Form 16 Decoded: Your Essential Guide to Salary, TDS, and ITR Filing

• Form 16 is an employer-issued certificate summarizing salary, TDS, and statutory components, crucial for ITR filing.
• Part A details employer/employee PAN/TAN, TDS deposited, employment period, and challan information.
• Part B provides a detailed salary breakup, including basic salary, allowances, perquisites, and retirement benefits.
• It lists taxable vs. exempt allowances (like HRA) and perquisites valuation, impacting gross salary.
• Form 16 also reflects deductions under Section 80C, 80D, standard deduction, and compares tax payable vs. tax paid.

Why It Matters: Form 16 is vital for accurate ITR filing, detailing salary, TDS, and deductions for tax compliance.