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Form 16 Employee Company job5000 pm Cheque 50000 1950 TDS=48050 He fills Income Tax Return On Basis of Form 16 If Only form 16 Income No Tax Payable But ITR Filed If Some extra Income Pay Income Tax + File ITR If some extra Deduction TDS Refund on Filing ITR He fills TDS Return He gives Form 16 (TDS Certificate) to Employee Showing Annual TDS 1950*12=23400 Annual Salary 600000 Less: Standard Deduction Income From Salaries Income from House Property Income from Other Sources Gross Total income Less Deduction Under Chapter VIA 80C Net Total income 50000 550000 0 0 0 550000 22500 0 22500 900 23400 23400 0 Particulars Case 1 Only Form 16 income Case 2 Form 16 Income+ Int on FD 3000 Case 3 Form 16 Income+ 80C 150000 Not disclosed to Company 553000 553000 23100 620 600000 50000 550000 0 0 150000 550000 400000 7500 - 23400 0 0 23400 Tax Rebate Net Tax Cess @ 4% Tax+Cess Less Annual TDS (1950*12) Balance Tax 0 7500 23100 924 24020 23400 600000 50000 550000 0 3000

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.