1. #1
    Unregistered

    What does Form 16 means? Why it is needed while working in a private company and not for a government company?

    I recently heard from my colleagues about Form 16 that it should be processed or so but I have very less knowledge about it, so can you tell me what does Form 16 means? Can you tell why it is needed while working in a private company and I have also noticed that it's not required for government company.

  2. #2
    Chittaranjan Array
    Join Date
    Jul 2012
    Posts
    658

    Lightbulb Re: What does Form 16 means? Why it is needed while working in a private company and not for a government company?

    Form 16 is used for the purposes of Income tax payment.Every company needs it while tax acessee has to depict their income to that form for the purpose of ITR filing,Form 16 to be prepared by the company where employer's signature requires.This form restricts to use by the law other than PSU and PVT company.

  3. #3
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: What does Form 16 means? Why it is needed while working in a private company and not for a government company?

    Dear Friend,

    Form 16 is a form of income tax.

    It is the summary of income,investment,advance tax paid by you during the current financial year and amountof tax to be deposited at the end of financial year,i.e. in the the month of march.

    It is to be used by all govt. employees and pvt. employees who come under range of income tax or as per income tax rules.

    So don't think that it is being used by private employees only.

    Also you need not worry to submit your Form16.

    It is signed and submitted by the authority who pays to you and nothing is wrong in it.


    Thanks.

  4. #4
    G.one Array
    Join Date
    Jul 2012
    Posts
    677

    Re: What does Form 16 means? Why it is needed while working in a private company and not for a government company?

    Hi guest, Form No 16 refers to Income tax return (ITR) form which is filled once in a year. In that form all the details of your's including income of yours under different head, deductions, investment, rebates, income tax liability, TDS , advance tax etc. Are filled. It doesn't matter whether you have income tax liability or not but you have to file income tax return. Income tax return has to be filled by every individual there is no distinction in between the private and government sector employees. Thanx

  5. #5
    neha agarwal Array
    Join Date
    Sep 2012
    Posts
    167

    Re: What does Form 16 means? Why it is needed while working in a private company and not for a government company?

    Hi,

    Basically Form 16 comes in picture when we talk about Income tax Return. Each and every employed person should have to fill an Income tax return form with the help of Form 16 which is prepared by Finance department of the company. This Form 16 include the details of salary, investments, rebates, TDS etc.
    The information which you have that it is needed only while working in private company and not for a government job, totally wrong. As I mentioned above that every employed person get the form 16 from their company at the end of the financial year i.e march to file the ITR. Form 16 is signed by the authority which proofs that nothing is wrong in it. ITR filing should be done by each employed person either they come under the income tax liability or not, because in future if in case you will get involved in some fraud my mistake, so you will have a proof with you in terms of the acknowledgment of the receipts of filing the ITR.

  6. #6
    vinod kumar Array
    Join Date
    Mar 2013
    Posts
    219

    Re: What does Form 16 means? Why it is needed while working in a private company and not for a government company?

    form 16 is a document that is used by salaried personnel as part of the process of filling income tax return of india.
    the form 16 is provided by an employer to the employee and is used by the employee as reference as well as proof while filling income tax returns.
    the form furnishes various details such as salary income components of the employee.
    features:
    1.it is applicable to salaried personnel
    2.it is a tax deduction at source certificate issued by the employer
    3,it acts as proof that the employer has deducted TDS while paying the employee
    4.it is prrof of salary
    5,information given at form 16 can be corrected

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