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Form 1040ez – 2014 2015, 1040ez form.#1040ez #form

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Form 1040ez

Who Can Use Form 1040EZ?

Form 1040 EZ is the shortest, simplest tax form an individual can use to file income taxes with the IRS. Here s how to tell if this is the form for you, or if you ll have to file using the longer forms 1040 or the 1040A.

1. Are You Single?

If you re single, you can use the 1040EZ. However, if you have dependents then you ll have to graduate to one of the other 1040s.

2. Are You Married?

Married people can use Form 1040EZ but only if they file as married filing jointly. Also, they can claim no dependents.

3. What s Your Taxable Income?

If your taxable income is $100,000 or more, then you cannot use the EZ. Taxable income is your annual total income minus deductions, allowances and exemptions. So, if you re on the line then you ll actually have to figure your taxes a bit before knowing whether you can use Form 1040EZ.

4. How Old Are You?

You must be under the age of 65. If you re filing jointly the so must your spouse.

5. Do You Make a Lot in Interest?

If your interest income for the year exceeds $1500 then the 1040 EZ is not for you.

6. Do You Claim a Lot of Credits?

The only credit you can claim on the IRS 1040 EZ is the Earned Income Credit.

7. Do You Plan on Itemizing Your Deductions?

Then forget about using 1040 EZ. You ll have to use IRS Form 1040.

8. Have You Filed Bankruptcy?

If you filed Chapter 11 since October 16, 2005 then you cannot use the EZ form.

9. Do You Have a Household Employee?

If you do, and you owe household employment taxes on his or her wages, it s not possible to use 1040EZ.

10. Did You Earn Tips?

And if you did, take a look at your W-2. If your tips are included in boxes 5 and 7 then you cannot use 1040EZ.

11. What are Your Sources of Income?

If they are anything other than what s on the following list, then the 1040EZ is a no go .

  • wages
  • tips
  • salary or salaries
  • unemployment compensation
  • taxable scholarship fellowship grants, dividends from the Alaska Permanent Fund

1040ez form

Form 1040EZ, Form 1040A, or Form 1040: What s the Difference?

Why not just use the tax form that covers everything? That would be the 1040, also called the long form. Because that s like driving a tank around the neighborhood to do your errands.

the 1040 is overkill if you can get away with using the 1040EZ

Unless you enjoy filling out tax forms, the idea here is to choose the version of the 1040 that s the simplest and still handles everything it needs to for your situation. The 1040EZ is one age. The 1040 is well multiple pages. With the EZ form you can literally be done filing your taxes in under ten minutes.

If you re using online tax filing programs or software that you purchased, then it s going to be free. If you re paying an accountant then it will be much cheaper than if he or she had to fill out the longer forms.

Form 1040A

You ve seen what it takes (or doesn t take) to qualify for using IRS Form 1040EZ to file your taxes. Form 1040A isn t much different, except that it can handle a few more sources of income, a few more deductions and a few more credits. More specifically, the list above plus the following things:

  • income from pensions, annuities, IRAs, taxable retirement benefits, interest, capital gains, ordinary dividends
  • the IRA deduction
  • the student loan interest deduction
  • the tuition fees deduction
  • credit for child dependent care expenses
  • credit for elderly or disabled
  • education credits
  • child tax credit
  • retirement savings contribution credit
  • additional child tax credit

Everything else goes on the long form, the IRS Form 1040.

Why You Probably Don t Need the 1040 EZ Instructions

Are you about to file your tax return? Good for you! You ll not only be saving money but also taking matters into your own hands and gaining control of your finances.

Plus, if you can get away with filing using the wonderfully simple and easy 1040 EZ, things just couldn t be any easier for you. Can you use the EZ?

Check out our handy list of questions to see if you qualify to use IRS 1040 EZ, the simplest of all federal income tax returns. These questions are taken directly from the 1040 EZ Instructions as printed by the IRS on their website.

Filing With the 1040 EZ

There are lots of ways to file your own taxes, especially if your financial life isn t all that complicated. Do it on paper and mail it in or better yet do it online, where most tax prep companies offer 1040 EZ plus instructions for free plus free e-filing.

What Do the 1040 EZ Instructions Say About Having to File?

As you may know, some people don t have to file an income tax return with the IRS:

  • If your income is low enough, usually below the $10,000 mark for the year, then you won t owe any taxes.
  • If you are elderly, the cut-off point for having to file taxes is about $1500 higher.
  • Dependents (somebody else pays most of your living expenses, if not all of them) don t have to file either, unless annual income is more than $5,700

Reasons to File Anyway

According to the IRS, you might want to file even if they say you don t have to. The main reason for this would be to claim an IRS refund on salary withholding from your paychecks.

Why You Probably Shouldn t Read the 1040 EZ Instructions

The 43-page document that makes up the Instructions to Form 1040 EZ is much more complicated than the actual tax form. The best way to file the EZ form is to just start doing it. Don t bother with instructions unless you get stuck or have a very specific question pop up while preparing your return.

If you choose an online tax preparation company, they ll guide you through the form by asking questions and making it very simple for you to get through. Honestly, you should not ever need to consult the IRS website at all, since the 1040 EZ Instructions are a bit complicated and contain way more information than the average 1040 EZ filers needs.

