The due date for submitting the Income Tax Return (ITR) for the fiscal year 2022-23 (assessment year 2023-24) is July 31, 2023. The online filing facility for ITR-1 and ITR-4 has been made available by the income tax department. ITR-1 is meant for individuals, including salaried employees and senior citizens. Individuals, Hindu Undivided Families (HUFs), and non-Limited Liability Partnership firms with total incomes up to ₹50 lahks can utilize the ITR-4 form.
On the other hand, ITR Form-16 is used by employed individuals to file ITR. But this cannot be the case every time. It is not always necessary for salaried individuals to utilise only Form-16 to file ITR.
About ITR Form-16
Form 16 is an essential document issued by the employer as a certificate of tax deducted at source (TDS). It holds significant importance in the process of filing an Income Tax Return (ITR) for salaried individuals. Form 16 provides a comprehensive breakdown of the employee’s salary, including details of deductions claimed by the employee and the corresponding tax amount deducted.
About Part-A and Part-B of Form 16
Part A of Form 16 contains the summary of tax deducted and deposited by an employer as tax deducted at source or TDS.
Part B of Form 16 contains information regarding the employee’s salary income and the deductions claimed by them, which ultimately determines their taxable income.
When Form-16 is Issued by the IT Department?
Typically, every salaried individual receives Form 16 from their employer no later than June 15th of the assessment year. According to Section 203 of the Income Tax Act, of 1961, employers are required to provide Form 16 to their employees, which includes the total Tax Deducted at Source (TDS) on their income.
What to Do to Be Prepared Before Getting ITR Form-16?
Before receiving Form 16, employees should ensure they have readily available the necessary information such as capital gains statements, interest income from fixed deposits, rental income, and details of any investments made for claiming deductions.