Income Tax FORM-16

FORM-16 is a certificate issued by employers, detailing the Tax deducted at source (TDS) from an employee's salary.

FORM-16 provides an overview of the tax deductions made, which aids in accurate calculation of income tax liabilities. A salaried person is eligible to receive FORM- 16 from their employer. It serves as proof of amount paid as salary and tax deducted and deposited (if income is taxable) by the employer.

FORM-16 has two parts - Part A and Part B.

Part A contains details of total amount paid by employer to employee, with tax deduction for each quarter. It also contains details of tax deposited with actual challan details for each month of the year.

Part B is actual computation of income and taxes for the financial year. It lists down various incomes, deductions and tax liability. Refer to a sample FORM-16 attached at end of this article.

Generating FORM-16 consists of following steps:

1. Save Employer Information

2. Save TDS challan details for 12 months

3. Save TDS return details for 4 quarters

4. Generating FORM-16

Each of these steps are explained in following sections.

Save Employer Information

To save Employer information, go to Setup > Statutory Options > FORM-16 Info.

Form-16 Info

When you click FORM-16 Info option, you will be directed to Form-16 page to fill the details in three sections as mentioned.

Person Responsible for Deduction of Tax

Fill the details in mandatory fields including Full Name, Designation, and Father's Name. You also have the optional field to attach the Signature image.

Person Responsible for Deduction of Tax

Employer Information

In this section, you will be asked to add Employer Information. Fill all the mandatory fields including Name, Address Line 1, Line 2, and Place of Issue. AddressLine 3 is optional to add more details.

Employer Information

CIT (TDS) Information

In this last section, you will be asked to add CIT details. Fill all the mandatory fields including Name, Address Line 1, Line 2 . AddressLine 3 is optional to add more details.

CIT Information

Save TDS challan details for 12 months

To get started with Save Tax deposit, go to Data Capture > TDS Challans.

On this screen, select the Financial Year (e.g. 2023-24). Click Load button to view 12 rows of records. You need to update BSR Code, Date of Deposit and Challan Serial number.

TDS Challans

If there was no deposit in a certain month, it can be left blank. Below is the screenshot of Challan Receipt as a reference.

Challan Receipt

Save TDS return details for 4 Quarters

To Save TDS return details, go to Data Capture > TDS Returns

On this screen, select the Financial Year (e.g. 2023-24). Click the Load button to view all Quarters from Q1 to Q4. Enter the receipt numbers for each quarter. Click the Save button to save the details.

Once all these three steps are completed, you are ready to generate FORM-16.

Generating FORM-16 from Runtime HRMS

To generate FORM-16, go to Reports > Statutory Reports > IT FORM-16.

Once you click IT FORM 16, you will navigated to the Income Tax FORM-16 screen to select financial year, Location, Cost Center, Department, Employee, and Date of Issue.

Once all the details are selected, you have the option to Download, or Send by Email.

Here is a sample FORM-16 generated by Runtime HRMS.

85KB

SAMPLE_FORM16.pdf

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