The idea is to just start in, and if you have a question, then and only then should you even bother with the EZ instructions. Good luck!


1040, 1040EZ Or 1040A: Which Tax Form To Use, 1040ez form.#1040ez #form

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Which tax form should you use: 1040, 1040EZ or 1040A?

1040ez form

Peter Cade/Getty Images

Filling out a tax form is about as much fun as owing taxes to Uncle Sam. The complexity of the task intensifies as your tax life becomes more complicated.

That’s why you should use the simplest tax return form you can, especially if you’re still filling out your forms by hand.

But choose carefully. There are three personal income tax forms — 1040, 1040A and 1040EZ — with each designed to get the appropriate amount of your money to the IRS. Differences in the forms, however, could cost you if you’re not paying attention.

The EZ is the shortest and simplest form, Form 1040A is a bit more complex and the long Form 1040 is the most detailed and potentially difficult. But even if your tax life is simple and straightforward, it might be worthwhile to investigate the other two forms. Why? Generally, the longer the form, the more opportunities for tax breaks.

Health care and EZ limits

If you previously filed Form 1040EZ, but bought health insurance through an Affordable Care Act state or federal exchange, known as the marketplace, you can no longer file this simplest form.

When individuals purchase a policy through an exchange, they have an option to receive advance payment of the premium tax credit. This tax credit helps cover some of the insurance costs. The advance credit amount, however, must be accounted for when the policy recipient files his or her tax return.

If the advance premium amount was too small, the taxpayer will get the extra. However, if too large of an advance premium credit was paid, the taxpayer must make up the difference, either by paying any tax due or by having the amount taken from an expected refund.

Such calculations are made on Form 8962, which only can be filed with Form 1040A or 1040. If you received advance payments of the premium tax credit, you must file one of these longer forms instead of the 1040EZ.

Even if you did not get the premium credit in advance but got health care through an exchange and want to claim it when you file, you must complete 1040A or 1040.

How the EZ could cost you

Even if you can file 1040EZ, it might not be the best move.

Take the case of 2016 tax filer Joe P. Taxpayer. Joe finished college last year and got his first full-time job making $40,000. He’s single, renting and has no investment income. A perfect 1040EZ filer, right? Sure, if you’re Uncle Sam, because Joe will overpay his taxes by using the short form.

Why? The Form 1040EZ doesn’t offer Joe some valuable tax breaks found on the other two returns.

Joe has a student loan. By filing Form 1040A, he can subtract from his income the $2,500 interest he paid on that debt. He can’t do that with the shortest form. Joe also started planning for his retirement by putting the maximum $5,500 into a traditional individual retirement account. Because his new employer doesn’t offer a company retirement plan, Joe’s deductible IRA contribution can reduce his taxable income further, but only if he files the longer form.

By choosing the 1040A over the 1040EZ, suddenly Joe owes taxes on just $32,000 instead of on his full $40,000 salary. And he’s dropped into a lower tax bracket — the 15 percent one instead of the 25 percent tier — even before he reduces his taxable income further by taking the personal exemption that every taxpayer is allowed and his standard deduction amount.

Joe also would get the chance to reduce his actual bill if he files the longer 1040A. If Joe took a course to improve his job skills and was not reimbursed by his employer for the cost, he could claim the Lifetime Learning tax credit; it’s also available on the long Form 1040. The better tax news for Joe is that a credit allows you a dollar-for-dollar reduction of what you owe the IRS. But the only tax credit shown on the 1040EZ is the earned income tax credit, available only to low-income taxpayers.

So, opting to file Form 1040A instead of 1040EZ saves Joe a bundle. And there are even more tax-saving opportunities found on the long Form 1040. They might not apply to Joe, but they could cut your tax bill — if you take the time to look over each of the forms. Here are the basic guidelines for the three individual tax returns.

Form 1040EZ

The simplest IRS form is the Form 1040EZ. And ever since the IRS doubled the earning limit on filers who use it, the EZ has been available to even more taxpayers.

You can file the 1040EZ return if:

  • Your filing status is single or married filing jointly.
  • You’re younger than 65. Your spouse also must meet the age requirements if you file a joint return. If you or your spouse’s 65th birthday is Jan. 1, then for filing purposes you are considered to have turned 65 last year and therefore cannot file this form.
  • You (or your spouse if filing jointly) were not legally blind during the last tax year.
  • You have no dependents.
  • Your interest income is less than $1,500.
  • Your income, or combined incomes for joint filers, is less than $100,000.

The ease of the one-page 1040EZ is appealing, but it limits the number of ways to save on your tax bill.

As already mentioned, this shortest personal return restricts filers to claiming just one credit: the earned income tax credit, or EITC, a tax break designed to help out individuals who don’t make much money.

You also need to look at those other two individual tax returns to take advantage of additional income adjustments and tax credits.

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Form 1040A

The 1040A form is the next step up the tax-form ladder. As with Form 1040EZ, the earning limit on filers wanting to use the 1040A has increased, so more taxpayers should be able to use it.

