One of the most important income tax forms for salaried individuals is Form 16. Employers need to issue the Form 16 to their employees on or before 31 st May of the financial year immediately following the financial year in which the income was paid and tax deducted. The TDS, so deducted, by the organization or employer is deposited with the Income Tax department and the Form 16 in turn is a proof of the same. Companies usually calculate the tax payable by the employee, on the basis of the forecasted earnings and investment declarations made by the employee at the beginning or during the course of the year. What Should a Receiver Check in Form 16Īs per the Income Tax Act, every employer, at the time of paying salaries, is required to deduct Tax (or TDS – Tax deducted at source), which is computed on the basis of the income tax slab rates in force for that financial year.What are the Eligibility Criteria for Form 16.
