Income tax returns for 2023-24: What is Form-16? All you need to know about Form-16

The tax authority has released ITR Forms for FY 2022–23 on February 10.

The last date to file the Income Tax Return (ITR) for the financial year 2022-23 (assessment year 2023-24) is July 31, 2023, unless the government extends the date. The income tax department has enabled the online forms for ITR-1 and 4.

According to the income tax website, “Income-tax Returns Form ITR 1 and ITR 4 are enabled at the portal in online mode with prefilled data.”

ITR-1 is applicable to individuals, including salaried class and senior citizens. Also, taxpayers can file ITR using the ITR-1 form if they have income from salary, one house property and income from other sources.

Individuals, Hindu Undivided Families (HUFs), and companies (other than Limited Liability Partnership firms), having total incomes up to Rs 50 lakh, can use the ITR-4 form.

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Form 16—Decoded

Form 16 is the proof filing of income tax returns by your employer to the government. If your income, for instance, is more than the tax exemption limit, then the employer is required to deduct TDS on your salary and submit it to the government.

The Form 16 has two parts: Part A and Part B.

The part A consists of PAN, TAN details, name, address, TDS deducted and other details of the employee and employer, while the part B includes details such as other incomes, deductions, salary details, tax payable and so on.

The form is generally issued by the employer every year on or before June 15.

As per Section 203 of the Income Tax Act, 1961, employers must issue Form16 to their employees, showing the total TDS on income.

What to see in Form 16 when filing ITR?

It is essential to cross-check and verify the information in Form 16 with your salary slips, AIS (Annual Information Statement), and Form 26AS before filing your ITR. This is to ensure that the data available with the government matches with what taxpayers have.

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PAN

Taxpayer must check the PAN, and it should match the one mentioned in the form. If the PAN is incorrect, the tax deducted from salary won't reflect in Form 26AS.

Also, cross-check the accuracy of name, address, and employer’s TAN (Tax Deduction and Collection Account Number).

It is vital to match the tax deduction details in Part A of Form 16 with the information in the Form 26AS, which is a consolidated statement of taxes deducted and paid and AIS.

Part B reflects the detailed breakdown of gross salary, allowances that are exempted from tax. Taxpayer can cross-check the information from the salary slips. Also, if the amount of tax-exempt allowance is less than your calculations, then such discrepancy must be brought to notice of the employer.

Job change 

If you changed jobs during the financial year 2022-23, it is crucial to collect Form 16 from both employers. This will help you determine the actual taxable salary and ensure accurate reporting.

More importantly, additional tax might be payable because of job change if you have not informed the current employer about the income earned with the previous employer.

On February 10, the Central Board of Direct Taxes (CBDT) notified ITR forms 1-6 for individuals, professionals and businesses for income earned in 2022-23.