Form-16

Understanding Your Form-16

Your Form-16 contains details you need to file your Income Tax Return. Having a basic understanding about your Form-16 goes a long way to help you file your tax return.
See the below annotated image to understand some of the most relevant portions of your Form-16. It is a very brief form packed with information.
After reading this guide, you will be able to understand how the information from the Form-16 is entered in ClearTax.

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Form-16 Part B / Annexure / Salary Statement

When you fill your I-T Return, you need to enter the following details.

1 Taxable Salary

3 Aggregate of Section 80C Deductions

(Gross & Deductible Amount)

5 Tax Payable or Refund Due

2 Breakup of Section 80C Deductions

4 TDS (Tax Deducted at Source)

Form-16 Part A / Traces Form-16

When you fill your I-T Return, you need to enter the following details.

1 TDS Deducted by Employer

3 PAN of Employer

5 Current Assessment Year

7 Your PAN

2 TAN of Employer

4 Name and Address of Employer

6 Your (Taxpayer's) Name and Address

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Information your Employer Provides

Taxable Salary

Your employer will provide key information such as Gross Salary, Perquisites, Various allowances and deductibles.
From a tax perspective Field-6, Income Chargeable under the head 'Salaries' is relevant. This is your taxable salary.

Tax Deducted at Source (TDS)

The other relevant information your employer will tell you is Tax deducted at source. This is field-18(a). This tax deducted is what you have paid to the Income Tax Department already.

The Income Tax Department provides Form-26 AS.
This is a Tax Credit Statement. This statement tells you how much Tax was deposited on your behalf with the Income Tax department. It is strongly recommended that you check your Form-26AS before you file your tax return.

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Information you already have

Deductions

Deductions under Section 80C, 80D, 80E, 80CCF, 80G, 80DD, 80U, etc are reported by you to your Employer.
You may or may not have reported all deductions to your employer. That is no problem. You can still claim them in your Income Tax Return by filling up the relevant columns in ClearTax.
In general, its a good idea to report your tax deductions to your employer to minimize the TDS by employer.

Income other than Salary

If you receive any other Income, like interest from a bank account or rent, etc. You may have informed your employer about it. This is mentioned in Field-7.
Most commonly, people who have a housing loan report it to their employers for less tax deduction at source. Don't worry if you have not reported income to your employer
You can add additional Income to your Income Tax Return in the relevant columns of ClearTax.

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