All about Form-16 generation and filing your tax returns

By: K Karma | Posted: 25th February 2011

Employees who work in an organization receive their salaries after tax deduction. The term is So, to put it in a nut shell, this form contains the information of the tax deduction done by the organization on each employee’s earnings. After the deduction process, the amount of Form-16 known as Tax Deducted at Source (TDS). For this, the organization should go ahead with the issue with all the information of the salary components and the tax deduction of each worker. All financial numbers of all the months in the financial year will be shown in this form. deduction will be directly paid to the income tax department on behalf of the worker. Later on, the employee can utilize this Form-16 to file his/her income tax returns. If a person simultaneously works for two different organizations then two different forms will have to be submitted. Now there are few softwares which creates combined FORM16 too.

Now, when it comes to handling this process of paper work at the end of the financial year, it really becomes hectic for any organization. Previously, this paper work was supposed to be done manually. It means you have to sign on the form and deliver it manually; this process could be time consuming and could pose a lot of headaches. If you lose the piece of paper somewhere, you will have to again start the whole process of paper work from scratch. When all companies are spending a lot of money on the man power, the time and efforts spent in this process go waste. This is the reason why the practice of digitally signing these forms became popular. This way, everybody can save a lot of time, efforts and money too. This practice has also been accepted by the Information technology act.

When it comes to legal validity, in this case digital signature is accepted as a manual one. You can go ahead with the Form-16 generation with the help of a software program which enables a digital signature for your e-filing. There are many user friendly products which enable you to go ahead with the whole process without any hassle. You can start going through this paperless environment friendly process which is secure and easy. You can further mail these forms through your email or SMTP server. A lot of revenue is saved with this practice and this is why many companies and individuals started using these programs or software which simplifies the work through digital signatures.

As an employee, it is better to completely know about this process so that you can start using such procedures which help you to save a lot of time as well as money and efforts. Form16 generated through software can easily be used for e-filing purpose. The employee can upload his/her digital Form16 details automatically into the e-filing portal and file his return. Such process clearly saves time and effort and increase the accuracy of filing. Also, it is to be noted that e-filing helps in getting refunds faster than manual filing from the Income-tax department.

There is quite a lot of information available on the Internet if you further want to gain a better picture about how to go about this whole process of signing digitally. Apart from that, if you want information about the process of e-filing, you can surely do a small research and get all your doubts clarified. Most of the organizations have already started this practice and you can surely contact the financial department of your organization in order to know more information about the whole practice.
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Tags: time consuming, scratch, headaches, software program, piece of paper, salaries, time efforts, nut shell, digital signature, friendly products, digitally, tax deduction, income tax returns, man power, e filing