Hello, in this tutorial we will learn the Form 16 generation, request, and download in Saral TDS.
What is Form 16?
Form 16 is the TDS certificate given by the Employer to the employee for the TDS deducted from the salary of the employee. This also acts as a proof of income and tax deduction during Income Tax Return filing of the employee.
The process of generating Form 16 in Saral TDS is as below;
First, a request for Form 16 has to be placed at TRACES. This is done by going to TRACES Account option under Tax Related menu.
In this window, select on Bulk Form 16 File under Request for with the Form, Quarter and PRN details. Provide the TRACES login credentials and click on Request.
PRN will be auto fetched if it is entered in Acknowledgment number window.
Next, enter the Captcha text and continue. You will be redirected to TRACES login and asked for the confirmation for Authorized Signatory. Confirm the details.
If there is a change of information, go to Profile option in TRACES and do the relevant changes.
On continue, the KYC details (Form, Challan & PAN-Amount details) required for placing the request will be auto fetched from the software. You have to verify the details and click on Proceed.
On successfully placing the request, you will be given with a Request id for your reference. After one working day of placing the request, the form 16 file can be downloaded from TRACES.
To download the file, go to TRACES account window in Saral TDS and select on Bulk Form 16 File under Request for with the Form, Quarter and PRN details. Provide the TRACES login credentials and click on Download.
You will be redirected to Requested Downloads screen in TRACES. Here the related file will be selected and downloaded. The downloaded file will be in ZIP format.
The file downloaded will be in ZIP format and password protected. The password is your TAN.
Using this file, the required Form 16 has to be generated from Saral TDS.
To generate Form 16 in Saral TDS, go to Form 16 under Form 24Q menu.
In the window displayed, TRACES Data option will be selected by default. The file name of the Form 16 generated will be as selected in File Format.
Next, go to the three dotted button (“…”) and select the downloaded zip file (Form 16 file).
On selecting the file, the details available in the file will be displayed.
Tick Select All checkbox to select the details for Form 16 Generation. To view the deduction details of an employee, select the employee and all the related details will be listed in the below box.
Now, to generate the PDF Form 16, click on TRACES PDF Converter button.
The TRACES PDF utility for Form 16 generation will be launched and the zip file along with the required password and the path for saving the PDF will be auto-read. If the PDF has to be digitally signed, then browse the PFX file or select for the browser certificate store and click on Proceed to start PDF generation.
Make sure the JAVA version in the system is 7 with update version number 25. Higher or lower version of JAVA will not support PDF generation.
The file generated is the PART A of Form 16. The PART B of Form 16 is the Tax Computation for the employee which is fetched from the software and merged with PART A generated.
To merge PART A and PART B, go to TRACES (PART A) -><- Saral TDS (PART B) tab.
The entire employee’s details available under Tax Computation will be listed. To view the deduction details of an employee, select the employee and all the related details will be listed in the below box.
To merge the details, select the employees and click on Start. Merge window will be displayed.
Here, select the path of the folder were the PART A PDF file (TRACES Generated) are available. PART B folder path will be auto taken. The folder path for Merged PDF will also be auto taken. You can change the path if required.
Now, click on Merge to merge the details. The process will merge the PART A PDF file with PART B details and a new file with both details will be created.
If PART A or the PART B of the employee is not available for merging, then the information of missing details will be shown in a notepad.
Few other options available during Form 16 generation are digitally signing the form, creation of cover letter for the form, providing TDS summary and generating 12BA Annexure. These options can be enabled as shown below;
These options have to be enabled before merging PART A & PART B.
You can also email the Form 16 to your employee if Email configuration is done for the software. To email, select the required employees and click on the e-mail button given in the TRACES Data tab. The email will be sent to the mail ids of employee entered in the employee master window.
With these processes, Form 16 can be generated and given to the employees.