Introduction:

Form 16 is issued annually for TDS deducted from salary, while Form 16A is issued every three months for TDS on income from other sources. Form 26AS serves as a government record documenting TDS deductions made by individuals or companies, subsequently deposited with the Income Tax  Department.

Form 16:

Form 16 and 16A are crucial for taxpayers as they are utilized to determine the amount of tax liability and are necessary for filing income tax returns. Taxpayers often confuse these two documents due to their nearly identical purposes. Form 16 includes the cumulative amount, comprising basic salary and other allowances, disbursed to the employee, along with the taxes deducted throughout a financial year. This document serves as confirmation that the employer has deposited the corresponding tax amount with the income tax (I-T) department.

It’s important to note that if an employer hasn’t deducted any TDS, Form-16 won’t be issued. However, the employer can provide a salary statement. To ensure accurate ITR filing, taxpayers should reevaluate their total tax liability in accordance with the information provided in Form 16.

Form 16 Part A: 

Part A of Form 16 includes the employer’s TAN (tax deduction and collection account number) and PAN (permanent account number), along with the names and addresses of both the employer and the employee, the assessment year, and the duration of employment. Additionally, Part A provides a summary of the income tax deducted from the employee’s income and deposited with the tax department, as per the quarterly TDS return filed by the employer.

Form 16 Part B:

Part B of Form 16 provides a detailed account of the salary disbursed throughout the financial year. It outlines the salary breakup, deductions claimed under various sections such as Section 80D for insurance,  Section 80C for contributions to EPF, PPF, NSC, life insurance premium , and Section 80G. Additionally, this section includes particulars of the total taxable income and the corresponding tax deducted on such income.

Form 26AS:

The Income Tax department compiles a comprehensive record of the entire tax paid by taxpayers, represented as credits within their accounts. Form 26AS, an annual statement governed by ‘Rule 31AB’ of the Income Tax regulations, discloses the specifics of tax credits in a taxpayer’s account based on the department’s database. Essentially, Form 26AS provides a summary of tax credits linked to the taxpayer’s Permanent Account Number (PAN) as per the tax department’s records. This includes credits from TDS, TCS, and various forms of tax payments made by the taxpayer, such as advance tax and self-assessment tax.

A taxpayer has the option to pay tax in any of the following forms:

• Tax Collected at Source (TCS)

• Tax Deducted at Source (TDS)

• Advance tax or self-assessment tax or payment of tax on regular assessment

How to view Form 26AS

Form 26AS holds such significance in identifying discrepancies in taxes paid, You can conveniently view your Form 26AS online through the government portal for income tax

• Visit the e-portal for tax filing – https://incometaxindiaefiling.gov.in
• Login using your username and password. If you haven’t registered yet, you can do so by clicking on the ‘Register Yourself’ button located in the top right corner.”
• After logging in, you will land on your dashboard. Navigate to ‘My Account’ and select ‘View Form 26AS
• From this point onward, you will be directed to the TRACES website
• After verification, you can select the assessment year for which you require the form and proceed to download your Form 26AS. Use your date of birth in DD/MM/YYYY format as the password.

conclusion:

Form 16 serves as a TDS certificate for salary, while Form 26AS provides information on the tax deducted or deposited by deductors (such as banks or employers) on behalf of taxpayers. Additionally, Form 26AS includes details regarding tax credits.