Riddhi Corporate Services Limited
Form 16
Background Verification Services - RCSL
www.riddhicorporate.co.in
Slides 01
A Form 16 Background Verification is an
essential part of any business' hiring process.
It can help companies verify the accuracy of the
information that a candidate provides about their
previous compensation since it contains all
salary transactions, including tax deductions.
You can therefore determine their new salaries
and incentives for when they start working for
you based on the information provided on Form
16 verification.
Slides 02
About Form 16
A TDS certificate, also known as Form 16, is
issued by employers to their employees in order
to certify that they have deducted TDS from their
salaries, which stands for Tax Deducted at
Source.
Employers must issue Form 16 to their
employees at the end of every Financial year. It
contains both the employee's salary and tax
deductions.
Form 16 is also known as salary certificate.
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What is Form 16?
Form 16 includes two parts, i.e. Part A, followed by Part B.
There is part A of the document containing the employee's PAN
and the employer's TAN.
It also contains other necessary information like the names and
addresses of both parties, as well as the length of the employee's
employment under the employer and the year of assessment.
The assessment year for any financial year is the following
financial year. For example, the assessment year for 2018-2019
will be 2019-2020. Apart from these details, Part A includes the
summary and monthly details of TDS deducted and deposited by
the employer to the government.
On the other side, For the financial year, part B contains the
employee's combined salary details. This form includes
information regarding a person's salary breakdown, as well as
information about any tax deductions he or she claims under
Section 80 of the Indian Income Tax Act.
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Why is Form 16 Verification Important?
Companies that deduct taxes from employees at source are legally required to issue
Form 16s under the Income Tax Act.
Employees rely on this document to prepare their income tax returns, making it one of
their most important tax documents Form 16 verification can help you make sure that
any candidate does not lie about the details of their past settlement.
In the case of a valid Form 16 verification, you can determine a candidate's salary if the
report shows their claims are credible.
Form 16 verification is even more reliable when combined with a credit check. Besides
ensuring that the candidate gave honest information regarding their previous salary,
checking their credit report is also a good way to confirm their fiscal responsibility.
Details Like the name of the individual, former employers, and amount of TDS deducted
can be provided using form 16 Verification.
Slides 05
Here are the details that can be provided using Form 16 verification:
• Name of the individual
Using Form 16 verification, you can verify the candidate's
name as it will appear in their associated PAN.
• Former employers
Using Form 16 verification, You can also see all former
employers of a candidate
• Amount of TDS deducted
A Form 16 verification lets you know just how much amount
was deducted as TDS for a candidate.
At RCSL, we can run Form 16 verification process for you.
Slides 06
Riddhi Corporate Services Limited
Thank You…
Source Link:
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orm-16-background-verification.html
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