YOU NEED TO KNOW FORM A16, B12, ETC?
INTRODUCTION
Form 16A is a certificate of tax deducted at source (TDS) issued by a person other than an employer to a person who has received income other than salary. For example, a bank may issue Form 16A to a person who has received interest income from a fixed deposit, or a property owner may issue Form 16A to a tenant who has paid rent. Form 16A contains details of the income received, the TDS deducted, and the tax payable. It is required for filing an income tax return in India.
Form 12A is a certificate of exemption from income tax for certain non-profit organizations under Section 12A of the Income Tax Act, 1961. This form is issued by the Income Tax Department to organizations.
Form 12B is a certificate of tax deducted at source (TDS) issued by an employer to an employee who joins a new organization or corporation in the middle of the financial year. Form 12B contains details of the salary paid to the employee, the TDS deducted, and the tax payable. Form 12B is required for filing an income tax return in India. The main purpose of Form 12B is to help the new employer calculate the TDS to be deducted from the employee’s salary. The new employer will need to know the employee’s income from their previous employer, as well as the TDS that was deducted by the previous employer. This information is provided in Form 12B.
HERE ARE THE STEPS ON HOW TO FILL FORM A16, B12,?
Form A16
- Download the form from the website of the Income Tax Department of India.
- Enter your PAN number in the space provided.
- Enter the name of the person who deducted the TDS in the space provided.
- Enter the TAN number of the person who deducted the TDS in the space provided.
- Enter your name in the space provided.
- Enter your address in the space provided.
- Enter the nature of income in the space provided.
- Enter the amount of income in the space provided.
- Enter the TDS deducted in the space provided.
- Enter the tax payable in the space provided.
- Sign and date the form.
Form B12,
- Download the form from the website of the Income Tax Department of India.
- Enter your name in the space provided.
- Enter your PAN number in the space provided.
- Enter your residential status in the space provided.
- Enter the date of joining the new employer in the space provided.
- Enter your salary income from the previous employer in the space provided.
- Enter the TDS deducted by the previous employer in the space provided.
- Enter your salary income from the new employer in the space provided.
- Enter the TDS to be deducted by the new employer in the space provided.
- Enter the tax payable in the space provided.
- Sign and date the form.
ADVANTAGES
Form A16
- It helps individuals report their total income, including income from non-salary sources.
- It can be used to claim deductions and exemptions for income tax purposes.
- It can be used to calculate the amount of tax payable.
- It is a required document for filing an income tax return in India.
Form B12
- It helps the new employer calculate the TDS to be deducted from the employee’s salary.
- It helps the employee claim the TDS that was deducted by their previous employer.
- It is a required document for filing an income tax return in India.
DISADVANTAGES
Form A16
- It can be difficult to obtain Form 16A from all sources of income.
- It can be time-consuming to gather all the information required to fill out Form 16A.
- It can be difficult to calculate the correct amount of tax payable using Form 16A.
Form B12
- The new employer may not be able to obtain Form 12B from the previous employer.
- The employee may not have kept a copy of Form 12B.
- The information in Form 12B may be inaccurate or incomplete.
CONCLUSION
Form 16A, 12A, and 12B are important forms for individuals and non-profit organizations in India. They can be used to report income, claim deductions and exemptions, calculate tax payable, and file an income tax return. However, there are some disadvantages to these forms, such as difficulty in obtaining them, time-consuming process to fill them out, and complex application process. Overall, Form 16A, 12A, and 12B are useful forms that can help individuals and non-profit organizations in India with their tax matters. However, it is important to be aware of the disadvantages of these forms and to take steps to mitigate them
HOW AURIGA ACCOUNTING HELP YOU
Form A16:
- Understanding the Purpose: Auriga Accounting would first explain the purpose and significance of Form A16. Form A16 is related to the deduction of tax at source (TDS) from income other than salaries.
- Data Gathering: They would assist you in gathering the necessary financial and transaction data required to fill out Form A16 accurately. This may involve reviewing your financial records and transaction history.
- Calculation of TDS: The firm would calculate the TDS amounts based on the applicable rates and provisions of the Income Tax Act, ensuring that your calculations are in compliance with the law.
- Filling out the Form: Auriga Accounting would help you complete Form A16 with the correct details, including the TDS deducted, your tax information, and the recipient’s details.
- Submission: They would guide you on the submission process and the deadlines for filing Form A16 with the relevant tax authorities.
- Compliance Check: Before submission, the firm would likely conduct a compliance check to ensure that all the details provided are accurate and in line with tax regulations.
Form B12:
- Understanding the Purpose: Auriga Accounting would explain the purpose and significance of Form B12. Form B12 is related to the disclosure of shareholding patterns by certain entities, such as non-banking financial companies (NBFCs).
- Data Gathering: They would assist you in gathering the necessary data related to your shareholding, including details about the type and number of shares held.
- Form Preparation: The firm would help you prepare and fill out Form B12 accurately, including providing the required information about shareholding patterns and changes.
- Submission: Auriga Accounting would guide you on the submission process and deadlines for filing Form B12 with the appropriate regulatory authorities.
- Compliance Check: Before submission, they would likely conduct a compliance check to ensure that all the details provided are accurate and in line with regulatory requirements.
