Difference in Salary Amounts between Part A and Part B of Form 16
The Income Tax Department notified a new format, comprising Part A and Part B, for Form 16 in 2013. As you would be aware, Part A comes from the TRACES site while Part B is created by the employer. There are salary and tax details in both Part A and Part B. Even after 2 years since the new format was introduced, we find many payroll managers not being clear about the basis of salary and tax figures in Part A and Part B of Form 16.
Part A of Form 16
Any employer who deducts tax on salary needs to file what is called Form 24Q, the quarterly return which presents the salary paid to an employee and the tax deducted/remitted for each employee each quarter. Annexure I of Form 24Q presents the deductee wise (employee wise) details of the salary paid (in the column with the heading “Amount Paid or Credited”) and the tax deducted for each employee (in the column with the heading “Total TDS (Total of columns 321 and 322)”).
If an organization runs monthly payroll, and an employee has salary and tax deduction for all the 3 months in a quarter, annexure I of Form 24Q should contain the salary paid to and the tax deducted from each employee (as per employee PAN) for each month in the quarter. This means that each employee who receives salary for all the months in a quarter should have at least 3 rows against his PAN in Form 24Q.
Now, what is meant by “Amount Paid or Credited” in Annexure I of Form 24Q?
The Income Tax Department has not specified the exact meaning of the above term anywhere. Organizations have understood the term as referring to the gross pay paid to an employee each month.
Once a Form 24Q is filed, the tax department updates Form 26AS of an employee with the salary and tax details presented in Annexure I of Form 24Q. In addition, the tax department uses Annexure I information to populate Part A of Form 16 which is downloaded from the TRACES site after Form 24Q for the last quarter is filed.
An extract from Part A of Form 16 is as follows:
The salary (Amount paid/credited) and tax amounts (Amount of tax deducted) in the above are from Annexure I of Form 24Q filed each quarter.
Part B of Form 16
The Form 24Q filed for the last quarter (Jan to Mar) of a tax year should contain data in both Annexure I and Annexure II (in contrast, Form 24Q for the first 3 quarters contains data only in Annexure I and Annexure II is left blank). Data in Annexure I of Form 24Q (last quarter) gets into Part A of Form 16 while Annexure II data contains the total salary paid, tax exemptions/deductions claimed and the TDS for the year. The Annexure II data is what the Income Tax Department considers for verifying the annual tax liability on an employee’s salary. Also, the Annexure II data should match with the salary, tax exemption and TDS information provided in Part B of Form 16 issued to employees.
An extract from Part B of Form 16 is as follows:
Should amounts in Part A and Part B match?
Ideally, the total tax amount shown under “Amount of tax deducted” in Part A of Form 16 should match with the tax amount shown against “Tax payable” (total of Income Tax, Surcharge and Education Cess) in Part B. If the tax figures do not match between Part A and Part B, we can conclude that there has been either under or over deduction of tax from an employee’s salary.
What about the salary figures between Part A and Part B?
Many payroll managers argue that the salary figures in Part A and Part B should match, in addition to the tax figures. We are of the view that this is incorrect. The salary figures between Part A and Part B need not match for the following reasons.
1. An employee may not feature in Form 24Q of all 4 quarters.
According to the Income Tax Department, an employee need not feature in Form 24Q until there is a tax deduction. However, once there is a tax deduction for an employee, the employee should feature in Form 24Q, pertaining to the quarter in which the tax deduction occurs, and continue to feature in Form 24Q until the last quarter. For example, if an employee has no tax deduction in April, May and June months, the employer need not show the employee in Annexure I of Form 24Q of the first quarter. If the employee has tax deduction in June, the employer has to feature the employee in Form 24Q of the second, third and fourth quarters – even if the employee does not have any tax deduction after June until the end of the year.
In the above example, the total salary amount shown in Part A of Form 16 issued to the employee will be the sum of salary paid to the employee from June to March. In contrast, the salary figure in Part B of Form 16 shall be the total salary paid to the employee from April to March.
Here is the Part A of an employee who does not feature in the first quarter Form 24Q because of zero tax in the first quarter.
As you can see, there are no salary and tax amounts for Q1 and the employee’s total salary of Rs 595,450 reflects the salary of only 3 quarters. In contrast, the salary shown in Part B shall be higher than Rs 595,450 (on account of the salary for the first quarter getting included).
2. Perquisite values are not typically shown in the salary amounts shown in Part A.
The salary amount shown in Part B includes values of perquisites provided to employees while Part A may not contain the same. For example, perquisite value of interest free loans provided to employees is included in the salary amount shown in Part B of Form 16 while the “Amount paid/credited” in Part A does not include the perquisite value.
3. Some tax free reimbursements may not be shown in Part B.
Some organizations include fully non-taxable reimbursements (such as telephone bill reimbursement) in Part A while leaving out such reimbursements in Part B.
The Income Tax Department has stated that the total salary amount across Annexure I (Part A salary figure) of the 4 Form 24Q files in a year need not match with the total salary amount shown in Annexure II (Part B salary figure) of the fourth quarter Form 24Q.
In other words, salary amounts between Part A and Part B of Form 16 need not be equal.
An alert in the tax return utility
The Income Tax Department has introduced an alert in its tax return utility this year (AY 2015-16). In the return utility there is a tab titled “Income Details” in which assessees should enter the income from salaries.
If an employee has worked with just one employer throughout the year, he should be entering (against “B1” in the the above) an amount which should be the same as the “Income Chargeable Under the Head Salaries” presented in Part B of Form 16 issued by his employer.
In the return utility there is another tab called “Tax Details” in which the department presents the salary and tax details as per Part A of Form 16.
The figure under “Income Under Salary” in the above is the total Part A salary amount.
If the “Income from Salary” figure in the “Income Details” tab is less than 90% of the salary presented under the “Tax Details” tab, the return utility displays the following alert message.