Individuals choosing the 1040A can file using any of the five available filing status options: single, married filing jointly or separately, qualifying widow or widower, or head of household. People who file the 1040A also can claim, in addition to the EITC, several tax credits — the child, additional child, education, dependent care, elderly or disabled, and retirement savings credits — that are not available with the EZ.

You also can file Form 1040A if:

  • Your taxable income, or combined incomes, is below $100,000.
  • You have capital gain distributions, but no other capital gains or losses.
  • You do not itemize deductions.

Form 1040A also gives you the chance to claim several adjustments to income. These items are sometimes referred to as above-the-line deductions, because you claim them just before the bottom line of the form, the one where you enter your adjusted gross income. By reducing your total gross income, your taxable income will be lower and your tax bill should be smaller, too.

Adjustments allowed on Form 1040A include educator expenses, certain IRA contributions, student loan interest, and some college tuition and fees.

Form 1040

Finally, choose Form 1040 if your earnings are larger, you itemize deductions or you have more complex investments and other income to report. This usually means added tax paperwork needs to be filed, too.

Additional paperwork also is associated with the many tax credits that show up only on the long Form 1040. The extra work, however, is offset by the added savings these credits, such as the one for taxes you paid to a foreign country or the one that helps cover some adoption costs, can produce for 1040 filers.

The longest tax return also offers more than a dozen above-the-line deductions that you can claim directly on the form itself (versus the four adjustments found on the 1040A). These allow you to reduce your gross income, thereby reducing the amount of income that’s ultimately taxed. The adjustments include, among other things, breaks for alimony payments you made, self-employment taxes you paid or moving expenses you incurred.

These income deductions are found at the bottom of the 1040’s front page, meaning you don’t have to hassle with Schedule A and its itemizing limits. You will, however, have to fill out an additional form or schedule to claim a couple of these breaks.

You should file Form 1040 if:

  • Your income, or combined incomes for joint filers, is more than $100,000.
  • You itemize deductions.
  • You have self-employment income.
  • You received income from the sale of property.

Keep in mind that just because you got a particular income tax form in the past, that doesn’t mean you have to use it. If your situation has changed — say, you now have enough deductions to make itemizing worthwhile — then file a different form.

It could be tax money in your pocket.

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Know Your PAN for Income Tax e-filing, income tax pan card form.#Income #tax #pan #card

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Know Your PAN Income Tax e-filing

If you have already applied for PAN card and hanging around to Know Your PAN Details, then here is a step-by-step guide to know your PAN Card status online. PAN card is an essential document as it is used for big financial transactions. Every Indian citizen, who makes more than 2.50 lakh Rs. in a year, is able to pay income tax as per Indian government. Finding out PAN Card details online is very simple. It involves some procedure by which you can authenticate your PAN Card Details Online.

Know Your PAN

When you have lost your PAN or did not remember your PAN card number or left your PAN card at home, you can simply Know PAN Card number just by filling up some details on Official Income Tax e-filing Website. In addition, with the help of PAN number, you can submit an application for duplicate PAN card in case if you have lost your PAN card. You can Know Your PAN by Date of Birth (DoB) and Name Online.

Income Tax Know your Pan

Pan Card is the most important document needed while filing income tax related work like income tax filling. Know your pan income tax filing process is very necessary.

Most of the people do not know how to check their PAN number without PAN card. So, those people have to go through provided details carefully. So, for well-beinging of applicants, we are giving some simple steps. Thus, the applicants of PAN card or PAN card holders have to go through the below steps to know their PAN details with PAN No. Online:

Process to Know Your PAN by Name and Date of Birth (DoB)

  • Go to the Income Tax e-filing Site or Click here to visit
  • Then click to Know Your PAN
  • After that, one form will open on your system as shown below

Income tax pan card formKnow Your PAN

  • Fill in your Date of Birth in a given format (DD/MM/YYYY).[Here DD represent Date, MM=Month YYYY=Birth Year]
  • After that, fill in your Surname (compulsory * ), Middle Name as well as First Name in the form.
  • Then, fill in captcha code for human identification.
  • Then, press the submit Button, and get your PAN details.
  • If there are various records found for this inquiry, then please give additional details.

Income tax pan card formKnow Your PAN for Multiple Records Found

  • Then, fill in your Father’s First Name, Middle Name and Surname (Compulsory) and fill in captcha details and click on submit button.
  • After that, a new page will open in which you can verify your PAN information.

    Fill all the details cautiously.

  • In case of any mistake, you can refresh the link and give all the information again.

