The government has extended the deadline to furnish form 16 to July 15th. Form 16 is a document issued by the employer to their employees if the employer is deducting TDS (Tax Deducted at Source). The form has details about the total salary and tax deducted. A majority of the employees would have received their form 16 by now, and for the employees who have not received it yet, the employers will be issuing it shortly.
Form 16 is a declaration by the employer giving a statement about the financials between company and employee. Once form 16 has been furninhed and TDS is deducted by the employer, it has to be deposited within first 7 days of the next month. Failing to which, the employer can be subjected to a penalty imposed by the income-tax department and ministry of corporate affairs.
As an employee, it is advised to regularly check the amount of TDS deducted by the employer. Also, mapping of PAN number is mandatory to avail any benefits by the government. Form 26AS on TRACES website gives real-time information on whether TDS has been deposited by the employer. However, the tax credit statement on TRACES website is only available to the employees who have mapped their PAN number to the account. The service is available for free and users need to register to get their statement of the tax credit. Also, to access this service, a user needs a netbanking account with any of the national authorised banks.
Form 16 has detailed about the PAN number and the amount deducted. In case, an employee has any doubt over any of the things mentioned in the form, he needs to clarify it with the employer and get it corrected. Also, if an employer has deposited tax on behalf of an employee with a wrong PAN number, he can claim a refund over the same after furnishing the required details.
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