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Music hello everyone welcome to your new investment academy today we will understand the details about the topic form 16 we will first discuss what's form 16 then its components and its importance first what is form 16 each year your employer issues form 16certificate this is a certificate intersection 2 0 3 of income tax act that provides details about the tax amount that has been deducted by your employer that is called TDS moreover it also contains the details of your salary other incomes and tax benefits available and availed by you in the last financial year it has detailed information about the manner of calculating income as Perth income tax laws and tax payable initial 31st is the last date for your employer to issue a Form 16 to you now we will discuss the components of Form16 components of Form 16 helps us understand the tax paid probable tax refund we can get and can also help in better tax planning we can do it next year and most importantly can also assist us to file our income tax returns form 16 comprises mainly of two sections first is Part A is how Part A look sit contains our personal informationlike our name address employers name and address span of both tan of our employer and receipt number of TDS payment all this information assists the income tax department to keep a track of money flow from our own and our employers account in addition Part A provides information like assessment year that ISA year in which tax liability is computed for the income earned during the previous year so 2014-15 assessment year here means tax is calculated on the income from 1st April 2013 to 31st March2014 then it provides a summary of TDS deducted by the employer on our behalf this amount is deducted by the employer from AppGallery every month as tax and credits the same to the income tax department to know why this TDS is deducted you should watch our video on what is tedious the most important information in Part A Stan that is tax deduction account number of employers and total dds deducted as both of this information has to be correctly mentioned in our income tax return so that if there is any tax credit we can get that now let us discuss Part B this part of form 16provides major information that you require to file your income tax return first total salary given by the employer in the financial year is mentioned then prerequisite or perks San additional benefit provided by the employers in addition to the salary ITIS any benefit granted free of cost oral concessional rates such as rent-free home motor car facility loans at subsidized rates etc here the person has got rupees 10,000 342 as part of this prerequisite salary then this field profit in lieu of salary means any payment due to or received by employee in connection with the termination of employment for example gradually committed value of pension etc then there are allowances they are the amount paid by the employer in addition to salary to meet some service requirements such as...
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