Storify News | It’s that time once more, when you get subtle elements of pay paid to you amid the past monetary year and the tax deducted on it. May 31 is the last date for your employer to issue a Form 16 and a large portion of you may have effectively gotten one. It is vital to comprehend what makes Form 16 a vital report. Is form 16 mandatory for Home Loan? Let’s see:
What is Form 16 About? Why is form 16 Mandatory?
Form 16 is the TDS endorsement that an employer issues to you when TDS is deducted by them. At the point when an employer deducts TDS on compensations, the Income Tax Act necessitates that an authentication must be issued by the employer, where the subtle elements of tax deducted and kept is confirmed. So it is important form 16 for loan.
What is Form 16 all About?
Your Form 16 has 2 sections – Part A and Part B.
Section A has TAN (tax conclusion and gathering account number) of the employer and PAN (changeless record number) points of interest of both the employer and worker. The name and address of employer and worker is likewise said. It additionally says the appraisal year and the period gone through by you with the employer. Note that for budgetary year 2014-15 the evaluation year is 2015-16. Section A likewise has synopsis of tax deducted from your income and saved to the government according to the quarterly TDS return recorded by the employer. A month to month detail of TDS deducted and saved is likewise confirmed.
Part B is an imperative piece of your Form 16 since it has a combined detail of pay paid to you amid the year. The separation of your pay and also detail of reasoning claimed by you under area 80 of the income tax act is specified. Conclusions under Chapter VIA incorporate points of interest of sums claimed under Section 80C for EPF, PPF, NSC, disaster protection premium or Section 80D for medical coverage, Section 80G for gifts made are altogether specified here. It additionally demonstrates your aggregate taxable income and tax deducted on such income.
On the off chance that you have been utilized under in excess of one employer amid the year, every one of your employers will give you a Form 16.
ITR demonstrates the Gross and Net Income according to return of Income documented by you. This enables the bank to know your details of income and your reimbursement limit with respect to the credit being looked for by you.
Is it Mandatory for Home Loan Form 16?
The answer is yes. Form 16 is confirmation of your business, verification for the income from compensation head.
ITR contains Gross Income i.e. from all sources set up together including compensation income.
In this manner in cases you have income from sources other than compensation, for example, Rental income, intrigue income and so on, ITR demonstrates all the income clubbed together
ITR can be downloaded from income tax webpage http://incometaxefiling.gov.in
Form 16 cent be downloaded by you and must be given by your employer from TRACES Site. Your employer can download a similar utilizing his login/secret key information.
Read more: How to File Income Tax Return with Form 16
If Form 16 has not been issued to me, does it mean I don’t have to pay tax or file a return?
While the onus of deducting tax on salaries and giving an authentication of TDS is on the employer – the onus of paying Income Taxes and Filing of Returns is on the worker. In the event that your income under all heads, including salaries, is over the base taxable income (Rs. 2,50,000 for money related year 2014-15) you are required to pay tax and document your income tax return. Plan and present your return despite the fact that your employer did not deduct any tax or where he neglects to issue you a Form 16. On the off chance that you changed occupations amid the year, do make sure to incorporate income from every one of your employers, regardless of whether a Form 16 was issued.