Know Your PAN Detials form Income Tax e-filing Site Online

Need to know other details of PAN Card as Area code, AO Type, Range Code, Email ID, Status etc then you have to register at Income Tax Department Offical Site , although thess process is somewhat lenghty and takes some times to complete. We have proveded step by step procedure below, just follow these process:

  1. First Visit Official Income Tax e-filing (i.e., https://incometaxindiaefiling.gov.in/)
  2. On Right hand site, you will find New To e-Filing?: Click on Register Yourself .
  3. Now Registration form will be open where you need to insert the required details as Individual/HUF and other.
  4. Fill the Form and submit the details.
  5. After submitting the details, an activation link to your provided email Id will be sent, click on that activation link to activate your account. You have successfully registered.
  6. Now you can login to site
  7. On Menu, click on Profile Settings
  8. You are now on My Profile where you have PAN Details, Address and Contact Details Tab.
  9. Click on PAN Details to know other PAN Card Details like
  • Name of Assesses
  • Date of Birth
  • Gender
  • Status
  • Address of Assesses

Income tax pan card form

Also you will find Jurisdiction Details as:

The people who have applied for PAN can go through their PAN card details by following the above methods. Thus, the applicants can get complete information on this page. In this post, we have provided updated details. So, go through carefully and know your PAN card information by name and DOB. You cannot get PAN card details with address.

PAN or Permanent Account Number is a 10 digit unique identification number; however it is a card of plastic, but a significant document as well as Identity proof. PAN card is started by Income Tax Department of India for collecting income tax, particularly for highly earned citizen.

PAN Cards can verify the taxpayers in our country. These days, with PAN card no details are compulsory for opening bank accounts, assets of sale, professional fee, driving license and passport. On top of that, PAN card is a significant identity proof for every citizen. So, PAN card is very essential for everyone. If anybody wants a new landline phone connection, mobile phone connection, depositing above 50,000/- as cash, and high-value transactions, PAN card is obligatory. Thus, the usage of PAN is growing regularly; the Central Government has started a new online service known as know your PAN for recently applied and current PAN Holders.


ITR-1 SARAL II AY 2010-11 RELEASED -RETURN SEASON IS ON, SIMPLE TAX INDIA, income tax

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ITR-1 SARAL II AY 2010-11 RELEASED -RETURN SEASON IS ON

  1. For Individuals having Income from Salary / Pension
  2. Income from One House Property (excluding loss brought forward from previous years)
  3. Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)

Persons Not eligible to use ITR-I(saral II)

  1. ITR-1 (saral II) form can be used only by Individuals so HUF is not eligible to use the Saral II benefit.
  2. If a Individual has a more than one house income then he can not use ITR-1(saral II)
  3. If a Individual has a one house but has a Brought forward loss from house property ,then he can not use ITR-1(in my view the above rule is also applicable where loss from house property is to be carried forwarded in 2010-11AY ,but same has not been defined in saral II)
  4. If person has a Income from capital gain or Income from business and profession then also he can not use new saral II ,not for businessmen
  5. Not for individuals earning from lottery and horse races .

S.O. 943 (E).- In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

(2) They shall come into force on the 1st day of April, 2010.

(ii) in sub-rule (5), for the figures 2008 , the figures 2009 shall be substituted;

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Income Tax return Forms FY 2010-11 AY 2011-12, E-Filing return, GIITSOLUTIONS, income tax return form

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income tax return form 2010-11

You are required to file the Income tax Return

(ii) If you are a woman and not yet 65 Yrs as on 31/03/2011 and your total income (without taking in account deductions under ch VI-A) for F.Y. 2010-11 is more than 1,90,000.

(iii) If you are a man or woman, 65 Yrs of age or more on 31/03/2011 and your total income (without taking in account deductions under ch VI-A)for F.Y. 2010-11 is more than 2,40,000.

(iv) If you have income from salary( from one employer only) and interest only, also total taxable income is less than Rs. 5 Lacs and no carry over losses from the previous years, you need not file a return. It will suffice if you give the details of your total income to your employer who will deduct the tax accordingly.

2. Tax Rates for F.Y. 2010-11 A.Y.2011-12

Up to 1,60,000 NIL

From 1,60,001 to 5,00,000 10%

From 5,00,001 to 8,00,000 20%

Above 8,00,000 30%

Up to 1,90,000 NIL

From 1,90,001 to 5,00,000 10%

From 5,00,001 to 8,00,000 20%

Above 8,00,000 30%

2,40,001 to 5,00,000 10%

5,00,001 to 8,00,000 20%

Above 8,00,000 30%

3. Which ITR Form to fill

(i) If you are a proprietor of the business Form ITR-4 or ITR-4S

(ii) If you are a partner in business Form ITR-3

Do you have income from Lottery or Race horses?

Do you have income from Capital Gains which are not exempt from tax i.e. short-term capital gains or long-term capital gains from sale of house, plot etc.?

Do you have agricultural income of more than Rs. 5000/- during the year?

Do you have income from other person such as spouse or minor children which is to be clubbed with your income?

Do you have any loss brought forward from previous years?

Do you have income from one house property only?

Do you have income from other sources such as interest?

Do you have income from capital gains which are nontaxable i.e. long-term capital gains from shares etc.?

4. Due date for filing Returns

5. Online IT Return submission:

E-Filing Returns now made easy.

It involves three steps.

Detailed procedure is given below.

6.Income Tax Return forms:

7. Interest on delayed payments U/s 234A, 234B, 234C

8. For any other information regarding Income Tax:

9. Tax deduction at Source (TDS), Form 15G and 15H:

2.Fill the form in capital letters.

3.Use blue or black ball point pen to fill in the forms.

4.Do not use any commas etc in between the numbers.

5.Enter the values in whole rupees only.

6.Write your pan number on all pages.