Given that this alert is as a result of a comparison of Part A and Part B salary figures, the question that begs an answer is as follows:
Does the alert mean that Part A and Part B salary figures should be equal?
The answer is no for the following reasons.
1. The Part B salary figure entered in the return utility is after Section 10 exemptions (such as the House Rent Allowance exemption) and hence the figure cannot be equal to the Part A figure unless there is zero Section 10 exemptions.
2. The alert gets triggered only if the Part B salary is less than 90% of Part A salary. In case the Part B salary is more than 90% of Part A salary, there is no alert. Hence, the alert should not be construed as indicating that the Part A and Part B salary figures should be equal.
In our view, the alert simply serves as reminder to the assessee to re-check the numbers for the purpose of ensuring accuracy. If all the figures are correct, an assessee can click “OK” on the alert screen and submit the return even if the Part B amount is less than 90% of the Part A amount.
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Leave a Comment (135) ↓
Respect sir
As per form 16 part A ₹9568 was deducted and deposited,but as per part B its shows tax deducted from salary ₹12282. Why?
I presume you are referring to the “Tax Payable” figure in Part B. There may be more than one reason for the difference in tax numbers between Part A and Part B.
1. It could be a case of under-deduction of tax where the tax liability was calculated as Rs 12,282 while the actual deduction and remittance happened only to the extent of Rs 9,568.
2. It could be a case of mistakes in Form 16 Part B generation where the tax number is incorrectly reported in Part B.
3. It could also be case where an employee’s PAN was incorrectly reported in Form 24Q in the initial quarterly filings and subsequently changed in later quarterly filings but the initial filings were not subsequently rectified.
Unless we see the actual Form 16 it would be difficult to state why this happened.
Hi, in my form 16, part a amount credited is greater than gross income in part b, is that OK.
Part A salary can be greater than Part B salary under certain circumstances. Please check with your employer as to why there is a difference, in order to satisfy yourself that the difference is not on account of any mistake.
tAX CREDIT AVAILABLE AS PER 26AS FORM is correct but total amount paid (pension) is only for 11 months. Can file my ITR1. But las year also it happened but my employer never rectified and gave me the correct for 16 till even today. However I filed the return and got the refund also. Is my position correct. will the IT department issue notice under any section?
I am unable to understand your question. In particular, what do you mean by “my employer never rectified and gave me the correct for 16?” Please note that if your return does not contain information as per your Form 16, you are likely to receive a query from the Income Tax Department.
your website is very useful and look forward to you answer for my query as above
Hi,
Last year there was a difference in my salary in Part A and Part B. Part A salary was less than Part B. While filing income tax return by default Part A salary was coming so I did not cross check and filed the return. Since my tax were deducted as per Part B salary I got a refund too and no query from the ITR department till now.
This year also I don’t know why my Part A salary is lesser than Part B salary and the income tax portal Part A salary is being displayed. Should I change the amount there or fill the return with Part A salary only?
Part A salary can be different from Part B salary for a variety of reasons. Please file your return as per salary and tax information presented in Part B.
sir,
I find your clarification on the difference between Part A and Part B on total salary/pension paid was very much informative and excellent explaining the concept of Form 24Q.In my case the amount in PART B was more than PART A OF TDS because,which I now understand, there was no need of tax deduction in the Feb month 2016 Pension (due to over deduction of Tax in earlier months) and the amount of pension received in of Feb is not getting reflected in PART A.
Since amount in PART B is more and correct I will be filing based on PART B.
I request for two more other clarifications:
1. My employer (Govt) has not incorporated my 1.5 lac PPF contribution although I have furnished the proof of Payment by furnishing certified copy of Pass book during middle of the FY. itself. I have now requested. can he give corrected PART B. There is no correction needed on Tax Paid.If correction is not done where I have to prove this contribution in the return.
2. I am filing ITR4 with no account case. Accordingly I have filled the profit only last part of BS and P/L sections in no account case columns.Still while validating excel utility the error message appears saying ‘both BS and no account case filled’ .Can I ignore and file the return now.I understand many people are getting such error message.Is such message is due to the amount of profit of being shown by me is about 10 lacs from academic contributions. Thanking you.
1. My employer (Govt) has not incorporated my 1.5 lac PPF contribution although I have furnished the proof of Payment by furnishing certified copy of Pass book during middle of the FY. itself. I have now requested. can he give corrected PART B. There is no correction needed on Tax Paid.If correction is not done where I have to prove this contribution in the return.
Ans: Yes, your employer can make the correction by filing a revised tax deducted quarterly statement (Form 24Q) with the Income Tax Department. In case your employer does not do it, you can show the PPF amount in your tax return and seek a refund, if applicable.
2. I am filing ITR4 with no account case. Accordingly I have filled the profit only last part of BS and P/L sections in no account case columns.Still while validating excel utility the error message appears saying ‘both BS and no account case filled’ .Can I ignore and file the return now.I understand many people are getting such error message.Is such message is due to the amount of profit of being shown by me is about 10 lacs from academic contributions.
Ans: We are note sure why this is happening. Some people have reported this as an Excel utility problem. Apparently, the Java utility works without any issue.
Sir,
My employer has taken into account my savings (u/s 80c) to calculate “Amount Paid/Credited” in Part-A, which I think is incorrect. That is why there is a difference of 1.5 lakhs (savings under chapter VI) in “Amount Paid/Credited” in Part-A and “Income chargeable under the head salaries”.
For instance:
Amount Paid/Credited (Part-A) = 3.9 lakh
Income chargeable under the head salaries (Part-B) = 5.4 lakh
While filing ITR, I will enter “Income from Salary” = 3.9 lakh (from Part-A and not from Part-B) and “Deductions (under chapter VIA)” = 1.5 lakh, resulting in “Taxable Income” = 2.4 lakhs. This way I dont have to pay tax (which is INCORRECT!!).
I am skeptical why is “Amount Paid/Credited” lesser than the actual amount. What is your opinion on this?
