What is Form 16?
Form 16 is a tax document you receive from your employer every year. It provides details of the taxes deducted from your salary throughout the financial year.
This form provides a breakdown of your income details and the tax deducted at source (TDS) by your employer. It has everything you need to file your income tax return (ITR) accurately.
The form is divided into two parts: Part A and Part B.
To know more about part A and B, please check our document "What is Part A and Part B of form 16" by clicking here
The first step is to switch to the previous financial year in the application.
The path to switch the Financial Year.
Transactions à Utilities à Manage Financial Year à Configure à Switch Financial Year.
Select the Financial year
Click “Switch”.
You can also switch the financial year by clicking on the “My Account” icon and clicking “Change Financial Year”.
Select the Financial year
Click “Switch”.
The Dashboard will reflect the changed Financial Year.
Form 16 process
On the home page click “Compliance”.
Click “Income Tax”.
Scroll down to “Reports” and click “Manage Form 16”.
You need to use PayMSign, which is a tool developed by Paybooks to merge and sign Form 16 digitally.
To download the PayMSign you need to click on Click here.
The PayMSign will be downloaded onto your system.
Install the software on your system.
Open PaymSign.
The three tabs that will be displayed are “ Help, Merge, and Sign”.
Help:
In the Help tab, you can find information on merging Form 16 Part A and Part B as well as digital signatures.
Merge :
Here you can merge Part A and Part B of Form 16 along with Form 12BA.
Form 12 BA can be generated by navigating to
Compliance à Income Tax à Reports à Generate Annexure
You have to download Form16 Part A and Part B from your TRACES Login and save the files into a folder.
Click “Browse” and select Part A
Click “Browse” and select Part B
Click “Browse” and select Form12BA
Click “Browse” and select the folder where the merged files have to be saved
Click “Merge files”.
The merged files will be saved into the folder selected.
The system will create a maximum of 7 subfolders as shown below
After Merging the files Click “Sign”.
Click “Browse “ and select the saved merged files.
Select the specific folder where the signed Form 16 has to be saved
You have the option to select which page you would like the digital signature to be displayed.
Click the drop-down option. You have 6 options to choose from.
Enable the password protection option if required. By default, the PAN in upper case is used as a password.
Click “Sign”.
After completing the digital signature, we need to upload it to the Paybooks ESS application so that the employees can access the same.
To upload the same you need to go to
Complianceà Income taxà Reports à Manage Form 16
To upload employee-wise, you need to enter the emp code/name
Select the employee.
Choose the employee file
Click “Upload.”
To upload the multiple employees choose the zip file and click “Upload”.
The employee can download the Form 16 from ESS.
Login to ESS
On the home page click “Tax Planning”.
The Form 16 option will be displayed.
Click the download arrow next to it to download the Form 16.
Employees can also view under:
My Reports
