“Form 16 Part-B”

Overview of Form 16 Part-B

Form 16 Part-B is a crucial document for salaried employees, proving the existence of a valid employment contract and ensuring the legality of the salary payment. This document has to be presented to the Income Tax Department by the employer on an annual basis. It contains important information on the amount of taxes and other deductions made from the employee’s salary during the Financial Year (FY). Form 16 Part-B also serves as proof of tax deducted from an employee’s salary, income and interest earned, as well as tax deducted from such income.

Purpose & Usage of Form 16 Part-B

Form 16 Part-B is used to present the taxes and deductions information to the Income Tax Department. It is the proof of tax deducted from the employee’s salary, tax deducted from other incomes such as dividends, rental income, etc., as well as tax deducted from such income. In addition, this form also contains the total tax liability according to the applicable income tax slab and income tax return (ITR) filing status.

Information Required in Form 16 Part-B

Form 16 Part-B requires the following information:

• Employee’s Name, Address, Gender, and PAN : Details of the employee such as full name, address, gender, and PAN.
• Employer’s Name and PAN : Details of the employer such as name and PAN.
• Type and Frequency of Payment : Type of payment made (salary/arrears/others) and the frequency of payment.
• Income from Salary and Other Heads of Income : Details of salary and other income such as rent/interest earned after deduction of TDS.
• Tax Deducted at Source (TDS) : Amount of TDS deducted from salary and other incomes.
• Tax Payable& Tax Paid : Details of tax payable and amount of tax paid.

FAQs

What is Form 16 with Part B?

Form 16 is a certificate issued by an employer to an employee, specifying the total salary paid and tax deducted from the salary annually. It comprises of two parts – Part A and Part B. Part A is issued by the employer and Part B is a form prepared by the employee.

What is Form 16 Part B for salaried employees?

Form 16 Part B for salaried employees is a form which contains information about the taxes deducted from the employee’s salary in the specified Financial Year. It also contains details about the total tax liability and the amount of tax refund the employee is eligible for.

Who will issue Form 16 Part B?

Form 16 Part B is issued by the employer of the employee to provide details about the salary income and taxes deducted from the salary in a specified Financial Year.

Also See: Form 16 Part A