7.Do not attach any documents with the return except the supplementary sheets for TDSI, TDS2 and IT where ever required.

8.Fill in the information in the space provided for it only as the form is to be scanned by computer.


Form 16 – Income Tax, income tax form no 16.#Income #tax #form #no #16

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Form 16 Income Tax

Any person responsible for deducting tax at source (TDS) from salary is required to issue Form 16 in the prescribed format to the employee. In this article, we look at Form 16 under Income Tax Act in detail.

TDS Certificates

TDS certificates are issued by persons deducting tax at source (TDS). On deducting tax, a person who deducted tax is required to issue a certificate in the prescribed format to the employee or payee:

  • Form 16 is issued for TDS on salary.
  • Form 12BA is a statement of the value of perquisites and profit in lieu of salary.
  • Form 16A is issued for TDS on other income.
  • Form 16B is issued for TDS on purchase of immovable property.

Form 16 Format

Form 16 must be issued in the format specified under the Income Tax Act. All Form 16 must have the following information on it:

  • Valid permanent account number of the deductee
  • Valid tax deduction and collection account number (TAN) of the deductor
  • Book identification number or numbers where deposit of tax deducted is without production of challan, in case of an office of the Government.
  • Challan identification number or numbers in case of payment through bank.
  • Receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of Rule 31A.
  • Receipt numbers of all the relevant quarterly statements in case the statement is for TDS from income chargeable under the head Salaries

Form 16

Due Date for Issuing Form 16

Form 16 must be issued every year on or before the 31st of May for the financial year in which income was paid and tax was deducted.

Form 16A must be issued every quarter within 15 days from the date of furnishing the statement of TDS as under:

  • For April June 15th August
  • For July September 15th November
  • For October December 15th February
  • For January March 15th April

Part A of Form 16

All tax deductors must issue Part A of Form 16 by generating and downloading the document through TRACES portal. Hence, all tax deductors and employers must have an account on TRACES for deducting tax on salary.

Also, if an assessee is employed by more than one employer during a year, then each of the employers can issue Part A of Form 16 for the period employed and Part B may be issued by each of the employers or the last employer at the option of the assessee.

Income tax form no 16


Income Tax Return filing: How to file income tax return without Form 16 – The

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Income Tax Return filing: How to file income tax return without Form 16

The last day for filing the income tax returns is here and you may still be scrambling with the appropriate documents to ensure the filing process is smooth. Income tax filing is a mandatory exercise for people with income over Rs 2.5 lakh. However, an individual whose salary is within the Rs 2.5-lakh bracket should also file the returns as a handy document for any financial transaction in future. For individuals, whose salary is above Rs 5 lakh, it is mandatory to do an e-filing.

Amongst the documents you need to file your income tax returns, Form 16 holds importance as it tells about the tax deduction at source (TDS) and has all the details that a salaried individual needs to file returns. But, what if for some reasons you don t have the Form 16? You can still file your returns.

Let us understand more about the Form 16 and the filing process if it is not there.

What is Form 16

Form 16 is a certificate that your employer issues about TDS deducted on your salary. Form 16, which is issued on a yearly basis, is required because it is a proof that TDS has been deducted on your salary by your employer. The form also comes handy in estimation of your correct tax liability.

Form 16 is divided into two parts—A and B

Along with summary of the TDS deductions from your monthly salary, Form 16 comprises information about PAN (Permanent Account Number) and TAN (Tax deduction collection Account Number) of both the employer and employee. It also provides other details like the name and address of both the employer and the employee, the assessment year and your employment time in the company.

This part basically provides the total taxable income. It contains details of your yearly earnings, deductions claimed under Section 80 of the Income Tax Act, which includes life insurance premium, EPF, PPF, NSC, or donations made towards charity.

Watch this also:

What if you don’t have Form 16

Although, Form 16 is an important document for a salaried taxpayer, you can still file your returns with certain other documents. You can follow these 5 simple steps to file your income tax returns.

Step 1 – Collect your monthly payslips

The payslips are important as in the absence of Form 16, they will help you in figuring out your actual taxable income. Apart from this, it is important for you to add other incomes in your salary as well to find out if they are taxable. These income includes income from other sources like mutual fund gains, saving bank account interest or Fixed Deposit interest, gains from shares, income from rent, capital gains etc.

Step 2 – Form 26AS for tax related information

Form 26AS is a consolidated annual statement that shows your sources of income and tax related information. Also known as tax credit statement, it has an information about tax deducted through TDS on your incomes from all sources, which includes your salary too.

Step 3 – Deductions computing and claim

Some of the documents such as House Rent Allowance, Leave Travel Allowance, reimbursements, Section 80C deductions on investments, etc. are non-taxable elements. To lower your taxable income, these exemptions and deductions can be claimed while filing the income tax returns.

Step 4 Tax liability calculation

Once you have all the above related information, you will be able to figure out your actual tax liability. And after getting the taxable figure, compare it with the TDS you have already deposited. In case the TDS deposited is higher than the actual tax liability, then you get an opportunity to claim for refund. In case, TDS is lower, then you would have to pay additional taxes.

