At present we often hear about the words Form 16, Form 16A. What are Form 16, Form 16A and how these are useful to us?
Mostly all the earning people are aware of Income Tax as per rule framed by the Government. Filing Income Tax returns is mandatory for whose income is above the taxable limit. Form 16 and Form 16A. are most commonly used while filing the Income Tax returns. Form 16 is a Certificate under Section 203 of the Income-Tax Act, 1961 for Tax Deducted at Source on Salary.
Form16 is issued as a certificate by the employers to their employees for filing the returns. Form 16 and Form 16A are most commonly used by the salaried people as a supporting document providing details of their salary earned and taxable income after various deductions as per income tax rule. From16, Form16A or eForm16, E-Form 16, E-Form 16a which is more convenient and easy Computerized form of Form 16 and Form 16A, is showing details of their total Income and the income excess over non taxable limit.
The company must issue form 16 or form16a at the end of each financial year to the employees for filing their income-tax returns. A salaried Person of an organization will get the salary after deducting tax by the employer. This process is called as TDS or Tax Deduction at Source. Every company has to get the Tax Identification Number (TIN) allotted by the Government Department. This number is issued by a person who is responsible to deduct Tax on payments made to employees.
There are many other areas where TDS can be applicable like deducing the tax for interest earned by Fixed Deposit in the Bank. Here bank is the person who deducts the tax. For every financial year they must issue a TDS certificate to the customer. They have to fill the Form 16A and hand over to the customer. Form 16 is applicable only to the salaried employees.
Form 16 A is also applicable for interest on securities, dividends, payments to contractors and sub- contractors, insurance commission, payments to non-resident associations, payments in respect of deposits under National Savings Scheme, commission, remuneration or prize on sale of lottery tickets, rent, interest other than interest on securities, winnings from lottery, Horse Race, fees for professional or technical services, payments on account of repurchase of units by Mutual Fund or Unit Trust of India, income of foreign companies referred to in section 196A(2), income of Foreign Institutional Investors from securities referred to in section 196, income from units referred to in section 196B,income from foreign currency bonds or shares of an Indian company referred to in section 196C and in many other fields. Form 16 has gained more importance as it is required to be furnished at the time of approval of loans.
There are essential benefits and requirements of filing form 16 in our lives. But filling the Form 16 manually is a tedious process and is also error prone and Time consuming. Now a days mostly the people are on a hectic schedule with preoccupations. But now there is a most convenient process of all time available for us and that is Online Filling Process. So this process of online tax payment has become very easy and comprehensive to the tax payers now. All these forms have gone computerized. Rather than issuing certificates whereby u will be able to view them all online and verify with the Income Tax Authorities as of July 2008, even if you’re filing electronically, you no longer need to attach Form 16 to your tax return. The Central Board of Direct Taxes requires only Trusts to attach Form 16 to their return (Form ITR-7). The Central Board now maintains an online Tax Deducted at Source account for each taxpayer.
One can use the easy and friendly online payment options like provided by Taxeworld.com and get relief from all worries of manual filling which can take hours for filling the forms. With online tax payment one can get many facilities which can ease the process up to a great extent. eForm16, E-Form 16, E-Form 16a are provided online. These provide easy step by step process for filling the forms and get all the profits of Filling From16 Online more easily and conveniently. This process is error free and facilities are provided like one can do the calculations using the online option and will also have option of payment from any location.
Taxeworld.com provided many information and facility which simplify the filling process of Form 16 and Form 16A.It provide online forms like eForm16, E-Form 16, E-Form 16a and many other tools and support which smoothen the filling process and do the real justice to our time.