ITR Filing 2023: If you are a salaried employee, you must have received Form 16 for the financial year 2022-23 by now. Now the process of income tax return will be done under Form 16.
Do you know why Form 16 is provided to you? Form 16 plays an important role in filing Income Tax Return (ITR) as it provides complete details of salary paid to the employee, tax exemption claimed by the employee and tax deducted at source (TDS) by the employer .
Section 203 of the Income Tax Act of 1961 makes it mandatory for employers to issue Form 16 to their employees showing the total TDS on income. After you have received Form 16, it is important for you to check its details thoroughly to ensure that all exemptions and allowances are shown correctly. Such allowances mainly include House Rent Allowance (HRA) and Leave Travel Assistance (LTA).
Take special care of these things
- First of all, you have to check that your PAN number matches with the PAN in the form. If the PAN is incorrect, the tax deducted from your salary will not reflect in Form 26AS and you will not be able to claim credit for the same while filing your ITR.
- Cross-check the correctness of your name, address and employer’s TAN (Tax Deduction and Collection Account Number).
- It is important to cross-check the actual tax deducted from your salary income by comparing it with the tax reflected in Form 16, Form 26AS and AIS (Annual Information Statement).
- If you find any mistake, immediately inform the employer about that mistake and request to rectify the information in Form 16.
- If you have opted for Old Tax Regime and have claimed tax exemptions, ensure that they are correctly reflected in Form 16.
- If you have changed jobs during the financial year 2022-23, then it is necessary to take Form 16 from both the employers.
- Before filing your ITR, it is necessary to cross-check and verify the information in Form 16 with your salary slips, AIS (Annual Information Statement), and Form 26AS.
- It is very important to cross-check all the income declared in AIS with TDS certificate, interest income certificate and Form 26AS.