Form 16 Verification
Form 16 Verification: Step-by-Step Guide to Ensure Accurate Tax Details
In this post, we will discuss Form 16, its importance, and how you can verify it to ensure that your salary and tax details are correct. We will also cover common errors to check and a simple step-by-step guide to make verification easy.
Let’s look at them in detail:
What is Form 16?
Form 16 is a document that shows the salary paid to you and the tax deducted by your employer during the year. It also confirms that your employer has correctly deposited the TDS with the Income Tax Department on your behalf.
Every employer is required to issue Form 16 for a financial year on or before 15 June of the next financial year. Most employees would have received their Form 16 for FY 2024–25 by 15 June.
If you have not received your Form 16 yet, there is no need to worry. You can still file your income tax return on Tax2win even without Form 16.
What is Form 16 Verification?
Form 16 verification involves checking the details in Form 16 against official tax records, primarily Form 26AS. This is done to make sure that:
- The TDS deducted by your employer has been properly deposited with the government.
- Salary and tax details mentioned are correct.
- PAN and assessment year details are accurate
Doing this verification helps avoid tax mismatches and reduces the chances of future notices from the Income Tax Department.
Why is Form 16 Verification Important?
The following is why it is necessary to validate Form 16:
- Helps in correct tax filing
Checking Form 16 ensures that the salary and TDS details mentioned by your employer match the Income Tax Department records. Any mismatch can lead to a notice, a penalty, or a delay in the refund. - Makes ITR filing easier
Form 16 already contains salary breakup, TDS deducted, and deductions claimed. Verifying it beforehand makes return filing quick and hassle-free. - Avoids penalties
Wrong or incomplete details in Form 16 can result in incorrect tax filing. Verifying the form helps catch errors early and avoid penalties from the tax department. - Useful for financial planning
By reviewing Form 16, you get a clear idea of your tax liability and deductions, which helps in better financial planning. - • Required for loan applications
Banks and financial institutions often request Form 16 when processing loans. A verified and accurate Form 16 improves your chances of loan approval.
How to Verify Form 16 – Step-by-Step Process
Here is a simple step-by-step way to verify Form 16:
- Visit the official Income Tax e-Filing website.
- Log in using your PAN as the username and your password.
- After logging in, go to the “e-File” section and click on “View 26AS” under the “Income Tax Returns” option.
- This will redirect you to the TRACES website.
- Once you are redirected to the TRACES website, click on the View Tax Credit option.
- Then, click on ‘Verify TDS Certificate’
- Enter all required details, including the employer TAN, TDS certificate number, assessment year, and TDS amount, as shown in Form 16 Part A. The source of income will not be mentioned in the form.
- Select the correct source of income (salary or non-salary) from the drop-down menu.
- After entering all details, click on “Validate” to check whether your Form 16 is genuine.
- If your Form 16 or TDS certificate is genuine, the details shown on the website will match the details mentioned in the form.
If the website shows that the Form 16 or TDS certificate is invalid or incorrect, contact your employer immediately and request them to correct the form.
Common Errors Found During Form 16 Verification
Common errors to check in Form 16:
- Wrong personal details
Always check your name, PAN, and other personal details. Even a small mistake can cause a mismatch with Income Tax Department records. - Salary mismatch
Make sure the salary mentioned in Form 16 matches your payslips and bank credits. Any difference can affect your tax calculation. - TDS details not matching
- Incorrect deductions
Check whether all deductions claimed in Form 16 are correct and backed by proper proof. Wrong deduction details can lead to tax errors. - Wrong tax calculation
Recalculate your tax based on Form 16 details to ensure the tax paid is correct and matches the Income Tax Department data.
Conclusion
Verifying Form 16 is essential to make sure all the details mentioned are correct and genuine. For individuals, this can be easily done through the Income Tax e-Filing portal.
If you are a business, verification helps avoid mistakes and the problems they cause. When handling multiple Form 16s, using an API is a better option, as it allows you to verify various forms at once and saves effort.
By that, we have come to the end of this post on Form 16 Verification. If you have any questions, feel free to leave them in the comment section below.
FAQs
Q. Can I get Form 16 even if no TDS is deducted?
Ans: Yes. If your income is below the basic exemption limit and no TDS is deducted, your employer should still issue Form 16 to you.
Q. Can Form 16 be verified online?
Ans: Yes, you can verify it online.
Q. How to check if Form 16 is real or fake?
Ans: You cannot download Form 16 yourself as it can only be downloaded by your employer from the TRACES website. But you can still check some of the details from your Form 16 on the TRACES website to confirm its authenticity.
Q. Can I view my Form 16 online?
Ans: Yes, you can see it on the TRACES portal.
Q. What is the salary limit for Form 16?
Ans: Form 16 is issued if your salary is more than 2.5 lakh per year.
Q. What is Form 16, and why is it important for salaried employees?
Ans: Form 16 is a certificate given by your employer that shows your total salary and the tax deducted from it during the financial year. It is important for salaried employees because it serves as proof of income and the tax paid, which is needed when filing their income tax return.
