Form 16 Part B
Understanding Form 16 Part B
In this post, we will discuss Form 16 Part B: what it is, what details it includes, and why it’s important for salaried employees during income tax filing.
Let’s check out these sections:
What is Form 16?
Form 16 is a very useful document for salaried people. It shows how much tax (TDS) was cut from your salary by your employer during the year. This form is given by the company once every year and helps you while filing your income tax return.
Form 16 mainly has two parts:
Part A: It has details like your PAN, employer’s TAN, and how much TDS was deducted and deposited with the government.
Part B: This part gives full details of your salary, tax exemptions under Section 10 (like HRA, LTA, etc.), deductions under Chapter VI-A (like 80C, 80D), and how your total tax was calculated.
What is Form 16 Part B?
Form 16 Part B is a paper given by the employer that shows how much salary you got and how much TDS was cut from it. It works as proof that your company has already deducted tax from your salary and paid it to the government.
Contents of Form 16 Part B
Form 16 Part B gives you a clear breakup of your salary and tax calculation done by your employer. Here’s what it covers:
1. Gross Salary
- Salary as per Section 17(1)
- Perks (like rent-free accommodation, car, etc.) as per Section 17(2)
- Any profit in place of salary (like bonus in special cases) under Section 17(3)
2. Exemptions and Allowances
Here, all the tax-free parts of your salary are shown. These may include:
- HRA
- LTA
- Gratuity
- Leave encashment
- Pension and any other exemptions under Section 10.
3. Total Salary from Current Employer
This is your full salary (including allowances and perks) received from your present job.
4. Deductions under Section 16
Some parts of your salary are allowed to be deducted for tax purposes. These include:
- ₹50,000 standard deduction
- Entertainment allowance
- Professional tax (tax on employment)
5. Total Deductions under Section 16
This is the total of all the above deductions added together.
6. Income from Salary (Taxable)
Your net salary after reducing all exemptions and deductions. This is the salary on which tax is calculated.
7. Other Income Declared by Employee
If you have told your employer about other income like house rent received or bank interest, that is shown here.
8. Total Other Income
The total of all other income you reported, apart from salary.
9. Gross Total Income
This is your full income from all sources after exemptions, but before deductions under Chapter VI-A.
10. Deductions under Chapter VI-A
This part shows savings and investments like:
- 80C (LIC, PPF, ELSS etc.)
- 80D (Mediclaim)
- 80E (education loan) and others
11. Total Deductions under Chapter VI-A
The total amount of all deductions under Chapter VI-A.
12. Total Taxable Income
This is your final income on which tax is to be calculated after all exemptions and deductions.
13. Tax on Total Income
Income tax is calculated as per the slab rate based on your taxable income.
14. Rebate under Section 87A
If your income is below a certain limit, a rebate (up to ₹12,500) is shown here.
15. Surcharge
If your income is above ₹50 lakh or ₹1 crore, the surcharge amount is added here.
16. Health and Education Cess
A 4% cess is charged on the total of income tax and surcharge.
17. Total Tax Liability
This is your full tax amount, including surcharge and cess. If you get a rebate, it will be subtracted.
18. Relief under Section 89
If you have any outstanding salary arrears from past years and have applied for relief, it will be shown here.
19. Net Tax Payable
This is the final tax amount you have to pay after all adjustments.
When is Form 16 Part B Issued?
Employers have to give Form 16 (both Part A and Part B) to their employees by 15th June after the financial year ends. They can download it from the TRACES portal.
Importance of Form 16 Part B
Form 16 Part B is very useful for employees. It shows full details of your salary and the tax that has been paid. This makes it easier for you to file your income tax return without confusion.
Sample Format of Form 16 Part B
We’ve reached the end! If you have any questions or concerns about Form 16 Part B, please feel free to leave them in the comments section. We are here to help you.
FAQs
Q. How to get Form 16?
Ans: Form 16 is given by your employer. If you’re working, just ask your HR or payroll team. Even if you’ve left the job, your old company has to give it for the months you worked. Just drop them a mail or call and ask for it.
Q. Can I file my income tax return without Form 16?
Ans: Yes, you can. Form 16 is helpful, but not having it doesn’t stop you from filing your return. You can use your salary slips, bank statements, Form 26AS, and other documents to fill in the details and file your return.
Q. If there is no TDS, does the employer still need to give Form 16?
Ans: Form 16 is usually given only when TDS is deducted from your salary. So, if your employer hasn’t cut any TDS, they may not provide you with Form 16. But don’t worry, you can still file your income tax return without it.
