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1. What is Form 16? 

Form 16 is a salary TDS certificate. If your income from salary for the fiscal year is quite the essential exemption limit of Rs 2,50,000 your employer is required, by the tax Act, to deduct TDS on your salary and deposit it with the govt. If you've also disclosed your income from other heads to your employer, they're going to consider your total income for TDS deduction. 

2. Why is form 16 used? 

A. If your income is below the essential exemption limit, your employer won't deduct any TDS and should not issue this type to you. If you've got worked with quite one employer during the year, you'll have quite one Form 16. 

B. This type 16 may be a certificate, where the employer is certifying details regarding the salary you've earned during the year and the way much TDS has been deducted. it's two parts – Part A and Part B. Part A has information of the employer & employee, like name & address, PAN and TAN details, the amount of employment, details of TDS deducted & deposited with the govt. 

C. Part B includes details of salary paid, other incomes, deductions allowed, tax payable etc. Form 16 may be a certificate issued to salaried individuals from their employer when he deducts tax from the worker salary. In simple words, it's an acknowledgement which states your deducted tax has been deposited with the tax department. It must be issued by 15th June of the year that it's being issued. for instance, for the F.Y. 2019-20, the maturity for the issue of Form 16 shall be 15th June 2020. However, the maturity stands extended to fifteen August 2020.

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