I am skeptical why is “Amount Paid/Credited” lesser than the actual amount. What is your opinion on this?
Amount shown in Part A can differ from the salary figure in Part B for a variety of reasons. It need not always be on account of a mistake.
For example, let us assume that an employee had no income tax deducted in the first quarter of a year. As a result, the employer does include the employee details in the first quarter quarterly return (Form 24Q) filed with the Income Tax Department. The employee has income tax deduction from the second quarter onwards and as a result, the employer includes the employee information in the Form 24Q return from the second quarter onwards. In this case, the total amount paid/credit in Part A will not include the first quarter salary information. As a result, the total annual income figure in Part A will be lesser than that in Part B.
Of course, the difference can also be on account of a mistake.
Please check the Part B figures and see if the numbers are correct. While filing ITR please use the income figure from Part B and not Part A.
Gautham,
Your reply mentions the same example as mentioned in (well written) article by you above.
I want to confirm that according to Part-A and form 26AS, tax has been deducted for all the quarters, so the above possibility is clearly ruled out.
Figures in Part-B are correct, but I will refer to figures in Part-A (which is lower) while filing the ITR. Income tax department specifically mentions “Please insist on getting Form 16/16A from your Deductor downloaded only from Traces.”
Can you please address my concern with respect to the specific example I have taken in my post.
Thanks
If all four quarters are visible in Part A, the difference could be on account of some perquisite amounts (say, loan perquisite) shown in Part B but not in Part A. Other than these, the only other possibility is that there are mistakes in Part A figures.
I have no idea why there is a (rather large) difference of Rs 1.5 lakh between Part A and Part B in your Form 16. The correct answer to your question can be provided only by your employer. Please check with your employer on the basis of the Part A figures.
So “Income Under Salary” in “Tax Details” should be kept as per Part A of Form 16 or it should be modified as Part B of form 16
Regards,
Barun
I am unable to understand your question. Please rephrase it.
Hi,
Situation:
I worked at a company from Apr to Jan (was unemployed for Feb and Mar). That company paid me salary for the months from Apr to Nov. The salary for Dec and Jan is pending.
Today when I received my Form 16, the Part B had included the salary for Dec and Jan. Basically, salary paid is X, salary shown in Part B is Y and Y is greater than X.
The CA of the company says that they can’t change my Form 16 as the tax has already been booked and Professional tax has already been paid for the same.
Problem:
I haven’t received salary for Dec and Jan (I will get it but in Oct this year), and since I didn’t get salary, the company hasn’t paid any TDS for 2 those months.
Question:
What I want to know is, is that correct? Should I pay tax on the money that I haven’t received yet even though it’s due?
I researched this a bit and found section 89 (Arrears). From what I understood, either I can pay tax for the salary of those months in that FY and claim relief in this year, or I can skip paying tax for them in that FY and pay tax this FY.
How do you suggest I proceed? You might also want to know that I won’t be having any income this year (I’ll have minimal income from Saving account or FD of about Rs. 10,000)
You say that your Dec and Jan salary are included in Part B of Form 16 but the TDS has not been deducted for the same. How do you say that? Is your Form 16 Part B showing under deduction of tax? Can you please answer this for us to take this discussion forward?
Hi Gautam
In my form 16 part A ” Amount paid/credited ” and Part B “Income chargeable under the head “salaries”(3B-5)” there is nominal difference of inr 2.00 ..
generally our payroll taxation team does not make this kind of error ( i have checked out with my colleagues also )
is it worth it if i intimate them of thes same for correction or i can directly file the return of , putting same amount of the Part B annexure “Income chargeable under the head “salaries”(3B-5) in ITR WEBSITE >>INCOME DETAILS >>B1,income from salary and keep the same Part A ,Amount paid/credited in tax details tds1 >>income under salary
Please file the return on the basis of Part B information.
Need some help in understanding while filing income tax return
In form 16A under Part A the total salary credited is 10,00,000 INR
and under Part B the total salary credited show is 9,00,000 INR
While filling IT return which amount I should I fill?
Please advice…
Please go by the Part B figures.
Dear Gautam,
In case of mismatch in Part A & Part B, And If we filed as per part b.. IT dept will send notice
The department may send you a notice. However, there is no problem with this as long you provide the reason for the difference to the department.
Good work Gautham !
Keep it up 🙂
Hi Gautam,
I started working only from Oct’15 onwards and my total salary for FY16 is less than Rs 2.5 lacs. But total income (including bank interests and rent) is more than Rs 7 lacs. As Form 16 part A from Trace is not generated as there is no TDS deducted and only Form 16 part B is issued by my employer, if I don’t show my salary in Income Tax return, is there a way Income tax Department can trace this?
From what you are saying, it looks as though your employer has not reported your salary to the Income Tax Department since you were a zero tax employee. In such a case, the Income Tax Department wouldn’t get to know about your salary income during the normal course.
sir, some central govt office, DDO never issued Part A and Part B annexure of Form 16. It was done by in the office of the census DEPT. ASSAM. PL. ask them to issue the same. there was tax consultant appointed by the office since long.
Wondering what makes you think that any central government office will heed our words.
I received my form16 from employer… In that in form 16 part B having information like total salary paid and deduction are right… But the amount I paid as TDS is reflected in 89(I) …. But that amount should be in tax payable…. How to rectify the same??? And I don’t have any exception under section 89(I) anyway….. The form 16 is given to me is form TRACES only…. or I have to rectify the form16B information from my employer????… Or I can file the returns????
Anyway I paid full tax as per my taxable income…..
If I file returns without correcting form 16 part B any problem will arrive to me in future????
Any mistake in Part B of Form 16 will not pose any problem to you since Form 16 is given to you and not filed with the Income Tax Department. However, there is something called Form 24Q (Annexure II) which your employer would have filed with the department. Form 24Q (Annexure II) contains Form 16 (PartB) information. Any mistake in Form 24Q (Annexure II) can lead to your receiving queries from the Income Tax Department. Please check with your employer whether they have filed Form 24Q (Annexure II) without any mistake.
