During the hiring process, every company must conduct a Form 16 Background Verification. The document contains all salary transactions, including tax deductions, which will allow companies to verify the information that candidates provide about their previous compensation.
Form 16 Background Verification Services
Riddhi Corporate Services
Limited
FBackgroound Verifircationm Services - RCSL
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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.
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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 IndSialind es
Income Tax Act. 04
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.
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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.
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Riddhi Corporate Services Limited
Thank You…
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