Wages Form With Example
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How to fill out Complaint For Recovery Of Unpaid Wages?
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Key components of Form 16A: Name and address of the employer. Name and address of the employee. PAN (Permanent Account Number) of the employer. TAN (Tax Collection Account Number) of the employer. PAN of the employee. The period for which the employer has calculated the tax on salary.
It is mandatory for every employer who has deducted any tax at source to issue Form 16 to you. Employers can issue Form 16 in print or soft copy downloaded from their account on the TRACES website. Your employer can also guide you to any outsourced online payroll platform, from where you can download your Form 16.
Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance. If you receive HRA and live on rent, you can claim exemption on HRA.
Now, one pays tax on his/her net taxable income. For the first Rs. 2.5 lakh of your taxable income you pay zero tax. For the next Rs. 2.5 lakhs you pay 5% i.e. Rs 12,500. For the next 5 lakhs you pay 20% i.e. Rs 1,00,000. For your taxable income part which exceeds Rs. 10 lakhs you pay 30% on the entire amount.