My Employer has Given Part A and Part B
As per Part A Income Under Salary is Only 70400 (35400 + 35000) and Tax deducted was 2500. My employer has deducted Tax in month of February and March 2016.
While in Part B Total Gross Salary is 362400
In Sch TDS 1 pre-calculated figure 70400 appears, Should I change it as per Part B given by employer?
Please change it as per Part B given by the employer.
PART A (Salary amount without Tax) should match with PART B 17(1)
Not necessarily.
Hi Gautham,
Thanks for the wonderful article and the clarifications. I think very few people would have that kind of clarity about the same.
I needed advice on a unique problem. I have mentioned the amounts in a rounded off figure so as to get the basic solution. I worked in company A from April to October (7 months = 2 quarters + 1month) and in Company B from Nov to March. While moving to company B I did not furnish the details of earnings in company A. So what has happened is that both companies have given the benefit of entire section 80C. So I have to pay the balance tax post calculation. But the problem is in the Form 16 issued by company A.
The gross earning each month in company A was Rs 100000, and the tax deducted was Rs 10000 each month so the total should have been 7 lacs and tax deducted should be Rs 70,000. However, in the Form 16(Part A) as well as Form 26 AS, the earnings is mentioned as Rs 595000 (instead of 7lacs). In form 26 AS it is given month wise so for all 7 months it mentions as Rs 85000 each. The tax deducted shows fine in both case. I would have gone ahead filing the tax as per the above, but surprisingly in the Part B of Form 16 the earnings shows as Rs 6,10,000 !! (There is no logic there)
So in nutshell:
Actual gross earning – Rs 7,00,000.
Form 26AS – Rs 5,95,000
Form 16 Part A- Rs 595000
Form 16 Part B – Rs 6,10,000
To be honest, if the Part A and B had been matching, I would have filed accordingly. But as there is difference, I am being sceptical.
Will it be a problem if I file tax as per 16A-Part A (matching with 26AS) ? As in will the check be on gross earnings? I do not want to talk with company A for any change.
I would really be grateful for your advice.
Regards,
Sameer
Please go by the Part B figures for filing your tax return. The total salary income for the year shall be the sum of the salary figures presented in Part B of the 2 Form 16s. Do not use the Part A figures for the purpose of tax return.
Thanks for the advice. However would it not be a problem because the actual earning is more by a lac ( 7lac versus 5.95 lac; can be found from bank statements and pay slips). It is a fault of the employer that Form 16 and 26AS is showing less amount. I am asking purely from the tax point of view.
There can be a difference among the amounts shown in 26AS, payslips and Form 16 (Part B) for legitimate reasons. One cannot conclude that there is a mistake in the Form 16 issued by your employer, without studying the numbers presented. As a general rule, one should go by what is stated is Part B of Form 16.
The question you have asked calls for some explanation and am not sure if I can cover it here. I will be happy to talk to you in this regard. Please call me at 044-4330 7244. Alternatively, send an email to info@hinote.in with your contact number. We will get in touch with you to discuss this.
Which ITR will be applicable for govt pensioner and During filing of itr, how will take exemption of senior citizen (exemeted Rs.300000). Pension will come in which head.
Amount and tax deduction shown in part A of form 16 is less than amount received actually as per part B of form 16.
Tax is refundable , can i get refund, if i filed itr after itr filing due date also.
Pension should be shown under the head Income from Salary. Please choose the ITR (https://incometaxindiaefiling.gov.in/e-Filing/Services/DownloadItrLink.html) which is applicable to you. Refund can be claimed even if the return is filed past due date.
What is tha treatment of pf contribution by employer in 24 Q?
Employer PF contribution, to the extent it is not taxable, is not shown in Form 24Q at all. Any taxable Employer PF contribution should be shown as part of taxable salary presented in Form 24Q.
I want to declare my previous job salary to new company so that they can deduct TDS accordingly. My new company is asking to provide salary certificate for the same.
Is it possible to get only Part B of Form 16 in the middle of the year? As form 16 will be issued after Q4 though In previous job no TDS was deducted.
Can I provide Form 12B as salary certificate? IF yes do I need to submit anything else with it?
Organizations typically do not issue Part b alone. You could seek a tax working sheet from the previous employer and submit it to the new employer along with Form 12B.
Hi
I got my FORM16 A and B but the amount credited in FORM16 A is lot more compared to FORM16B , the TDS deducted from employer is on FORM 16 A but in form 16 B it was mentioned as Tax payable is less
do we need to correct any of the FORM16s
BR
Venkat
Please check with your employer in this regard. Only they can answer if the difference is on account of a mistake.
hello ,
i want to know that in Tax details (tab-3) of ITR-1,we have to fill according to 26 AS total amount credited or that we have filled in B1, in INCOME UNDER SALARY(col 3)
As B1 is written after exemption while tax details is reflected from 26 as.
so kindly clarify the issue.
It should be as per Part B of Form 16 and not as per the amount you see in Form 26AS.
Dear Sir,
would like to explain my case.
I left the “w” company on 28th march 2016
my full and final for the fy 15-16 was pending .
in the form 16 fy 16-17 , “w” company shows amount credited against my pan number of “xyz”
but that amount is not credited in my account .
is this possible…
there is tax liability against the same amount but the “w” is not giving that money neither ready to correct the form 16
I am unable to fully understand your question. Are you saying that your settlement amount was paid in the subsequent year (FY 2016-17)and no tax was deducted on the same?
This is very informative and in simple words. Thank you very much.
Sir,
The information being furnished by you is very useful. In one case the particulars of salary paid and I.T deducted for one month was not incorporated in Part A, but included correctly in Part B. How to get it rectified please.
Please refile the corresponding quarter’s (to which the month’s salary and tax details, which were not included, pertain) Form No 24Q and generate a fresh Part A from the TRACES site.