One of the crucial and complicated steps of tax filing is identifying the relevant form for yourself. The relevant tax forms for a salaried employee is ITR 1. Depending on your source of income, you can go for ITR 2, ITR 2A, Form 3, Form 4 and Form 4A.

Once you have completed the filing process without Form 16, submit the ITR by July 31st.


What – s – Form 16 – and what to do with it, form 16

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What’s ‘Form 16’ and what to do with it

Form 16 income tax

Latest News

It s that time of the year when your employer hands over your Form 16. Sneha Mitra, 24, a hotel manager in Cuttack, too, has recently received the form, but has no idea what to do with it. This is my first Form 16. I have to figure out what to do with it, said Mitra. She s not alone; many people, especially, first-timers, are unable to decode it.

Here s an explanation to what is Form 16 and what you should do with it.

Every year your employer will issue this document. It is a certificate under section 203 of the Income-Tax Act, 1961, which gives information on the tax deducted at source (TDS) from income chargeable under the head salaries . Simply put, it gives details of the tax deducted by the employer. If you have not received your Form 16, you can use the worksheet that the income tax (I-T) department provides to calculate and declare the amount (http://tinyurl.com/2x4n9k). Form 16 is useful in filing your income tax return (ITR).

Understanding the content of Form 16 helps you file your I-T returns; you may be able to do it yourself, without help from a chartered accountant or a financial planner, especially if your income comes entirely from your salary, and you have no other source of income.

Form 16 has two sections part A and part B.

Part A consists of your personal details such as your name and address, your employer s name and address, Permanent Account Number (PAN) of both, the employer s Tax Deduction Account Number (TAN), and others. These details help the I-T department track the flow of money from your and your employer s accounts.

Part A also gives details such as the assessment year (AY) the year in which your tax liability is calculated for the income earned the previous year. For example, for income earned between 1 April 2013 and 31 March 2014, AY will be 2014-15. This year s Form 16 will show 2014-15.

This portion of the form also gives details of your period of employment with the current employer. For instance, if in the last financial year, you have worked from 1 April 2013 to 31 March 2014, it will be mentioned in the form.

Next, it gives a summary of the TDS by the employer on behalf of the employee. This is the amount that the employer deducts from your salary as tax periodically and credits it to the I-T department. For instance, if every month your employer deducts Rs. 3,000 as tax from your salary, it will be shown in the Form 16 as deposited by your employer to the government. The summary space will be divided based on the periodicity of how your employer credits the tax to the I-T department.

Form 16 income tax

Part B of Form 16 is the one that gives most of the details that you need to file I-T return, such as salary paid, other income, tax deducted, and more. Your gross income is mentioned first. Those who need to pay professional tax should note that the tax is not considered on the gross income.

Next, deductions are mentioned. These include those under sections 80C, 80CCC and 80CCD (contributions towards Public Provident Fund, life insurance policies, pension, among others). Remember, the aggregate amount deductible under these three sections should not exceed Rs. 1 lakh. Then come the deductions under other sections such as 80D (health insurance premium), 80E (interest on education loan), 80G (donations), and others.

The total deductions are reduced from the gross income to arrive at the taxable income. Tax is calculated on this amount based on your tax slab.

Form 16 is one of the documents that you need to keep handy before or while filing your ITR, which has to be done till 31 July.

While all deduction related details are mentioned in Form 16, you should cross-check the amounts with your investment and other documents. Is the health insurance premium mentioned correctly? What about life insurance premium?

If there is an error in your Form 16, you will have to ask your employer to rectify it since it is the employer who has generated it for you, said Rakesh Nangia, managing partner, Nangia Co. For instance, if you have paid a premium of Rs. 12,000 for a health insurance policy but the Form 16 shows only Rs. 11,000, you will have to ask your employer to correct the mistake.

Remember Form 16 only declares TDS from salary. For other incomes, there are other forms. For instance, income from bank fixed deposit (FD) will be in Form 16A. You can get this form from the source. So, if you have interest income from a bank FD, you will have to get Form 16A from the bank.

Another form that comes handy is Form 26AS, the tax credit statement. It will help you verify details of TDS. Using this form you can check if your company or bank has indeed paid the tax and correctly reported to the I-T department. Form 26AS is available on the I-T department s website. In case you have changed your job during the year, you have to get Form 16 from both employers and then file your ITR.

If your annual taxable income exceeds Rs. 2 lakh, you have to file income-tax returns. And if this is above Rs. 5 lakh, you have to compulsorily e-file your ITR.

You don t need professional help to file ITR. If you have income from salary and or interest income from some fixed deposit or income from one house property, filing ITR is very simple. However, if you have income from other sources such as business income, you may need professional help to avoid any kind of errors in calculations, said Suresh Sadagopan, a Mumbai-based financial planner.

To e-file an ITR, you will have to log in to www.incometaxindiaefiling.gov.in (see graphic). While e-filing, you need to furnish your PAN and bank account details. Fill in the correct bank details as this is where a refund will come if you opt for direct deposit into your bank account.

There are various ITR filing portals that will assist you in filing returns. Just make sure that they provide the most recent and updated information.


