Last Updated on admin

Valid Form 16: Briefings to Keep in Mind While Issuing Form 16

Important Points While Issue Form 16

This is for the employees to notice, the due date for employers to provide Form 16 to their employees is 10 July. some might have received and if not then one must ask the authorities for the same. Another thing to keep in mind is that the form must be downloaded from TRACES.

About TRACES

TRACES stands for TDS Reconciliation Analysis and Correction Enabling System. TRACES online servicesallows registered TDS deductor or employer to download Form 16. TRACES are the detailed records of the TDS Tax Deducted at Source which allows the taxpayer to effortlessly file an income tax return.

Mandatory for Employers to Provide Form 16 to the employees only From TRACES Portal

I-T Department has already alerted the employers about downloading and generating Form 16 only from the TRACES. Now the department also wants the employees to make sure about the same.

To be remembered, the final date for the taxpayer to file an ITR is 31st July 2019. TRACES is an online application operated by Income Tax Department which facilitates the taxpayer to view and download challan status, Form 16 or Form 16A (verifying the status of TDS) and Form 26A (the annual tax credit form).

For salaried individuals, verifying Form 16 and Form 26A is mandatory. Form 16 has details of income received from the employer, TDS deducted by the employer, and other tax deductions in FY 2018-19. Form 26A has all the calculated knowledge of deducted tax by the deductor, collected tax, advance or self-assessment tax, and refunds paid by Income Tax Department.

To avoid future faults, here are the tips to check the validity of Form 16 from TRACES:

  • There will be a unique 7 character alphabet certificate number on original Certificate downloaded from TRACES.
  • The document will contain a TDS-CPS logo on the left corner and on the right corner there will be an image of the national emblem.

Form 16 Re-designed Under New Laws

Form 16 is re-designed under new laws, therefore it is important to download the new format of Form 16 from TRACES. Form 16 has two segments A and B. Segment B of Form 16 was reviewed recently by the Central Board of Direct Taxes (CBDT). CBDT has already issued a notice for the employers to issue Part-B of Form 6 to the employees received only from TRACES portal. 

To be noted, Part B of Form 16 contains details of all the allowances and other requisites employer has provided to the employee.

Lastly, it is mandatory for employers to file form 24Q which requires the salary description in the last quarter of FY 2018-19.