The assessee is a salaried employee, having worked in several organisations over the period of last P.Y. One such salary comprises of 34000 p.m. basic pay and 68000 p.m. as SUPPLEMENTARY ALLOWANCES (with no defined breakup in the salary slip whatsoever ), Form 16 adequately reflects the said amount.
My query being, the supplementary allowances might very well comprise of certain exempt allowances (conveyance, tour, meal, education) which will certainly reduce the income.
Do we HAVE to show the salary as per form 16 or is the said assessee allowed to compute so himself ( by breaking up the 68000 ) and disclose that amount only?
For any amount to be non-taxable, it should be paid under a specific tax-exempt head (conveyance, tour medical etc.) and the employer should comply with the respective tax rules (collection of receipts/bills etc.) Only then specific exemptions (under section 10 and other sections) can be applied. If a consolidated payment is made under the head “Supplementary Allowance” and the employer collects no bills/receipts for the same, the amount will be fully taxable.
Mr. Gautam,
Apart from the TDS certifiate (TRACES Form16) provided by my employer(Govt), I received TDS certificate in Form 16A from my bank for the TDS deducted on the interest paid to me ( Rs.15,873) on FD under section 194A.
Now, my question is, should I show this entire amt of Rs.15,873 as my ‘income from other sources’ while filing my return ? If i do so, then i will have to pay more tax due to difference in the tax rate slabs (20% in this case) by the default tax calculation. But I think the TDS deducted by the bank is always @10% only on the amount of interest paid. If I ignore the interest income then there will be a refund for me. Please advise me how to go about it.
Yes, you have to include the bank interest under Income from other Sources and pay the additional tax.
my salary was shown in Part A of form 16 was 589661 which is matched with 26 AS generated by traces where is in pat b of form 16 gross salary salary was shown 585657 why the diffrerence of Rs. 4004/- while filling IT return which amount I should I take part or part B
Please use Part B for the purpose of filing tax return.
Sir, as an employer do we have to upload form 16 part b of the employees in any portal after filing 24q qtr 4? Or can we just manually prepared the part b n issue it to the employee?
Part A comes from the TRACES site after you file Form No 24Q (4th quarter). You have to prepare Part B yourself. Issue both Part A and Part B of Form 16 to your employees.
HI,
MY issue is in a same FY i have change job so i am having 2 Form 16. But if i see my last company Form 16A ,showing less amount paid thn Form 16B. Further investigation told me that difference is due to full final settlement amount paid later to me by ex employer was without tax deduction.
So, i need to pay taxes for that amount too showing as per FORM16 B issued by last employer. My query is where would i show this extra amount in my ITR form. Because ITR form default taking amount from FORM 16 A of both the companies.
Please help.
Your ITR should contain all the incomes you received during the year.
Hello Mr. Gautam,
Thanks for providing detailed information on various ITR queries. I have a query similar to the ones already asked. I have 2 Form 16’s. My query is based on the Form 16 from the first employer (where I worked for April/May/June 2016). The ‘Amount paid/credited’ in Part A is less than the ‘Gross Salary’ in Part B by more than 50%. So should I still go ahead with filing the returns as per Part B? What if the total gross salary credited to my account for these 3 months is equivalent to the Amount paid/credited in Part A?
This figure in Part A is only for Q1 where the tax deposited is in the month of May and June 2016. Thanks in advance.
So should I still go ahead with filing the returns as per Part B?
Ans: Yes, you should use the figure stated in Part B. I presume there is no mistake in the Form 16 issued to you.
What if the total gross salary credited to my account for these 3 months is equivalent to the Amount paid/credited in Part A?
Ans: Even then please go by Part B.
Hi, very good article. Have a few queries though
1. What I understand is we need to put income chargeable under heads salary in the income details tab from Part B. However the tax details tab automatically takes salary from Part A (including exemptions under section 10). Should we manually change the value in this tab to income chargeable under heads salary value so that both match or leave as is.
2. Secondly do we need to mention the exempted income uner section 10 like hra, lta etc in ITR1 anywhere to justify the gap between both the values. I could see a section exempt income for reporting purpose.
Would be grateful of you could respond soon.
1. What I understand is we need to put income chargeable under heads salary in the income details tab from Part B. However the tax details tab automatically takes salary from Part A (including exemptions under section 10). Should we manually change the value in this tab to income chargeable under heads salary value so that both match or leave as is.
Ans: You can change the figure to the Part B figure.
2. Secondly do we need to mention the exempted income uner section 10 like hra, lta etc in ITR1 anywhere to justify the gap between both the values. I could see a section exempt income for reporting purpose.
Ans: There is no need to mention details of exemption under Section 10. Wondering where (in return) to show the same even if one wants to show the exemption details.
Sir, In filing the return, I have entered salary (after U/s 10 deductions) in Income details Tab while the income in the TDS Tab was left at its default value (which is the amount credited shown in Form 16 Part A or 26AS) which is obviously higher. Do I need to rectify or file a revised return. Thanks
The entry you made under the TDS tab is correct. There is no need to file a revised return.
I have made an investment in LIC on 28th March 2017. Hence the invested amount was not captured in Form 16. So after I filled the IT return, I got a notice from IT dept(u/s 143(1)(a)) asking me to validate the difference amount(as the premium paid on 28th March are not captured in Form 16 but available in Return).
So I need the below information to validate the same.Can you please provide that–
1. TAN: ??
2. Deduction Made Under Section: ??
3. Amount Paid/Credited by Deductor : Available
4. Nature of the receipt as per the deductor: ??
5. Income/Gross receipt as per return: ??
6. Head of Income/Schedule under which reported in the return: ??
Can you please let me know with the information for ‘??’ fields only. At least the meaning of these.
Not sure how you expect us to answer these questions. These pertain to your tax return and Form 16 about which we have no information.
Thanks for the reply!!
