Before you sit down to file your return, make sure you have all your important documents ready. One of the most important documents for salaried people for filing the ITR is Form 16.

Now let us understand what Form 16 is and whether it is going to be different this year.

WHAT IS FORM 16?

Form 16 is a certificate that an employer gives to an employee, which shows how much salary he earned and how much tax they deducted from it on the employee’s behalf. It’s proof that your taxes have been properly paid to the government.

If you changed jobs during the year, you must collect Form 16 from each employer you worked for.

Form 16 has two parts – Part A and Part B.

WHAT’S IN PART A OF FORM 16?
Part A has your basic details, like your name, address, PAN (Permanent Account Number), and your employer’s TAN (Tax Deduction and Collection Account Number).

It also shows the taxes your employer deducted and deposited with the government every quarter. You can match these numbers with the deductions shown on your salary slips.

WHAT’S IN PART B OF FORM 16?

Part B gives a complete breakdown of your salary. It shows the salary earned, exemptions under Section 10, like house rent allowance (HRA) and travel allowance. It also includes deductions under Sections 80C, 80D and others. For example, money you invested in PPF, insurance premiums, health insurance, etc.