And what if no Form 16 has been issued to you by the company, because it has shut down?
Does it beggarly you don’t accept to pay tax or book a return?
As per Area 139(1), if an individual’s absolute assets in a accurate tax aeon exceeds the basal absolution absolute of Rs 2.5 lakh, he shall book the acknowledgment of income, behindhand of whether or not Form 16 has been issued or not.
Thus, alike if Form 16 has not been issued to an assessee by his employer, the agent will still accept to book his acknowledgment of income.
Hingar says, “Not arising Form 16 does not beggarly that you do not accept to pay any taxes or book your tax return.
“It is important for anybody to pay assets tax and book tax allotment based on their income.
“And if you do not accept Form 16, you can use your bacon slips, coffer statements and Form 26AS to book your Assets Tax Returns.”
Standard Form Numbers Examples Seven Disadvantages Of Standard Form Numbers Examples And How You Can Workaround It – standard form numbers examples
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