What is Form 16? it is very important to file ITR, know here the easy way to verify validity.

You get to hear many times about Form 16. After all, what is this Form 16? What is the need of it? It is important to understand such questions.

If your income is from salary, that is, you work, then you file your Income Tax Return (ITR) every year and Form 16 is required. Actually, in a way it is one of the most special income certificate for job seekers. It is also necessary to verify the validity of this form.

What is Form 16?

According to the income tax law, any company or employer has to deduct TDS according to the income tax slab rate for that financial year while making salary payment. Companies do their tax calculations based on the employee's estimated earnings and investments, initially or during the year.

Form 16 shows how much TDS is deducted in a year. How much tax is deducted in which item? You know how many savings you have made. Based on this, your ITR is submitted. Income tax also considers Form 16 as the basis whether your declared income is in Form 16 or not.

This is how you can verify

Once you obtain a TDS certificate, check that it has the TRACES logo. TRACES stands for TDS Reconciliation Analysis and Correction Enabling System of Income Tax Department. In addition to downloading Form 26AS, the TRACES website also helps to verify the validity of the TDS certificate obtained by you. The digital signature on your TDS certificate should also be verified. If you have any doubt about the TDS certificate obtained by you, you can check the validity of the same on the TRACES website.

The TDS certificate is required to be downloaded and issued by the deductor from the TRACES website. The department has also made it mandatory for employers to issue Part-B of Form 16 by downloading from TRACES.

These steps have to be followed

• First go to www.incometaxindiaefiling.gov.in .
• Login to your account through user ID. User ID is your PAN.
• Under the 'My Account' tab, click on 'View Form 26AS (Tax Credit)'. You will be redirected to the TRACES website.
• On the TRACES website, click 'Verify TDS Certificate' under the 'View / Verify Credit' tab.
• Click Verify. If the TDS certificate obtained by you is valid, the website will show the same result.
• However, if the website shows that the TDS certificate is not valid, then you should contact the tax deducting company and ask for a valid TDS certificate.