MANAGEMENT

Detailed explanation-1: -Form 16 contains the information needed to prepare and file your income tax return. It shows the breakup of salary income and the TDS amount deducted by the employer.

Detailed explanation-2: -IRS Form W-2, also known as a “Wage and Tax Statement, ” reports an employee’s income from the prior year and how much tax the employer withheld. Employers send employees a Form W-2 in January (a copy also goes to the IRS). Employees use Form W-2 to prepare their tax returns.

Detailed explanation-3: -The W-4 form tells the employer the amount of tax to withhold from an employee’s paycheck based on their marital status, number of allowances and dependents, and other factors. The W-4 is also called an Employee’s Withholding Allowance Certificate. 1

Detailed explanation-4: -If you are subject to local, city, or other state income taxes, those wages will be reported in box 18, and your withholding will be noted in box 19. Box 20 will indicate the name of the local, city, or other state tax reported in box 19.