Understanding Form-16 in a Simple Way


Form 16 is a very important document that is issued by the employer to the employee and is often also referred to as a salary certificate. Through this infographic we will explain you the important contents of Form 16. Form 16 is also required for purpose of filing your Income Tax Returns, since it acts as a proof of income earned and TDS deducted and paid. This will also act as step by step guide for you to and help in understanding the income and deductions.

Understanding Form-16

So now you have a complete understanding of the flow of the contents in a Form 16. It contains two parts – Part A and Part B.
Part A – is a certificate of TDS.
Part B – Annexure containing details of salary, deductions, tax due and tax paid.
It has details like PAN and TAN, gross salary, perquisites, allowances, deductions, total taxable income and Income Tax payable, paid and due.

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