Form-16 Issuance to Employees

A person who pays salary to its employees is required to deduct tax at source on the amount of salary payable and to issue form – 16 to the employees at the end each financial year. We can help you to manage your TDS Compliance easily by filing all the TDS returns, pay any of the overdue TDS Deposits and issuing Form – 16 to your employees.

TDS on salary

TAX deducted at source is calculated at the prescribed rates of income tax for the financial year in which the salary has been paid to the employees. The person, who is paying salary, can increase or decrease the amount of TDS to be deducted on the basis of any adjustments in the previous deficiency or extra deduction.

Total amount of TDS for each month is determined through the following elements:-

If a person had been employed by more than one employer during a financial year then his/her tax will be deducted on the aggregate salary by one of the employers as per the choice of employee in the information filled and submitted in the Form – 12B. So, if an employee has more than one employer in a financial year then he/she needs to mention information in Form – 12B to one of the Employers. Once the Form-12B is submitted to the employer, then it becomes the obligation of the employer to deduct TDS.

TAX Deposition
to Government

The TAX which is deducted from the salary of the employees must be deposited to the Govt. by the employer along with an income TAX challan ITNS 281 on or before 7th of every month – for the previous month. Since 2008, all the corporate assesses and assesses who are subject to tax audit are required to make TDS payment online through net banking facility and the payment of taxes can also be done through the account of any other person. But the PAN details of the person who is liable to deposit TDS to the Govt. should be clearly mentioned in the challan for making payment.

TDS Return Filing

TDS return is filed by the employer through which they provide information and details to the government regarding the TAX they have deducted from salary. Under section 192 the information about TAX deduction from salary is filed in FORM – 24Q.

While filing TDS return the Employer would provide the below mentioned information to the government:-

• TAN of the employer.
• PAN of the employer.
• PAY of the employee.
• Details of TAX deposited to the Govt. along with challan Identification Number.
• Any amount paid to the employees without deducting TDS.

Due dates for filing TDS Return by Employers:

Form-16 Issuance

After the employer files all the necessary returns, the Govt. issues TDS certificate to the employer – which is further given to the employees. Form- 16 contains the details about TDS deducted from salary. There are different forms which provide TDS information under different sections. Form – 16 provide details about TDS under section 194-1A, Form 16C for TDS under section 194-1B, Form 16A for TDS other than salary and Form 27D for TCS.

Due date of Form -16 is till 15th – June of the financial year in which the TAX is deducted. The same procedure is to be followed in the case of Form 16A but Quarterly.

Salary TDS Certificate

The salary TDS certificate in Form-16 is divided into two parts which are named as Part A & Part B.

Part A is consist of the information about the Employer like - Name, address, PAN/TAN of employer, assessment year, period of Employment, address of communication, summary of TDS return filed, salary paid, amount of TDS and details of TDS deposit.

Part B contains the details like salary paid, other incomes, amount deductible under chapter VI – A, tax payable and relief under section 89. It also consists of a separate verification in which the employer will certify that the details of salary/ TAX are complete and accurate on the basis of account books and other available records. The person who has more than one employer in a financial year then both the employers needs to issue Part A of Form-16 and Part B can be issued by both or either by the last employer.