From PAN to TDS, do not hurry to file ITR as soon as you get Form 16, check important things

ITR Filing: Generally, Form 16 is very important for a salaried employee. Most people heave a sigh of relief when they receive Form 16 message every year. In this, our salary calculations, tax deductions and mathematics are prepared on behalf of the employee and we feel that our ITR has been filed easily with the correct documents uploaded. But this price may prove costly. Actually, taxpayers have to understand about the common mistakes. In which some of it is present.

Reading Form 16 is not enough, understanding it is also important

The most interesting thing is that many employees consider Form 16 to be a single document, but in reality it is not so. According to expert Mrinal Mehta, taxpayers should consider Form 16 as two separate documents. ‘Part A is the TDS certificate generated from the Terraces portal, while Part B is an undertaking generated by the employer. In which salary information and tax calculations are accounted for.

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Verification of PAN, assessment year and salary data

This may sound very simple but according to experts, this is a topic ignored by consumers. Expert Anita Basur said that employees should check whether the PAN, assessment year, gross salary and TDS figures are visible correctly or not. For example, after filing the return, you come to know that your PAN was entered incorrectly. It is possible that the tax deducted by your employer may not be properly linked to your account, which may impact your tax credit.

Ensure that TDS is not only deducted but also collected.

Very importantly, many taxpayers only check whether tax has been deducted from their salary or not. However, experts say that the more important question is whether the employer has deposited that tax with the government or not. Also, if TDS has been deducted but not deposited, its credit will not be reflected in ‘Form 26AS’. This means that the taxpayer will not be able to claim it while filing the return.

Don’t forget income that doesn’t show up in Form 16

Mehta said, this is probably the biggest misconception among salary employees. Many people believe that if Form 16 is correct, the return is complete. But it is not necessary at all. Further said, ‘Form 16 is a certificate of salary and TDS, not a statement of complete income’. In such a situation, income from savings account, fixed deposits, dividends, capital gains, freelance work or side gigs may not be reflected in Form 16, because the employer is not aware of these earnings.

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