What is Part A and Part B of Form 16?

An employer who deducts tax on an employee's salary shall file Form 24Q. It is a quarterly return that represents the salary paid to an employee and the tax deducted or remitted for each employee, per quarter. Annexure I of Form 24Q presents the deductee-wise (employee-wise) details of the salary paid and the tax deducted for each employee.

Once Form 24Q is filed by the employer, the tax department updates Form 26AS of an employee with the salary and the tax details presented in Annexure I of Form 24Q. Subsequent to this, the employer can download Part A of Form 16 from TRACES, which is the salary amount paid or credited and the amount of tax deducted based on Annexure I of 24Q filed.

Part B is the details of the salary paid and any other income or tax deducted. The Form 24Q of the last quarter of the financial year shall contain data from Annexure II as well. This includes the total salary paid, tax exemptions or deductions claimed, and the TDS for the year.

The Income Tax department uses Annexure II data for verifying the annual tax liability on salary paid to an employee and performs fit-gap analysis with salary, tax exemption, and tax deducted at source.

This result is in Part B of Form 16.

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