Form-16 in detail

[Former Member]

Hi,

In this document we will analyze all the wage types which will be picked up to create Form-16 in Indian Payroll

It is very important to understand which wage type is picking up to create which section.

PART B of Form-16

DETAILS OF SALARY PAID AND ANY OTHER INCOME AND TAX DEDUCTED

1. Gross salary

a)      Salary as per provisions contained in sec.17(1) - /416 - (perks under section 17(2) i.e. 1(b) + profits under section 17(3) i.e. 1(c)

b)      Value of perquisites under section 17(2) ( as per Form No.12BA, wherever applicable ) - Taxable perk when specification of evaluation class is not equal to 17 + /4VJ wagetype

c)       Profits in lieu of salary under section 17(3) ( as per Form No.12BA wherever applicable ) - Taxable profits when specification of evaluation class is equal to 17 + /4VK wagetype

d)      Total - /416 Gross Salary

2. Less: Allowance to the extent exempt under section 10 - /130 Exemption U/S 10 wagetype

3. Balance(1-2) - /418 Balance wagetype

4. Deductions:

  (a) Entertainment allowance - /422 Empmnt tax (Prof Tax) wagetype

(b) Tax on Employment  - /424 Aggrg Deduction wagetype

5. Aggregate of 4(a) and (b) - /424 Aggrg Deduction wagetype

6. Income chargeable under the head 'salaries'(3-5) - /426 Incm under Hd Salary wagetype

7. Add: Any other Income reported by the employee - /131 Any other Income wagetype

8. Gross Total Income (6+7) - /430 Gross Tot Income wagetype

9. Deductions under chapter VI-A Gross Amount Deductible
   A) sections 80C, 80CCC and 80CCD Amount
      a) section 80C
          i) Employee Provident Fund - /3F6 Ee Ann PF contribution wagetype
       (b) section 80CCC - Section 80 contribution amount and Section 80 deductible amount
       (c) section 80CCD 

B) other sections (for e.g. 80E, 80G etc.) under chapter VIA
Gross amount Qualifying amount Deductible amount
(a) 80E(01)
10. Aggregate of deductible amount under Chapter VIA - Deductions under section 80 and 80C  = /432 Agg of Chapter VI wagetype
11. Total Income(8-10) - /434 Gross  Total Income wagetype
12. Tax on total income - /436 Tax on total Income wagetype

13. Education Cess @ 3% (on tax computed at S.No 12) - /447 + /449 Sec and Higher Educ Cess and Education Cess wagetype
14. Tax payable (12+13) -

15. Less: Relief under sec 89- /451
16. Tax Payable (14-15) 

>> Verification

I, son/daughter of ( From person responsible field of selection screen) working in the capacity of do hereby certify that a sum of INR FOUR

true, complete and correct and is based on the book of accounts , documents,TDS statements, TDS deposited and other available records.

Check the sample form-16 taken from SAP wiki pages_

Thanks,

Gaurav Sharma