Form 16/26as
Brief Overview of Form 16/26as
Form 16 is a TDS Certificate issued by an employer of the organization to its employees. This form Contains basic details about the employee like his name, address, PAN etc along with the details of Salary amount paid and tax deducted thereon during a Financial Year. This becomes a proof of your salary income. Certain Banks and Financial Institutions even accept only form 16 as proof of your salary income. While filing a salaried ITR, the details of salary like allowances, perquisites, exemptions and the salary amount needs to be matched with form 16. When an employer deducts and deposits the TDS on salary, he is mandatorily required to issue form 16 to its employees by 15th of June of the Assessment Year. The same details can also be verified from form 26AS. Form 26AS is tax credit statement, which not only shows the salary amount and tds, but it reflects your complete financial details of a financial year. In addition to the salary details, form 26AS also shows various other sources of income which may have been received by you and tds deducted thereon (for example:- One may have rental income or commission income, or a tds on sale of house property, or tds on winnings from lotteries and games etc.) Its advisable to match your income details with form 26AS before filing of your ITR. It not only helps in filing an accurate Income Tax Return but it also helps in avoiding any queries or notices from the Income Tax Department. Now a days, even your GST turnover on monthly/quarterly basis gets reflected in form 26AS. Form 26AS also shows any delays in filing of your own TDS returns (If any). It also shows the Significant Financial Transactions (if any) executed by you during a financial year. It simply means any transaction which has crossed the limits specified under income tax.
Following are the very common transactions categorized under SFT (Statement of Financial Transactions):-
a. Cash Deposits (other than Current A/c)- Rs 10 Lakhs or more in a Financial Year. b. Cash Deposits (Current A/c)- Rs 50 Lakhs or more in a Financial Year. c. Fixed Deposits (Other than renewed one) Rs 10 Lakhs or more in a Financial Year. d. Credit Card Payments- By Cash Rs 1 Lakhs/By any other mode Rs 10 Lakhs. e. Purchase or Sale of any Immovable Property- Stamp Duty Value Rs 30 Lakhs or More. f. Cash Received- more than Rs 2 Lakhs for sale of goods/rendering of services. g. Mutual Fund Investments- More than Rs 10 Lakhs h. Purchase of Shares- through Public Offer or Rights Issue- More than Rs 10 Lakhs.