Let me elaborate this a bit-
The investment(under 80C) made in 28th March (FY 2016-17) was not captured in Form 16. So I need to explain to IT Dept(u/s 143(a)(1)) regarding the differential amount mentioned in return, the differential amount is nothing but the investment made on 28th March.
So I need to validate the same with the below points.
1. TAN = [Tan of Organization/Employer]
2. Deduction Made Under Section = 80C
3. Amount Paid/Credited by Deductor = Amount Invested on 28th March
4. Nature of the receipt as per the deductor: ??
5. Income/Gross receipt as per return: ??
6. Head of Income/Schedule under which reported in the return: ??
So can you please let me know just the meaning of 4th, 5th and 6th items above, that will be helpful.
Hi, I have been struggling to find a solution and your discussion has made it clearer.
So in ITR 1 – Income Details Sheet – I fill the salary from part B – Income under salary (Salary after 80C and other deductions)
and TDS Sheet – I fill the income from section 192 of Form 26AS or the income from part A (The total paid by company which matches with 26AS)
Am I right Sir?
Please enter the income figure shown in Part B.
We have difference in section A and B due to section 10 deduction. I filed my itr using section b. But now I have received a mail from income tax department saying I need to as why there is difference in my itr in eproceeding section of income tax return site. How should I provide clarification?
If you have a good understanding of tax rules, you can figure out the difference yourself. Else, only your employer can give you the reason for the difference.
Total amount paid in Form 16A and Form26A is 9.5 lacs whereas Gross salary is 12.5 lacs in Form16B.
1. Does this mean that company has although paid salary of 12.5 lacs to its employee but not shown the same to Government?
2. In your responses, you suggest to consider amount shown in Form16B, but why then Government no where mentions to consider Form16B?
3. Government mentions only to consider Form26AS and Form16A to calculate tax, as this is the amount they consider to calculate tax.
Please help in understanding the correctness of above.
1. Does this mean that company has although paid salary of 12.5 lacs to its employee but not shown the same to Government?
And: Not necessarily. The company could have submitted the salary (Rs. 12.5 lakh) information to the government in its Form No 24Q filing.
2. In your responses, you suggest to consider amount shown in Form16B, but why then Government no where mentions to consider Form16B?
And: Part B is the form in which the salary info is likely to be complete and accurate as per tax rules. Hence I suggest Part B.
3. Government mentions only to consider Form26AS and Form16A to calculate tax, as this is the amount they consider to calculate tax.
Ans: Where does the government say this?
Dear Gautham,
One of friends form 16 part A has salary paid and TDS deducted only for Q2 & Q4. And the total
Amount is less than 60% of the part B figure.
His auditor advices that He may declare just the part A figure to reduce the tax burden as IT wouldn’t have access to part B of form 16. He is confused now.
What should he do? & and is it true that IT can’t access the part B of form 16 as traces has form26A for part A only?
Pls clarify
Please ask him to file his return as per Part B.
The IT department receives Part B information from the employer when they file a form called Form No 24Q.
Dear Sir,
I have a situation, in my Form 16 Part A the total amount paid/credited shows a very large value(Rs 6,30,505/-), and Part B shows Rs 3,49,632/- . and the my 26AS form which I downloaded from IT site, that is also showing the same Part A figure. Now my question is whether I have to pay tax upon 6,30,505/- or 3,49,632/-. Also I query about this with my employer and they simply say to not need to worry about the Part A section , just pay tax upon Part B figure.
Please suggest whether it’s true? One thing I need to mention here, there has been no tax deducted in Part A against Rs 6,30,505/-.
You should file your return as per Part B. However, you should be prepared to provide an explanation in case the tax department seeks information on the same.
Hi,
What is this category?
Head of Income/Schedule under which reported in the return?
Please give an example what is to be filled in this category?
Thanks & Regards
Siddhartha Banik
I am unable to understand your question. Can you please rephrase it?
I have a notification u/s 143(1)(a).
My form16 part A indicates 7 month salary only . ie Rs 315025/-only and paid tds Rs 24455/-(excess tax Rs 12200/-) and also not given to me form16 part B by my employer . My actual 12 month salary is 521016/-. When i e-filling I mention actual salary (521016/-) and show my 80c deduction 150000/- and also claim IT refund as per income Rs 12200/-
How to respond the notification u/s 143(1)(a). My form16 part A and 26AS Says the same as indicates 7 month salary only . ie Rs 315025/- and paid tds Rs 24455/-.
80C deductions all are govt salary deduction such as GPF 96000-, LIC 34750-, PLI 24240- There is no receipt. If i get form16 partB from my employer and upload to the response of the notification u/s 143(1)(a).
please suggest me.
What does the notice under 143(1) say? Do you have to pay any tax as per the notice?
Hi Gautham,
I have received intimation under section 143 (1) of income tax act for mismatch of taxable income in Form 26 AS and Form 16 for AY 2017-18.
Notice Says:
Income as per income tax Return 628222 (this is after section 10 Exemption)
Amount paid/credited as per Form 26AS 756263 (Gross shown in As26 for the month inn which tax deducted)
Error Descriprion
There is inconsistency between salary income in return and Form 26AS
Now what to do in this case. IT deptt is matching salary income as per AS26 and Part B.
You need to provide the explanation for the difference by logging into the incometaxindiaefiling site. For salaried employees, the difference would typically be on account of Section 10 heads and perquisites.
Of course, I am assuming that there is no mistake in the employee’s Form 16 or Form 26AS.
Hi,
if tax was not deducted in first 3 qtrs, gross was not reported in Annexure I.
In this case also there is a mimatch of Income. what reason we choose in such a case
Are you saying that Part A income is lesser than the income reported by the employee in his return on the basis of Form 16?
The notices are typically for cases where Part A income is higher than the income reported by the employee.
Hi Gautham,
I took 7 days of unpaid leave in April 2017. Amount equivalent to 7 day’s salary was also deducted from my April Salary.
However, while calculating TDS, the accountant considered the full salary [salary deducted for leave in April was not deducted from the gross income]. Therefore, excess TDS has been deducted and deposited.
