Are you a salaried employee?? If yes, you will get your salary after a tax deduction on it done by the employer. This is called Tax deduction at source (TDS ). The person who is responsible for this tax deduction on payments made to employee is given a tax identification no (TIN ) . If you are an employer your responsibility is to carry out the tax deduction hand handover the form 16.
All salaried employees have to file their income tax returns by July 31, 2010. To do this, it is necessary to have the Form 16 document, issued by your employer. Form 16 gives details of tax deducted and the branch of the bank where it is deposited into the central government account. In simple terms Form 16 gives details about the tax deducted by the employer in behalf of employee. The same will be paid to government by the company
For example, if a TDS of Rs 2,332 and education cess of Rs 68 are deducted from your April salary, Form 16 details the same. It does so for every month in the financial year. It is the final certificate issued by your employer giving details of the salary you have earned and the tax deducted on your behalf.
If you have worked in two different companies in the same financial year, then u must obtain two of Form 16 to file the IT returns.
This certificate is given to you at the end of the financial year, generally by April 30. In case there hasn’t been any TDS from your salary, you just get a salary certificate, and not the Form 16.
There are many other areas where TDS may be applicable like deducing the tax for interest earned by your Fixed Deposit in the Bank. Here bank plays the role of deducting the tax. This again is done on financial yearly basis. The form 16A is used for this purpose which has to be filled and given to the customer.
