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Guidelines to read your Form 16

One of the most important income tax forms is Form 16. It contains the information you need
to file your income tax returns in India. Form 16 consists of two parts i.e. Part A and Part B.
Form-16 - Amalgamation / Inter Entity transfer
If you have been transferred to a new entity in FY 2015-2016 by virtue of Amalgamation/
Inter Entity Transfer you will receive Two Form 16s. (Two Part As and Two Part Bs).
Part As of your Form 16 will consists of;

Name and address of the employer


TAN & PAN of employer
PAN of the employee
Summary of tax deducted & deposited quarterly, which is certified by the employer, It
also contains Month wise tax details with the challan number.
Assessment Year
Period of employment with the employer
Form 16 Part A is generated and downloaded from Traces ( TDS) portal
Part A of the Form 16 also has a unique TDS Certificate Number.

Part Bs of your Form 16 will consists of;

Total Gross Salary earned by the employee


Deduction under section 10 ( HRA, Conveyance)
Deductions allowed under the income tax act (under chapter VIA) Section 80 C
deductions, like PF, LIC, Mutual Fund etc.

If you have held more than one job during the year, the income earned in the previous
employment net of Section 10 Deduction is included in the Part B issued by RBS. This is
included only based on the information provided by the employee.
In case of Inter Entity Transfers, this previous employment value will be taken
automatically.
Part B is prepared by the employer manually and issued along with Part A.

Since, you will be receiving Two Part As and Two Part Bs,
-

The first Part A and Part B will be for the period worked in GTS/IDC or the previous entity.

The second Part A will be for the period worked in the current Entity i.e. SIPL. Additionally
the second part A of your Form 16 will also have details for the period worked in GTS/IDC or
the previous entity. This income will reflect separately under Previous Employer Income.

To reconcile the Earnings:


The Form 16 of the previous entity consists of the income earned by employee in the previous
entity. Refer to the screenshot.

IDC/GTSC PART B (Previous Entity)

In current entity Form 16 (SIPL), the Part B, point number 3 i.e. Balance (1-2) (Inclusive of
Previous Employer Sal after Sec 10) consists of the income from the previous entity.

SIPL Part B (Current Entity)

To Reconcile the TDS amount:


Please refer Amount of Tax Deposited / Remitted from Part A of previous (IDC/GTSC) entity
For example, IDC/GTSC PART A (which is from April 1, 2015 or your DOJ in the FY 2015 to
Jan 2016) contains the Amount of Tax Deposited / Remitted. Refer to screenshot.

SIPL PART A (Current Entity)


Please refer Amount of Tax Deposited / Remitted from Part A of current entity
For example, SIPL PART A (which is from your DOJ in current entity to 31-Mar-16) contains
the Amount of Tax Deposited / Remitted. Refer to screenshot.

Sum up the amounts from both Part As. The sum total should tally with the amount reflecting
under the current entitys Part B, point number 17 i.e. Tax Deducted.
In the given scenario, Rs. 542023/- + Rs. 187247/- = Rs. 729270/- which is equivalent to the
amount reflecting under the current entitys Part B, point number 17 i.e. Tax Deducted.

Important Note:
-

While filing income tax returns for the previous financial year ensure that you record the TDS
deducted entity wise in the individual returns. This is to avoid queries being raised by the
income tax department subsequently.

In the above example, if Rs. 542023/- is remitted under IDC TAN Number and Rs. 187247/is remitted under SIPL TAN Number, then there would be two entries in the tax deducted
column mentioned in your returns.

Please refer the below screen shot to enter the TDS amount if you have more than One Form 16
for the year.

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