Employer is yet to issue form 16. Although, I have intimated the same to the accountant I am not much hopeful.
What should I do? Can I claim refund while filing ITR?
You can get the refund if your employer submits the salary after loss of pay as the salary paid against your PAN in their last quarter Form 24Q filing. Else, there is no easy way of getting the refund.
My Employer has Given Part A and Part B
As per Part A Income Under Salary is 1036689 and Tax deducted was 49562.
While in Part B Total Gross Salary is 828086
In Sch TDS 1 pre-calculated figure 1036689 appears, Should I change it as per Part B given by employer or shall I contact my employer
Please change it as per Part B.
Gross salary # 100
Less sec 10 # 10
Less sec 80c # 10
Tax income #80
Tax #8
In this scenario 24q part I & II SHOWS 100 INCOME
RATHER THAN 80 and 100
Filling returns shows message INCOME less than 90%
Now what to do return filed with changing income by 80 from 100 or deductor need to revise returns????
Please use the salary figure in Part B of Form 16 for the purpose of filing tax return/
Hi
My annual salary is 9,60,000 plus Rs 1600 monthly transport allowance. Now my employer has issued me Form 16 with total payment of Rs 9,79,200, as credited to my account. While 26AS also has the same amount paid to me. My employer while filing 24Q annexure II, has also mentioned net taxable salary paid to me Rs 9,60,000. There is no coloumn in 24Q annexure II to report non-taxable allowance.
Therefore my taxable salary total is Rs 9,60,000. But while importing 26AS data into ITR 1, it is taking the taxable salary paid as Rs 9,79,200, automatically on income tax website.
But, my taxable salary is only Rs 9,60,000; which I should be filing in ITR 1. My concern is, will I get a IT notice / order for demand for mismatch or showing less income?
I presume that the salary figure in Part B of Form 16 is Rs 960,000. Please file your return stating that your taxable salary is Rs 960,000. If you receive a notice seeking explanation for the difference, you can state that the difference is on account of the transport allowance.
There is no mistake in what you have described and hence you have no additional tax liability.
Sir I got that 90%alert message while filing. I know some clerical mistake has done by our tds filing consultants… Its not my dept mistake , the amount shown in part B is the correct amount…. But I am unable to click OK on the alert msg. Actually the alert msg I got is not as like ur blog is showing. Now what can I do?
I presume you are saying that your employer has filed the TDS return incorrectly. Please ask your employer to refile their TDS return with the correct numbers. Else, the amount shown in Part B may not match with that in the TDS return and consequently you may not be able to file your return with ease.
Hi Sir,
While filling ITR1, I am getting below message “since the amount disclosed in income chargeable under head salaries is less than 90% of salary reported in tds. Please ensure to fill details in others in exempt income ” and i am unable to proceed further.
This difference is due to Sec 10 deductions i.e. HRA & Conveyance allowances.
Please guide me how can i proceed in filing ITR?
You need to know the exempt income details for filling in the ITR. Please check with your employer on this.
Respected gautham sir,
My case is that i am a govt employee… My salery show in form 16A is 489965 and in part-“b it shows 525000. So according to you i should consider form 16-b for itr.
Even my all 4 quarter TDS deducted and show in 16A. Dont know how this difference create. According to me
1.as i am taking TA(travel allowance)
2. Medical facilities ( are these medical bill amounts add in my salary??)
3. NPS contribution by govt is added in my gross salary??
… Pls explain my doubts and clarify various possibilities of differences in salary….. Waiting for ur reply eagerly sir… Have to fill itr soon..
I do not understand your question. Kindly rephrase it.
I cannot guess the reason for the difference between the salary amounts in Part A and B of your Form 16. The exact reason can be provided only by your employer.
Sir, shall I edit the column” Income under Salary” sch TDS 1 in tax details tab? because part A tax paid/ credited amount is higher than the part B gross salary. I received that 90 % alert msg.
Yes, you should.
Respected sir,
Can we take rebate of amount submitted by employer in my NPS account.
No, you cannot. I presume you are talking about employer contribution to NPS.
Sir then why their is an option in itr form under section 80ccd( contributions to central government pension scheme by employer)
This should be filled in only if the employer contribution to NPS is shown in the salary figure. If the employer contribution to NPS is not shown as part of salary, an employee cannot claim 80CCD(2) benefit alone since the payment was made by the employer.
Sir, if I edit the column ” Income under Salary” sch TDS 1 in tax details tab as per part B gross salary means notice under 143 will be issued ?
Not necessarily. However, if the Income Tax Department seeks explanation on the difference in salary amounts between Part A and Part B, you can login to your account on the income tax efiling site and provide the explanation.
Dear Sir,
1). In the ITR-1, on Tax Details page and Sch-TDS 1 amount in “Income Chargeable Under Salaries” = “Total Amount Paid/Credited” in Form-16 Part A.
While in Form-16, Part B the “Income Chargeable Under the Head Salaries” in is less. Should I change amount in ITR-1 to this amount?
2). ITR-1 has provision to show exempted income u/s 10(5) LTC, 10(13A) HRA, 10(4)ii Transport Allowance. How to show Medical Exemption Rs. 15,000.00 in ITR-1?
1). In the ITR-1, on Tax Details page and Sch-TDS 1 amount in “Income Chargeable Under Salaries” = “Total Amount Paid/Credited” in Form-16 Part A.
While in Form-16, Part B the “Income Chargeable Under the Head Salaries” in is less. Should I change amount in ITR-1 to this amount?
Ans: Yes, you should.
2). ITR-1 has provision to show exempted income u/s 10(5) LTC, 10(13A) HRA, 10(4)ii Transport Allowance. How to show Medical Exemption Rs. 15,000.00 in ITR-1?
Ans: There is no provision to show medical reimbursement in the ITR.
Sir, FORM-16 issued by employer for FY 2017 -18 shows higher amount of salary paid and higher tax in PART-A than Part B.