How to file an income tax return online from Form 16 – Updated, income tax

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income tax form 16

• Enter your PAN number, Date of Birth, other personal details and click on Save Next Step as shown in Figure below.

Step 2: Enter Form-16 details

• In Section A, enter the employer details

• In Section B, enter the Salary details as shown Figure below.

• In Section C, enter the deductions detail as shown in Figure below.

• Enter tax on total income, Tax Deducted at Source and click on Save Form 16 as shown in Figure below.

Step 3: Provide Other Income and Investment Details

If you want to report any other income and investments, report them at this step or click on Skip Continue as shown in Figure below.

Step 4: Report your taxes paid

If you want to report any other taxes paid or TDS details, report them at this step or click on Continue as shown in Figurebelow.

Step 5: Provide other details

Enter bank details, residential address, other details and click on Save and Next as shown in Figure below.

Step 6: Review your ITR and proceed to e-file

Review your calculated tax and Income and click on E-File My ITR as shown in Figure below.

Accept the Terms and Conditions and click on E-File it Now as shown in Figure below.

Related QuestionsMore Answers Below

Income tax form 16

You can file easily using myITreturn.

Just upload your form 16 and get your return filed within a few minutes!

myITreturn always tries to simplify the way in which people file their income tax returns. It is easy, secure and fast. Often people who are first time return filers are confused about the whole return filing process. Don t worry. Its very easy. Got your form 16? Great! Just upload it.

Step 1-Click Here to upload your Form 16. A screen like the one given below will appear. Click on browse button and select your Form 16.

Step 2- After that you will be redirected to the login page, enter your login details.

Step 3 – Details fetched from your Form 16 will be displayed (as shown in below image). You can edit them if needed.

Some fields not available/fetched from your Form 16 will be required to be entered. Same will be highlighted in red. Please enter those details and continue.

Step 3 – Enter the details that were not covered in your form 16 like deductions under 80C or 80D or income from any head of income.

Step 4 – Just review your return once.

Step 5 – Click on “File return” and pay applicable fees.

Step 6 – Relax and wait for acknowledgement (ITR-V). It will be sent to you on your e-mail ID. Download acknowledgement and e-verify. To know about ITR-V and method of e-verification, click here .

So, how easy it was! Upload your form 16 and get your return filed within a few minutes !!

For Support, please feel free to reach us on [email protected]

Also, you can opt for expert services like Expert Review, Assisted Filing, etc.

Income tax form 16

If your income under all heads, including salaries, is above the minimum taxable income (Rs 2,50,000 for financial year 2014-15) you are required to pay tax and file your income tax return. Prepare and submit your return even though your employer did not deduct any tax or where he fails to issue you a Form 16. In case you changed jobs during the year, do remember to include income from all your employers, whether or not a Form 16 was issued.

For further information log onto http://www.quicko.com

Income tax form 16

Form 16 will just show income From Salary. You need to see if you have other income. For example income from Saving Bank Account, Income from Interest on FD.

So you need to find out all different kinds of Income you have.

Income Tax Return Form is based on the types of income earned. Income Tax Department classifies income into different types given below :

  1. Income from Salary : Income can be charged under this head only if there is/was an employer-employee relationship between the payer and payee. The aggregate of income, after exemptions available, is known as Gross Salary and this is charged under the head income from salary. Pensions is also taxed under the head Salaries.
  2. Income from House Property : Any residential or commercial property that you own will be taxed, even if it is not let out, it will be considered earning rental income and you will need to pay tax on it. Rental income is taxed subject to some exemptions for example on Home Loan.
  3. Income from Profits and Gains of Business or Profession : Income earned through business or profession (ex professional working as freelancer) is charged under this category. The income chargeable to tax is the difference between the credits received on running the business and expenses incurred taking into account deductions such as depreciation of assets, rent, travelling.
  4. Income from Capital Gains : Any profit or gain arising from transfer of capital asset( such as property,equity or stock market,gold) held as investments are chargeable to tax under the head capital gains. The gain can be on account or short- and long-term gains based on kind of asset and time for which it is held. Our article Basics of Capital Gains discusses it in detail.
  5. Income from other Sources : Any income that does not fall under any of the four heads of income above is taxed under the head income from other sources. Such as interest income from bank deposits, winning from game shows or lottery, gift from person other than relative

There are various ITR forms such as : ITR-1 (Sahaj) ,ITR-2 ,ITR-3, ITR-4 and ITR-4S( Sugam). ITR-5 and ITR-6 which differ in information required and hence number of pages.There are different Income Tax returns form based on

  • Who has to fill (individual, Hindu Undivided Family(HUF), Business etc). Fourth Character in PAN specifies the type of tax-payer. For Individual’s it’s P , HUF it’s H, Firms F etc.
  • Whether a resident of India or not Our article Non Resident Indian – NRI explains who is NRI?
  • On types of Income earned ex: Income from Capital Gains or Income from House Property.
  • On whether losses are carried forward or not.

If you just have Form 16 and Income from other sources(interest from saving Bank) then you can fill ITR1.

