BEST Employee Form 16 tax VERIFICATION SERVICES
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The Requirement of Form 16:
Form 16 assures a few things that the employers need to know before they appoint anyone. The covered details assure that the employee’s tax has been submitted to the government. Further, it lets the new employer continue with the tax submission for the employee. On top of that, the employees also get the benefit of this form. They can easily apply for mortgage, lease or loan in any financial institution on the basis of this form.
However, the employers who do not deduct tax as per the provision of the Income Tax Act cannot issue Form 16.
Form 16 verification in Chennai is very much important. Chennai is among the business hits in India. And obviously, it leads to a tedious for HR. As the businesses there are Chennai are amazingly developing day in and day out. To increase the production a huge amount of labor force is acquired. And managerial staff is hired to keep the labor engaged.
Along with that, the sales are marketing teams even inflate. Since their turnover rate is quite high. Similarly, the Form 16 verification in Hyderabad is also of great importance.
The background verification process becomes quite easy with Form 16. Because the HR will not have to wander around to verify the prospect information of the candidates appearing for the job post. Instead, everything is there on Form 16, in terms of remuneration.
The Form 16 background verification in Bangalore can help the HR departments of the software houses to verify the background of the applicant. Besides the remuneration and salaries, it also provides information on the employer who issued it.
Components of Form 16:
There are two parts of Form 16. The first part includes the credentials of the issuing employer and the employee. Information includes addresses and the tax identification numbers of the employer and employee. Along with that, it includes the statement of the amount paid as a tax by the employer on behalf of the employee.
The second part shows the computation performed to deduct the tax. It provides information on gross and net salary, exceptions, deductible income, tax charges, rebates, reliefs, bonuses and incentives, and their treatment. This is a detailed and very essential part of Form 16. Verification of this part is essential to avoid any imminent fraud.
There are very few things that differentiate an original Form 16 from a counterfeit form. In certain situations, some employees seek to misrepresent their past experience, just for a so-called personal gain. They make up a fake Form 16, either by themselves or through a data entry expert who had created the fake form in the past. Well, to qualify a counterfeit form, first compare the clauses mentioned on the form. They need to keenly read, as there will be a minor error that is hard to identify. Such as a typing error.
Ahead of that, the official seal of the previous employers, signatures, and stamps are the next verification part. Further, the form can be verified through the previous employer. The paper quality is not an identification of the Form 16 validity. Because employees who have been working in various places may have multiple Form 16. And if not kept safely, the oldest one may be in the bad shape.
Form 16, often referred to as the Salary Statement or Certificate, is a statement of salary. The form is issued to the employees by their employers. Form 16 is derived from the Income Tax Act of 1961. The original purpose of the form is to relate the taxable deductions made by the employer throughout a financial year. Further, the form could be issued once in a year. As per the law, Form 16 serves as the acknowledgment on the part of the employer to the employee that a certain amount of tax has been deducted from their salary and submitted with the income tax department. The prescribed period to issue Form 16 reaches after a financial year or the employment year completes. Ahead of that, the Form 16 background verification process is pretty vital. As it carries details of incentive remuneration, bonuses, and advantages provided to the employee.