Part-A salary and Form 26AS match perfectly.,
How I should file my return.
Please through some light.
Emploeyr does not respond to my request for rectification.
NR BHATT
Please use the salary amount in Part B of Form 16 for the purpose of filing your return.
Sir,
As per Form 16 Part A “Amount paid/credited” was way less than the net salary actually received as per bank statement and the amount reflected in Part B.
In current year also same difference is observed.
However while filing return online and using the data as per 26AS in pull mode the amount paid /credited reflected in Form16 Part A is captured which is too less than actual amount received as per bank statement.
Kimdly confirm which is the amount to be considered as Income from Salary?
Please use the salary amount stated in Part B of your Form 16 for the purpose of ITR filing.
Hi,
I worked in an MNC’s one office from April 2017 till Nov 2017 and then got transferred to other office of same company and worked from Dec’17 till Mar’2018.
Both offices of the MNC had different TAN, so got two different deductions.
My company takes pre-estimated investment details. So they took details in Apr’17 and booked 1.5 lakh exemption from the total salary and deducted tax every month.
While two different Form A gives the amount paid from different TAN.
But company consolidated and gave me one Form B.
Now the Form 16 A gives ‘x’ amount from TAN 1 and ‘y’ amount credited from TAN 2.
But Form B, shows income under head salaries as (x+y+1.5 lakhs)
As the form B doesn’t have separate income chargable under salaries, in ITR 1 TDS section, I need to enter both TAN details with tax deducted and income chargable under salaries.
Now how to enter the ‘income under salaries’ separately for both TANs, as Form A amount credited (x+y) is 1.5 lakhs less than Form 16 B income under head salaries combined figure.
Please help.
Ideally, your employer should have issued two Part B statements (for the 2 TANs). You can figure out the break-up yourself on the basis of your payslips if you have some knowledge of the structure of Part B. Else, please ask your employer to issue 2 Part B statements.
The amount paid to me shown in my Form 16 A is less than shown in Form 16 B. The TDS amounts however match. The amount paid shown in 26AS agrees with that in Form 16A. I know that the amount I actually received matches that in Form 16 B, and so I filed my return on the basis of 16 B (not 26 AS). Will that lead to any problem?
It will not lead to any problem. You have done the correct thing by filing your return on the basis of the salary figures shown in your Form 16 Part B.
Thanks for your prompt reply.
While filing form 24Q of the company one employee got the salary in earlier 3 quarters and hence accordingly TDS was also deducted. However in last quarter his salary became negative and which made the entire salary as zero. now part A and part B of employee is not matching. When I try to rectify the return of earlier quarters and trying to make salary zero the error comes as “Amount paid can’t be less than Tax Deducted”. How to go for rectifying this error
Why did the employee’s salary become negative in the last quarter? Also, did you include the employee record in annexure II of Form 24Q pertaining to last quarter?
My employer has mentioned 13 month salary in form 16 by including April-18 and March-19 salary. But I have paid tax by including April-18 last year on the basis of bank statement. So can I filled tax return on the basis of bank statement this year also.
No, you should file the return as per the Form 16.
Hi Gautham,
My exit from my previous organization was in Jan’19, by then they paid me 4.5 lac as salary with a TDS of Rs. 3500 (as seen in my form 26AS). They paid an additional sum of Rs. 1.5 lac to me in April as my f&f with TDS of Rs. 19000
(Total salary from my 1st organization for FY18-19 was 6 lac & total TDS was Rs. 22500)
But, TDS of Rs. 19k is not reflecting in my form 26AS (though tax slip and salary slip of feb and march’19 has entries of this tds), after pointing this out to my previous employer, they told me that as f&F payment was made in Apr’19, same will reflect in my 26AS of next assessment year
Problem is that in form 16 part A they have only mentioned Q1 Q2 Q3 with payment of 4.5 lac and TDS of 3.5k and in part b my total salary is 6 lac which includes my f&f paid in Apr’19
Pls suggest
A). Should I claim TDS of Rs. 19k in this assessment year which my employer will submit and will reflect soon in 26AS but for next assessment year
B) if i will not show this TDS in this year then I will hv to claim it in next assessment year, wherein my form 26AS will show payment of Rs. 1.5 lac but I am already showing this amount as my income in this fy as per my form 16
Your previous employer has made a mistake by including the amount of Rs 1.5 lakh in the Part B sheet.
A). Should I claim TDS of Rs. 19k in this assessment year which my employer will submit and will reflect soon in 26AS but for next assessment year
Ans: No, you cannot. You can claim the TDS of Rs 19K only in the assessment year in which your employer makes the submission.
B) if i will not show this TDS in this year then I will hv to claim it in next assessment year, wherein my form 26AS will show payment of Rs. 1.5 lac but I am already showing this amount as my income in this fy as per my form 16
Ans: Since the TDS pertaining to RS 1.5 lakh (Rs 19,000) will be shown in the next year’s Form 16, the department may ask you to pay the tax pertaining to Rs 1.5 lakh if you file your return after including Rs 1.5 lakh.
Please ask your employer to issue a fresh Form 16 Part B to you (after refiling Form 24Q for the last quarter) after excluding Rs 1.5 lakh from the Part B sheet.
Sir, in my Form 16 for the FY 2019-20, the employer has reported same salary amount in Part A and Part B. But during the first quarter no tax was deducted, so the employer has reported the salary of only 11 months to the IT department. Ideally the salary of 12 months should have been there in Part-B.
What should I do now. Thanks.
Please seek an explanation from your employer.
Hi Gautam,
I have a situation. So my employer deducted a total of ₹62,729/- as TDS for F.Y 19-20. This is the exact amount which reflects on form 16 part A and Traces 26AS. However, in form 16 part B they have shown tax deducted at source as ₹30100/- only.
Should I ask my employer to rectify form B or just file a return and get a refund?
Please ask your employer to rectify and reissue Part B.