To e-file the returns one needs to fill in the Excel utility/Java utility provided by the income tax department which provides information in the appropriate form in excel format. Our article E-Filing of Income Tax Return covers e-filing in detail. If income exceeds Rs. 5 lakhs one would be required to furnish the Return for the Assessment Year 2016-17 electronically

To fill ITR1 you can go through following articles which explains how to fill each field with pictures and explaination.


Form 16 TDS Certificate – How to verify Income Tax online, income tax form 16.#Income

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Form 16 TDS Certificate How to verify Form 16 online?

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Income tax form 16

Form 16 is a TDS Certificate issued by the employer deducting the TDS while making payment to an employee. As per the Income Tax Act, every employer at the time of payment of Salaries shall deduct TDS at the average rate of income tax computed on the basis of the Income Tax Slab Rates in force for that financial year in which the payment is made on the estimated income of the assessee.

The TDS so deducted by the employer is to be deposited with the Income Tax department and after depositing the same, the employer issues a TDS Certificate containing all particulars of the tax so deducted and deposited in Form 16. It is issued by the employer after the end of the year. As per the Income Tax (Sixth Amendment Rules), the last date for issuance of Form 16 by an employer to his employee is 31st May of the next year.

Only the TDS Deducted from Salary is reflected in this form and TDS Deductions from any other Income are reflected in Form 16A/ Form 16B.

Components of Form 16

Form 16 is a very simple and easy to understand form which states the Salary (and its related components) paid by an employer to his employee and the income tax deducted thereon.

On the basis of Form 16, a taxpayer can easily file his income tax return form without the help of a Chartered Accountant. There are various income tax return forms for different category of income earners. For taxpayers earning income from Salary and/or House Property and/or Capital Gains and/or Other Sources, they can file ITR 1/ ITR 2

Form 16 is divided into 2 parts: Part A Part B.

Part A of Form 16

Part A of this type of TDS Certificate consists of details like:-

  • Name, PAN Card No. Address of the Employee
  • Name, PAN No., Address TAN No. of the Employer
  • The Assessment Year for which the TDS has been deducted.
  • Summary of Salary paid and the TDS deducted and deposited with the govt.
  • Acknowledgement No. of the TDS Payment deposited with Govt.

Part B of Form 16

Part B of this type of TDS Certificate consists of details like:-

  • Detailed Salary particulars like House Rent Allowance, Leave Travel Allowance, Leave Encashment, Gratuity, Pension, Deductions claimed like PPF, Tax Saving FD, National Saving Certificate etc
  • The Total Income and the Total Tax on Salaries thereon
  • Education Cess and Surcharge if any
  • Tax Deducted under section 192(1A)
  • Balance Tax payable/tax refundable

This TDS Certificate also contains a declaration at the end that the person deducting the tax has deposited the same with the Central Govt. This statement may either be manually signed or digitally signed. An extract of a specimen copy of Form 16 is shown below:-

Income tax form 16

Form 16 in case of Job Change

In case you have changed your job during the year, you are required to collect this form from both the previous employer as well as the new employer as you would be filing your Income Tax Returns on the basis of your Form 16.

When you join any new organisation, you should furnish your TDS details from the previous employer to the new employer. You would also be required to furnish Form 12B to the new employer

Furnishing the TDS Details issued by the previous employer would help the current employer in deducting the tax accordingly. Although furnishing these details is not mandatory, if you do not mention these details to your current employer, then you are liable to yourself compute the total income from both the employers and calculate your tax liability accordingly. (Only applicable in the year of job change)

Benefits of Form 16

  1. This TDS Certificate contains all particulars and details of the TDS deducted and deposited. Although a copy of this TDS Certificate is not required to be furnished at the time of filing of Income Tax Return, the details mentioned in Form 16 are required to be furnished in the Income Tax Return.
  2. This TDS Certificate is the most powerful proof of the Income of an Individual and the fact that the tax has been paid thereon. Banks heavily rely on this TDS Certificate to assess the Income of an Individual at the time of Home Loan application and require any Home Loan applicant to furnish his Form 16

Online Verification of Particulars of Form 16

For the benefit of the Tax Payers, a new facility has been launched from Financial Year 2011-12 onwards through which a taxpayer can verify that the details mentioned in his Form 16 are true by logging on to Tax Information Network of the Income Tax Department at

This facility is available from the financial year 2011-12 onwards and you would be required to furnish the TAN No. of the employer, PAN No. of the Employee, Certificate Number the Total Amount Deducted. The details of Form 16 can also be verified from Income Tax Form 26AS which can be downloaded online

Other Relevant Points regarding Form 16

  • If you have not furnished details of deductions claimed by you under Section 80C, Section 80D, Section 80E, Section 24 etc., the TDS deducted may be higher than justified as you didn t furnish these details to your employer. However, you can still claim these deductions and claim refund of the excess TDS deducted at the time of filing of your income tax return.
  • If any Professional Tax has been levied, this would be allowed as a deduction at the time of computation of Income Tax and would be accordingly reflected in Form 16.
  • This Form is not required to be attached with the Income Tax Return but the Income Tax Officer may ask for it at a later stage.

Karan is CA by Qualification with the rare distinction of being awarded All India Rank 22. He is also the founder of this website and loves to help people with their Tax Queries.

Income tax form 16