Form 16 Background Verification - RCSL

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.

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.

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.

 

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.

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.